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5 ‘S’ and
Visual Control
Management
Program schedule
• 10.00 – 11.15 Session I
• 11.30 – 1.00 Session II Lunch break 1.00 to 2.00
• 2.00 – 3.30 Session III
• 3.30 – 4.50 Session IV
• 4.50 – 5.00 Q / A
• 5.00 ----------- Close
‘I love my personal
space
&
Do not like to see things
cramped up’
> Lima Ashar
The onus of sustaining
improvement lies with an
individual
At Organization level the
responsibility is shared equally
by all stakeholders of “5S”
All 5S initiatives should have
a direct measurable
financial focus eg
• Quality (Rework , Sorting
: Higher FPY - SOPs)
• Productivity / sq ft of floor
area (Removal of Muda)
• Power consumption
(Reduced work area and
well placed m/cs ,
material , tools)
• ROI (Higher OEE)
• No obsolesce /
deterioration of material
• doc - Kanban , FIFO
• ..….
SBU EVA Tree
Mfg Cost Var Output at TP Stores cr. 4000
241 3972 +/- in WIP 178
PBIT Misc Output -206
1191 Input Cost
3731 Dir Malt 3000
NOPAT Dir Lab 86
810 Mktg PBIT Sales/Serv 6000 Malt OH 47
929 Cost of Sales 3972 Shop OH 261
ED on Sales 794 PGOH 36
TAX OD Adj Pers Rel Exp 89 Comm Exp 163
EVA 381 -65 T&C 54 Alloc Exp 189
361 Sales Pr Exp 8
Corp alloc NDC 19
86 ODE 63
WACC Estb 31
12% Other Exp 41
Cap Chg MMI 1034
449 Cap Emp WIP 370
3738 Net F Assets FG 53
601 Curr Assets Cust OS 3073
4597 Oth contl A 67
Net WC
3137
Curr Liabilities Vendor Cr 1273
1460 Cust Adv 33
OCL 154
𝐑𝐎𝐂𝐄 = 𝐍𝐎𝐏𝐀𝐓 𝟖𝟏𝟎 𝐱 𝟏𝟎𝟎
𝐂𝐚𝐩 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐝(𝟑𝟕𝟑𝟖)
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐑𝐚𝐭𝐢𝐨 = 𝐂𝐮𝐫𝐫𝐞𝐭𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬(𝟒𝟓𝟗𝟕)
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲(𝟏𝟒𝟔𝟎)
• Executives have significant
role in the
operating expenses
cost of goods sold and
• hence have a major role in
margin management
Exercise Gr A Gr 1
1 Direct Cost (M+L) - Lacs 2600 2548
2 Product Cost (M+L+O/h) 3380 3312
3 Transfer price 3400 3400
4 Mfg Cost Variance
5 NOPAT (Lacs) 700 768
6 Fixed Assets (Lacs) 16000 15360
7 Net Fixed Cost at 10% depreciation - F
8 Current Assets - CA (Lacs) 5000 4500
9 Current Liabilities -CL (Lacs) 2200 2220
10 Net WC (Lacs)
11 Total Assets (Lacs) (NWC+ F depr)
12 WACC % 12 12
13 Capital Charge (Lacs)
14 ROCE %
15 Is it favorable ? Yes / No (Compare A ,
1)
16 Current ratio (CA/CL)
17 Is Current ratio favorable ? Yes / No
18 EVA
Few facts about the Second largest economy in the world
1. Children clean their schools every day for 15 minutes, which...
led to the emergence of a generation which is keen on
cleanliness.
2. Any citizen who has a dog must carry special bags to pick up
dog droppings.
3. Hygiene and eagerness to address cleanliness is part of their
ethics.
4. A hygiene worker is called "health engineer" and can
command salary of USD 5000 to 8000 per month, and a
cleaner is subjected to written and oral tests!!
5. Even though one of the richest people in the world but they
do not have servants.
6. If you go to a buffet restaurant you will notice people only eat
as much as they need without any waste. No wasteful food.
