What is the Daily Management System?
The Daily Management System (DMS) improves an organization's operational efficiency and performance management.
The concept is not new. It has developed progressively over time and has been modulated by different management practices. However, it can be traced back to Japanese management principles such as Kaizen and Lean manufacturing, which contributed to its creation.
Formerly based on paper formats and Excel tables, it is now much more sophisticated and structured, with tools enabling all its functions to be centralized.
The DMS is a Lean strategy based on work standardization, visual management, employee engagement, and problem-solving principles. It also makes it possible to monitor performance in real-time, make decisions based on factual data, and encourage a culture of continuous improvement. It fosters communication, transparency, accountability, and collaboration at all levels of the organization.
The DMS comprises several essential elements:
- Leader standard work (LSW)
- Daily basis meetings
- Key Performance Indicators visualization
- Involvement of all employees
The Lean Daily Management System is not a single standard system but a management approach that can be adapted and customized according to the specific needs of each company.
Benefits of a Daily Management System
The Daily Management System (DMS) offers organizations several significant advantages, helping boost their performance.
Improved productivity and quality
The Daily Management System creates an environment conducive to operational excellence. Daily follow-up meetings enable teams to communicate about objectives, progress made on corrective actions, and any problems in day-to-day operations that may be holding back productivity.
The DMS also focuses on continuous improvement, encouraging teams to identify process improvement priorities and improvement opportunities, eliminate waste and bottlenecks, and optimize workflows. The result? Optimal use of resources, improved quality management, and higher overall productivity.
Reduced costs and lead times
By eliminating non-essential activities on the shop floor, analyzing performance indicators, optimizing workflows, and detecting and solving problems, the DMS helps reduce production operations' costs and lead times.
Flexibility and adaptation to change
The DMS enables teams to be better prepared and adapt quickly to change. Indeed, thanks to daily huddle meetings, they can quickly share additional information on upcoming developments, discuss measures to be taken and implement corrective actions.
They are also encouraged to test new approaches, learn from their failures, and adjust to new situations.
Improved communication and collaboration
The DMS enables effective, fluid communication within the company, with improved top-down communication for an excellent strategic alignment. It also helps front-line managers bring up root causes to their leadership.
During daily huddle meetings, the team and its manager can share information, discuss issues and priorities, and coordinate their efforts. That avoids misunderstandings and miscommunication and strengthens collaboration from one department to another.
Encouraging transparency, the DMS also fosters open and honest communication between employees.
Improved employee engagement
DMS promotes employee involvement and engagement at all levels of the organization. Each team member is involved in finding solutions when facing problems, in decision-making and is responsible for their actions.
As a result, the DMS gives them the necessary support. It strengthens workers' sense of belonging and responsibility (employees, supervisors, managers, and team leaders), leading to improved motivation, job satisfaction, and talent retention.
How to implement a Daily Management System
Here are the critical steps for a successful implementation of the DMS within an organization:
Identify the specific objectives you wish to achieve by implementing the DMS (productivity improvement, cost reduction, quality improvement, Etc.). Make sure these are in line with the organization's vision and strategy.
Train the team
Make sure all team members understand the principles and objectives of the DMS. Training sessions can help explain the key concepts, tools, and techniques used in the DMS.
To gain support and commitment, involving employees from the outset is crucial.
Identify key indicators
Determine the key performance indicators (KPIs) relevant to measuring progress. These performance metrics must be measurable, aligned with strategic goals, and envision the team's performance.
Opt for indicators that are meaningful and easy to track visually.
Set up daily meetings
Hold short meetings with the team on a daily basis (usually at most 15 minutes) to discuss progress, resolve problems and define priorities.
During these meetings, don't hesitate to use graphs or charts to display performance metrics (KPIs) and track progress.
Set up multi-level meetings
Organize meetings to facilitate communication between different levels of management. Team leaders, for example, can get together to share information from daily meetings with teams, review problems identified, and define priority actions.
Use dedicated tools and techniques
Integrate problem-solving tools and techniques into the DMS process. These will help you structure discussions, analyze problems in depth and implement effective solutions.
Monitor and evaluate
You need to monitor progress against targets daily. At the same time, carry out regular evaluations to measure the results achieved with the DMS. Identify successes and areas for improvement, then adjust the system accordingly to optimize it.
As the saying goes: "Rome wasn't built in a day." The same applies to the installation of the Daily Management System. It's a process that requires repetition, regularity, time, and commitment.
