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What is a DMS?

DMS meaning

DMS

 

A DMS is a Daily Management System, which involves holding a daily meeting at a set time, with the team doing the work, standing in front of a DMS board and aim to answer the following questions:

 

Yesterday:

  • How did we perform over the last 24 hours?
  • Did we achieve target?
  • If not, why not?
  • Who will do something about this and by when?

Today:

  • What is the plan for the next 24 hours?
  • Are there any barriers to achieving the defined plan?
  • How can we overcome these barriers, or do we need to escalate these issues?

Operations that are busy and growing often end up in a situation where late orders are expedited, plans are changed often and at short notice. There is a constant sense of urgency and firefighting at all levels.

Urgency and firefighting are ok for a short period of time, but when it becomes the norm, it impacts the culture of the organisation. Reactive behaviour distracts from more structural improvements, and people who become skilled ‘firefighters’ are viewed as the champions of the organisation and recognised for this behaviour. Ultimately, this leads an organisation into a downward spiral where operations are ‘out of control’ and there is a widespread sense of frustration and despondency across the team.

Daily Management Systems (DMS) is a process to regain control through a structured approach of tracking progress to plan in combination with a focus on issues as they arise.

Purpose

When done well, a Daily Management System (DMS) brings a sense of calm and purpose to an organisation. It will reduce the ‘noise’ in daily operations by setting clear expectations for the team each day, using SMART (Specific, Measurable, Achievable, Realistic, Timebound) targets. Experience confirms that doing so will enable team members to achieve improved performance and increased job satisfaction.

Measures

A DMS is successful when the team themselves have developed an understanding of the key measures that underpin the performance of their department. Key Performance Indicators (KPI’s) are typically broken down into the following categories:

  • Safety
  • Productivity
  • Cost
  • Delivery / Service
  • Quality
  • Morale

Benefits

Improvements are often noticeable within 12 weeks of implementation. Reducing the noise lowers the level of anxiety and frustration of team members. A rigorous focus on barriers to the production plan enables a team to typically solve three to five ISSUES each day. Doing so drives an incremental improvement process, that over a 12-month period can result in a significant measurable improvement in one or more of the KPI’s. A typical example would be a 10%-30% improvement in productivity.

Contact us for more information or read how Sequal Lumber improved their productivity through systematic cost reduction as a result of the introduction of a DMS.

Performance Improvement