How To Guide Developing A Visual Factory TRACC 2134

eBook HOW TO GUIDE:
DEVELOPING A VISUAL FACTORY
www.traccsolution.com • info@traccsolution.com
1 HOW TO GUIDE: Developing a Visual Factory
INTRODUCTION
T
he visual display of information
has been with us for as long as
people have been communicating
with one another. Over the centuries, our
ability to visually represent our thoughts,
wishes, plans, actions and location has
progressed dramatically. Just compare the
early maps of the world (circa 15th century)
to those we have now! In the business
environment, similar strides have been
made in the ability to ‘warehouse’ business
performance data.
The visual workplace is not a brigade of buckets and brooms or posters and signs. It is a compelling
operational imperative, central to your war on waste, and crucial to meeting daily performance goals,
vastly reduced lead times and dramatically improved quality. Workplace information can change quickly
and often. In any single day, literally thousands of informational transactions are required to keep work
current, accurate and timely.
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But what happens when this vital information is hard to access, incomplete, inaccurate
or simply missing? What happens is this: People ask lots of questions, of which many are BENEFITS OF VISUAL
asked repeatedly. An information-scarce workplace is the opposite of a visual workplace. MANAGEMENT
When key information is not instantly available, the company pays for that in long lead
• Reduces waste
times, late deliveries, poor quality, mistakes, accidents, low operator and managerial
• Improves daily
morale, and runaway costs.
performance
Employees gain 75% of their knowledge from visuals. That’s why they need effective • Reduces lead times
workplace signs and labels that enhance training and make doing their jobs easier. A good • Improves quality
visual tells an employee exactly what procedural and safety information they need to • Reduces costs
know, and when and where they need to know it.
Knowledge-based visuals can include:
PROCEDURE LABELS MULTILINGUAL SIGNS PIPE MARKERS SAFETY SIGNS ELECTRICAL

Get procedures out With a growing Quickly and easily Tell employees what DISCONNECT
of binders and onto workforce speaking give employees is dangerous, why it LABELS
the shop floor where different languages, and contractors the is dangerous and the Indicate on the
employees can see it’s important to have knowledge of what’s correct precautions to equipment where to
them and use them the right languages on in a pipe and which take to stay safe. find the disconnect
daily. your signs and labels direction it flows. switch in order to avoid
to keep everyone in accidents and save lives.
the know.
With workplace visuals like these, employees have the knowledge they need to eliminate non-value-added
waste, improve safety and compliance, and enhance workplace organisation.
MANAGING THE WORKPLACE WITH

VISUAL CONTROLS
An important parallel practice that needs to be developed, congruent with the process of incorporating
visual management into management practices, is that of ‘visual control’. It means visualising operational
data in a specific way to draw attention to an out-of-control situation in the workplace. This can be in
relation to such things as quality, workflow, safety or housekeeping.
Broadly speaking, the term ‘visual control’ refers to any easy-to-understand visual system for monitoring
and controlling a process. Examples range from kanbans to painted golf balls, with the most common
being a visual control chart.
A visual control chart is any printed or hand-written chart that:

• is used for monitoring or controlling any aspect of production
• is posted in plain sight close to where the actual work is done
• is frequently updated with the latest results
• highlights problems graphically
• has notes clearly articulating the reasons for ‘misses’ (differences
between expected vs actual results)
• can be easily understood by anyone at a glance
Try and create a balance between hand-written data and computer-generated charts and graphs.
For instance, hand-entered data is better for timely data entries and ownership ‘fingerprints’, whereas
computer data is more suited for data analysis, computational accuracy, etc. Most visual management
systems include a diverse assortment of visual controls, each with its own balance of hand-written and
computer-generated elements.
Visual controls add a level of error proofing to a visual standard. From work-zone colour coding to posted
metrics, visual controls clarify and simplify the path to enhanced processes and profits. For example, a
downtime clock connected to Andon lights quickly provides information to support teams (i.e. red light
for equipment breakdowns, orange light for quality issues, and a yellow light for material shortages).
Any issue which requires ongoing control in the workplace should be made visible via visual controls
whenever possible. Key aspects of visual control in processing operations can be to assist employees
to execute standard work and to visually display not only that the required standard process checks
have been completed, but that they also met the required standard. This visual control of operator
standard work can then be used to trigger the appropriate leader response during the execution of
Leader Standard Work checks.
The deeper the visual controls become, the more the factory itself becomes a ‘visual factory’. Think
equipment which is fully marked-up with regard to regular vibration analysis check points and so on,
through to pallet and racking stack heights in stores and tool serviceability check schedules.
Such visual controls need to give us information about the:

• identification of items
• correct location of items
• minimum and maximum limits
• standard procedure that applies
INTEGRATING VISUAL MANAGEMENT WITH THE

WIDER MANAGEMENT SYSTEM
A critical, often overlooked element of visual management is the fact that it should be integrated with
the wider organisation’s management system. In terms of a management approach, the concept of
Key Performance Indicators (KPIs) arising from a balanced scorecard has become the accepted norm in
business. The practice of visual management supports this.
Once visual displays have been created and teams and employees at all levels have visual access to
key information, visual management should extend to setting up daily, weekly and monthly routines
around these scoreboards. A daily or weekly review should take place at the situational level. Systemic
level reviews should also be held around departmental boards at a time that suits the environment
(i.e. weekly, fortnightly). More strategic initiatives are to be reviewed at senior management level on a
monthly basis, with key measures reviewed daily and weekly.
Following are some examples of visual management actions and the corresponding tool to perform
each action:
Workplace organisation Understanding how Keeping teams focused Monitoring currently Preventive maintenance
and cleanliness (to each process fits in the on their biggest issues active projects
reveal problems for value stream and to
elimination) track key metrics
• 5S scorecard • Value stream map • Pareto chart • PDCA template • TPM checklist
• A3 reports • OEE bar charts
• Kata coaching • Waterfall charts
SELECTING THE RIGHT DISPLAY FORMAT

Data can be displayed in a variety of formats, such as graphics, pictorial presentations, icons, schematic
diagrams and explanatory text. Visual displays are usually a combination of these formats, but the
emphasis is on utilising graphical, pictorial and schematic diagrams rather than large amounts of text.
If properly designed and utilised, visual displays enable quick and Successful boards do
effective decisions to be made in a collaborative manner. Visual
displays deal with the visualisation of all types of relevant information.
not just ‘happen’; they
The term ‘scoreboards’ is sometimes used when referring to visual are carefully designed
displays of performance-related information. Some organisations put and refined over time
these boards on wheels so that they can be pushed to the work area or
by the work team which
to the meeting area. Care needs to be taken, however, not to interfere
with material flow, physical movement or visibility in the work area. uses them.
By giving enough thought to the format and layout of the boards,

as well as the format of the displayed information, a large amount
of frustrating and expensive rework can be saved. In addition, site-
wide sensitisation is required to explain the broad programme and
the need for workplace measures to everyone. Teams need to be
convinced that the measurement system is focused on improvement
and not punishment. Successful boards do not just ‘happen’; they are
carefully designed.
SIX GUIDELINES FOR BETTER GRAPHS

These six simple guidelines will ensure that graphs are easy to complete and interpret:
1. Show short- and long-term information
For each KPI, make provision for both a short- and long-term graph:
• The short-term graph needs to be completed on a shift or daily basis as soon as possible after
the event. The purpose of this graph is to drive corrective action. This graph will typically have
a window period of one month. The teams should ask questions such as: “What happened
yesterday (or on the previous shift)?” and “What should we do about it?”
• The long-term graph needs to be completed on a monthly or weekly basis, with an annual
window. This graph should trigger questions such as: “Are all our efforts showing an
improvement over time?” and “Are we getting closer to sustained achievement of our target?”
2. Standard format
w
It is strongly recommended that a standard format for the graphs be used, e.g. either line
graphs or bar graphs. Try to steer away from using complicated and different formats which
the team may find very confusing.
3. Show the target
Every graph should have a target line, preferably in a different colour such as red. It must
be very clear to the team how they are doing against their targets. Another good idea is to
use a vertical arrow on the right-hand side to show which direction is ‘good’. When a team
needs to reduce waste, increase output, reduce defects and increase efficiency by decreasing
downtime, it could become very complicated. The team needs to understand whether the
trend should be upwards or downwards.
4. Layout of the board
• Ensure the board is large enough, typically 2m x 1m

