Created

Oct 3, 2024 10:32 AM

What is Visual Management

Visual Management uses visual mechanisms to communicate information.

Type	Purpose
Visual Boards	Create Transparency, understanding, define countermeasures, promote learning
Visual Controls	Guide Action of Staff members and Leadership

Daily Management (DM)

Daily Management Is	Daily Management Is Not
Team-based	A place to drive long term initiatives or improvements
Visual	Reading the News
Regular cadence	Coaching Session
Most critical & actionable metrics to drive improvements	Long discussions forum
Place to initiate problem solving and actions with urgency	Root cause analysis

What determines Successful Daily Mgmt. (DM) execution?

Evaluate current Performance

What is the problem?
What is the reason?
Which actions need to be taken?
Who must act?

The entire team needs to adjust and improve continuously

Why is DM critical?

Improves process quality.
Targets the entire team.
Allows to quickly spot the problems.
Helps to meet customer demands.
Ensures focus and alignment.
Safeguards transparency of decision-making process.
Ensures that our foundation stays strong.

DM is integrated throughout all Levels of the organisation

DM is an essential part of a management system at every Level.
Daily Management with the right KPI’s “Keeps the train running”, whilst the Breakthrough initiatives coming from the Strategy deployment process (SDP) help “ invent new modes of transport”
DM involves the Front-Line associates all the way to Top Management, through its tiered structure.
Kaizen Events link both the SDP initiatives and countermeasures for issues arising from the daily management system. The initiation of a Kaizen event can come from either element.

3 Key elements of Daily Managment

Understand in 3 Seconds: Are we winning or Losing?
What is the Trend?
Do we have Countermeasures?

Implementing a DM System requires coordinated Action at all levels

Plan Steps

Prepare:

Perform:

Get Leadership on Board

Decide on critical metrics

Define a regular cadence

Identify desired behaviors to drive

Setup your visual management strategy

Establish problem-solving process

Figure out customer need

Install a process at point of impact

Create current state process

Install Tier Layers

Plan Phase:

GET MANAGEMENT COMMITMENT

Make sure that you stay in line with management objectives.
Gather support in terms of resources and time.
Always try to reach at least one level up.

DETERMINE DESIRED BEHAVIORS

Red is Good!
Don’t shoot the messenger! Try storming!!
Don’t let perfect get in the way of better!

UNDERSTAND CUSTOMER NEEDS

Is my customer internal or external?
What is important to my customer?
Does my customer have any pain points?
How can I eliminate pain and drive customer satisfaction?

IDENTIFY THE CURRENT STATE PROCESS

How is your department currently functioning?
What does your value stream or process flow map look like?
What are the key process steps?
What are your responsibilities?
What are your main goals?

AVOIDING PLANING PITFALLS

Here are some common pitfalls to avoid:

#	Main Risk Points	Countermeasures	Do’s
1	Management is not involved	Use different communication channels and try to build consensus	Determine peer groups in other functions or departments
2	Change is only at management, but not at associate level	Involve right people when designing the process	Review targets documentation
3	Improvement of metrics does not affect customer and its satisfaction	Always review your actions and performance from customer’s viewpoint	Go to Gemba and study the process again by observing. Re-visit the KPI’s every 6 month or so.
4	Loss of focus due to overuse of different metrics and KPIs	Concentrate on tracking leading performance indicators which point to continuous improvement	Link to ensure activity of Problem-Solving Process
5	lack of ownership of meeting/board	Always ensure the Owner of the Board / meeting is clearly defined.	pick small manageable sized areas (bite sized)

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Exercise JIT Bakery Part 1

PLAN - Key Take aways:

Get management on board.
Determine which behaviors you want to drive.
Have very good understanding of customer needs.
Determine and map current state of the process.
Ensure that your scope is rational and customer-oriented.

Prepare Phase

Choosing your Metrics:

What is the nature of your current KPIs?

Leading
Lagging

Which metrics have the main impact on your customers?
What are your supervisor’s expectations for measuring and reporting?

Good KPI’s are

Are customer-focused.
Reflect the main goals and scope of the process.
Are simple and repeatable.
Show progress towards goals.
Call for action → Problem Solving.

LEADING VS. LAGGING Targerts-to-Imptove (TTI’s)

Leading	Lagging
Predictive activities that lead to your lagging TTI	Something has happened that can't be undone - The result (lagging)

What is on the DM Boards

What happened yesterday?
Can learn from it but not change.

Do I have any alerts (Safety, Quality issues)?
Will I reach my target on time (Delivery)?
Do I have enough fuel (Material) to reach my target?
How much fuel in average am I consuming (cost)?

Where should we measure?

Seek out decision points/steps as potential leading indicators /KPI’s, as opposed to only measuring at the end.

Daily manamagement Formats:

Project Tollgates / Milesontes
Processes
Project Funnels
Dashboards (i.e. sales)

+QDIP Format

“Performance Overview in 3 Seconds”

Problem solving:

Problem Statement
Root Cause
Countermeasures
Sustainment

Drive urgency and accountability on daily issues

Drive ownership to the point of impact.

