Tag: Process control

Managing Visually – A word from Daniel T. Jones

Visual Management is certainly one of the characteristic traits that sets lean organizations apart from all others. The success of Visual Management is predicated on relevant and current data. To be effective, Visual Management must be embraced and utilized by leadership, management, and employees throughout the organization.

I also believe that “Knowledge is Power and Wisdom is Sharing it.”  For this reason I highly respect those who are bold enough to put their thoughts in writing for the rest of the world to see.  Daniel T. Jones, author of a number of books on lean (Lean Thinking) and Chairman of the Lean Enterprise Academy, is one of those people.

A few days ago, I received this e-mail from Daniel where he presents his thoughts on managing visually.

Dear Redge,

Learning to See is the starting point for Learning to Act. By making the facts of any situation clearly visible it is much easier to build agreement on what needs to be done, to create the commitment to doing it and to maintain the focus on sustaining it over time.

However what makes visualisation really powerful is that it changes behaviour and significantly improves the effectiveness of working together to make things happen. It changes the perspective from silo thinking and blaming others to focusing on the problem or process and it generates a much higher level of engagement and team-working. This can be seen at many levels on the lean journey. Here is my list, but I am sure you can think of many more.

Standardized work defined by the team as the best way of performing a task makes the work visible, makes the need for training to achieve it visible and establishes a baseline for improvement. Likewise standardized management makes regular visits to the shop floor visible to audit procedures, to review progress and to take away issues to be resolved at a higher level.

Process Control Boards recording the planned actions and what is actually being achieved on a frequent cadence make deviations from the plan visible, so teams can respond quickly to get back on plan and record what problems are occurring and why for later analysis.

Value Stream Maps make the end-to-end process visible so everyone understands the implications of what they do for the rest of the value creation process and so improvement efforts can be focused on making the value stream flow in a levelled fashion in line with demand.

Control Rooms or Hubs bringing together information from dispersed Progress Control Boards makes the synchronisation of activities visible along the value stream, defines the rate of demand for supporting value streams, triggers the need to escalate issues and to analyse the root causes of persistent problems.

A3 Reports make the thought process visible from the dialogue between senior managers and the author or team, whether they are solving problems, making a proposal or developing and reviewing a plan of action.

Strategy Deployment makes the choices visible in prioritising activities, deselecting others and conducting the catch-ball dialogue to turn high level goals into actions further down the organisation.

Finally the Oobeya Room (Japanese for “big room”) makes working together visiblein a project environment. So far it has been used for managing new product development and engineering projects. However organisations like Boeing are realising how powerful it can be in managing projects in the Executive Office (see thepresentation and the podcast by Sharon Tanner).

The Oobeya Room is in my view the key to making all this visualisation effective. It brings together all of the above to define the objectives, to choose the vital few metrics, to plan and frequently review the progress and delays of concurrent work-streams, to decide which issues need escalating to the next level up and to capture the learning for the next project (see the  Discussion Paperpresentation and podcastby Takashi Tanaka).

But more importantly it creates the context in which decisions are based on the facts and recorded on the wall, avoiding fudged decisions and prevarication. It also ensures that resource constraints and win-lose situations that can arise between Departments are addressed and resolved so they do not slow the project down.

Reviewing progress and delays on a daily or weekly basis rather than waiting for less frequent gate review meetings leads to much quicker problem solving. Because these stand-up meetings only need to address the deviations from the plan and what to do about them they also make much better use of management time.

In short the Oobeya Room brings all the elements of lean management together. Taken to an extreme visual management can of course itself become a curse. I have seen whole walls wallpapered with often out-of-date information that is not actively being used in day-to-day decision making.  Learning how to focus attention on just the right information to make the right decisions in the right way is the way to unlock the real power of visualisation and team-working in the Oobeya Room.