7. Rate of delayed trains is about 7 seconds ! They appreciate
the value of time, very punctual to minutes and seconds .
Emergence of :
Toyota Production System – Lean Manufacturing - 5S
No Operational Wastes Consistency Of Output
Mission Statement of a corporate
• We focus on delivering world-class products at an affordable
price.
• Our determination to achieve excellence leads us to new global
benchmarks.
• All workmen , executives, managers and team leaders live the
“5S” philosophy to support “Lean” culture.
• It is our endeavor to ensure every customer who enters our
plant has a fast, accurate, and acceptable experience with an
emphasis on customer satisfaction.
• Our people have
Consistently risen above all challenges,
Maximized opportunities and
Positioned our company as a lead supplier of Engineering
products.
What can make us World class ? .....
• Exceed customer’s
expectations
– Shrink the lead times
– Reduce the Input cost
– Highest quality
– After sales service
How ::
• A process put in place to
continuously meet /
exceed customer’s
expectations
• Lean Manufacturing
• Robust monitoring system
– 5S
– Visual Controls
– 7 QC tools
5’S’ – A Quality Improvement tool
• Needs to be driven by none other than the CEO/Unit
head
• 1st step towards world class is identifying and
eliminating operational wastes which dent our profits
and reflect our performance negatively in front of our
customers
• A neat & orderly workplace helps in identifying wastes
• It is the first step towards implementing any new
Improvement Initiative.
• 5’S’ implementation should be associated with clear
measurable / quantitative benefits in Rs value , to be
validated by accounts department
Why ‘5S’
• It is a quality improvement Lean tool
• New way to set standards ( as opposed to Work
study) & maintain discipline we all agree.
• Leads to greater safety & efficiency leading to
measurable financial improvements
• Gives Visibility with motivating results
• Thus ‘5S’ is known as the 1st step in journey to
Visual Control Management , LEAN , TPM &
Kaizen
5 Steps of Productivity Improvement
Step 1 Seiri - Sort
Step 2
Step 3
Step 4
Step 5
Seiton – Set-in-order
Seiso - Shine
Seiketsu - Standardize
Shitsuke - Sustain
Sorting
In normal working we tend to accumulate
1. rejections ,
2. documents and copies ,
3. in-complete work ,
4. stationery ,
5. maintenance spares ,
6. consumables etc
Sorting helps us to get rid all un-essential stuff we
keep holding for NO meaning
How does the organization benefit
• Sorting ….
A team activity involving employees across the organization
– ( Removes un-wanted objects)
– (Reduces waste space , energy etc)
• While sorting look for
Material
– Behind and under the m/cs , racks , tables
– Rejects
– Forgotten/Obsolete material
– End pieces / rusted bearings
– Material awaiting decision for months
builds team sprit
How does the organization benefit
• While sorting look at each object . Do we need it at all –
if not – discard / sell
• Put a red tag on all those items which are not needed
• Put a yellow tag on all those items which will be
required for production at later date and are in excess
now.
• Put all these items in Red / Yellow tag areas.
• Red tag area should be in the most prominent location
for every one to see and NOT in any corner.
For production
use at a later
date
Not required at all
( May be useful to
other departments)
Elements of an Activity
NVA ( waste ),
60%
VA, 5%
Necessary
NVA, 35%
Elimination Reduction
• By clearly defining Value as perceived by the customer • all Non-value added can be targeted for removal / reduction
step by step
For most operations only a
small portion of the total
time & efforts actually add
value for end customer
What is then Waste (MUDA) ?
