Visual management controls systems techniques

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Visual management controls systems techniques

  1. 1. 1VISUAL MANAGEMENTSYSTEMS TECHNIQUES
  2. 2. 2Visual Management Is... A system of visual controls that are used tomaintain an organized, clean, high-performance workplace Management tool that invites all to participate
  3. 3. 3Visual Management System Provides visual trend of progress againstgoals & objectives Identifies opportunities for improvement &correction
  4. 4. 4The Manager’s RolePDCAInvolvementFlexible, motivated employeescontinually seekinga better wayJidokaImmediatelyrespond toAbnormalitiesPreventRecurrence toAchieveZero DefectsCustomer FocusedJITJust What isneededJust the amountNeededJust WhenNeededviaFlowTaktPullFoundationDisciplined predictable processes relentlesslyimproved through destruction of wasteInvolvementFlexible, motivated employeescontinually seekinga better wayJidokaImmediatelyrespond toAbnormalitiesPreventRecurrence toAchieveZero DefectsCustomer FocusedJITJust What isneededJust the amountNeededJust WhenNeededviaFlowTaktPullFoundationDisciplined predictable processes relentlesslyimproved through destruction of waste
  5. 5. 5Manager’s / Leader’s Job in the KOS World1. Manage Flow2. Eliminate waste3. Teach others to see
  6. 6. 6PDCAAnnual Plan bydepartmentMilestonesItems5 year rollingplan and vision- Hoshin.1 PLAN2 DO the PLAN.MilestonesItemsX3All data shown visually, plus A3 report format.MilestonesItems4 ACTIONChange the plan.CHECK the progress.PDCA
  7. 7. 7So, for our business, whatare the critical metrics?
  8. 8. 8QCDSM Activities Identify measures for the specific area relatedto the overall business objectives> Quality, Cost, Delivery, Safety, Morale(People) Create a performance board for the area Create a feedback system to ensure action istaken to solve problems, improve the processand evaluate the result
  9. 9. 9Characteristics of Useful Performance Measures Visual Understood by all Includes an improvement target Can be tracked and maintained by theaffected department Reviewed daily and acted upon
  10. 10. 10Examples of the Key Business Metrics1. Quality – KPIR’s2. Customer Loyalty3. Customer Service4. Inventory ($$$ with coinciding DSI measure)5. Costs6. Effective headcount (includes O/T) with strongemphasis on Employee Development andSuccession Planning7. Revenue Market Share8. Growth9. Return on Sales10. Etc.
  11. 11. 11Quality Measures Defects• Bad transaction• Input error (keying error) Right First Time• Incomplete information• Inaccurate information Customer feedback• Positive or negative Service calls / help desk#1
  12. 12. 12Cost Measures Overtime per day Productivity• Transactions completed per employee• Number of call per employee Cost per transaction (quality & productivity) Premium change services (FedEx, fax, etc.)
  13. 13. 13Delivery Measures Response time (calls)• Missed calls & hang-ups• Total backlog (input vs. output) Late delivery / on-time performance System downtime
  14. 14. 14Ergonomic & Safety Measures Record injury incident days (safety cross) Identify & eliminate hazards Identify & eliminate ergonomic problems Identify & eliminate accident locations Perform 5S audit
  15. 15. 15Morale Measures “Presenteeism” (vs. Absenteeism) Employee suggestions received /implemented Employee turnover / attrition Skills matrix Employee recognition
  16. 16. 16DASHBOARD What’s Happening Right Now! Not What happened Yesterday or last week! Car Dashboard> Speed> Fuel level> RPM> Radio Station> Warning Lights
  17. 17. 17DASHBOARD Kodak Dashboard> Used in morning market meeting> Located in area> Easier to understand current situation• Green – will meet today’s plan• Yellow – still running now, will not meet today’s plan• Red – Shutdown• Documented Root Cause & Countermeasures for Yellowor Red conditions> Updated throughout the day as required
  18. 18. 18Dashboard Also Included Data Required to Run Area> Cost> Quality> Delivery> Inventory> Cycle Time
  19. 19. 19Whiteboard DASHBOARD
  20. 20. 20Sample DashboardCustomer Complaints#/M orders??????????YE 2004 GoalCurrent Month InventoryMMMYE 2003 ActMix vs AOPVolume vs 2004 AOP0J A J OA OPA ct ualC urrent Est imat eOrders vs 2004 AOP0200400600800100012001400J A J OA OPA ct ualC urrent Est imat e45%15%30%0% 60%38.0%Goal34.7%Cost$0.00$1.00$2.00Total Variable PUD OtherFixed2003 Actual Jan. Actual AOPJan 0327.7%YE 2004 GoalYE 2003 Act
  21. 21. 21Morning Market & Dashboard•8:00 am today:•You ran a Morning Market Meeting using aDashboard
  22. 22. 22What performancemeasures do you use?

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