Tools and techniques used in the DMS
The Daily Management System uses several tools and techniques to facilitate daily management. Here are a few examples of the most commonly used:
- Dashboards and visual indicators display key performance indicators (KPIs) and relevant information. They offer a quick and easy performance overview while providing factual data to aid decision-making.
- Daily meetings ("daily huddles") are short, tailored meetings at set times each day. They enable employees to discuss progress, solve problems and define daily priorities.
- PDCA (Plan-Do-Check-Act) is a methodology comprising four stages: planning (Plan), implementation (Do), checking (Check), and action (Act). This process enables improvements to be identified, tested, and implemented systematically.
- DMAIC (Define-Measure-Analyze-Improve-Control) is a methodology used in DMS to solve complex problems and improve processes. It comprises five steps: defining the problem, measuring current performance, analyzing root causes, improving processes, and controlling to maintain improvements.
- 5S is a technique for organizing the workspace efficiently and maintaining a clean, tidy, and orderly environment. 5S refers to the steps: Seiri (remove), Seiton (locate), Seiso (clean), Seiketsu (standardize), and Shitsuke (monitor).
- Gemba Walk is a Lean technique involving going directly on the shop floor (field rounds) to talk to the employees involved, identify problems, and make more informed decisions.
The choice of tools and methods of improvement will depend on each organization's specific needs and characteristics.
UTrakk: the best DMS on the market
Speaking of DMS, UTrakk is a daily management system for Industry 4.0 and 5.0. Created by Proaction International, UTrakk connects and aligns all hierarchical levels in the same platform. It thus facilitates decision-making and communication between the various hierarchical levels while offering a more global vision and unified management.
UTrakk's development is based on more than 19 years of coaching and consulting experience worldwide [...] Its development is collaborative and continuous with our customers.
Antoine Drapeau-Perreault, Partner & General Manager for Canada, Proaction International
UTrakk is a highly comprehensive multi-platform tool that supports managers step by step in their roles and daily activities, giving them an overview of priorities, activities, action plans, management, and performance data. A host of practical functions are available for this purpose:
- Task and priority planning
- Gemba walks and audits
- Variance identification, action plans, and project tracking
- Ritual management (regular meetings) and team collaboration
- Dashboards, reporting, and analysis
- Coaching, leadership, and Key Behavioral Indicators (KBIs)
This platform enhances operational, managerial, and financial performance and equips team leaders to maximize their impact while making new manager onboarding much faster. Last but not least, it is the only DMS to integrate the human aspect, particularly by promoting good managerial behavior in operations management, making it the first DMS tailored to Industry 5.0.
Would you like to find out more about UTrakk DMeS? Book a demo!
Daily Management System challenges and best practices
Deploying a Daily Management System (DMS) can present specific challenges that can be overcome by following certain best practices.
Getting all team members on board can be challenging. To achieve that, it is essential to communicate the objectives and benefits of DMS to all levels of the organization.
Involve them from the outset and solicit their feedback. Make sure that responsibilities and expected results are clearly defined to encourage commitment.
Resistance to change
The DMS can be perceived as a significant change to usual working methods, which can lead to resistance. It is essential to implement effective communication to explain the reasons for and benefits of a DMS.
Be sure to include employees in the planning and implementation process. It is also necessary to offer them proper training to help them adapt to the new practices. Coaching can also be beneficial here.
DMS requires constant attention and discipline. It's normal for some people to slacken off over time. As a team leader, to maintain motivation, you need to recognize and celebrate your team's successes and communicate regularly about the progress made and the benefits obtained through the DMS.
Involve employees in identifying problems and finding solutions to keep them involved and enthusiastic.
The DMS is not a static solution but a process of continuous improvement. It is, therefore, essential to encourage a culture of learning and adaptation. Regularly re-evaluate your DMS practices and procedures to adjust them to the organization's changing needs.
Foster innovation by encouraging team members to propose new ideas and experiment with new ways of doing things.
By applying these best practices, the entire organization can maximize the benefits of the DMS and overcome potential obstacles.
The DMS: a corporate strength to jumpstart Industry 5.0
Overall, the Daily Management System offers a structured framework to boost productivity, reduce costs, promote adaptation to change, and strengthen team communication and collaboration. These combined benefits contribute to more effective management and better overall organizational performance.
Today, speed, responsiveness, and flexibility are critical success factors. The Daily Management System is, therefore, a significant asset and aid in navigating the complex world of Industry 4.0. By adopting it, companies can position themselves advantageously to meet future challenges and take advantage of the opportunities offered by this new industrial era.