MUDA (Waste and Losses) Work (Value Adding) Activity +
Value Adding Activity A process step that transforms the
shape, property, characteristic or
feature of a product or service in the
direction specified by the customer
Non-Value Adding Activity
Process steps that take time,
resources, or space, but do not add
value to the product or service and
thus doesn’t add value to customer
Set of
processes
Customer pays only for Value addition
=
Sr
No. Activities
VA NVA Avoidable
Wastes Necessary
1 Inspection
2 Sorting
3 Rework
4 Grinding tool
5 Mount Tool
6 Count 10 Pcs
7 Pack 20 Pcs - unit pack
8 Fill Credit card Application
9 Check Application for completeness
10 Rivet cover to the housing
11 Waiting in Bank to deposit
12 Pick up element “A” from Shelf
13 Mix “A” to “B”
14 Heat the mix to 200◦c
15 Stack the material
16 Load-Unload Fixture
17 Clean m/c bed
18 Rivet Bracket to Beam
19 Adjusting the tool
20 Searching for 10 dia drill
Exercise
PEEP
Items
Very rarely
used
Long intervals
between use
Frequently
used
Can be placed
outside work
place
Place near the
m/c or
workplace
Place close to
user location R
un
ners
R
ep
ea
ters
S
tran
ge
rs
Files removed for use 1. Not returned back
2. Returned , but not at assigned place
Color tape ensures
orderly placement of files
Set-in-order “SEITON”
• Keep list of all important things like :
– Files
– Tools
– Keys and
• Ensure such lists are known and accessible to all
• A good filing system can save as much as 20% of time
spent on searching
• A world class office is expected to locate any
paper in less than a minute
• Every key should have a tag mentioning the lock or
cupboard no.
• Test the placement of everything by checking
• Assign responsibility and ownership of above
•Ensure there is
clear and un-hindered
line-of-sight path to
every Fire extinguisher,
Switchboard . thru zebra crossings
marking
•Ensure periodic service
of Fire Extinguisher
Ensure availability of
First-Aid boxes at
adequate locations and
not in Sr Officers cabin
Material at Eye level
Five principles of storage
for “One Touch Pick Up” and
space optimization
CLIT - When to do it? (Clean , Lubricate , Inspect , Tighten)
• C L I T is NOT one-time cleaning.
• C L I T has to be done repeatedly, according to a
schedule.
• It should never be done ONLY when there is free time.
(You are welcome to do it during free time ALSO).
• Production Planning must keep time aside for Initial
Cleaning.
• Ideally, keep 1 to 2 hours a week ( Min 5min each at start
and before end of each shift).
5S
Shine (Seiso or scrub )
keeping machines
and work areas
clean.
Seiso
is not just cleaning,
but also inspecting
and simple repair
and preventive
maintenance.
• Daily follow-up cleaning is necessary
to sustain this improvement.
• Working in a clean environment
enables workers to notice malfunctions
in equipment such as leaks, vibrations,
breakages, and misalignments.
• Ensure cleaning consumables/
Lubricants are replenished in time
• Ensure availability of dust bins near by
• Painting and cleaning makes it easier for
workers to notice spills or leaks quickly
Cleaning and Inspection of area and
equipment around Workplace with
the purpose of Identifying abnormalities
Approach ( Employee Involvement )
• Train employees to collect meaningful data (free
from error of measurement)
• Develop permanent solutions using appropriate
problem solving tools
• Keep records of the process performance , update
them continuously and use them on continuous
basis.
• Train employees in the methods of SPC and other
quality improvement tools for improving quality
1 SORT
Organize
Clearly distinguish
needed items from
un-needed
items &
eliminate
the latter
This is the
condition
We need to
support after we
Maintain
the first 3 pillars
4 Standardize consistent
approach
2 SET IN ORDER
Orderliness
Keep needed
items in the
correct place to
allow easy &
Immediate
retrieval
3 SHINE
Cleanliness
Keep the
work place
swept & clean
5 SUSTAIN
Discipline
Make a habit of
maintaining
Established
procedures
6 ‘S’ Of
Work place
organization
The 6th ‘S’
Safety
How do we know we have a
working ‘5S’ system
Check list for an effective “5S”
• Drastic freeing up of space
• 1min traceability of required paper/ material/ tool
• If a very important customer comes to your plant &
• you don’t need to do extra cleaning
– ie, Always ready to welcome visitors
• No last moment rush for Visual displays for Audits
Where all does 5S impact an
organization ?
