International Scientific Journal – ISSN: 1679-9844 Nº 3, volume 14, article nº 3, July/September 2019 D.O.I: http://dx.doi.org/10.6020/1679-9844/v14n3a3
Accepted: 26/12/2018 Published: 20/06/2019
THE APPLICATION OF VISUAL MANAGEMENT SYSTEM FOR
CONTINUOUS IMPROVEMENT IN THE COMPANY VALE S/A: A
CASE STUDY IN THE PORT TERMINAL OF PONTA DA MADEIRA
LA GESTIÓN VISUAL COMO HERRAMIENTA DE MEJORA
CONTINUA EN UNA GESTIÓN DE OPERACIONES PORTUARIAS:
UN ESTUDIO DE CASO APLICADO EN LA EMPRESA VALE S/A
Saymon Ricardo de Oliveira Sousa1, Ícaro Romolo Sousa Agostino2, Pedro Couto Frota3, Ricardo Daher Oliveira4
1
Graduado em Engenharia de Produção pela Universidade CEUMA (2017), Mestrando em Engenharia de Produção pela Universidade Federal de Santa Maria UFSM (2017), Membro do Laboratório de Análise e Modelagem Estatística - LAME, desenvolve pesquisa nas áreas
de modelagem e análise estatística voltada a tomada de decisão. saymon.ricardo@bol.com
2Mestrando em Engenharia de Produção pela Universidade Federal de Santa Maria,
Graduado em Engenharia de Produção pela Universidade CEUMA. Desenvolve pesquisa em associação com a empresa - Vale S/A com foco em modelagem e simulação de
operações.
icardoagostino@gmail.com
3
Possui graduação em Engenharia de Produção pela Pontifícia Universidade Católica do Rio de Janeiro e Pós-Graduação Especialização em Portos pela Universidade Federal do Maranhão. Atualmente é engenheiro de operações portuárias da Vale S.A onde desenvolve
projetos de pesquisa e desenvolvimento em atendimento às demandas da Diretoria de Logística da empresa. pedrofrota@yahoo.com
4Doutorado e Mestrado em Engenharia de Produção. Pós-Doutorado na HEC / Universidade
de Montreal, Canadá – pelo departamento de Ciências Sociais e pela Universidade de Aveiro, Portugal. Formando em Administração de Empresas, Contabilidade e Economia, com especialização em Auditoria e Controladoria; Finanças e Mercado Futuro e, MBA em
Management – Formação de Gerentes e Diretores pela FGV. Executivo e Professor de Graduação, Pós-Graduação e Mestrado da Universidade CEUMA.
Abstract – In this work, the principles of visual management and continuous improvement were used, aiming to check the influence of a visual management system in management of port operations. To this end, it was conducted a bibliographic survey about the issues addressed, as well as a case study, through systematic observation and information gathering in order to portray the research environment. At the end of the study, it could be verified how a visual management system can contribute for the management of indicators and processes in operations management, highlighting the importance of the tool applied from the discussion of results obtained.
Keywords: Visual Management; Continuous Improvement; Process Control.
Resumen – En este trabajo se utilizaron los principios de gestión visual y mejora continua, con el objetivo de comprobar la influencia de un sistema de gestión visual en la gestión de operaciones portuarias. Para ello, se realizó una encuesta bibliográfica sobre los temas abordados, así como un estudio de caso, a través de la observación sistemática y la recopilación de información con el fin de retratar el entorno de investigación. Al final del estudio se pudo verificar cómo un sistema de gestión visual puede contribuir a la gestión de indicadores y procesos en la gestión de operaciones, destacando la importancia de la herramienta aplicada a partir de la discusión de los resultados obtenidos.
Palabras clave: Gestión Visual; Mejora continua; Control de procesos.
1. Introduction
The market has established changes in the company and client relationship, demanding from industries a strategic positioning with respect to the quality of their products and services. The search for improvement in the organizational processes has encouraged a great effort of organizations for the best way to manage and control the functioning of their operations, using sophisticated methods of management that may direct the organization to the operational efficiency, seeking cost reduction and higher quality in products and services.
