© max zornada (2005)slide 1 an overview of the dmaic process at work the team based problem solving...
TRANSCRIPT
© Max Zornada (2005) Slide 1
An Overview of the DMAIC Process An Overview of the DMAIC Process at Workat Work
The Team Based Problem Solving Process
© Max Zornada (2005) Slide 2
Types of TeamsTypes of Teams
Quality Circles Six Sigma Teams Quality Improvement Process Improvement Teams Problem Solving Teams Task Forces Project Teams Cross-functional Teams
Issues specificLocalisedPermanent membership
Issues specific Forming & reformingTemporary membership
© Max Zornada (2005) Slide 3
Problem SolvingProblem Solving
"If the only tool you have is a hammer, you tend to see every problem as a nail"
Abraham Maslow (1908-1970)
The DMAIC Team Based Problem Solving Process uses a suite of tools, applied within a structured
framework to support the problem solving process using teams.
© Max Zornada (2005) Slide 4
The Quality Problem Solving ToolsThe Quality Problem Solving Tools
Ishikawa's 7 Tools of Quality Flowcharts Fishbone diagrams Pareto charts Histograms Run charts and graphs Control charts Scatter diagrams
Other commonly used tools: Brainstorming Multi-voting Check sheets Dot plots Box plots
© Max Zornada (2005) Slide 5
Types of Problem SolvingTypes of Problem Solving
Issues driven problem solving, where the focus is on solving a specific, clearly identifiable and obvious problem (or symptom). This is usually the case during the first few years of implementing a team based problem solving process where many long standing problems have been flushed out into the open;
Process Improvement driven problem solving, where the process improvement process provides the impetus to analyse the way things are done and seek out problems to be solved.
© Max Zornada (2005) Slide 6
The Six Sigma ApproachThe Six Sigma ApproachDMAICDMAIC
Define the problem or opportunity.
Measure the current performance and capability
Analyse to identify root causes.
Improve by implementing potential
solutions.
Control by standardising solution and monitoring
performance. Define
Measure
Analyse
Improve
Control
6
© Max Zornada (2005) Slide 7
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 8
South Eastern Food PackagersSouth Eastern Food Packagers
Team Based Problem Solving
Case Study
© Max Zornada (2005) Slide 9
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 10
Develop a Problem/Opportunity Theme Develop a Problem/Opportunity Theme StatementStatement
The problem/opportunity theme statement provides the initial definition of the problem/opportunity area to be pursued;
It is on the basis of the problem/opportunity theme statement that management decide to allocate resources (the problem solving team) and time to develop a project team charter and determine whether the problem/opportunity is worth pursuing.
© Max Zornada (2005) Slide 11
Problem/Opportunity Theme StatementProblem/Opportunity Theme Statement
What is the area of concern? What first brought this problem or opportunity to the attention of your business?
What impact has this problem already had? What evidence is there that it is a problem worthy of attention?
What will happen if the business does not address this problem?
Summary problem statement (summarise the above in a concise statement).
Project Title: Cost of Waste Reduction Project
The cost of waste in the box packaging operations. Now that we are packaging to fulfil 3rd party contracts, we are having to absorb the cost of waste in order to be cost competitive on price.
The impact of this problem is that 3rd party box packaging operations runs at a loss. Actual costs/box are 44c above recovery rate. This is $1.44 above target.
The remainder of the business will have to continue to cross-subsidise the loss making box packaging operation or box packaging will have to be shutdown.
The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels.
© Max Zornada (2005) Slide 12
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 13
The Define StageThe Define Stage During the Define Stage, we:
Define our problem or opportunity and improvement objectives; Define the customers and their requirements - the Critical-to-Quality issues (CTQ); Define the process that will be affected; Develop a plan for completing the project;
Key outputs of the Define Stage: Team Project Charter and Work Plan Measurable Customer Requirements - Customer Requirements Statement Process Map/Process Analysis.
© Max Zornada (2005) Slide 14
Process
Green Belt
Champion
Start Date
Expected Financial Impact
Telephone Number
Organization/Function
Target Completion Date
Six Sigma Project Team CharterProject Title
Objective
Problem/Opportunity Definition
What is the Problem to be solved or the opportunity this project will exploit.
Business Case
Team Members
Project Scope
Customer Benefit
Improvement target, impact on Sigma, COQ/COPQ and Customer Satisfaction
Schedule
What improvement in business performance is expected. $ impact and by when.