Safety
5S
Productivity
Team
Spirit
Housekeeping Faster
response to
customer
Quality
Cost
saving
So , Housekeeping
is not the objective
of 5S but the result
of effective 5S
Incorporate Environmental and Health & safety
measures into the workplace Benefits
• ISO 14001 - International Organization for Standardization
– By reducing waste and using fewer raw materials, costs are reduced.
– Fewer costs give companies a competitive advantage.
– By managing environmental issues before a problem arises,
companies benefit from reduced liability.
– Compliance to RoHS : restriction on use of hazardous substances
– Leads to gain customer trust and improved public image. This can
be used to benefit the company from a marketing perspective.
• OHSAS 18001 - Occupational Health & Safety Advisory Services
– Identifies health hazards and evaluates risks
– Provides a safer, healthier work environment. This should help
reduce lost time due to illness and injury.
– Helps to minimize accidents.
– Fewer accidents and injuries lead to reductions in liability claims and
lower insurance premiums.
FTY
Yield =
(352 – 103)/
352
= 70.7%
= FTY
&
The Hidden Factory
The
Hidden factory
is due to
The inability to
correctly
comply with
required
specifications
the first time
The hidden factory of in-process inspection and
rework accounts for 98.6% - 70.7% = 27.9%
Hidden
Factory 103
98.6%
The extra efforts put
to get these 98nos.
accepted is
HIDDEN FACTORY
352 347
‘5S’ helps you find the Hidden factory The hidden factory is work that is done above and beyond what is required to produce a product or a service.....
Work that gets ingrained into the organization when you don’t ask "Why are we doing this, since this is not adding any value?“
"That's the way we have always done it." If you have
heard this, you probably have a hidden operation.
Finding the hidden operation and quantifying its effect helps you further understand potential level of improvement and POKAYOKE the process
Opr i Verification Opr i+1
Analysis Off-line
repair Scrap
Fix ? Yes No
If problem
PokaYoke
• Japanese words "poka" (mistake) and "yoke" (prevent)
• The essential idea of poka-yoke is to design your
process so that ..
- mistakes are impossible
- the visuals/Instructions should be user-friendly and
self-explanatory giving no chance for error
• Pokayoke was originally designed for error proofing of
Quality issue , later extended to Safety for Accident
prevention ….
Visual Control and Management
is one of the most important tools of Lean Manufacturing ..
to steer your organization to world class levels thru’
1. error proofing of processes
2. transparency in management
3. building a culture of team work leading to
4. robust monitoring mechanism
- VCM works on the principle of increasing efficiency and
effectiveness by deliberately making things visible.
- When things are visible, they are kept in conscious mind.
- It also ensures that everyone has a common viewpoint of
what is being displayed.
Two basic applications of
Visual controls : .......
1. To convey Information
A visual display relates information and data to employees
in the area.
For example, charts showing a graphic depicting a certain type of quality
issue or the prorata (Expected vs Actual) production of the company
that group members should be aware of.
2. To provide Instructions
A visual to control or guide the action of the group
members.
Examples of controls are readily apparent in society: Stop signs, Parking
signs, No smoking signs, Road crossing etc
Some common Industry examples : Safety Instructions , SOP,
KANBAN , SPC charts , Identification boards of different
workplaces etc
1. displays and 2. controls
• The purpose behind implementing Visual controls is to
expose abnormalities in the process that end up costing
the company money or create waste.
• When visual control is able to help employees recognize
these abnormalities action can be taken to correct the
problems,
– reduce rejections,
– reduce possible waste,
– reduce manufacturing costs
– shorten production lead time and thus
– keep the delivery due dates, reduce inventory,
– ensure a safe and comfortable working environment, and
– increase the company's profit.
