Visual management, performance management and continuous improvement: A lean manufacturing approach

Abstract

Purpose

The purpose of the paper is to study the interconnections between visual management, performance management and continuous improvement programmes and to suggest a practical framework to establish an effective visual management programme in association with performance management and continuous improvement systems. For the sake of simplicity, this paper refers to such a programme as integrated visual management (IVM) throughout this paper.

Design/methodology/approach

The following research included proposals and discussion, which were based on a case study which took place at a quality assurance (QA) department in PACCAR Australia, a global premium truck manufacturer, as well as authors’ own findings and experience, in addition to a literature-based review on visual management, performance management and continuous improvement. A systematic approach was followed to establish an effective IVM system. This paper is composed of two sections. Some of the most important literatures on visual management, performance management and continuous improvement are reviewed in the first section. Then the findings, as well as some other author findings, on why visual management works are summarised. The second section is dedicated to the case study.

Findings

Visual management can provide a simple and yet effective solution to enhance information flow in organisations. However, for visual management to yield its full benefit, it needs be part of a bigger plan. It has to be linked to a performance management programme, which provides input into visual management, and a continuous improvement initiative, which receives inputs from visual management. This paper proposes a practical framework to establish an IVM programme and provides a detailed description of its phases. The paper also presents the results achieved, during our case study, and views on the integration benefits, as well as on how to successfully implement an IVM programme. A systematic approach to establish an effective IVM system was followed. It laid a solid foundation to facilitate an effective flow of information in QA in its respective areas. This programme not only improved an understanding of the processes and raised awareness about the performance and associated issues, it also boosted transparency, discipline, shared ownership, team involvement and scientific mindset. It assisted in achieving significant and concrete process improvements. It helped in establishing a productive continuous improvement programme. It was observed that while visual management, performance management and team or company continuous improvement programmes each served a benefit individually, when they were linked together, as a whole, their synergy allowed for more significant achievements.

Research limitations/implications

The scope of this research is limited to use of visual management to manage performance and to lead continuous improvement initiatives. The research was performed in a manufacturing environment. Even though it is believed that the suggested framework for IVM and the findings are applicable to other business environments as well, further research in this direction is required. Also, the interconnection between visual management, continuous improvement and performance management based on a case study was investigated. More quantitative researches, on bigger scales, are required to better understand the mentioned interactions and to enhance our knowledge of these tools in a holistic manner.

Originality/value

The originality of the papers comes from its holistic approach to visual management, performance management and continuous improvement programmes and the suggested framework to establish an IVM programme.

Citation

Eaidgah, Y., Maki, A.A., Kurczewski, K. and Abdekhodaee, A. (2016), "Visual management, performance management and continuous improvement: A lean manufacturing approach", International Journal of Lean Six Sigma, Vol. 7 No. 2, pp. 187-210. https://doi.org/10.1108/IJLSS-09-2014-0028