In this context, the continuous improvement has been strongly used in the culture of companies, providing means for problem-solving, through small steps, with high frequency and short cycles of changes, promoting patterns of control and performance adjusted to the real situation (BESSANT; CAFFYN; GALLAGHER, 2001). A scientific approach is required in this process, structuring the steps for
solving-problem, in order to guarantee standardization of improvements implemented, as well as the associated gains (SHIBA, GRAHAM, E WALDEN, 1997).
An important tool in the continuous improvement process is the visual management, having its wide application in several types of organizations. The Lean Institute Brazil (2012) defines Visual Management, as a system of planning, control and continuous improvement that integrates simple visual tools that allow, with a quick view, understand the current situation.
Considering the relevance of the theme addressed by this work, the present article has as research problem: How could the visual management system contribute for a management of indicators and processes in a management of port operations? Such questioning may require either a bibliographic review or the use of observation mechanisms or information gathering able to allow that, the topic investigated achieves the general aim of the research, which is: check how a visual management system could contribute for the management of indicators and processes in management of port operations.
2. Theoretical fundamentals
Following, it will be presented the theoretical board that provided support for developing this work. Therefore, the topics of continuous improvement, process control and visual management were reviewed. Although the literature about the three themes is wide, this study does not aim to exhaust them.
2.1 Continuous improvement in the industrial processes
Rosini and Palmisano (2014, p. 3), state that every activity undertaken in the companies is component of certain process, thus, it becomes fundamental to develop product or service, structuring a business process. For the authors, process is an activity or set of activities that concentrate an input, add importance and supply an output to private clients. Having skills and commitment of all people from different areas in the organization is one of the improvement principles. The contribution of all individuals must go beyond their attributions, however, it is accepted that the creativity and individual effort represent a great development source (SLACK,
CHAMBERS; JOHNSTON, 2015, p. 568).
According to Maximiano (2015, p. 105 – 112), the kaizen is conceptualized as practices of continuous development, arising in the Toyota Production System, anchored in the philosophy of complete elimination of every single wasting. Further, according this author, the Kaizen is a tool that directs the system to improve itself continuously. For eliminating the wasting, the productive processes incorporate two fundamental principles of the Toyota Production System: ‘jidoka’ and ‘just in time’. The ‘jidoka’ principle (automation or automation with human touch) has as function to interrupt the progress of the machines and production lines when occurring any kind of event, problem or defect. The ‘just in time’ principle is a technique that aims to produce only the necessary, when required and in the amount necessary.
A production strategy, even when designed and its tasks planned and controlled, the production managers’ activities do not end, all operations, performance and process management independent how they are managed, can be improved. The managers are not valuated only by admitting their responsibilities to provide products or rendering services on quality levels, speed, reliability, flexibility and cost, but also about how they seek improvement in the global performance of production function (SLACK, CHAMBERS; JOHNSTON, 2015, p. 561).
Imai (1994, p. 149) states that the initial idea for continuous improvement is the exploration of traces for the problem identification. kaizen is a method of response of non-compliances to be acquired on high levels of achievement, it is essential the use of several tools for problem solution attached to its philosophy, as Quality Control Cycles, Statistical Quality Control and Full Control of Quality, decreeing a standardization along the process.
The continuous improvement is demonstrated by the evolution of established goals for the quality aims, which is possible through the improvement in the performance of critical processes. An essential element in certain improvement approaches is the use of questioning permanent, through a cycle of control, following the steps to check, control, monitor and measure processes according to the organizational policy, by taking actions to improve the performance of processes continuously (COUTO; MARASH, 2012, p. 6).
