Visual Management: Skilled Training for Performance Excellence

1. Performance Excellence Visual Management– Skilled Training VM.S.2.0

2. VM.S.2.0 HEALTH AND SAFETY

3. VM.S.2.0 • Be open to new ideas • Share experiences and ideas • Ask questions and express concerns • Listen for what is new • Think ahead • Be courteous and polite to others • Make decisions by consensus • Work hard and have fun • Be concise

4. VM.S.2.0 ICE BREAKER • What current Visual Management do you have / have you seen at National Grid? • How is visual management being used? • Who benefits? • What are the benefits?

5. VM.S.2.0 WHAT ARE THE CORE PRACTICES? The Core Practices are the key tools everyone at National Grid need to understand and use. It is essential that we apply the tools, but more importantly the behaviours and thinking that underpin them. This will support changing the way we work, think and ultimately behave.

6. VM.S.2.0

7. VM.S.2.0 THE BUSINESS SKILLS Performance Excellence Change Management Performance Excellence Contract Management Stakeholder Management Project Management Customer Focus Regulatory Understanding Commercial Awareness

8. VM.S.2.0 MY PASSPORT TO SUCCESS Training complete, evidence approved by ‘CoE’ member Performance Excellence Training complete, evidence approved by ‘Expert’ member Training complete, evidence approved by ‘Advanced’ member Complete training

9. VM.S.2.0 CONTENTS • The topics we will cover today are: • Core Practices • What are they? • How do they work together? • Visual Management • Workplace Organisation • Visual Displays • Visual Controls • Corrective action plan

10. VM.S.2.0 HOW DO I BECOME ‘SKILLED’ AT VISUAL MANAGEMENT?

11. VM.S.2.0 WHAT IS VISUAL MANAGEMENT? Visual Management is a system of displays and controls designed to support sustainment of a process standard • Visual management is a business management technique that makes important information visible to all • It presents information in an easy to understand way by using visual signals instead of text, so that anyone can follow them • The design is deliberate in allowing quick recognition of the information being communicated in order to increase efficiency & clarity • When you see something you can understand it better

12. VM.S.2.0 WHAT IS VISUAL MANAGEMENT? Visual Management is a system of displays and controls designed to support sustainment of a process standard • Expose waste so that it can be eliminated and prevented from recurring making the workplace more efficient • Shows trends in Quality, Safety, Delivery, Cost (QSDC) • Builds participation through shared information

13. VM.S.2.0 EXAMPLE OF VISUAL MANAGEMENT Interestingly, some of the most effective applications I’ve seen of Visual Management are not in business or operations… Here’s one very simple but effective application of Visual Management to alert the teacher on the status of children’s birthday: A simple birthday display board is incredibly helpful for a teacher and is simple, effective, and achieves the outcome for its design: to alert the teacher on which kids have a birthday that month.

14. VM.S.2.0 7 STEPS TO GOOD VISUAL MANAGEMENT • Get the team to design it • Must be understood in seconds • Only the information required by the team • Who is going to use it? • What do they need to know? • Must be accurate • Use symbols and colours • Make it easy to maintain • Try it out and modify (The first attempt is rarely the final version!)

15. VM.S.2.0 TYPES OF VISUAL MANAGEMENT • Error Proof • Stop abnormalities • Warn about abnormalities • Build standards into the workplace • Share Standards • Share Information • 5S

16. VM.S.2.0 WORKPLACE ORGANISATION • 5S

17. VM.S.2.0 5S STANDARDISE

18. VM.S.2.0 WHAT IS 5S? • “5S creates and sustains a visual, clean and safe workplace. It improves efficiency, moral and effective management” • Stages of 5S: • Sift- Keep only the necessary items in the workplace • Sort- Arranging items to promote efficient workflow – “A place for everything and everything in it’s place” • Sweep- Deep clean the work area so its clean, neat and tidy • Standardise - Set standards for a consistently organized workplace • Sustain- Maintain and review standards

19. VM.S.2.0 WHY IS 5S IMPORTANT? Flow Eliminates Wastes Foundation of Lean Engagement Safety Showcase Standards

20. VM.S.2.0 WHERE CAN WE DO 5S? • Office Distribution Centre • Canteen Work Vehicle

21. VM.S.2.0 5S – STEP BY STEP GUIDE Preparation

22. VM.S.2.0 • PREPARATION

23. VM.S.2.0 • SIFT To sift simply means to remove unnecessary items from the workplace that no longer add value. This can be anything, it could be excess paperwork in the office or no longer used tools or equipment in your work van. No matter what the item is, we need to ask do we really need it?

24. VM.S.2.0 • SIFT

25. VM.S.2.0 • SORT Formally defined, sort means to arrange all necessary items in such a way as to maximiseeconomy of movement. In other words we should place the things we use most frequently close to us in a clearly labelled and designated place. Really, all we’re doing in the sort step is asking the question… what’s the right place for the items we use most. Now with this said, sort doesn’t simply mean to “put things in neat rows” as the name might imply… instead it means to find a place for everything while ensuring everything is in its place. Some actually refer to this step as “set in order”.