Who are the team members and key experts to be consulted.
Which part of the process will be investigated
Who are the final customers. What benefits will they see and what are their most critical requirements.
What are key milestone dates for completion of each stage.
Define completion
Measure completion
Analyse completion
Improve completion
Control completion
Project Completion
Cost of Waste Reduction Project
Jane VerdeJohn Briggs
1-April
Reduce net spoilage rate by 50% from 6% to 3%. Estimated Sigma level improvement from 3 to 3.4
Reduction in cost of waste of $253,000 p.a. from a baseline of $506,000. Will result in target processing cost/box being achieved.
634-5789Packaging Operations1- October
$253,000Box Packaging
Jane Verde (Team Leader), Paul Black, Rachel Cintura, Roland Thompson, Sdravo Krysevic, Giovanni Nero (Black Belt) Box packaging from start of box filling through to placement of product on buyer shelves.
The packaging contractees for whom we package and deliver product to buyers such as supermarkets and wholesalers. Benefits: competitive costs and more accurate schedule compliance.
20-April1-June1-August1-September15-September1-October
The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels.
© Max Zornada (2005) Slide 15
Example: SEFP’s Customer Requirements StatementExample: SEFP’s Customer Requirements Statement
What is this customer’s major complaint? What issue would they want us to work on?
Outputs: Customer:
Customer Requirements Measure Importance to Customer
Customer Satisfaction
PriorityRating
1. Cost competitiveness
Boxed product delivered to buyers according to customer manifest.Contract Box Packaging Customers
(Importance x Satisfaction)
Target
2. Schedule compliance
2.1. On-time delivery/right day/right time.
2.2. Right product delivered
2.3. Product quality to specification
2.4. Right amount/ amount as per manifest.
Processing cost $/Box
% On timeReturns: wrong product %
Returns: off-spec product %Order shortfall %
Ranking SchemeImportance to customer: 1 = Nice to Have, 2 = Important, 3 = Critical, Must HaveCustomer Satisfaction: 1 = Very Satisfied, 2 = OK. Could be better, 3 = Unhappy, Must be improved
$22.50
97%
95%
99%
99%
3 3* 9*
2 1 2
2 1 2
3 2 6
3 3 9
*Note: customer has not complained about price because we are absorbing difference between market price and actual costs. If customer were charged actual cost we would lose the business.In addition to price, getting the delivery amount right is a Critical-to-Quality issue for the customer.
© Max Zornada (2005) Slide 16
Process Mapping SymbolsProcess Mapping SymbolsSymbol Name Brief Definition
Operation orprocess step
Decision Point
DocumentGenerated
ContinuationPoint
Input/OutputBlock
Flow lines
Depending on the level of detail being developed, can be used to denote anything from a simple task, major activity or a whole sub-processes.
Used to indicate the process is continued elsewhere on the flow diagram or on another sheet.
Point at which a form or report is generated by the process.
Point where a decision must be made before any further action can be taken.
Optionally used to describe an input or output from a processing block.
Use to connect all blocks to display the sequence in which operations are performed.
Termination point
Used to indicate the start and end of a process.
© Max Zornada (2005) Slide 17
Start
Load flat into Flat Feeder
Box Folding
Box Jam?
Box Filling
Underweight?
Overweight?
Lid sealing and close
Printing Bar Code & Date
Stack and Wrap
Truck Loading and Shipping
Customer Unload & Check
Remove Excess
Remove & Recycle
Stop and Clear
Restart the Process
Pallet OK?
Unpack & receive boxes
Boxes OK?
Place on shelf in Warehouse
Unpack Box when required
Contents OK?
Yes
Yes
Yes
Yes
Place on shelf for sale
End
Return to SEFP
Return to SEFP
Return to SEFPYes
Yes
No
No
No
No
No
No
SEFP’s Box Packing & Fulfilment ProcessSEFP’s Box Packing & Fulfilment ProcessProcess MapProcess Map
© Max Zornada (2005) Slide 18
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 19
Start
Load flat into Flat Feeder
Box Folding
Box Jam?
Box Filling
Underweight?
Overweight?
Lid sealing and close
Printing Bar Code & Date
Stack and Wrap
Truck Loading and Shipping
Customer Unload & Check
Remove Excess
Remove & Recycle
Stop and Clear
Restart the Process
Pallet OK?