2.2 The importance of controlling in industrial processes
The organizations are made up of a set of interconnected processes, which has as main goal providing products and services. The aspect of a process starts from the horizontal and vertical viewing of the project, covering whole company, beginning from the transformation resources (physical installation, equipment and employees), transformer resources (supplies, information and clients) until the feedback of all system. In order to understand the theme addressed, it is required to conduct a study about the concepts that involve the method, which evaluates the process control (CONTADOR, 2010, p. 50).
The concern about quality is as old as the humankind itself is, since the manufacturing of the first artefact, it arose the adequacy need to the use. The control is a technology developed to help the quality effectiveness. Only with the rise of Japan as a quality leader, the world noticed the importance of products acquisition by means of constant and adequate processes to understand the client needs (CONTADOR, 2010, p. 169).
Maximiano (2006, p. 91), states that controlling, in particular, is a process for adopting decisions which aims sustain a system in the direction of a purpose, with support in uninterrupted elements about the system activities itself and about the purpose. The purpose becomes the criterion or sample of weighting of the system performance. That is, the aim becomes the controlling standard. Thus, every organization needs means to serve its needs, and the controlling process is responsible for this action.
According to Moreira (2013, p. 569), control is conceptualized as a process used to support certain event within standards previously established. In addition, according to the author, products resulting from an industrial process have quality features that will be performed if certain basic element is in accordance with what was planned. This way, the industrial quality control can be understood as a process that enables evaluating the current level of quality for a product, comparing it to the desired standard and taking action to correct the deviations.
The controlling process demands acquiring of information that allows formulation of directives and measurement of results in the same way. The control, while contribution mechanism of positive behavior and correction of direction needs tools that can help the organization members to expand equivalent actions with the
interests of the parties, as bigger is the uncertainty, more difficult becomes the control. The control is fundamental to ensuring that the activities of a company be performed in a way planned by the attainment of strategies, plans, programs and operations (GOMES; SALAS, 2001, p. 22).
According to Gomes and Salas (2001, p. 18), the controlling process enforces a significant evidence to the results, which assess, above all, through quantitative indicators, in particular, in financial way with a horizon restricted to the short-term. In addition, according to the authors, in the controlling process there is an objective separation among the planning process, evaluation and information. Technology is more and more a decisive factor, allowing organizations enter new process technologies, having important advantages to evolve the competitive position.
The control covers four stages: definition of performance standards, which will serve as parameters for checking with acquired results; assessment of measures, which will collect and establish data and information; interpretation and criticism, which will examine probable variation causes, and corrective actions, in order to correct irregularities in relation to the planned (LACOMBE; HEILBORN, 2008, p. 173).
2.3 The visual management as a continuous improvement tool
In the corporate context, the visual management is defined as a management system which aims to improve the organizational performance through the connection and alignment of organizational viewing, values, goals and culture with other management systems, working processes, working elements, and interested parties, by means of stimuli, by directly approaching one or more of the five human senses (sight, hearing, touch, smell and taste) (TEZEL, KOSTELA; TZORTZOPOULOS, 2009, p. 1 in LIFF AND POSEY, 2004).
For Martins (2006, p. 109), the visual management allows checking the existence of losses in the production environment, besides to allow checking the process flow in which organizational information is transmitted. According to Ohno (1997, p. 29), the visual control, or management by vision, may help the perception of weaknesses within the production systems, allowing their exposition. Thus, it is possible to adopt measurements and actions more easily, that can strengthen the system, avoiding future problems and eliminating the current ones.
According to Falconi (2013, p. 79), the management at sight is defined as the disposition of control items in appropriate locations, in a way they are easily accessible to the whole team. In addition, according to the author, the management at sight must strive, above all, to put data and information available in such way that excessive effort for interpretation is not necessary on the part of observer, being the visual contact enough for understanding.
According to Peinaldo and Graeml (2007, p. 161), the sight controls great part of all activities an individual. The visual functions are taken to the limit of their capacity in industrial activities and any other environment. Tasks that require high visual intensity need to be adequately administrated, since they may directly interfere in productivity and quality of process results.
