it is an integrated approach that allows you to focus on achieving results and achieve the best results with the resources available.
Management by objectives includes:
- cascading and clear formulation of goals from the top level to the level of performers;
- ongoing monitoring of results and their evaluation;
- feedback and corrective actions;
- understandable And accepted by employees criteria for evaluation their labor, and, as a result, employees are more motivated to perform their duties;
- constant feedback and possibility of operational assessments and activity adjustments employees and departments;
- visual Management is an approach that provides activities with simple, visual signals to quickly respond to changing conditions and circumstances.
What metrics should I use for visualization?
The control system must provide cascading the manager's goals to each employee. This ensures that each employee is focused on performing priority tasks and achieving priority indicators. The goals of each employee should be tied to the goals of the superior manager. The goals of each manager must be completely decomposed into the goals of subordinate employees.
An example of regular meetings is morning meetings. To summarize the day and withdraw emotional stress meetings can also be held at the end of the working day.
Using Vision Boards to Reflect KPIs
Vision boards serve:
- to visualize quantitative indicators;
- to communicate the current goals of the unit;
- to visualize current problems and those responsible for resolving them;
- submitting proposals to improve the work of the unit (kaizen).
Vision boards are effective performance management tool each employee and the entire department.
| Basic principles of MBO (Management by Objectives) | Description |
|---|---|
| Hierarchical subordination of goals | From more general goals, more local ones are formulated |
| Cyclicality | Any management system is a closed cycle of “analysis – planning – implementation – evaluation and control”, which is repeated many times |
| Feedback | Feedback is important to maintain the stability of any system. Feedback is confirmation of understanding of something, as well as a reaction (positive or negative) to some action |
| Specificity and measurability of goals | Goals must be expressed in specific indicators that can be measured |
| Regularity and consistency of work on goals | Goals are developed for a certain period, after which the degree of their implementation is assessed and goals are developed for the next period |
| A unified standard for the design of goals, plans, reports | Uniform forms for all facilitate the process of analysis, comparison and decision-making to harmonize goals with each other |
| Participation principle | All employees take part in the process of developing goals, this increases everyone’s involvement in the organization, awareness increases, and, consequently, awareness of activities, which significantly affects the motivation of staff |
| The principle of holism | This principle consists of two parts: the principle of coordination and the principle of integration. Organizations are divided into levels, each level into units that differ in functions, powers and responsibilities. Coordination covers the interaction of units of the same level, i.e. horizontally, integration - between units of different levels, i.e. vertically. The combination of the principles of coordination and integration gives us the principle of holism, according to which, the more elements and levels in the system, the more profitable it is to plan simultaneously and in interrelation |
In addition to motivating employees and stimulating healthy competition, the Board allows employees to see the decomposition of the department's goals into individual goals, and also allows the manager to track the dynamics of indicators.
Vision board - photo
Management indicators and their impact on KPIs - management by objectives
The division's management indicator system determines:
- list of management indicators;
- way ( technological map) collecting information and calculating indicators;
- relationship between indicators;
- those responsible for collecting and updating indicators;
- regularity of updates;
- the required depth available for detailed analysis of indicators;
- method of presenting information.
System of management indicators must be interconnected with the goals of the unit(KPI, PPR) and allow for both operational and medium-term management, based on quantitative indicators.
Requires inclusion indicators by processes and innovation activity divisions into the system.
Video - Using visual management. Visual management and goal management
Using visual management allows you to achieve two main goals:
1. Make problems visible, constantly control the situation in the workplace Gemba.
2. Make improvement objectives clear (set a visual target). At the same time, both current results and goals are always visible at the same time.
Visual management can be carried out in three main ways: using key indicators (indicators), using photographs and using markings.
Key indicators
Key indicators (or indicators) are a graph or table depicting the specified and actual value of the indicator (daily output, number of errors, etc.). They are posted on information boards located at each site.
At first work shift everyone gathers for 5 minutes, during which the manager draws the employees’ attention to the results achieved yesterday (indicator values) for each employee, the reasons for the success of employees who showed the best values are clarified, as well as the reasons for the failures of those whose results were lower than expected, recommendations are given using the best experience and following standards. At the end of the shift, 5-10 minutes are allocated for cleaning his workplace, during which the manager records the results achieved today on the information board.
Photos
It is much easier to take a photograph of a workplace, shelving, etc. than to write a neat description in text form (“a picture is worth a thousand words”). For example, if the layout of folders in an office closet is standardized (and there is a photograph), then the absence of a folder will immediately become noticeable. The presence of a strip on each folder allows you to place them in the desired order.
Marking
The markings show how material flows should move, where equipment should be located, etc. Clearly designated locations, for example for trolleys in the warehouse, eliminate the need to waste time searching for them. To separate packaged goods for shipment to different branches, colored tape has long been used, the use of which is also visual control.
Information Table
When placing information on the board, you should try to avoid unnecessary information (this is not always easy, since the information is quite diverse), so you need to display only what is needed on the site:
· Performance indicators (monthly performance results expressed in economic categories). They are the basis for the monthly staff meeting.