Unpack & receive boxes
Boxes OK?
Place on shelf in Warehouse
Unpack Box when required
Contents OK?
Yes
Yes
Yes
Yes
Place on shelf for sale
End
Return to SEFP
Return to SEFP
Return to SEFPYes
Yes
No
No
No
No
No
No
SEFP’s Box Packing & Fulfilment ProcessSEFP’s Box Packing & Fulfilment ProcessDetermining What to MeasureDetermining What to Measure
© Max Zornada (2005) Slide 20
Identifying Measures using a CTQ TreeIdentifying Measures using a CTQ TreeY = f(x)Y = f(x)
Box Packaging Cost of Waste
Underweight Boxes
Returned Pallets
Returned Boxes
Box Jams in Process
The Outcome Measure (Y)
Brainstorm things that could affect the outcome. Refer previous analysis.
Identify measures for each of the things that can affect the outcome (the x’s)
Packed Boxes
Unpacked Boxes
Number & %
Number & %
Number & %
Number & %
Number & %
© Max Zornada (2005) Slide 21
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 22
The Anatomy of a Check SheetThe Anatomy of a Check SheetExample: Lost Time Injury Data for a Security FirmExample: Lost Time Injury Data for a Security Firm
Category Tally Frequency
Total
Allergy
Broken limb
Back/Neck
Concussion
Contusion
Heart Attack
Sprains
Other
1
2
3
4
5
6
7
8
8
12
6
14
7
1
23
3
78
The categories in which the data
occurs
Progressive “Tally” count of each occurrence, collected from raw data or directly from the fieldNote: = 1, = 5
Numerical frequency count or summary of
the “tally” or occurrences in each
category
Overall Total
© Max Zornada (2005) Slide 23
The Pareto PrincipleThe Pareto Principle(Also know as the 80/20 Rule): (Also know as the 80/20 Rule):
“A few causes account for most of the effect”“A few causes account for most of the effect”
Causes Effect
20% of the causes account for 80% of
the effect!
Critical Few
Trivial Many
© Max Zornada (2005) Slide 24
Pareto AnalysisPareto Analysis Example: Pareto Analysis for SEFP Numbers of BoxesExample: Pareto Analysis for SEFP Numbers of Boxes
Critical few towards the Y-Axis
Trivial many trail away from Y-axis
© Max Zornada (2005) Slide 25
Example: Fishbone DiagramExample: Fishbone Diagram(Cause and Effect Analysis)(Cause and Effect Analysis)People Procedures
Equipment/Systems Materials/Environment
Late order delivery
Item not in stock
Out of Stock
Item
ord
ered
not
a
stoc
ked
item
Credit check takes too long
No procedure for guaranteeing tech and transport
Truck breakdowns
Too many truck out
for maintenance
Computer system down
Stock damaged
Order entered incorrectly
Not enough trucks
Incorrect ite
m picked
No communication with Sales
No communication
with techs Unrealistic delivery data quoted
No communication
with warehouse
Problem of focus placed at the head of the fish
Brainstorm possible causes and show as feeding into the most appropriate spine.
When items come up related to ones already on the diagram. Show as feeding into the appropriate item
© Max Zornada (2005) Slide 26
Fishbone DiagramFishbone DiagramSEFP CaseSEFP Case
People Procedures
Equipment/Systems Materials/Environment
Bar code in wrong place
© Max Zornada (2005) Slide 27
Assessing the Cause & Effect Analysis and Assessing the Cause & Effect Analysis and preparing to collect datapreparing to collect data
People Procedures
Equipment/Systems Materials/Environment
Late order delivery
Item not in stock
Out of Stock
Item
ord
ered
not a
stoc
ked
item
Credit check takes too long
No procedure for guaranteeing tech and transport
Truck breakdowns
Too many truck
out for m
aintenance
Computer system down
Stock damaged
Order entered incorrectly
Not enough
trucks
Incorrect ite
m
picked
No communication with Sales
No
communication
with techsUnrealistic delivery data quoted
No communication
with warehouse
Category Tally Frequency
1
2
3
4
5
6
7
8
Data Collection Instrument:Check Sheet
Check out each potential cause and eliminate ones that can be verified as not happeningPossibly use List Reduction or Multivoting.
