Lean Daily Management System
A powerful lean continuous improvement tool, the Lean Daily Management system(LDMS), is the foundation of the long-term success of excellence of any organisation. From the factory floor to the highest management levels, LDMS includes all the operational control activities. A robust lean daily management system can determine the efficiency and increase the productivity of the process. But How? Let us look at what Lean Daily Management System is and what is the heart of it?
Lean Daily Management System is an everyday process which keeps our eyes on where we stand on the track to meeting the goals. After analysing whether we are on the right track or off track, corrective actions are taken, past actions are checked, and improvements are sustained. LDMS facilitate the flow of information throughout the organisation. How is that done? Daily huddles are the answer. The team is brought together in a huddle where a system of learning, communication and improvement occurs. The processes are reviewed along with the results.
Four essential elements make up the Lean Daily Management System
Daily Accountability Process
People at all levels are engaged in the process. The process includes the daily activities of cleaning, checking the equipment, daily safety reminders, shift start meetings, team huddles and tiered accountability meetings. Daily huddles form the key part of the LDMS.In the huddle meetings, team or cross-functional groups meet and discuss the status of the process. This enables the team to raise and address the issues as they occur and prevent them from becoming larger problems. The visibility walls host the daily huddles at the same time each day.
Gemba Walks
Go to the place. Ask Why?. Respect the people. These are the three main components that define the gemba walks. The leaders are brought to the place where the work is done. They observe how effectively their team performs in real-time, and the information is directly collected from the workers. The recordings are used to improve the process and eliminate waste. Gemba walks thus offer a flexible and structured approach for identifying opportunities, developing people and learning about the day-to-day operation.
Leader Standard Work
Leader Standard Work is the routine the leaders follow to check on their teams, track the progress of the daily work, ensure whether the process standards are being followed and find opportunities for coaching and developing people.
Process Confirmation
Process Confirmation is a set of audits of the process standards that are incorporated into both routine and random checks. The main aim of the process confirmation is to confirm whether the work is done per defined standards and procedures.
Visibility Wall
Visibility Wall forms a key factor in the Lean Daily Management system. It is a visible space where anyone can easily view the team's daily work. The visibility walls and daily huddles work together and hence are positioned accordingly. The significant points of the discussion are captured in the visibility wall, which forms a permanent location to easily view the organisation's work according to which the works can be planned and prioritised.
The visibility wall has three areas: daily metrics, longer performance indicators and improvement ideas. Each wall has a statement of purpose and a communication section for unit activities and improvement ideas.
SQDC
The performance indicators are long-term. They cover several areas which can help in completing the work. The indicators include Safety, Quality, Costs, Delivery (SQDC) and sometimes Engagement and Morale. These visibility walls displaying these above indicators become the SQDC boards. SQDCP visual management board, like the SQDC boards, monitors and analyses how teams or departments perform in key areas like Safety, Quality, Cost, Delivery, and People.
What happens on a SQDC board?
Let's see how an SQDC board works
Step 1
For each criterion, the measures are specified.
| SAFETY | QUALITY | DELIVERY | COST/ CUSTOMER |
|---|---|---|---|
| No missed days | Less than 5 defects per day | 100% on-time to customers, schedule, following process etc. | No escape notifications |
| No injuries | DPMO less than 50 | Complete 10 units per day | No defects at installation |
| Test yield greater than 95% | No warranty claims in the first three months |
Step 2
A new SQDC diagram is set at the beginning of each month. They are placed in the order, in a location viewable by both the employee and the managers. The following measures are given for the metrics - SAFETY, QUALITY, DELIVERY and COST.
| SAFETY | QUALITY | DELIVERY | COST/ CUSTOMER | |
|---|---|---|---|---|
| Green | Zero accident | No customer complaint | Ontime Dispatch | Zero defects at installation |
| Amber | Minor accident | Problem identified | Delayed Dispatch | Defect resolved |
| Red | Major accident | Customer complaint | Line Stop | Defect detected |
Step 3
After the production day, the colour of the diagram is updated. Every day, the managers walk around and analyse whether every metric was achieved. Time is spent discussing the ones in unattained goals only. The time spent on each area and overall management time is reduced.
Day 1
Display a new QDIP/SQDC diagram at the beginning of each month. Place them in order in a location which is accessible and viewable for everyone.
Day 5
After each production day, colour the Day on each diagram with GREEN, AMBER and YELLOW.
After Day 5,
Safety-There was a major accident on Day 5.
Quality- A problem was identified on Day 2 and 3.
Delivery- Ontime dispatch on Day 3,4 and 5.
Cost- Defect was detected on Day 1.
Day 10
After Day 10,
Safety has met zero accident target on 8 days.
Quality has met the no customer complaint on 5 days.
