Purpose: Waste Reduction, Streamlining, Continuous Improvement

About the Tool

The Visual Factory concept comes from early Lean Manufacturing practices of the Toyota Production System (TPS). Toyota utilized visual signals to streamline operations, focusing on waste reduction and enhancing workflow. While they weren’t the only Lean practitioners to employ visual tools, they have been (and continue to be) the most notable and influential figures in Lean Manufacturing over the past century. Toyota took basic visual tools to a higher level by not only clarifying their purpose but also outlining when and how to use them for optimal impact. 

The phrase “visual factory techniques” refers to a concept in lean manufacturing that relies on visual information present throughout a workplace. It utilizes a variety of communication tools to share information precisely when and where it is needed. By using visual controls, it becomes possible to convey messages without the need for verbal communication and to disseminate information seamlessly. These visual tools are also beneficial for enhancing productivity, as employees access the information they require exactly at the right moment and location. 

Application in the Public Sector

Even though the manufacturing sector is where the Visual Factory principles originated, they have recently been successfully adapted within the public sector to improve service delivery and operational transparency. For example, government offices implemented visual management boards for tracking the status of public service requests, with both employees and citizens being able to follow the progress in real-time. In the case of hospitals, visual cues are employed to manage patient flow, hygiene protocols, and equipment availability for improved patient care and safety. These applications highlight the versatility of visual management to foster efficiency and accountability within public service. 

Key Benefits

• Enhanced Communication: Visual aids cut over language barriers and simplify the representation of complex information, thus guaranteeing that all employees across the board have a clear understanding of processes and expectations.
• Increased Efficiency. Visual management mitigates downtime by providing instant access to essential information while expediting decision-making.
• Improved Safety. Safety protocols and danger signs are detected easily, thereby preventing accidents at the workplace, as well as ensuring compliance with safety regulations.
• Employee Engagement. Resourcefulness remains key in order to think beyond the traditional ways of doing things.
• Transparency and Accountability. Having publicly available performance metrics and project statuses shows transparency where progress can be known, and responsibilities are transparent.

How to Use the Tool

Here are some of the fundamental steps in implementing Visual Factory:

1. Identify Areas and Needs. Start with an assessment of areas that would benefit in your operations from visual management. Identify those processes where missing information or miscommunication happens more often than not.
2. Standardize Visual Tools. Create a unified set of visual aids such as signs, labels, color codes, etc., that comply with your organization’s standards, and which are easily interpreted by all the employees.
3. Integrate Visuals into Workspaces. Visual tools should be installed strategically in the workplace so that they will be visible and accessible for this purpose-the process flowchart placed at the workstation, floor markings to define work areas, and digital dashboards to view real-time performance metrics.
4. Educate and Train Employees. Conduct training sessions with employees for better understanding of the visual management system as well as to know the significance and interpretation of each visual element.
5. Continuous Improvement. This entails constant review and modification of visual tools in line with feedback and constantly evolving operational requirements for the continued effectiveness of such tools

References:

• Latest Quality. (2018, March 29). Visual factory techniques and how to implement them. Latest Quality. https://www.latestquality.com/visual-factory-techniques/
• Greatbanks, R., & Manville, G. (2015). Visual performance management: Does it work in public service organisations? UEA Digital Repository. https://ueaeprints.uea.ac.uk/id/eprint/74858/1/Accepted_Manuscript.pdf
• Kyzentree. (2021, January 29). Visual factory benefits. Kyzentree. https://www.kyzentree.com/visual-factory-benefits/
• Hessing, T. (n.d.). Visual factory. Six Sigma Study Guide. https://sixsigmastudyguide.com/visual-factory/
• Fogwing. (2025, February 1). Understanding visual factory: A comprehensive introduction. Fogwing.io. https://www.fogwing.io/blog/industrial/what-is-visual-factory/

Purpose: Risk Management 

Target Participants or Users:  Project Managers, Auditors, Safety Officers, Planning and Control Officers, Procurement Officers, Risk Management Officers 

About the Tool: 

Failure Modes and Effects Analysis (FMEA) is a reliability tool originally developed for manufacturing to identify and minimize potential failures before they occur. It is a structured method that pinpoints potential failure modes, their causes and consequences, and guiding actions to either prevent or correct them. Its use has now expanded into the service sector. Previous research, however, has been mainly conceptual, lacking practical guidelines tailored specifically for services.  