• Customers are the ultimate beneficiaries of such efficiency
when they consistently receive a high quality product
Elements of a Production Activity 1 ‘I’ & 5 ‘M’s
Men
Machine
Method
transfer of
Information
Measurement
Material
Visual controls
help to ensure
this information
is transmitted
effectively to
arrest such
discrepancies
and take
corrective action
Conventional vs Visual Communication
• In Conventional communication the information is
centralized and transmitted thru hierarchical channels
• In Visual communication one creates an information
and organizes the access to employees on agreed
objectives
like Quality , Productivity , Work Instructions etc
• The visuals themselves speak
Workmen participation
• With active involvement of workmen the visual
communication gains more importance
• Commitments and results are displayed on on-going basis
with focus on
> Quality
> Production schedule / adherence
> Inspection Instructions
> Maintenance schedule
> Performance indicators
> Group’s accomplishments
– thru charts , graphs , photographs etc
• The displays should generally face the passage-way or in
break-out area for maximum accessibility to all.
How should Visual Workplace be ?
1. Spotlessly clean work areas
2. Living green plants
3. Clean rest areas
4. Proper identification of all items and activities
5. Production charts near work places
6. Boards to record problems
7. Instruction sheets with colored diagrams
8. Autonomy to workmen in creating SOPs
9. Supervisor need not be intermediary between
Engineering and workmen
10. No distortion between ‘official version’ and “actually used” versions of SOPs
Knowledge dissipation 3 levels .......
• With Individuals ( ie left to each operator)
– Possibility of inconsistent quality as individuals purse
own process steps
• Centralized ( Authority with one Single dept )
– Production units lose the ability to pursue initiatives
and administrative departments gain this authority
• Public Knowledge ( across the entire work place )
– Synergy is created by taking Knowledge of
everyone, leading to stronger organization
– Procedures are created jointly , leading to ownership
– SOPs are displayed at every work station
– Organization transforms in to visual data base.
Gemba Place where you create value for your customers
• Place where it actually happens ( Place of action)
• Gemba refers to the place where value is created; in
manufacturing the gemba is the factory floor.
• It can be any "site" such as a construction site, sales floor
or where the service provider interacts directly with the
customer.
• In 5’S’ , the idea of gemba is that the problems are visible,
and the best improvement ideas will come from going to
the gemba.
• Solutions designed away may not get acceptability
• Rather than hear or read , visit Gemba , experience the
situation FIRST hand -
• ( doctor : D Patient : Ch)
Also means “reality” or even truth
Participative Management
• Manufacturing quality products ( consistent quality) is
possible only if workmen rigorously abide by operating
standards
• The quality of a given procedure is like the overall
harmony of an orchestra
• Production team should be involved in developing the
SOPs
• Every improvement should get updated in the SOP
• The frequency of these updates is the best
indicator of workers involvement
Making of SOPs 1. Standard documents are the concern of Offices and not of
shop floor
2. Standards are created to last
Visual Organization reverses these misgivings
– A good standard constantly evolves
– Besides defining methods , the SOPs are meant to
inspire improvements eg • 150d centigrade ,2M instead of 100d centigrade , 4M
• 4pcs trimming instead of 2 at a time
– Displaying SOPs is a way of acknowledging the
accomplishments and responsibility of those who
created it.
– Visibility of standards leads to constant questioning of
standards leading to creativity & motivation
– Results in better ownership
Wheel of progress thru’ Visual Management
Standardization
Visual
Communication Modification Adherence
Observations
Ownership
of
documents
Easy to read
SOPs/documents
Improvement
ideas
Visibility of
Results
Visual organization facilitates the entire improvement process
Visual communication journey
1. Building a consensus
on achievable targets to meet customer needs ,
displaying the same with
a monitoring mechanism
2. Defining priority objectives
Should be acceptable to everyone
Minimum figures which need to be achieved
Objectives must be realistic , must be attainable wrt
available resources
3. Decentralizing the decision-making system
4. Creating visual schedules
Make Progresses Visible Selecting Indicators
• If production unit’s primary role – Production nos. are visible , the secondary role – producing improvement should also be visible, eg
– Reliability of m/c , A P Q
– Period of operation w/o breakdown
– Inventory
– Lead time
– Tool c/o time
– % rejection
– No of machines monitored with SPC
– No of pokayoke
– Training skills
– Work accidents
– Safety audits
The Seven QC tools
1. Check Sheets
2. Flow chart
3. Graphs
4. Pareto charts
5. Histograms
6. Cause and effect diagrams
7. Control Charts
Identifying
Prioritizing
Analyzing
Communicating
These tools are divided in to 4 broad categories
Check sheets • Check sheets are ‘forms’ that systematically collect data.
