What is visual management?
Visual management is a collection of vision-based communication techniques. This method makes it easier to transmit information, allowing anyone to identify if a situation is normal or abnormal in a working zone. This makes it possible to identify anomalies and to see if operators are handling these problems. Visual management aims to quickly view relevant indicators for a department or shop floor to be able to effectively manage different activities.
This is a method used in the Toyota Production System which is found through a variety of Lean tools. For example, Kanban, Six Sigma and PDCA are all based on visual management. The latter is a hands-on management method, as it helps everyone get involved based on vision, knowledge and action.
Once put in place, the aim of visual management is to make decisions more quickly, facilitate internal communication or expedite information flows. For example, in industry, visual management can be used to communicate regarding safety guidelines. This method is part of a Lean approach, as the aim is to continually improve performance using an indicator
What is a performance indicator?
A KPI is a key performance indicator. The aim is simple: to continually measure data which is important to a company. This measurement provides statistics on a company’s progress or objectives to be achieved. If the figure declines, performance indicators help guide actions to be put in place.
These KPIs must be easily accessible and visible to all. This means they are commonly used in visual management to guide managers with their action plans. They are displayed on notice boards to track them easily.
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