“Visual Management”
Perhaps the most misunderstood concept. “We are putting a bunch of KPI boards. We are doing visual management.” One plant explained. But the reality was a mess. Is this really “visual management”?
Taiichi Ohno started the “Visual management.” In Japanese, Mede - Miru - Kanri. 【目で見る管理】
Mede 【目で】 = with (your own) eyes.
Miru 【見る】 = to see.
Kanri 【管理】 = Management.
There are many nuances within the word “visual. " What is closest to what Ohno said? There is a word called “Visual Flight.” It is a flight technique that uses no instruments or radar. This nuance of “visual” is probably the closest to what Ohno meant.
What did Ohno “visualize” first? Ohno answered an interview by Shimokawa, and Hujimoto responded to this question in 1984.
“When I was the manager of the machining process, the first thing I did was “standardized work.” At that time, the production of Genba was controlled by the foreman (craftsman). The boss of the foreman had no control and made excuses for delays. We documented the standardized work and posted it on top of each worker. We posted the standardized work on this board called “Kanban.” In other words, “Kanban” started as “Visual management.” Here, I mean “visual,” which means that when the managers see the work, they can tell if the worker is following the standard work. Just like signboards (typical meaning of Kanban), Kanban is there for the outsider to see.”
The first thing Ohno “visualized” was the standardized work. Not KPIs.
Instead of discussing Ohno’s liking or dislike of numbers, I would try to understand what he is saying. Another interesting quote is in his book Workplace Management.
“Speaking of standards, time study is another thing everyone gets wrong. For example, people measure ten repetitions of a task and use the average value. I think this is the worst thing you could do. If you are watching a person doing something ten times, and if they are doing it differently each time, you should immediately correct them. Instead, people think, “That’s not my concern. I just learned the symbols and how to use a stopwatch and I write things down. And after measuring ten repetitions, the standard time will be set as the average of the ten times.” If you are going to take ten such unreliable measurements, you should choose the shortest time. Some say that is harsh, but what is harsh about this? The shortest time is the easiest method.”
Ohno, Taiichi. Taiichi Ohnos Workplace Management: Special 100th Birthday Edition (p. 145). McGraw Hill LLC. Kindle Edition.
Time study is data. Ohno questions the value of data when there is no standard, or someone is not following the standard. He says we should immediately act when someone is not following the standard. Variations in the input will result in variations in the output. Why do we need to wait for the results if we can see a variation in the process? Standardized work is a management method that creates scientific conditions for experiments. Ohno and Toyota constantly implemented variables called “Kaizen.” Despite continually and intentionally introducing changes, they ensured that such trial and error delivered good results by following the standardized work. Making that condition visible was the first step.
To visualize standardized work, they didn’t just post papers. They highlighted where some essential physical materials, such as the standard in-process stocks and tools, should be. Whenever these are not in standard condition, it is visual that some violation happened. This was the original intent of 5S. Unfortunately, there are many mistakes. Under “5S,” they determine the locations without considering the standardized work. They prioritize “neatness” or “cosmetics,” not the soul.
The most important thing is that “visual management” highlights abnormalities. Ohno highlighted abnormalities against the standardized work. There are no big or small abnormalities since every fluctuation will impact the standardized work. Every abnormality must be investigated, as it might change the basis of scientific experimentation. Again, the problem is that many visual management signals are ignored. The Andon light is flashing, but nobody reacts. Machine gauges have color-coded tolerance ranges but are outside the range and do not take action. Most of these issues have impacts on the results but are ignored.
I am not saying we should not visualize KPIs, results, etc. We must. However, we should visualize standardized work to clarify normal and abnormal conditions. Standardized work is the best-known method to be successful. Visualize the best method. Any deviation from the best method will hurt the KPIs. Take immediate action. Visualize to make the lead time to action as short as possible. This is the essence of the visual management.
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