Delivery has met the target of on-time dispatch on 4 days.
Cost has met zero defects at installation on 6 days.
Day 15
After Day 15,
Safety has met zero accident target on 12 days.
Quality has met the no customer complaint on 8 days.
Delivery has met the target of on-time dispatch on 10 days.
Cost has met zero defects at installation on 5 days.
Day 31
At the end of the 31 days, the SQDC diagram gets filled, and the managers or the leaders move to the next analysis step.
Step 4
At the end of the month, the manager or the leader has quick access to the root cause of the problems and can decide how to resolve the issues in the upcoming months. When the entire diagram has gone green, the key metrics are modified to make it more of a challenge. If the entire metric is still in red or amber, then the conclusion is that either the metric is too tough or additional resources or prioritisation are required for resolving the issues.
Contents
- What is a SQDC board?
- What does SQDC stand for in manufacturing?
- What is SQDC in lean?
- How does an SQCD board work?
- How can the SQDC board be used for process management?
- What is the SQDC board in terms of continuous improvement?
- What are the main benefits of managing a process by an SQDC board?
- Why are Daily Huddles important?
- What is QDIP?
- Why is QDIP needed ?
- How can QDIP sheets be used?
- What is QCDSM?
- What is an SQDCP/SQCDP board?
- SQDCP Board Example
What is a SQDC board?
SQDC boards are daily management boards that can track the Safety, Quality, Delivery and Costs. Using the board, the status of the work is tracked. By providing the visual representation of the management process, SQDC boards are your instant virtual assessment assistant. The daily management processes are made visible, and targets are shown alongside progress concurrently. Quickly and easily updatable, the boards can be custom-made according to how you want them. Continuous improvement is the target.
What does SQDC stand for in manufacturing?
SQDC boards are huddle boards that track how the manufacturing process works, especially in the four key areas: Safety, Quality, Delivery and Cost.
- Safety is paramount. Safety always comes first, showing near misses, safety violations, missed work due to injuries and unsafe work practices.
- Quality metrics include the number of product defects in a day and returns due to poor manufacturing quality.
- Delivery measures include the on-time shipments to the customers or the number of shipments made per day versus the goal.
- Cost measures include the metrics surrounding waste and leftover raw materials, overtime costs and late fees.
Each category in the SQDC Board can establish daily, weekly and monthly goals. When the teams meet their predefined goals, the category is marked green for that period. If the condition is otherwise, then it is marked amber or red. When the management goes through the Gemba walk, they can see and understand where the facility stands by reading the board.
What is SQDC in lean?
SQDC boards visually track Safety, Quality, Delivery and Cost/ Customer daily. Other metrics like Inventory, Productivity, Environment or Morale can also be included in the board. Like to the employee, safety and morale are essential to the customer, the quality and cost, and to the business, inventory and productivity are tracked by the SQDC board. The manager or supervisor does an all-around tracking of the production process during the Gemba walk. Each area has 30-31 numbers representing each day of the month. A green colour would indicate a goal that has been accomplished, while red and amber indicates an area falling short of the target. The ongoing progress of the processes is updated on a real-time basis. They can be custom-made according to the requirements of the industry.
The standard criteria under the four metrics of the SQDC board are
- Safety: accidents, near misses, safety incidents, safety talk.
- Quality: complaints, number of the test fails, rework, non-conformance items, defects.
- Delivery: number of late deliveries.
- Customer: number of customer complaints, returns
How does an SQCD board work?
SQDC forms the visual control tool to analyse the key performance indicators(KPI) like the safety, quality, delivery and costs for a specific team or an organisation. Any point at which the process or operation is performing on all the four parameters is measured by SQDC. Since the leaders consume them during the gemba walks, they can also be called gemba boards.
The board is kept in a location which is visible to all team members and appeals to them. Some companies even have a particular area in the production bay to capture this. The board is updated multiple times a day to reflect the team's real-time performance on all the four key parameters. While on the Gemba walk, the supervisor or the manager understands how the team is performing and takes corrective action in case the team is lagging behind any indicators or appreciate and motivate the team if the performance is going well. The team members also understand how their contribution is helping the team in Safety, Quality, On-time delivery and Costs, which in turn align the company goals or targets with the team goals.
How can the SQDC board be used for process management?
SQDC board track the performance and analyse the results in comparison to the set goals. Being a visual representation, the board helps in understanding the target and where we stand in terms of the defined goals. SQDC boards are easily adaptable to new changes in the process as they can instantly give a visual analysis of the status of the problem or the solutions. Progress of a new initiative can be analysed on a daily basis which can help in making the changes instantly. SQDC board forms a tool to help the team constantly strive to achieve success and continuous improvement of the process. Continuous improvement is made by observing the actual work process, engaging with the employees, gaining knowledge about the work process and exploring opportunities. Do a Gemba walk. Month-on-month trends can help get an idea of what has happened in the past and what will happen in the future.