26. VM.S.2.0 • SORT

27. VM.S.2.0 • SWEEP Sweep has two elements: To deeply clean the area, physically removing all dirt and rubbish from all areas. Everything should be restored as close as possible to it’s original condition Once the deep clean has occurred cleaning by inspection can start, during daily sweeps all reasons why the mess has occurred should be recorded and actions to eliminate the root cause should be carried out

28. VM.S.2.0 • SWEEP

29. VM.S.2.0 • STANDARDISE • Standardisation is the result of doing Sift, Sort and Sweep well. All items left in the area should be clean and located in the right place. • Visual management could be used to support standards: • Colour Coding Standards • Standard Work Documents • Standardised Cleaning Lists • Location Control Marks • Position Marks / Shadow Boards • Standardised Filing / Diagonal Tape

30. VM.S.2.0 • STANDARDISE

31. VM.S.2.0 • SUSTAIN Sustainment for 5S means to have the commitment and self-discipline to maintain the previous four steps. We must ensure that the progress is monitored and regularly reviewed. This needs to be driven from all team members and the leadership team. “People do what we inspect not what we expect”

32. VM.S.2.0 • SUSTAIN

33. VM.S.2.0 VISUAL DISPLAY • Share Standards • Share Information

34. VM.S.2.0 VISUAL DISPLAY– SHARING INFORMATION

35. VM.S.2.0 VISUAL DISPLAY – SHARING STANDARDS

36. VM.S.2.0 TYPES OF VISUAL MANAGEMENT • Error Proof • Stop abnormalities • Warn about abnormalities • Build standards into the workplace

37. VM.S.2.0 VISUAL CONTROL – BUILDING STANDARDS INTO THE WORKPLACE

38. VM.S.2.0 VISUAL CONTROL – BUILDING STANDARDS INTO THE WORKPLACE • Visual Control Boards…. • ensure we understand performance at a glance • focuses on the process and make it easy to compare plan vs actual performance • highlights when the process is not performing as expected (captured through reason codes) and where improvement might be needed enabling us to take immediate corrective actions • Process • Individual • Volume • Hourly • Daily • Weekly • Planner • Project • Heijunka • Magnetic • WhiteBoard • System • Paper

39. VM.S.2.0 What is the purpose? To collect data and quantify and prioritise reasons for over or under performance against target. • MDI is used to drive continuous improvement activities within our normal working practices, capturing both over and under performance • It captures the cause of underperformance which are exposed through frequent performance monitoring • It also helps categorise and prioritise causes to enable effective countermeasures to be put in place • Enables individuals to be honest about their reasons for shortfalls in performance in order to identify trends and themes across the team.

40. VM.S.2.0 • To understand why productivity takes a nose • To support the team deliver to target • Avoid dealing with the same problem week in week out. • Gain more time to focus on improvement activities • To understand reasons for high performance so that the actions can be captured and repeated. • MDI provides a visible illustration of the key reasons for poor performance which indicate the issues to prioritise for Problem Solving. • Where MDI highlights the positive actions taken that led to over performance, this indicates the actions that need to be maintained, and built into the process.

41. VM.S.2.0 Identify target and actual performance Capture reason for gap in performance Capture relevant 3C for prioritised reason Collate reason codes for the team

42. VM.S.2.0 Our work control boards or KPIs indicate when performance has been exceeded, or failed to reach target The biggest issue that is recorded should be captured as a 3C or CPS and a structured approach should be implemented to deliver a sustainable countermeasure and eradicate the issue Each time performance is not as expected the associated reason should be captured. Data trends can be collected which is used to prioritise the biggest concerns

43. VM.S.2.0 • MDI should remain visible to provide an instant understanding of the reasons for performance. • MDI should be tracked hourly where possible, or minimum daily to gather accurate data. • The reason codes captured should be reviewed on a regular basis to ensure they are still relevant to the process or performance measure. • MDI is most effective when the reason captured is for lost time, rather then the most occurring problem. • Ensure the MDI captured is the true, root cause of the problem, this will help when taking the issue forward for Problem Solving • To capture effective MDI, actual performance needs to be understood against the target to capture the reasons for the gaps.

44. VM.S.2.0 VISUAL CONTROL – BUILDING STANDARDS INTO THE WORKPLACE Create a control board that you could use in your workplace How will it link to MDI?

45. VM.S.2.0 VISUAL CONTROL – WARN AND STOP ABNORMALITIES

46. VM.S.2.0 VISUAL CONTROL – WARN ABOUT ABNORMALITIES • Andon • Andon systems should be • Visible/Audible – Can be seen and/or heard by the team and leadership • Concise/Understandable – Primary three conditions – Good, Abnormality, Stop • Timely/Responsive – Real-time data • Relevant – Only show the status of an process in a particular area “Andon is an information tool which provides instant, visible or audible warning that there is an abnormality within the process” Andon will not solve abnormalities, it will only highlight them. To be effective a resolution procedure will need to be developed.

47. VM.S.2.0 VISUAL CONTROL – WARN ABOUT ABNORMALITIES Setting up an Andon system

48. VM.S.2.0 A corrective action plan needs to be in place for both warnings and stops whenever an Andon system is implemented. For both systems the Kipling method can be applied, think about as many scenarios as you can and answer - What do you do? When do you do it? How do you do it? Who do you get support from? Who is in the escalate route? What will they do? How will support be given? CORRECTIVE ACTION PLAN

49. VM.S.2.0 In order for the visual management to be effective, it is crucial that people exhibit the right behaviours. These include: Keep up to date Be open and honest (do not hide true performance) Reacting to warnings Reacting to off-target performance VISUAL MANAGEMENT BEHAVIOUS

50. VM.S.2.0 VISUAL CONTROL – WARN AND STOP ABNORMALITIES Create a Andon system that you could use in your workplace