Are we winning or losing?

Standards

Red: Missed goal
Green: Met goal
Every metric has an Owner

Define the problem

Best Practices:

Goal line is dashed blue line
Red or green daily
Post current score with high visibility

Investigate and drive root cause

Assign reason codes that lead to meaningful Pareto's

Identify the codes that create the most problems and thus have the greatest impact when solved.

Consider the different levels of problems.

Level of Problem	Indicators	Tools	Structure of the Problem	Level in Organization
😱 Complex	•How many ways can a problem be addressed? •What kind of thinking, action or knowledge must be demonstrated?	•Problem Solving •Problem Solving Sheet	Ill Structured	Top mgmt
😥 Difficult	•How many people can address a problem? •How much effort is needed?	•A3 •Ishikawa	middle	middle
😏 Simple	•Obvious root cause visible •Quick fix	•Brainstorming	well-structured	Front line

Drive urgency with action plan

In urgent cases you should react ASAP!

Use this form to:

Create sense of urgency
Drive accountability
Track progress

New actions can only be assigned to people who are present at meetings.

Owner of the action should always be a single person – Not titles or departments.

Every action has a due date.

~~PROCESS AT GEMBA~~

Choose location

For Daily Management gemba is the best

Choose timing

Daily Managements means (mostly) Daily Basis
The timing should allow to take immediate actions when needed

Set up Daily Management Board(s)
Explain the participants goals and expectations

INSTALL TIER LEVELS

Both Stage and Business improvments should be considered when setting up the tiers.

Participants must be selected wisely based on the local setup.

Align Metrics between Tiers

Prepare Pitfalls to Avoid

#	Main Risk Points	Countermeasures	Do’s
1	Having too many KPIs	Use only critical ones	Analyze other Daily Management boards
2	The Daily Management Board is too complicated and overloaded	Peer leaders can help to review board for clarity and ease of use	Keep the Daily Management board as close to Gemba, as possible
3	Adjusting or replacing standard process without bringing value added	Every team member should be able to explain the board at any time	Do not expect everyone to be there every time
4	Cancelling meetings	Meeting should always take place	Be able to answer the question Will we win today?
5	Reading the News	Make sure targets are leading

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Exercise 2 Prepare JIT Bakery

PREPARE - Key Take aways:

Focus on the most important KPIs.
Choose right Visual Management tools.
Place DM Board at or near the Gemba.

Performance

Daily Management horizon

Week / Month
Day / Day +1 / Week
Hour by Hour/ Day / Day +1
Hour by Hour / Day

DM meetings: Regular vs problem solving

No Problem Solving Sessions in DM Meeting

	Regular cadence (daily or weekly)	Problem solving meetings
Time	Standard time	Standard time
Agenda	Tight: 10 to 15 min.	In-depth
Attendees	Managers and Associates Back-ups in place to take over ownership	Depending on the objective
Emphasis	Misses and the reasons Temporary urgent actions that need to be taken Escalation of issues, if needed	Systemic problems Pareto the reasons Deep dive team analysis of the most critical ones Development of sustainable countermeasures Posting problem solving documentation at the board

DAILY MANAGEMENT CHECKLIST

Win/Loss – Immediately visible
Goal, current state, gap, trend
Countermeasures (continuous improvement)
No finger pointing
Entire team involvement
Focus on critical KPIs
Regular cadence

💡

Regularly revise your DM Boards

CONTINUOUS IMPROVEMENT WITH DAILY MANAGEMENT

DM implementation follows continuous improvement on the PDCA wheel.

You must schedule time to understand the impact of Daily Management on your team performance:

Are you on track?
Are behaviours changing as planned?
Does your customer feel any improvement?

DM LEADERSHIP CHECKLIST

Bring in the “winning team” spirit.

Everyone should feel safe to reveal problems and involve associates when needed.
Leaders should be present and constantly involved.
Create and maintain a sense of urgency.
Create a continuously developing environment where team members are willing to learn and receive feedback.
Drive accountability.
Make sure the team understands everything by asking questions.
Personal meetings are important.
Delegate ownership wisely.
Team should document all the follow-up actions.

Change Management is critical to Daily Management implementation

Perform Pitfalls to Avoid

#	Main Risk Points	Countermeasures	Do’s
1	Having meetings once a week is not enough	Post meeting cadence and action owners on the board	Attend other Daily Management meetings
2	Data is being updated during the meeting	Post Problem Solving results, extensive discussions can take place after the meeting	Use Problem Solving language
3	Meetings take longer than 15 minutes	Keep it short, simple and always focused	Separate between problem solving and daily meeting
4	Meetings take place only if supervisor is there	Delegate responsibility sustain associate engagement	Set new targets and priority areas to move forward
5	Too many meetings	Target with Tiered accountability is to decentralize and take decisions fast	Remove duplications

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Exercise 3 Apply Perform to JIT Bakery

Perform Key Takeaways

Make sure the cadence is appropriate and consistent.
Problem Solving should be supported by DM.
Use DM checklist.
Make sure that you address DM challenges.

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