The visual management allows eliminating waste by analyzing available resources, regrouping of machines and equipment, process optimization, quantity of materials, keeping production efficiency, eliminating or decreasing operating errors, accidents, and by incorporation of new ideas of continuous improvement by the workers. In this context, standardization is totally based on principles and develops an important role in the controlling system and visual management (OHNO, 1997, p. 41).
3. Methodology
According to Barros and Lehfeld (2000, p. 1), the methodology corresponds to a set of procedures to be used for obtaining knowledge, is the method application by means of processes and techniques that ensure the legitimacy for acquired knowledge. In addition, according to the author, the method is the ordered and systemic way to come closer to an end, where the plan of scientific methodology, methods, technical procedures and references are essential components in investigation.
Within the various possible classifications, this research in its first stage is defined as bibliographical descriptive, with no interference from the researcher. That is, it proposes the research object, performing problem-solving or acquiring knowledge from the use of information of sonorous, computerized and graphical material, carrying out a survey about themes and types of approaches already used, comprehending concepts and exploring studied aspects (BARROS; LEHFELD, 2000,
p. 70).
In the second stage of this work, the research used as technical procedure the case study, directed to the collection and registration of information about one or several specific cases, by drawing up controlled, critical and organized reports, leaving room for decisions and interventions about the object of investigation. The case study can be divided into: organizational records, when it comes to an institution to be examined; observational, connected to the qualitative research and participant; and case study, with a research technique conducted through evaluation of collected and documented data. (BARROS; LEHFELD, 2000, p. 95). For analysis and discussion about results, it was used the descriptive statistic as a comparison and observation tool.
4. Deployment of visual management system in management of port operations
The case study was developed within a management of port operations, of the mining company Vale S/A, at Port Terminal of Ponta da Madeira, located in the city of São Luis, in the northeast of Brazil. Currently, the company has strong relevance in the national scenario, particularly in the mining and logistics sector, being a big company, operating in several locations within and outside Brazil.
The management of port operations in which the study was developed is responsible for the operation of part of the port system for movement of solid bulk at the port terminal of Ponta da Madeira, as well as direct support activities to operation. By the management, it already existed a strong culture related to continuous improvement, being works recurring developed focusing the organizational process quality.
The deployment project of a visual management system arose from application of concepts about ‘Floor Management Development System (FMDS)’. According to Liker and Convis (2006, p. 157), the FMDS is a management system which has as central instrument the visual management, connecting the performance daily monitoring to the factory goals. Its implementation is made by fixing of diagrams, charts or information in locations close to the work areas, by using color systems and division of indicators in groups.
4.1 Definition of critical indicators
For the system development and deployment, the main management indicators were raised, the respective responsible persons were defined, as well as the monitoring periodicity. To define the indicators, it was considered their impact to the management processes, being the decisions made from meetings involving leaders, analysts, engineers and technicians. It is importance to evince that great part of the indicators already existed, however, its monitoring used to be done via technical or managerial reports, there being no great exposition for the teams.
When defining the persons responsible for the indicator management, it was considered the employees who effectively have direct work with the results represented by the indicators, as well as availability within the routine to manage them. As regards the monitoring periodicity, it was considered the information flow that feeds each indicator, because there is a variability regarding to these flows, due to technical and managerial questions.
In order to optimize the visual management, the indicators were divided into groups, being that, a corresponding color was defined for each group, aiming the better visual organization for them. The indicators groups defined, with their respective colors were HSE (health, security and environment), Human Capital Management, Costs, Quality and Productivity, with the colors: green, white, red, yellow and blue.
