0904-fmea
DESCRIPTION
FMEATRANSCRIPT
Project Management, Process Mapping, and Failure Mode and
Effects Analysis
Leon SpackmanPMP, LSS Master Black BeltKirtland Federal Credit Union
2
Agenda
• Project Management
• Process mapping
• What is FMEA?
• When do you use it?
• How do you use it?
• How do you interpret a FMEA?
• Pareto Charts--show results
3
Project Management
• Initiate—Select project, define initial scope• Plan—Establish schedule, budget, team, risk,
communications, project management plan• Execute—Work the plan• Monitor and Control—Quality control, monitor
schedule/budget, corrective actions• Close—Verify scope, deliver results, close
contracts and project
4
Project Definition
• Temporary endeavor with beginning and end
• Creates unique product or service
• Know more about the project as it progresses
5
Project Management
• Multiple processes in project management
• PMI defines the high level process
• Project processes should be defined clearly and understood by all on the project team
• Lean efficient processes result in successful projects
6
Integration Management Process (1)
• Develop project charter
• Develop preliminary project scope statement
• Develop project management plan
• Direct and manage project execution
• Monitor and control project work
• Integrated change control
• Close project
7
Scope Management Process (2)
• Scope planning
• Scope definition
• Create Work Breakdown Structure
• Scope verification
• Scope control
8
Time Management Process (3)
• Activity definition
• Activity sequencing
• Activity resource estimating
• Activity duration estimating
• Schedule development
• Schedule control
9
Cost Management Process (4)
• Cost estimating
• Cost budgeting
• Cost control
10
Quality Management Process (5)
• Quality planning
• Perform quality assurance
• Perform quality control
11
HR Management Process (6)
• Human resource planning
• Acquire project team
• Develop project team
• Manage project team
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Communications Management Process (7)
• Communications planning
• Information distribution
• Performance reporting
• Manage stakeholders
13
Risk Management Process (8)
• Risk management planning
• Risk identification
• Qualitative risk analysis
• Quantitative risk analysis
• Risk response planning
• Risk monitoring and control
14
Procurement Management Process (9)
• Plan purchases and acquisitions
• Plan contracting
• Request seller responses
• Select sellers
• Contract administration
• Contract closure
15
Project Management Tools• Charter• WBS• Network Diagrams• Earned Value• Bar/Milestone Charts• Monte Carlo Analysis• Communication matrix• Fishbone Diagram• Risk Plan/Matrix• Contracting Tools/types
• Fast Tracking• Crashing• Cost Estimating
– Analogous– Bottom-up– Parametric
• Control Charts
• Scatter Diagram
• Design of Experiments
• Motivation Theories
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Lessons Learned
• Lean Six Sigma projects must use sound project management principles– Initiating—project selection criteria– Planning—often not done– Team building tools – Communication—more is needed– Risk Management—often not done– Stakeholder management– Milestones (schedule management)– Close—wrap up, have a party, release resources
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Lessons Learned• Project Managers must eliminate waste, and improve
their processes– Clearly define how projects will be selected—
establish and map the process– Establish templates and mistake-proof processes as
much as possible– Emphasize doing it right the first time (First Pass
Yield)– Eliminate waste in the project—Look for clutter,
rework, bottlenecks, and uneven work load– Gather metrics and use statistical tools if appropriate
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Lessons Learned• Project Managers must eliminate waste, and
improve their processes– Spend time finding root causes—don’t just
use a band-aid fix– Manage using process mentality
(Remember:Y=f(x)) – Map processes
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Process Mapping
• Before we can manage processes, we must identify, define, and centralize them
• Provides a clear, visual way to examine processes
• Helps identify redundancies, waste, and weaknesses
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Why Map Processes?
The way it really functions.
What the customer expects, and is willing to pay for.
The way you think it is.
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Micro-Level Processes
Payroll
CollectEmp. Data
CollectTimesheet
Info
CalculatePay,
Benefits, etc
Cut Checkor DirectDeposit
EndProcess
Send/makepay infoavailable
Update Vac,sick time,YTD info
Detailed steps that must be followed in order to produce a product/result.
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Macro-Level Processes
Mid level detail showing how an overall task or deliverable is accomplished.
BusinessDeployment
Gather inputsfrom One-PageStrategy and
Quarterly Plan
Incentive Goalsnegotiated with
Managers
Incentive Goalsnegotiated with
all otheremployees
Incentive PlanProgress
reviewed monthly
Incentive Plangoals scored
quarterly
Quarterly PlanUpdated
ManagementResponsibility
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Business System--High Level Relationships Across Functions
HumanResources
Finance OperationsEngineering Marketing
Department
Department
Organization
Department Department Department
Department
Department
Department
Department Department Department Department
DepartmentDepartment
Department
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Process Symbols
Boundary
Task
Decision
Embedded Process
Reference Document
Multiple Documents
Connector
DataBase
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Putting It All TogetherN
o
Yes
DataBase
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Interactive Electronic Map
27
Online Electronic Document
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What is FMEA?