Yours sincerely
Daniel T Jones
Chairman, Lean Enterprise Academy

P.S. Those who joined us at our Lean Summit last November got a first taste of the power of the Oobeya Room from Sharon Tanner and Takashi Tanaka. For those eager to learn more they will be giving our first hands-on one-day Lean Executive Masterclass on 27 June in Birmingham, and a private session for executive teams on 28 June. There are only 56 places are available on each day so book your place NOW to avoid disappointment – Click Here to download the booking form.

P.P.S. We have also annouced new dates for our Small Group Coaching Sessionshere at our offices near Ross-on-Wye. We will be running Managing a Lean Transformation on Wednesday, 22nd June 2011Mapping your Value Streams on Thursday, 23rd June 2011 and A3 Thinking on Friday, 24th June 2011 all run by our senior faculty member Dave Brunt. Only 12 places available on each day.

Although the above list was not intended to be all inclusive, I find interesting to note that 5S is not discussed. Do you have visual management tools of your own that could be added to this list?

Until Next Time – STAY lean!
Vergence Analytics
Twitter: @Versalytics
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OEE: The Means to an End – Differentiation Where It Matters Most

A pit stop at the Autrodomo Nazionale of Monza...
Image via Wikipedia

Does your organization focus on results or the means to achieve them?  Do you know when you’re having a good day?  Are your processes improving?

The reality is that too many opportunities are missed by simply focusing on results alone.  As we have discussed in many of our posts on problem solving and continuous improvement, the actions you take now will determine the results you achieve today and in the future. Focus on the means of making the product and the results are sure to follow.

Does it not make sense to measure the progress of actions and events in real-time that will affect the end result? Would it not make more sense to monitor our processes similar to the way we use Statistical Process Control techniques to measure current quality levels?  Is it possible to establish certain “conditions” that are indicative of success or failure at prescribed intervals as opposed to waiting for the run to finish?

By way of analogy, consider a team competing in a championship race.  While the objective is to win the race, we can be certain that each lap is timed to the fraction of a second and each pit stop is scrutinized for opportunities to reduce time off the track.  We can also be sure that fine tuning of the process and other small corrections are being made as the race progresses.  If performed correctly and faster than the competition, the actions taken will ultimately lead to victory.

Similarly, does it not make sense to monitor OEE in realtime? If it is not possible or feasible to monitor OEE itself , is it possible to measure the components – Availability, Performance, and Quality – in real-time?  I would suggest that we can.

Performance metrics may include production and quality targets based on lapsed production time. If the targets are hit at the prescribed intervals, then the desired OEE should also be realized.  If certain targets are missed, an escalation process can be initiated to involve the appropriate levels of support to immediately and effectively resolve the concerns.

A higher reporting frequency or shorter time interval provides the opportunity to make smaller (minor) corrections in real-time and to capture relevant information for events that negatively affect OEE.

Improving OEE in real-time requires a skilled team that is capable of trouble shooting and solving problems in real-time. So, resolving concerns and making effective corrective actions in real-time is as important to improving OEE than the data collection process itself.

A lot of time, energy, and resources are expended to collect and analyze data. Unfortunately, when the result is finalized, the opportunity to change it is lost to history.  The absence of event-driven data collection and after the fact analysis leads to greater speculation regarding the events that “may have” occurred versus those events that actually did.

Clearly, an end of run pathology is more meaningful when the data supporting the run represents the events as they are recorded in real-time when they actually occurred.  This data affords a greater opportunity to dissect the events themselves and delve into a deeper analysis that may yield opportunities for long-term improvements.

Set yourself apart from the competition.  Focus on the process while it is running and make improvements in real-time.  The results will speak for themselves.

Your feedback matters

If you have any comments, questions, or topics you would like us to address, please feel free to leave your comment in the space below or email us at feedback@leanexecution.ca or feedback@versalytics.com.  We look forward to hearing from you and thank you for visiting.

Until Next Time – STAY lean

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Versalytics Analytics