When applied to government services, FMEA can significantly improve efficiency, reliability, and citizen satisfaction by proactively addressing risks and vulnerabilities. FMEA can also help identify and address failures in government services like public healthcare, tax administration, emergency response, and licensing and permits by automating processes, analyzing potential failures, and creating contingency plans to improve citizen satisfaction. 

How to Use the Tool:

Steps

1. Select a service process to analyze and understand all components and their functions. Choose a process that is known to be problematic in your facility or one that is known to be problematic in many facilities. 

2. Select a cross-functional team from the affected work groups that can help complete the FMEA.  

3. Outline the process. Clearly specify the steps involved so that every team member understands what is being analyzed

4. Gain consensus on the ranking criteria for severity, occurrence and detection. The table below shows the commonly used rating guidelines. 

Severity	Severity Ranking	Probability of Failure	Ranking	Detection	Detection Ranking
Hazardous without warning	10	Very high; Failure is almost inevitable (>1 in 2)	10	Absolute uncertainty	10
Hazardous with warning	9	1 in 3	9	Very remote	9
Very high	8	High; Repeated failures (1 in 8)	8	Remote	8
High	7	1 in 20	7	Very low	7
Moderate	6	Moderate: Occasional failures (1 in 80)	6	Low	6
Low	5	1 in 400	5	Moderate	5
Very low	4	1 in 2,000	4	Moderately high	4
Minor	3	Low; relatively few failures (1 in 15,000)	3	High	3
Very minor	2	1 in 150,000	2	Very high	2
None	1	Remote: Failure is unlikely (<1 in 1.5 million)	1	Almost certain	1

Figure 1. FMEA: Ranking of Potential Failures. 

5. Draw the process flowcharts and describe the functions of each component. 

6. Identify necessary inputs to the process, such as materials, method, technology, and people actions. Anticipate and list all potential failure modes for each input at various steps in the process. You can identify the root causes of each failure mode using a cause-and-effect diagram. 

Occurrence (1–10): On a scale of 1-10, with 10 being the most likely, what is the likelihood the failure mode will occur? 

7. Evaluate the severity of the effect of the potential failure mode.  

Severity (1-10): On a scale of 1-10, with 10 being the most likely, what is the likelihood that the failure mode, if it does occur, will cause severe harm? 

8. Identify the current controls and rate the detection. List the current controls in place to mitigate or prevent failure (e.g. Training programs, Visual inspection).

Detection (1-10): On a scale of 1-10, with 10 being the most likely NOT to be detected, what is the likelihood the failure will NOT be detected if it does occur? 

9. Calculate the Risk Priority Number (RPN) to prioritize which failures require immediate attention. RPN is calculated by multiplying the Severity, Occurrence and Detection rankings for each potential failure / effect, cause and control combination. The lowest possible score will be 1 and the highest 1,000. To calculate the RPN for the entire process, simply add up all of the individual RPNs for each failure mode.

RPN = Severity x Occurrence x Detection

10. Identify the failure modes with the top 10 highest RPNs. Failure modes with high RPNs should be prioritized for attention, as they are likely to have the most significant impact on the process. On the other hand, failure modes with low RPNs are unlikely to substantially affect the process, even if eliminated, so they should be given lower priority.

11. Plan actions that mitigate the risks associated with failure modes: 

a) If a failure mode is likely to occur: 

• Analyze the causes and determine if any or all of them can be eliminated. 

• Consider implementing a forcing function, such as a physical constraint that prevents errors. 

• Introduce verification steps, like independent double-checks, bar coding on medications, or alert screens. 

• Modify related processes that contribute to the causes. 

b) If the failure is unlikely to be detected: 

• Identify prior events that could serve as “flags” indicating the potential for the failure mode. 

• Add a step to the process that intervenes at the earlier event to prevent the failure mode. 