© Max Zornada (2005) Slide 28
SEPF Pareto Chart of Bar Code Wrong Place SEPF Pareto Chart of Bar Code Wrong Place CausesCauses
10
20
Fre
quen
cy/ N
umbe
r of
Occ
urre
nces
30
40
5044
27
15
9
5 2
1 2 3 4 5 6
Cause Codes1. Trip lever sticking2. Box askew on belt3. Operator accidental lever trip4. Box misfeed5. Print head loose6. Other
© Max Zornada (2005) Slide 29
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 30
Potential Solutions MatrixPotential Solutions MatrixPotential Solutions Cost
RankingEase of Implementation
% of problem it fixes
Overall Ranking
Scale: 0 = None, 1 = Low, 3 = Moderate, 9 = Strong
© Max Zornada (2005) Slide 31
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 32
Improve: Implement and CheckImprove: Implement and Check
Implement preferred solution; Verify effectiveness by checking current
performance against original baselines; Apply statistical comparative methods if necessary.
Before Pareto Chart After Pareto Chart
© Max Zornada (2005) Slide 33
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 34
ControlControl
Standardise the solution by making it part of the standard procedure for the process;
Update the performance measurement scorecard for the process;
Implement control charts; Document the project.
© Max Zornada (2005) Slide 35
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 36
Future PlansFuture Plans
Review the previous non-pareto causes to see which ones have upgraded themselves and assess whether these are worth going after;
Review any obvious opportunities to apply the solution in other areas;
Communicate the solution to other parts of the organisation where it may also apply;
Review and document lessons learnt and institutionalise the learning.
© Max Zornada (2005) Slide 37
SEPF EpilogueSEPF Epilogue The benefit generated by this project was $208,000 per annum. This is $45,000 short of
target; Addressing the next two highest causes could potentially yield the following benefits:
Incorrect coding of contents: $39,000 p.a. Box not sealed: $34,000 p.a.
I.e. a total of $73,000 p.a. if both eliminated. This would exceed the original target.
Note: The second CTQ characteristic of concern to customers - schedule compliance - amount delivered benefited as a side-effect. The main contributor to incomplete orders was the rejected & returned boxes.
© Max Zornada (2005) Slide 38
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANS
Define, Measure, Analyse, Improve, Control
Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity.
Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis
Objective: Identify and verify the root cause(s) of the problem.
Output: Root cause(s) identified.
Cause and Effect Diagram(Fishbone)
Pareto Chart
Checksheet
Objective: Determine possible solutions that will address the identified root cause(s) of the problem.
Action Plan
Step 1Step 2Step 3Step 4Step 5Step 6
Output: Preferred solution or countermeasures
Key Steps:-
•Generate potential solutions•Assess potential solutions•Select preferred solution•Test/Pilot preferred solution•Develop implementation plan
Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated.
Before
After
Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented.
Key steps:-•Implement preferred solution•Verify effectiveness•Apply comparative methods if necessary.
Objective: Prevent the problem and its root cause from recurring.
Flowchart Standard procedure
Output: Solution embedded and “routinised” in relevant process, procedures and standards.
Key steps:-•Standardise the solution (standards & procedures)•Document project•Implement scorecard•Implement controls
Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning.
Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack”
Potential Solutions
D
MA
C
I
IMPROVE - II: Implement and Check
Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process.
Output: A quantified picture of the current process performance, problem impact. The process sigma rating.
Objective: Select problem/ opportunity theme, select team members
Output: Problem/Opportunity selected, Team members selected.
•Develop business case•Develop project team charter•Understand Customer Requirements•Understand the Process.
