Training material

Daily Management System (DMS): From Basics to Launch

Last updated: February 23, 2024

What Is a Daily Management System (DMS)?

A Daily Management System, commonly referred to as DMS, is the structure by which organizations conduct operational management to ensure their day-to-day goes as planned and continuously improves. In other words, it encompasses all of the operational control and continuous improvement activities, from the factory floor to the highest management levels.

In a typical context, supervisors perform regular Gemba Walks to ensure ongoing control over factors such as productivity, quality, health & safety and other needs. Audits and inspections are implemented and conducted regularly to ensure continuous compliance and improvement of established standards. Through this system, all levels of management hold regular daily huddles and weekly meetings to support decision-making. Moreover, the communication structure ensures an effective information flow within the organization, enabling optimal collaboration in problem-solving.

A Full Daily Management System Comprises:

Standard Work (Leader Standard Work and SOP Auditing)

Operational control and audit process (Gemba Walks, Checklists, Audits, Inspections)

Communication and Problem-Solving Ecosystem (Issues Management, Escalation Process, Communication Cascade, Daily Huddles, Tiered-Meetings)

Continuous Improvement Methods (Improvement opportunities, action plans, Root Cause Analysis, PDCA Cycle)

Performance Management (Visual Management, SQCDP Action List, KPIs’ Analysis)

Daily Management System’s Role

  • Align strategic objectives with operational execution
  • Standardize the management processes
  • Establish the leader’s standard work
  • Validate the standards and audit process compliance
  • Identify issues and deviations against the standard
  • Accelerate decision-making and reduce delays for corrective actions
    • Resolve issues quickly through effective collaboration
  • Foster a culture of continuous improvement to prevent problems from recurring
  • Monitor key performance indicators and follow the performance of processes
  • Increase ownership and accountability at every level of management

Understanding the Key Components of Daily Management System (DMS)

Management Tiers (Tier 1, Tier 2, Tier 3)

Segregating management levels, or establishing management tiers, is an important aspect of daily management, as it helps clarify roles and responsibilities, streamlines communication, encourages delegation, and promotes accountability.

​​By separating management into different tiers, each level is assigned a specific set of roles and responsibilities, which helps ensure that everyone knows what they are accountable for. It can encourage delegation, allowing senior leaders to focus on big-picture strategy while delegating day-to-day tasks to team leaders and supervisors.

Communication Cascade and Escalation Process Across Management Levels

The communication cascade and escalation process is a crucial element of daily management. It offers a structured approach to solving problems that includes clear escalation methods for issues that cannot be resolved at lower levels. The bottom-up approach helps operators and front-line supervisors to share opportunities, ideas, issues, and observations with upper management. On the other hand, top-down communication offers a feedback loop to front-line teams. They feel heard and valued, which increases engagement toward continuous improvement and overall performance.

For example, if the production operator cannot resolve an issue, he will escalate it to the supervisor. The supervisor will review the problem, gather additional information, and work with the operator to resolve the issue. If the supervisor is unable to resolve the issue, they will escalate it to the next level.

If the production operator and supervisor cannot resolve the problem, the issue will be escalated to the production manager. The manager will review the problem and work with the team to identify the root cause, develop a corrective action plan, and implement the necessary changes to prevent the problem from recurring.

If needed, a support team can help analyze the problem and identify the root cause, using their diverse knowledge and expertise. They can also help develop a comprehensive corrective action plan to address the issue and prevent it from happening again.

Leader Standard Work

The Leader Standard Work Program is the set of management activities standardized in the manager’s daily, weekly and monthly routines.

Leaders follow a set of standardized activities to control daily operations and improve organizational performance. This includes tasks such as monitoring key performance indicators, conducting Gemba walks, holding meetings, and coaching team members.

Gemba Walks and Proactive Supervision

A Gemba Walk structure ensures all management levels walk the work area. It involves going to the actual work area, observing operations, engaging with employees, and asking questions to gain insight and identify opportunities for improvement.

No matter the type of walk, it is essential to be respectful and listen actively to the employees’ feedback. Organizations adopt different Gemba Walks types to fit their need, such as proactive supervision, operational control, waste Gemba walk, safety walk, management by walking around, and observations.

On most Gemba Walks, managers use a standard checklist for each area, process or equipment of the organization. The checklist guides managers to validate standards, control operations, and proactively ask relevant questions. That way, they can handle problems before they impact more significantly.

By establishing a structured framework for Gemba walks, all management levels can effectively engage with employees and gain a better understanding of their operations. You can schedule the Gemba walks for all management levels. For example:

  • For team leaders, it could be twice a day.
  • For supervisors, it could be daily or weekly.
  • For upper management, it could be twice a month.

Layered-Process Audits (LPA)

A Layered-process audit (LPA) is a multi-level structure that involves a systematic method to conduct short, frequent, and standardized audits to ensure compliance with processes and procedures at different levels of an organization.