What is the SQDC board in terms of continuous improvement?
SQDC boards are the one-stop solution for all the process assessments and results tracking. The progress happens thus. The targets and the results go side by side. New standards are achieved with the help of real-time progress. The targets get updated, they are met, and the process continues. The SQDC board thus serves an adaptive workplace constantly striving for improvement.
What are the main benefits of managing a process by an SQDC board?
- Improves Efficiency: The actions are taken well in time before the problems aggravate as the visual boards are accessible by everyone from the managers to the staff.
- Improves Productivity: Continuous improvement begets productivity.
- Improves Accountability:Accountability and responsibility are naturally increased as the board is accessible and visible to everyone.
- Resource Levelling: Smooth flow is ensured by the resource levelling, done with the board's help, which gives the details of the areas that are performing well and need support.
- Training Opportunities: Identifying the opportunities for improvement in skills or multi-skilling.
- Others: improving focus, teamwork and building morale.
- Quick and easy understanding of the status: Red and the Green marking on the board are easy indicators of understanding the information at a glance.
- Ensure the process is running as per the designed flow: Any deviation from the designed process flow can be identified. The deviations can be in the form of defects, breakdowns,non-compliance to steps etc. and can be depicted by tools like Pareto, bar chart or histogram.
- Reduced Miscommunication: A common level of understanding about the focused areas for improvements is reached from the board, which reduces room for miscommunications among the managers and staff about the gaps and priorities.
- Increased attention to gaps and their closures: Deviations are identified and marked red on the board, which speeds up the discovery of the causes and action plans for their closure.
Why are Daily Huddles important?
Daily Huddle or the daily stand-up meetings in front of the huddle boards is one ineludible component of the Lean daily management system.
- Provides a daily check-in for the team to focus on the day's goals and targets.
- A channel for the staff to raise their concerns and get addressed.
- Enables the team to prioritise the problem-solving efforts
- Team bonds are strengthened as huddles form the place to celebrate the wins together.
- The team productivity is drastically improved.
What is QDIP?
SQDC can be used instead of QDIP. QDIP forms another name for the SQDC board. A virtual assessment of the daily processes based on the five parameters is analysed here: Safety, Quality, Delivery, Inventory, Productivity and the newly added metric of environment.
Why is QDIP needed ?
QDIP sheets help facilitate the evaluation of the production process in the work area itself. By examining a single sheet itself, the management can assess the status in a matter of seconds. The red, amber and the green colour coding in the sheets help in this. When the sheets for a given parament go full green, it is an indication that the key metrics should be modified to make it more of a challenge, and when it goes all red or amber, then either the metric is too hard, or any additional resource or prioritisation is required for addressing the issue.
How can QDIP sheets be used?
- Step 1 is to define the key performance indicators.
- SAFETY: No missed days, no injuries and no safety violations
- QUALITY:Less than five defects per day, Test Yield greater than 95% and Defects per Million Opportunities(DPMO) less than 50.
- DELIVERY: Completed 10 units per day, 100% on time to customers, plans, following process etc.
- COST: No wastage, no late fees, within 10 of the designated time, no overtime.
- INVENTORY: No more than three pieces at each station, WIP less than ten units.
- PRODUCTIVITY:The team met daily goals with less than 10 minutes of downtime.
- ENVIRONMENTAL:All the equipment is turned off at the end of the shift, 100% Hazardous waste regulation and no recyclables in the trash.
- Step 2 is putting up new QDIP/SQDC sheets at the beginning of each month. The sheets are to be displayed at a location accessible to the employees and management.
- Step 3 involves assessing the colouring each day. The red and amber means the goals are not met, and the green indicates the objectives on the sheet are met. The red areas are discussed, and at the end of each month, the managers determine how often the issues occur and what needs to be done in the upcoming months to rectify the issues.
What is QCDSM?
QCDSM stands for Quality, Cost, Delivery, Safety and Morale. An overall strategy which is used to improve business processes they are mostly applied in the manufacturing, and construction industries, it can be applied to many others as well, like the healthcare industry.
Potentially larger issues are broken down into smaller, manageable steps, which help them prioritise and make necessary efforts and resources. Improved quality, lowered costs, more reliable delivery, better safety, and enhanced morale are some of the common benefits that QCDSM offers.
What is an SQDCP/SQCDP board?
SQCDP lean visual management board is part of daily shop floor management which quickly visualises how teams perform on the key indicators such as Safety, Quality, Delivery, Cost, and People. The board helps the team collaborate, analyse and initiate continuous improvement activities.