· Performance indicators (actual output relative to planned output, quality problems, etc.). This information is the basis for a daily five-minute discussion.
· General information (orders, announcements, etc.).
You should periodically get rid of unnecessary or outdated information, and also use small number of indicators used. Information should be placed in easily accessible places and be understandable without commentary.
Availability of information about the required and actual output provides feedback to employees, who, based on it, can regulate the pace of work.
Visual management helps identify problems and point out discrepancies between goals and reality. Despite its simplicity, it makes it possible to improve productivity and quality of work through visualizing already achieved goals and setting new ones.
New episode . This part is dedicated to visual management. The video gives a definition, provides examples, tells what questions visual management can answer, with what tools and in what sequence visual management should be implemented. Look.
Visual management- this is the location of all tools, parts, production stages and information about work performance production system so that they are clearly visible, and so that any participant in the process can assess the state of the system at first glance.
What does “business as usual” production look like?
Looking at a particular workshop, it is very difficult to determine what is happening in it and what should happen. Try looking at this photo and answer the following questions:
- How many people should work here?
- How many products should they produce?
- How much groundwork was prepared for assembly by different teams?
- How much unnecessary equipment is there?
- And how many defects have been made?
It is very difficult to answer these questions in this situation, because there is nothing for the eye to catch on to, and it is not clear how to evaluate certain criteria.
Visually clear space
In a “visually understandable” space, things are completely different. Here are photographs showing examples of how production is organized, how office work is organized, and how information is presented to make it easier to understand. These are also task cards. These are also standards for performing operations. These are the work plans. These are also equipment layout diagrams. These are also layout diagrams for office equipment. This is a cross training table. These are also kanbans and products, which themselves act as orders.
The same applies to the office. This case provides examples of several companies that use one or another way to indicate their plans for completing tasks. These are Kanban boards, these are tables in which development plans are visualized, these are tables in which the workload of people on certain tasks is indicated.
Here is a small list of questions, the answers to which can actually be “seen” in production or in the office:
- What part of the shift plan has already been completed?
- How many materials are needed to complete production?
- What tool is used in the work?
- What equipment is installed on the machine?
- How should the operation be performed correctly?
- What problems does production face today?
- What are the readings of the key parameters of the machine?
- What is the product level without defects
- What is the level of injuries at work?
Agree, it would be very nice to be able to get this information immediately when it is needed, rather than asking those people who work in the work area what the answers to these questions are.
Visual Management Tools
There are a number of visual management tools, I'll list a few of them here.
- These are Kanbans as a visual planning tool.
- This is 5S
- These are video recordings of incidents,
- visual standards,
- visualization of problem analysis (Pareto chart, fishbone, etc.)
- visualization of key workplace indicators
- cross training table
- and visualization of general enterprise indicators
Stages of visual management implementation
Visual management is implemented in several stages.
During the first stage, workplaces are organized. This is the stage at which you need to use all the power and capabilities of 5S.
At the second stage, visualization important information, which is located in the workplace: information about safety, about quality, about how operations are performed and about what and how equipment should be used.
At the third stage, the results and performance indicators of a particular process are visualized.
And at the fourth stage of implementing visual management, decision-making is introduced based on this visualized information.
In 2011, it was confirmed that the brain is easier to process pictures than text, and it is easier for people to communicate visually than text-only (for example, through reports).
Peculiarities perception individual, but the average person perceives 83% seen And 11% - heard information. A total of no more than 6% is allocated to organoleptic receptors. A slightly different picture emerges in the process memorization information: on hearing and visual individually, a person remembers 20% and 30%, respectively, and when these two methods are combined, the level of memorization increases to 50 percent.
When we look at pictures, our brains can process multiple elements at once, allowing us to achieve speeds up to 60,000 times faster than normal text reading. Therefore, visualization is one of the powerful and proven methods in lean manufacturing.
The role of visualization in lean manufacturing
Visualization can be considered in two aspects:
- as a method of presenting information in the form of optical images (drawings, diagrams, graphs, block diagrams, maps, tables, etc.),
- such as placing all tools, assembled units, parts, information about the production process so that they are visible at first glance.
Key advantages include:
Visual planning
A special place in lean-visualization is occupied by visual planning (VP).
Companies implement VP because:
One of the clear examples of the use of VP is Toyota, which has Obeya- from Japanese “large room”. In the company, this has become a project management tool for increasing efficiency and maintaining timing in production.
Verdict
When the general manager of the Toyota branch North America asked why the company had not written a single book about its processes, he thought for a moment and after a few minutes replied:
This is because such a book would consist of one page on which it would be written: “Keep it simple, make all processes visible and trust people to do the right thing.”
This is exactly what visual management is about. Its goal is to make the workflow clearer for everyone involved. With the help of visualization, you can get maximum information in a minimum of time.
The note is a translation of the material "Reinforcing Lean Behavior Through Visual Management", published by a Lean Leaper member on the Lean Enterprise Institute website.