Taking into consideration that the nature of management is operational, it was decided a greater opening of the indicators for productivity, quality and HSE. The following indicators were validated and agreed with their respective responsible persons:
Group Indicator Responsible Periodicity
HSE Daily indicator of HSE HSE management Daily
HSE Adherence to HSE plans HSE management Biweekly
HSE Rate of absenteeism HSE management weekly
HSE Air quality HSE management Daily
HCM Adherence to career plans HCM analyst Biweekly
Costs Economic management Cost analyst Biweekly
Quality Continuous improvement projects Quality Analyst Biweekly
Quality Quality control circles Quality Analyst Biweekly
Quality Nonconformity Engineer Biweekly
Quality Contamination index Engineer Biweekly
Productivity Adherence to production plans Engineer Daily
Productivity Production cycle Engineer Daily
Productivity Operating loss Engineer Daily
Productivity User equipment Operational analyst Daily
Productivity Material Handling Engineer Daily
Productivity Adherence to industrial cleaning plans Operational analyst Daily
Source: case study
4.2 Visual management system
After defining the indicators, the project for the visual management system was started. It was developed taking into consideration the low-cost of deployment and the quality for visualizing the indicators. A visual tracking of deviation causes was included in the system, where after identified they were pondered, thus allowing to monitor the recurrences correlated to their causes, as well as the behavior in relation to the periodicity of the occurrence. It was also considered the addition of a simplified model of action plan, where it could be daily observed the progress of the adjustments of deviations.
Figure 1 - Visual management system Source: case study
put in a great flow area, close to the team leaders, aiming greater exposure and facilitating the monitoring of results. The visual management system was manufactured internally; the plotting made already having the sizing of the indicator groups, as well as their identifications.
Figure 1 - Visual management system Source: case study
Along with the implantation of the visual management chart, the productivity engineer of the management developed a real-time monitoring system of the main indicator of productivity of the sector, which measures the average time of material movement. This system had as a goal to approach the operations to the high management, allowing monitoring the evinced indicator real-time.
Source: case study
A monitor was installed beside the visual management chart, using data from the internal network to display the indicator real-time, exhibiting the quantitative of material handled per equipment. From this system it was possible a faster answer to the deviations, identifying them real-time and improving productivity management.
5. Results achieved
The deployment of the visual management system brought several gains to the management, by optimizing the process management, but mainly by helping the treatment of deviants and improving operating results. In relation to the indicators behavior, it was possible to notice improvements. Below, it is presented a study carried out in the operational losses indicator, in two different moments.
Figure 2 - Behavior of operating losses indicator before deployment (min/batch) Source: case study
The operational losses indicator measures the quantity of minutes non-operated in each batch of production, due to interferences and failures in operation. The same is measured in the unit of minutes per production batch (min/batch) and is daily presented, exhibiting the quantity of non-operated time. In the trimester before the deployment of the visual management system, the indicator presented an average behavior of 7.44 min/batch, with standard deviation of 3.76 min/batch.
Figure 3 - Behavior of operating losses indicator after deployment (min/batch) Source: case study
After the system deployment, there was considerable change in the indicator behavior. For the first trimester of operation of the visual management system, the indicator presented average of 6.3 min/batch and standard deviation of 2.83 min/batch. The table below illustrates the evolution of results, comparing the two periods studied.
Table 2 - Variation of the behavior of operating losses indicator
Source: case study
With regard to the previous trimester, there was reduction of -24.8% in the standard deviation, evincing the reduction of variability for the indicator in the period. It was also quantified reduction of -19% in the average of the non-operating time in the period. Such gains guaranteed a higher productivity of the management operations, because by reducing the operational losses, the times of cycle are reduced, thus increasing the quantity of material handled in the period.
6. Final considerations
treatment of deviations and continuous improvement, thus evincing the importance that the model currently presents in the management and treatment of non-compliances and in the control of processes. Thus, it was possible to conclude that, the deployment of the visual management system had a positive impact in the management of indicators and processes in the management of port operations at the Port Terminal of Ponta da Madeira, at Vale S/A, by aggregating positive results and contributing for the continuous improvement of management.
From the research carried out in this article, various future approaches arise for posterior works, such as application of a visual management system in other organizational spheres, as well as other approaches of visual management in order to check the relevance of other methodologies for management of indicators and processes.
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