• Implement technological alerts, such as devices with alarms that notify users when values are approaching unsafe limits. 

c) If the failure is likely to cause severe harm: 

• Identify early warning signs that a failure mode has occurred and train staff to recognize them for early intervention. For example, conduct drills to simulate events that could lead to failure, helping staff improve their ability to spot early warning signs. 

• Provide relevant information and resources. 

12. Designate a responsible person to implement the recommended actions. 

13. Document the actions completed and reassess the RPN. Measure the success of process changes. Like all improvement projects, the success of improvement actions is evaluated. 

Sample Failure Mode and Effect Analysis (FMEA) Template and Actual FMEA 

Sample Failure Mode and Effect Analysis (FMEA) Template 

Sample Actual FMEA 

References:

1. Department of Budget and Management (2012). Philippine Government Internal Audit Manual. https://www.dbm.gov.ph/wp-content/uploads/2012/03/PGIAM.pdf 
2. IHI (n.d.). Patient Safety Essentials Toolkit: Failure Modes and Effects Analysis (FMEA). https://www.ihi.org/sites/default/files/SafetyToolkit_FailureModesandEffectsAnalysis.pdf 
3. GLSS (2025). Template: Failure Modes & Effects Analysis (FMEA). GoLeanSixSigma.com https://goleansixsigma.com/failure-modes-effects-analysis-fmea 
4. CMS (n.d.). Guidance for Performing Failure Mode and Effects Analysis with Performance Improvement Projects. https://www.cms.gov/medicare/provider-enrollment-and-certification/qapi/downloads/guidanceforfmea.pdf 
5. Gupta, P. (2005). The Six Sigma Performance Handbook. The McGraw-Hill Companies Inc. USA. 

About the Tool

An idea sheet is an idea proposal consultation template used to organize ideas when designing a citizen-centered public service. It helps teams to document the results of ideation processes and transform them into actionable solutions. The key components include a problem statement, objectives, target audience, key features, implementation plan, and evaluation metrics. Public service designers can use an idea sheet to ensure that their solutions are well-thought-out, feasible, and aligned with the needs and expectations of the citizens they serve.

Purpose: Synthesizing of ideas

Estimated Time Needed: 30 minutes

Target Participants or Users: Change Managers, Community Engagement Teams, Operations Managers, Public Service Providers, Process Planners, Policymakers, Service Designers

How to Use the Tool

Steps:

1. Select your innovation project.
2. Select a stakeholder/s for your solution.
3. Fill out the description using the following guide questions:

• a. What are the objectives of the idea?

• b. What are the immediate gains and long-term results for your target beneficiaries?
• c. What are the basic features of the idea?
• d. What is the most important thing to look for?
• e. How different is it from the existing one?
• f. How will this idea be executed?
• g. How does this idea align with the needs or requirements of your target users?

Sample Idea Sheet Template

Sample Idea Sheet Activity Output

About the Tool

An affinity diagram organizes and categorizes large volumes of data, ideas, or insights by grouping them based on natural relationships. Typically, participants write down ideas on sticky notes and then work together to sort these notes into clusters that represent common themes or concepts. This method is especially useful for organizing ideas generated during brainstorming or ideation sessions, helping to identify patterns and structure in complex information.

Purpose: Synthesizing of ideas

Estimated Time Needed: 15 minutes

Target Participants or Users: Change Managers, Program Managers, Operations Managers, Planning Officers, Process Planners, Service Designers

How to Use the Tool

Steps:

1. After brainstorming and ideation sessions, each team should group similar ideas. As each person adds notes on the board, one team member will group ideas into themes. Make sure the board also has a “Miscellaneous” section for notes that do not seem to fit with other themes. Use lines to connect related groups and combine clusters to create super groups if necessary.
2. Ask each group to place a creative title on top of each category to summarize its contents.
3. Team members are also encouraged to build on each new idea added to the board.
4. Share and discuss clustered ideas as a group.

Sample Affinity Diagram Template

Sample Affinity Diagram Activity Output

Dam, R. F. and Teo, Y. S. (2022, May 2). Affinity Diagrams: How to Cluster Your Ideas and Reveal Insights. Interaction Design Foundation – IxDF. https://www.interaction-design.org/literature/article/affinity-diagrams-learn-how-to-cluster-and-bundle-ideas-and-facts