As one of the key components of lean manufacturing, visual management offers many tools and practices, including: maintaining compliance with standards, quickly finding deviations, daily problem solving, agreeing on goals, and, when visual management becomes part of the standardized work of the lean manager, it helps manager in daily affairs. But, many companies use ineffective visual tools and practices. Business journalist Doug Bartholomew spoke with LEI staff member Mark Hamel to explore the benefits of visual management when integrated into an effective management system.
Bartholomew: Why is visual management so important to lean manufacturing?
Hamel: Organizations can undergo a series of Kaizen events and results can be achieved. But sustainability of results and changes in the culture of the organization is where the challenge lies. If an organization does not have visual management, it is difficult for employees to understand what is good, what is standardized, and where the standard is being met. Employees must be able to say that they have a problem. Visual management is part of it all.
Lean in its simplest sense can be interpreted as “find the problem, solve the problem, prevent the situation from reoccurring (make sure the problem does not return).” Obviously, you first need to find the problem, or at least realize that there is a problem. We know that the simplest definition of a problem is the difference between the existing situation and the standard situation, or goal state (the difference between what is and what we want).
Effective visual management helps in the timely and unambiguous identification of problems in production (gemba) for both individual workers and the team. Visual management allows you to find out about the existence of previously unknown problems, or problems that have not been completely eliminated.
Bartholomew: How do you design a system? visual control? What type of information about business processes should be presented?
Hamel: Visual elements should be built around the value chain. Depending on the purpose, visual indicators can be of two categories: visualization of process compliance (VSP) and visualization of process effectiveness (VEP).
As the name suggests, VSP reflects strict adherence to a process standard. At the same time, when VSP is part of standard model production management, it also shows the sufficiency of the process itself. VSP tools can be: standardized operator work, a replenishment system, and related cards, containers and visual boards, as well as visual boards with production analysis. These tools help lean workers and managers quickly find deviations, understand their cause, and make necessary adjustments. An example of VSP is the value chain at a doctor’s appointment, where service is carried out on a first-in, first-out basis (FIFO), for which an appropriate stand is used. We need to know that the elements of the system work as they were designed. At first glance, it should be clear to us whether the “first in, first out” principle is observed and if there is a queue, then at what level it is: up to, at or above the designated maximum level.
If you don't want to use industrial decorations, you can use workshop supports along with potted plants to represent the queue and flow, which will help workers see if the queue has exceeded the maximum level. If the maximum level is reached, the process standard may involve triggering a visual signal to communicate the need for additional resource to flexibly reschedule the work to complete it within the allocated time.
VEP is usually represented by indicators related to categories such as: employees, quality, delivery, cost, continuous improvement. These are, as a rule, sets of simple, dynamic and specific indicators that show the team how the trend of their changes relates to the set goal. Such metrics, when used in the context of standard operating procedures, can be an effective tool for enhancing vertical and horizontal engagement throughout the organization.
Bartholomew: How do different visual tools work together?
Hamel: Various instruments combined with five instruments lean system management: gemba work (operational analysis of the production process), operational meetings, andon along with the appropriate response to andon events, process transparency and mentoring. For example, one or more visual indicators may indicate problems with the output finished products. At the same time, the leader, during the operational analysis production process, may have seen a lack of strict adherence to standards among several workers within a process that generates defects. This is part of a larger story that should be explored in a team meeting.
Bartholomew: Why do some visual tools fail?
Hamel: You can have visual tools that look great, but they won't talk. For example, I was in a company that kept profit records. They had a big board with daily tracked debt metrics, issuance totals, etc. But none of these indicators could tell whether the situation was good or bad.
The entire team and leader should know whether they were having a good or bad day. And when I asked the workers about that big board, they said that they didn't actually use it. In other words, this board did not encourage them to engage in the desired behavior. So the first question we need to answer is what question are we trying to answer using this visual tool.
At another enterprise, during daily meetings, we used an analysis of the pros and cons of the current job. While there were many pros, there were very few cons. One of the negatives showed that several team members did not understand the meaning of several visual indicators on the board. It is difficult to captivate and engage a team if they do not see and understand in the same way - as a team. In this particular situation, the reason was the design of several indicators; they were too complex.
As a final note, if you look at the metric and you can't quickly come up with an answer to the "So what?" question, you have a problem.
Bartholomew: What are the common mistakes organizations make when using visual management?
Hamel: To be effective, visual tools must start with a need, or in other words, a question - what problem are you trying to solve. What is considered a normal state that we are trying to maintain? We then try to answer these questions as simply as possible.
Another problem is that visual tools are often not supported. As a result, over time, workplace turns out to be covered with visual tools that are not used or only half used. Natural visual pollution appears - muda (loss).
Many lean managers visit other companies to supplement their training. Unfortunately, these managers often fall into the trap of "production tourism" - they take what they see and superficially duplicate visual tools in their processes. In other words, understanding visual management as just another tool (I know what, but I don’t know why) leads to a complete loss of connection with the powerful ideology of lean manufacturing.
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