•Determine what to measure•Understand the measures•Understand Variation•Assess measurement system•Assess process performance
Problem Solving Team
Key Steps:-Key Steps:-
FlowchartTeam charter Cause and Effect Diagram Run chart or
control chart
•Analyse data•Analyse process•Determine potential root causes•Hypothesis Testing•Verify root causes
Key Steps:-
Key Steps:-•Review remaining project opportunities•Review other applications•Review learnings
© Max Zornada (2005) Slide 39
Analysing for Root Causes - RevisitedAnalysing for Root Causes - Revisited
© Max Zornada (2005) Slide 40
Causes and Root CausesCauses and Root Causes
Cause
Cause
Cause
Root Cause
Observed Problem - Symptom
Th
e P
robl
em S
olvi
ng
Pro
cess
Not Actionable
Not Actionable
Not Actionable
Actionable
© Max Zornada (2005) Slide 41
South Eastern Food ProcessorsSouth Eastern Food ProcessorsHigh level objective:
Reduce costs of box packaging process
Cost of waste
Box Returns
Boxes Underweight Bar Code Wrong Place
Trigger lever sticking
Light beam printer trigger
Root Cause
Solution
© Max Zornada (2005) Slide 42
South Eastern Food ProcessorsSouth Eastern Food ProcessorsHigh level objective:
Reduce costs of box packaging process
Cost of waste
Box Returns
Boxes Underweight Bar Code Wrong Place
Trigger lever sticking
Light beam printer trigger
Root Cause
Solution
© Max Zornada (2005) Slide 43
South Eastern Food ProcessorsSouth Eastern Food ProcessorsHigh level objective:
Reduce costs of box packaging process
Cost of waste
Box Returns
Boxes Underweight Bar Code Wrong Place
Trigger lever sticking
Light beam printer trigger
Root Cause
Solution
Level 1
Level 2
Level 3
Level 4
Level 5
© Max Zornada (2005) Slide 44
No
Yes
Is cause actionable?
Define the problem
Analysing for Root CausesAnalysing for Root Causes Cause & Effect Analysis (Fishbone
diagram). Brainstorm possible causes. Vote on most likely.
Collect Data. Outcomes of Fishbone used to design Checksheet or other appropriate data gathering proforma.
Analyse Data using Pareto chart, determine most likely cause.
If cause not actionable, redefine problem to determine causes of this cause.
© Max Zornada (2005) Slide 45
Flushing out root causes vs reacting to Flushing out root causes vs reacting to symptomssymptoms
Is cause actionable ?Not a root cause
Does action(s) fix problem ?
Cause found
Not the right cause
Apply problem solving process
YES
YES
NO
NO
Problem Solved
Observed symptom - "The Problem"
© Max Zornada (2005) Slide 46
The Root Cause Analysis ProcessThe Root Cause Analysis Process
Define/ Redefine the Problem
Brainstorm Possible Causes
Select Pareto Cause as the Problem of Focus
Collect Data on Possible CausesIs the Pareto Cause
Actionable?
Apply Pareto Analysis to the Data Collected
Root Cause Analysis
Root Cause Found
Actionability Test
Yes
No
© Max Zornada (2005) Slide 47
Reference SheetsReference Sheets
© Max Zornada (2005) Slide 48
Generating Improvement OpportunitiesGenerating Improvement Opportunities
Present
Reason
Alternatives
Selection
Improvement
Concerning Purpose Place Sequence Person Means
What is done ?
done ?
Can it be
Should it be
Eliminate Combine or Change Simplify
done ? done in the it ? done ?
done there ?
could it be
Where should
done then ? done by that done that
could it be could it be could it be
When should it Who should it How should it
Method
Means of
Questions Aspects Examined
Why is it
eliminated ?
eliminated ?
Where is it When is it
sequence ?
Who does How is it
Why is it
Where else
done ?
it be done ?
Why is it Why is it
person ?
Why is it
way ?
When else
done ?
Who else
done by ?
How else
done ?
be done ? be done by ? be done ?
© Max Zornada (2005) Slide 49
The 5W2H QuestionsThe 5W2H Questions
Who What Where
Why
Who does it ? Who is doing it ? Who should be doing it ? Who else can do it ? Who else should do it ?
What to do ? What is being done ? What should be done ? What should be done ? What else should be done ? What else should be done ?
Where to do it ? Where is it done ? Where should it be done ? Where else can it be done ? Where else should it be
done ?
Why does he/she do it ? Why do it ? Why do it there ? Why do it then ? Why do it that way ?
How much?
How much does it cost now ?
What will the cost be after the improvement ?
When
When to do it ? When is it done ? When should it be
done ? What other time can
it be done ? What other time
should it be done ?
How
How to do it ? How is it done ? How should it be
done ? Can this method be
used in other areas ? Is there any other way
to do it ?
© Max Zornada (2005) Slide 50
DMAIC Process StoryboardDMAIC Process StoryboardTEAM FORMATION DEFINE MEASURE
ANALYSE IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise FUTURE PLANSIMPROVE - II: Implement and Check
© Max Zornada (2005) Slide 51
Conclusion of Team Based Problem Solving ModuleConclusion of Team Based Problem Solving Module