Audits and inspections are conducted by upper-level management, followed by middle management, and then front-line employees. Everyone is involved in auditing a particular process or system, aiming to identify and correct defects and improve process performance. It helps to identify issues early on, before they become larger and more costly problems.

For most manufacturers, a typical LPA focuses on quality assurance by ensuring all quality checklists and inspections are performed correctly and consistently.

Daily Huddles and Tiered Meetings

A daily management system involves all levels of management with a series of daily huddles and meetings structured by tiers, from team leaders to top executives. The tiered structure ensures everyone is informed, aligned, and accountable for the organization’s daily operations.

At the bottom level (Level 1), team leaders and frontline workers participate in daily huddles to discuss progress, address any issues, and set daily priorities. These huddles typically last no more than 15 minutes and are conducted at the start of the day.

At the next level (Level 2), departmental managers participate in daily tiered meetings to review progress, share updates, and address cross-functional issues that impact their teams. These meetings build on the information discussed in the daily huddles and allow for more in-depth discussions about ongoing projects, priorities, and obstacles.

Finally, top executives participate in a meeting (Level 3) to review the entire organization’s progress, identify improvement areas, and make strategic decisions based on data from the lower tiers.

Visual Management and Performance Indicators

Visual management is an approach used by manufacturers to enhance decision-making. It involves visual aids such as action lists, SQCDP boards, real-time production monitoring, and performance metrics to drive daily management.

Manufacturers could follow several performance metrics and monitoring indicators to ensure that their operations are running efficiently, such as Overall Equipment Effectiveness (OEE), cycle time, inventory turnover rate, production yield, downtime, and lead time.

The daily management system involves, among other things, the monitoring and implementation of actions in each SQCDP area (safety, quality, cost, delivery, and people).

Implementing a Daily Management System (DMS)

Here are the steps to implement your Lean Daily Management System (DMS):

  1. Map your organizational chart​​ and segregate the management hierarchy into different tiers.
  2. Identify strategic objectives as well as lagging and leading performance indicators. It might help to consider any SQCDP objectives (Security, Quality, Cost, Delivery, Productivity).
  3. Create a management calendar. Determine the timing and frequency of each recurrent task, meeting, daily huddle, Gemba Walk, Audit and Inspection.
  4. Create your custom and standard checklists to perform audits and Gemba Walks for each work area, equipment and process.
  5. Establish a communication cascade with straightforward methods to escalate issues across management levels.
  6. Train team leaders with continuous improvement methodologies (PDCA, Root-Cause Analysis, A3 Problem-Solving).
  7. Coach managers and supervisors to improve adherence to best practices and reduce skill management gaps.
  8. Audit management processes and management behaviors to improve your management system.

Daily Management System in the 4.0 Industry

In the past few years, everyone working in the manufacturing industry has heard of the famous 4.0 industry and the importance of not missing the boat. The fourth industrial revolution aims to connect pretty much any production involved elements. Tools, machines, CNCs, conveyor belts, robots and other types of equipment use sensors and connectors to enable the collection and analysis of its data. It’s even possible to connect things that weren’t conceived in the 4.0 era by adding smart modules.

However, in the digital transition race, one of the most critical production contributors is often forgotten: People. Where is their place in this ocean of data? How can we better coach supervisors and team leaders to embrace and leverage data, rather than being erased by it?

That’s where Tervene, the most powerful 4.0 Daily Management System, arises.

Why Is DMS Important for Manufacturers?

Daily Management is crucial for manufacturers as it helps them to continuously monitor and improve their processes, which results in better operational control, problem-solving, quality management, safety prevention, and employee satisfaction. By adopting a daily management system, manufacturers can identify and address issues promptly, preventing them from turning into bigger problems that can impact their operations and bottom line. Daily Management also promotes a culture of continuous improvement within the organization.

What Is Tervene?

Tervene’s solution enables sustainable, healthy management behaviours. Digitalizing management activities is the best way to bring your daily management system in the 4.0 era and accelerate your digital transition.

Why Digitalize Your Management System?

1. Standardize Your Management Practices

Make sure every manager knows and follows your company’s management standards. Digital standards enable a faster and more flexible management behaviours deployment.

2. Increase Ownership and Adherence to Management Best Practices

Empower managers to support their team and improve the processes they oversee. Set quantifiable and qualifiable goals for management practices.

3. Gain Visibility Over Management Practices

Get real-time visibility over management practices, issues and noncompliances, actions and tasks, process compliance, and management behaviors. Always find what you’re looking for with powerful dashboards, search functions and filters.

4. Connect Your Team in a Paperless Environment

Managers who use digital tools to perform their management practices are more proactive and support their team better. Give your managers the tools they need to optimize their team’s value creation.

Digitalize Your Daily Management System Today

Request a free demo to learn how Tervene can support your quest for operational excellence.

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