• They provide structure to collect data and organize/stratify the same for analysis
• The checklist forms a base to project facts with data
• This data is then used to construct
– Histogram ,
– Pareto charts ,
– Control charts etc.
• Types of Check lists :
1. Tally check sheet
2. Defect -location check sheet
3. Defect -cause check sheet
Bar Charts as Histograms
• When used to represent Variable data are called
Histograms
– Shows the different measures of centrality (
Mean , median , mode)
• Each bar represents a uniform interval (bin
size) of the data , and
– Bar charts are used to represent Attribute data
Control chart as Visual aid
• Adding SPC to this data enhances visibility by allowing
for action to be taken before a process becomes out of
control.
• Knowledge of Six Sigma techniques will help in de-
coding the SPC data
– VOC vs VOP
– Process capability
– Process Sigma
Control Chart
• It’s a type of Run chart with control limits
• Why Control charts
– It shows nature of variation in the process over time
– Helps in detecting changes in the process
– Helps in controlling the process
Uses of Control charts
1. Monitor the process . Detect changes over a period of
time.
– The moment the process tends to go out of control
, assignable causes are found and problem is
plugged
– Continued control ensures quicker detection and
corrective action
2. As the variability is predictable , it helps in proper
estimation of output
3. Once the process is under control , efforts are put to
reduce variability
Visual Control
• Any activity is a process.
• A process is a series of activities or steps used to
transform input(s) into output(s)
• Every process has customer and supplier
• Everyone in an organization serves a customer
• The objective of Visual control is to ensure
Individuals or groups “Do it right the first time”
• Helps to build a feedback loop into every process
so a to reduce gaps between customer’s
expectations and supplier output.
Types of Data
Subjective based on experience ,
opinions or observations
• Used for making
personal decisions
Like :
- What to wear
- What to eat etc
• Generally , go wrong if
used for managerial
decisions
Attribute
Countable or
discrete
• Yes / No
• Go / NoGo
• Good / Bad
Tea taste
Variable
Measurable
Continuous
• Height
• Weight
• Dimension
• Temperature
Objective data
Uses of Control charts
1. Monitor the process .
2. Detect changes over a period of time.
– The moment the process tends to go out of control , assignable causes are found and problem is plugged !!
- Continued control ensures quicker detection and corrective action
2. As the variability is predictable , it helps in proper estimation of output
3. Once the process is under control , efforts are put to reduce variability
• Let us now try to understand application of different Control charts to monitor and improve the processes
Variable Control Charts
• Variable Control charts are used to monitor measurable
quality characteristics of a process eg Temperature ,
dimension , weight , viscosity etc
• Variable charts can monitor only one quality
characteristic at a time .
• For more than one characteristic, a chart for each
characteristic needs to be created
• Variable Control charts help to monitor both process
mean X and process variability R or σ
• Hence it becomes necessary to use minimum 2 control
charts to study the process. Ie
– Range or Std Deviation
– Process mean , with UCL & LCL
Interpreting Control charts
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
A process is not in statistical control
if any point falls outside the control limits.
Control Charts for Attributes
• Whenever it is difficult to take numerical measurement
the quality is judged either conforming / non-
conforming - Defectives based on attributes( Np and
p charts) :
– Leaks / does not leak , No. of counts scratches ,
holes , dents etc .
• Attribute data can have two values , such as pass/fail
present/absent etc ie data which can be counted.
• It can also be no. of non-conformities (defects) that
appear on a unit ( No of dents , a/c opening form ,
scratches , holes etc) : C & U charts :
• The inspection doesn’t require spl trained people as no
measurements are involved .
Process characteristic
or measurement
What type of data ?
What type of attribute data ?
P chart C , U chart
What subgroup
size ?
