module objectives - aesthetica technica web viewon module completion ... measure the effectiveness...

Creating Visual Management Systems

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This document is Copyright PICME Ltd 2006. All rights are reserved. It may not be reproduced or copied without prior permission of PICME Ltd.


ContentsModule Outline...................................................................................................................................................................3

Module Objectives..........................................................................................................................................................3On module completion the Team Leader should:-.........................................................................................................3

Health and Safety...............................................................................................................................................................4Visual Management............................................................................................................................................................5

What is Visual Management?.........................................................................................................................................5Where to find the information for visual display...........................................................................................................5Visual Management Systems (Visual Factory)..............................................................................................................6Key Performance Measures / Indicators (KPIs).............................................................................................................6Measures for lean...........................................................................................................................................................7Visual management and Improvement activities...........................................................................................................9How is the Deming Cycle Applied?...............................................................................................................................9Measurement Techniques.............................................................................................................................................10

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Module Outline

Module Objectives Notes

1. To understand how to select an area and find the information to develop a visual management system

2. To demonstrate how to create a visual management system

3. To discuss how to communicate information

4. To demonstrate understanding of Performance Measures and how to communicate them

5. To discuss improvement activities that will drive the implementation of the visual management system

6. To understand how to implement the Deming cycle

On module completion the Team Leader should:- Notes

1. Understand the Health and Safety requirements of the area

2. Understand and apply the principles and process of visual management to a process using a variety of techniques

3. Identify appropriate parts of the process or work area that will have visual controls

4. Identify the key performance indicators that will be displayed in the work area

5. Identify the Key Performance Indicators that will be displayed in the work area

6. Measure the effectiveness of the Visual Management system and maintain the quality of the information that is being visually displayed in the work area

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Health and Safety

Notes

What are the health and safety requirements of the area in which you are to carry out the Kaizen activity?

- Research procedures- Resources, discuss with health and safety manager- Review risk assessments

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List any requirements


Visual Management

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Creating Visual Management SystemsWhat is Visual Management?

There are two categories within Visual Management:

Visual Control – manage inputs to the process

Visual control should highlight normal / abnormal conditions and promote a response

• Is the equipment running correctly • What product/batch is being made?• Long cycle time – what stage is production at?• Are conditions normal/abnormal?• When does material need to be reordered?• Do we need to manufacture?• What are the corrective actions?

Examples of Visual Control Oil gauge Heater control 5S set in order locations

Visual Display – displays in a clear manner the outputs or performance of a process

must be relevant to the area or improvement must be displayed close to the improvement area Information must be kept up to date by the owners of

the process i.e. operators on the machine Abnormal results must be acted upon to drive

improvement Must be easy to understand

Examples of visual display• Health & Safety• RFT• Costs• Delivery• Responsiveness• Concerns & corrective actions• Workplace organisation

Where to find the information for visual display • Batch sheets• Manufacturing plans• Quality systems• Audits• Management reports

When selecting an area for implementing a Visual Management system you must consider

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- What is it that you want to improve - Implement controls to improve the operation of the

area - Only display measures of what you want to improve

Visual Management Systems (Visual Factory)

Visual Techniques are often used to ‘automatically’ manage the workplace, techniques that can be used are;

Kanban systems – control stock levels. Components, spares, WIP can only be placed into the Kanban location if there is a space in which to put it. If the Kanban space is full in the case of WIP, then the upstream process will stop producing until the WIP is taken by the next process.

Floor Footprints –a place for everything, everything in its place. Often used in conjunction with Kanbans but also 5S to ensure equipment is available when you need it.

Card Systems – visually display current status. E.g. maintenance schedules show when servicing. Operators can also add cards as repairs are required. Card systems can also be used for scheduling manufacturing.

Colour Coding – can be used to show where equipment should be placed, what it should be used for.

Team Boards / Visual Display Boards – can be used to show graphs of performance, instructions, notices etc.

Key Performance Measures / Indicators (KPIs)

• Identify relevant measures – what do you want to improve?