• Provide for about seven KPIs
• Provide for long- and short-term graphs
• Distinguish between PQCDSM with headings or colours and group graphs together
• Provide for actions resulting from the team meetings
• Allow space for static team information such as photographs, code of conduct, team
targets, etc.
• Allow for other information such as training plans and memorandums
• Keep it flexible — steer clear of permanently positioned perspex holders and rather use
magnets, hooks or plastic sleeves with drawing pins
• Keep it neat and tidy (in the spirit of 5S)
5. Bold and colourful
Use a range of colours to draw graphs. It will make the workplace more colourful and be
easier to read the graphs from a distance. Ensure that there is always an ample supply of
these colour pens in the work area.
6. Location
This is normally a difficult decision and is dependent on circumstance. Install the board
where the team needs the information, typically in their meeting area. Depending on the size
of the work group, the physical dimensions of the visual display area need not be excessive.
However, be sure to allow sufficient space so that the display is not cramped — a size of
approximately 3m x 3m for a group of seven to 10 people would be the average. The visual
display area should ideally be U-shaped, but this is not mandatory.
KEY ASPECTS OF VISUAL CONTENT

There are two key aspects to developing the content of visual displays:
1. The actual content (what is shown)

2. The formatting thereof (how it is shown)
Both are important since they work in tandem. In other words, if the content is good, but no one can read
it, then the display is illegible ‘wallpaper’. The converse is also true — no amount of skillful formatting
will hide weak content.
The following table gives an indication of the nature of the data for each type of visual display:
It is important to emphasise that the nature and the content of data displayed will change from level to
level within the wider organisation to make it pertinent, but it will need to remain fully aligned.
The following image shows the typical layout of a visual display board:
MACHINE MEASURES FOR REAL-TIME INFORMATION

Much as it would diminish the enjoyment of watching a sporting event without a scoreboard indicating
an ongoing score, it is necessary to introduce machine measures near the equipment to provide team
members with real-time information indicating In busy, dynamic work environments,
performance, conformance and shortfalls
throughout the shift. In busy, dynamic work
processes flow more smoothly when
environments, processes flow more smoothly everyone can see how the process is
when everyone can see how the process is working working in real time.
in real time.
This means using additional visual display

boards, visual controls and other data collection
mechanisms. The intention is to provide workers
with immediate feedback so that they can take
corrective action when any KPI is starting to show
negative performance. A typical example is hourly
cumulative production figures from a particular
machine or process being compared with the
production plan or statistical process control
charts for that machine or process.
It is useful to have a simple visualisation of

whether a process is under control or not. One
way is to introduce green and red magnets to
indicate acceptable performance (green) or
performance that was below expectation (red),
making it easy to identify if the machine or
process is performing well.
Be careful, however, not to have too many boards

and do not duplicate information. The boards must
add value and all out-of-control incidents need to
be addressed immediately. It is also important to
place the corresponding and relevant comments
on the display board. In some organisations, these
The acid test for the visual workplace
display boards are nothing more than clipboards
attached to the equipment, indicating only the is whether you can go into the work
most critical elements. area and quickly understand the
The acid test for the visual workplace is whether
current status.
you can go into the work area and quickly use as possible. The result is the transformation of
understand the current status. In a visual a formerly mute work environment into one that
workplace, information is converted into simple, speaks clearly and precisely about whether the
commonly-understood visual devices, installed in work is performed error-free, smoothly, reliably,
the process of work itself — as close to the point of and on time.
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effectiveness and efficiency,
thus maximising value to your
customers. Visit our website at
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what TRACC can do for you and
your business.
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Disclaimer: This guide has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information
contained in this guide without obtaining specific professional advice. Competitive Capabilities International (CCI) does not accept or assume any liability, responsibility or duty of care
for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this guide or for any decision based on it.

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eBook HOW TO GUIDE:

DEVELOPING A VISUAL FACTORY

PROCEDURE LABELS MULTILINGUAL SIGNS PIPE MARKERS SAFETY SIGNS ELECTRICAL

MANAGING THE WORKPLACE WITH

A visual control chart is any printed or hand-written chart that:

Such visual controls need to give us information about the:

INTEGRATING VISUAL MANAGEMENT WITH THE

SELECTING THE RIGHT DISPLAY FORMAT

By giving enough thought to the format and layout of the boards,

SIX GUIDELINES FOR BETTER GRAPHS

1. Show short- and long-term information

3. Show the target

4. Layout of the board

• Ensure the board is large enough, typically 2m x 1m

5. Bold and colourful

KEY ASPECTS OF VISUAL CONTENT

1. The actual content (what is shown)

MACHINE MEASURES FOR REAL-TIME INFORMATION

This means using additional visual display

It is useful to have a simple visualisation of

Be careful, however, not to have too many boards

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