MR 𝐜𝐡𝐚𝐫𝐭 𝐗 − 𝐑
𝐜𝐡𝐚𝐫𝐭
𝐗 − 𝐒
𝐜𝐡𝐚𝐫𝐭
Variable or
Continuous Attribute
Defectives defects 2 - 10 1 > 10
SPC Charts and
their application
Visual Control and Management system It can be related to parts of a car
Standard
work
Visual
Controls
Discipline
Leadership
Accountability
& Control
Transmission
Steering &
Gas pedal (Accelerator)
Engine
Fuel
What to communicate thru
Visual Communication 1. Productivity goals
2. Work Instructions - SOP
3. Prorata production
4. Shortages
5. OEE
6. Control Charts
7. FPY
8. Quality goals
9. Defects – Possible causes
10. DOC
11. Set-up standards
12. Attendance goals
13. Safety initiatives and precautions
14. Team Objectives
15. Other relevant information
Tracking Performance
• Supply chain Management ( OTD , Quality , Lean , Six Sigma
Penetration , ISO …)
• Manufacturing Excellence and Lean Manufacturing (TPM ,
SMED , PokaYoke , Kaizen , Six Sigma , Rejection / Rework , Inventory , ISO 14001 / ISO 18001 ……)
• Finance Performance
• Marketing spend
• Customer Service Management ………..
• …………………………………………………………..
Example : Vendor Performance Dashboard
• Real-time information is put on supplier dashboard giving internal and external supplier metrics and Key Performance Indicators
• The Vendors are judged on their performance the way we judge the performance of our employees.
• The goal is to develop a world-class supplier quality system
• Steps to build a world class Vendor base
– Standardized Vendor audit process
– Building Vendor risk management scorecard
• It helps to actually know which suppliers are more risk-prone and therefore require more attention v/s auditing suppliers arbitrarily or because a certain amount of time has passed.
Don’t let your charts look like Swiss army knife..
• It should typically be a paper chart
or dry erase white board that is
positioned at the process.
• It should be low-tech and reflect
the line, cell or team name, output
requirements ( assemblies,
invoices, etc.) and
• fields to record the problem or
reason for any hourly plan vs.
actual deltas as well as
• a sign-off by lean leader(s) as
proof of review.
The chart should typically be plan vs. actual chart – also
known as the output analysis board (or chart), day-by-the-hour
chart, etc.
Precaution
1. Introduced without training
2. Not worker-managed
3. Not self-explaining
4. Not visual/visible. not very visual due to tiny size, lack of
color, poor location, etc.
5. Too hard or complicated to use
6. Obsolete. Process is changed and the visual is still old
7. Lack of discipline. Lack of level of discipline to maintain
visual controls.
8. Lack of transparency of purpose
9. Lack of faith. People give up when they determine that no
one reliably responds to the abnormal conditions.
Why Visual Controls fail ? ....Root causes.. 9 Root causes
If u don’t get out of ur comfort zone ( Chalta hai attitude) , u will
find the world has left u behind
• List one Visual control which u would like to implement
for betterment of your department which will take your
organization to no. 1 position in the corporate world
• Have a systematic plan-with goals , deadlines
• Get ur seniors , peers in the loop to enlist their support
• Don’t rush – change doesn’t happen overnight , push
ur boundaries towards overall goal
• Once you reach your goal , set new challenges
So , Let us get started on effective
Visual Control & Management
Journey to
5S and Visual Control and
Management
Never ending
Process
of
Improvement
for
Excellence &
Growth
Our other Training Programs
In-company as well as Open prog.
• Enhance Productivity & Inventory turns thru Principles and Applications of Lean Manufacturing and VSM – 2days
• Operational Excellence - 3d
• Resisting Price Increase (Purchase) - 2days
• Performance Excellence thru 5S and Visual Control Mgt. - 2day
• Lean Six Sigma - 2days
• VQMS Vendor Quality Mgt Systems - 2day
• Vendor Management & Development - 1day
• Materials – A profit centre - 2days
• Gemba Kaizen - 2day
“Start” - the rest is easy
H K Varma
9820262986
All the very best in your future Endeavors