• Display graphically• Make specific to machines, equipment or area (use

local measures that are related to business measures)• Updated by operators not management• Keep information current

KPIs can be split into two categories

Business Performance Measures- Show the big picture, how is the business performing

against the business objectivesExamples

- Stock Turns- Floor Space Utilisation- People productivity- Not right first time- On time and in full- Schedule Adherence- Yield- Health and Safety-

Local Performance Measures- Sow how the local area is performing against its

Notes

Notes

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Creating Visual Management Systemsobjectives or performance to specific improvement projectsExamples

- OEE- Yield- Cycle time improvement- Changeover time

Measures for lean

HS&E

Chart, No of man day lost for reportable accidents

Right First Time

Total production output - Quantity of Product scrapped or needing extra work x 100 Total Production Output

CostMany measures will indicate performance on cost, for example OEE, if OEE is increasing then cost will be decreasing.

Product Cost Down shows the percentage reduction in cost year on year or in a given period

Last year or previous cost - This years or current cost Last years or previous cost

Delivery

Delivery schedule achievement is measure of how well you are matching the planned delivery schedule of the customer

No of Planned Deliveries – No of Incorrect Deliveries x 100 No of Planned Deliveries

Responsiveness

Can be measured using lead time, divide 1 by the number of stock turns to get how many times you turn stock around per year. I.e. a stock turn of 12 means stock is turned around every month – lead time is 1 month

Stock Turns is ratio of how much stock is held and the annual sales turnover, giving the frequency of stock turnover

Sales Turnover…………………….. Value of Raw Materials, WIP and Finished goods on site

Process Concerns and Corrective Actions

Notes

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Can be measured by trending the number of concerns or corrective actions. To measure an improvement the following equation can be used

Last years or previous concerns - This years or current concerns x 100 Last years or previous concerns

Performance Measures

OEEAvailability – The percentage of the total available time that the equipment is running

Total Available Time – Total Downtime x 100 Total Available Time

Performance – The percentage of the maximum possible production rate that the equipment averages when running

Ideal Cycle Time x 100 or Average Production Rate x 100Actual Cycle Time Max Production Rate

(where ideal cycle time is shortest possible or best demonstrated time and Max production rate is highest possible rate)

Quality – The percentage of product made that is of a quality acceptable to the customer

Total Product in Specification x 100 Total Production Output

Sometimes yield instead of or in conjunction with quality – The percentage of the maximum possible yield that is obtained on average from the process

Average Yield x 100 Ideal Yield

Where Ideal Yield Max Possible Quantity of Finished Product x 100 Quantity of Raw Materials Consumed

Average Yield Average Quantity of Finished Product x 100 Quantity of Raw Materials Consumed

OEE Availability x Performance x Quality x Yield x 100e.g. 0.8 x 0.85 x 0.95 x 100 = 64.6%

Workplace Organisation

Using scores from audits to produce a spider chart or similar to graph performance

Notes

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Creating Visual Management SystemsVisual management and Improvement activities

Many improvement activities will drive visual management systems for example

Stock reduction or stock management improvement uses Kanban systems. Kanban means signal, for example a signal to replenish stock because the stock location has reached minimum quantity would be sent to a manufacturing cell to start production.

Visual Boards such as card systems can be used to provide level scheduling.

How is the Deming Cycle Applied?

Control Display

Follow the PDCA cycle to improve, use the outputs of the process and drive improvements to the control of the inputs of the process

PLAN - What is the current situation?-Where do we want to be?-How are we going to get there?

DO -Trials, improvements, changes – test the planCHECK -Where are we now?

-Did we achieve the plan? Why not?ACT - Make improvements permanent, act upon the results,

trial new methods

Notes

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Creating Visual Management SystemsMeasurement Techniques

Target v ActualShows a trend of the measure, examples of use, output trending, No of quality issues

Percentage Right First time / Pie ChartShows percentage defects/loss from total

Bar ChartCan be used to show reasons for rejects, lost time etc.

Notes

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Creating Visual Management SystemsPareto AnalysisAs bar chart but organises bars in order of largest first

Paynter ChartAs Pareto but breaks down each bar into sub categories

Action PlansA method of logging actions, assigning a number, responsibility and due date

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