• FMEA--a tool to identify risks in your process• Can be used in multiple places in process
improvement– Determine where problems are– Help identify cause/effect relationships– Highlight risks in solutions and actions to take
• Starts with input from processes• Identifies three risk categories
– Severity of impact– Probability of occurrence– Ability to detect the occurrence
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When to Use
• Early stages (Define) to understand process and identify problem areas
• Analyze data (Analyze) to help identify root causes
• Determine best solutions (Improve) with lowest risk
• Close out stage (Control) to document improvement and identify actions needed to continue to reduce risk
30
FMEA Worksheet
Process or Product Name
Prepared by: Page _____ of ______
Person Responsible
Date (Orig) ___________ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
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How To Complete the FMEAGeneral Suggestions• Use large white board or flip chart with a FMEA
form drawn on it during the generation phase • Focus the team on the specific area of study
(product or process). • Have process map available• Have all subassemblies and component part of
a product.
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Process for FMEA
Process to Change Oil in a Car
3000 miles Run
Drive caron lift
Fill withnew oil
Drain OilReplace
Filter
Take Car off lift
Process Complete
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How to Complete the FMEA
Step 1. Complete header information
Step 2. Identify steps in the process
Step 3. Brainstorm potential ways the area of study could theoretically fail (failure modes)
Suggestion: Use Affinity Diagram as a brainstorming tool
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FMEA Worksheet
Process or Product Name
Change Oil in Car Prepared by: Leon Page _1____ of __1____
Person Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil —Mechanic
Wrong type of oil
Engine wear
No oil added
Engine Failure
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
35
How to Complete a FMEAStep 4
• For each failure mode, determine impact or effect on the product or operation using criteria table (next slide)
• Rate this impact in the column labeled SEV
(severity)
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Severity (SEV) Rating
SEV Severity Product/Process Criteria
1 None No effect
2 Very Minor Defect would be noticed by most discriminating customers. A portion of the product may have to be reworked on line but out of station
3 Minor Defect would be noticed by average customers. A portion of the product (<100%) may have to be reworked on line but out of station
4 Very Low Defect would be noticed by most customers. 100% of the product may have to be sorted and a portion (<100%) reworked
5 Low Comfort/convenience item(s) would be operable at a reduced level of performance. 100% of the product may have to be reworked
6 Moderate Comfort/convenience item(s) would be inoperable. A portion (<100%) of the product may have to be scrapped
7 High Product would be operable with reduced primary function. Product may have to be sorted and a portion (<100%) scrapped.
8 Very High Product would experience complete loss of primary function. 100% of the product may have to be scrapped
9 Hazardous Warning
Failure would endanger machine or operator with a warning
10 Hazardous w/out Warning
Failure would endanger machine or operator without a warning
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FMEA Worksheet
Process or Product Name
Change Oil in Car Prepared by: Leon Page _____ of ______
Person Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil—Mechanic
Wrong type of oil
Engine wear
2
No oil added
Engine Failure
10
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
38
How to Complete a FMEA
Step 5• For each potential failure mode identify one or
more potential causes (Could use Affinity Diagram again to brainstorm ideas)
• Rate the probability of each potential cause occurring based on criteria table (next slide)
• Place the rating in the column labeled OCC (occurrence).
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FMEA Occurrence (OCC Rating)OCC Occurrence Criteria
1 Remote 1 in 1,500,000 Very unlikely to occur
2 Low 1 in 150,000
3 Low 1 in 15,000 Unlikely to occur
4 Moderate 1 in 2,000
5 Moderate 1 in 400 Moderate chance to occur
6 Moderate 1 in 80
7 High 1 in 20 High probability that the event will occur
8 High 1 in 8
9 Very High 1 in 3 Almost certain to occur
10 Very High > 1 in 2
40
FMEA Worksheet
Process or Product Name
Change Oil in Car Prepared by: Leon Page _____ of ______
Person Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil—Mechanic
Wrong type of oil
Engine wear
2 Mis-labeled
3
No oil added
Engine Failure
10
Hurrying 3
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
41
How to Complete the FMEA
Step 6• Identify current controls or detection• Rate ability of each current control to prevent or
detect the failure mode once it occurs using criteria table (next slide)
• Place rating in Det column
42
FMEA Detection (DET) RatingDET Detection Criteria
1 Almost Certain
Current Controls are almost certain to detect/prevent the failure mode
2 Very High Very high likelihood that current controls will detect/prevent the failure mode
3 High High Likelihood that current controls will detect/prevent the failure mode
4 Mod. High Moderately High likelihood that current controls will detect/prevent the failure mode
5 Moderate High Likelihood that current controls will detect/prevent the failure mode
6 Low Low likelihood that current controls will detect/prevent failure mode
7 Very Low Very Low likelihood that current controls will detect /prevent the failure mode
8 Remote Remote likelihood that current controls will detect/prevent the failure mode
9 Very Remote
Very remote likelihood that current controls will detect/prevent the failure mode
43
FMEA Worksheet
Process or Product Name
Change Oil in Car Prepared by: Leon Page _____ of ______
Person Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil from supplier
Wrong type of oil
Engine wear
2 Misread oil chart for vehicle
3 None 9
No oil added
Engine Failure
10
Hurrying 3 Engine light 3
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
44
How to Complete the FMEAStep 7
Multiply SEV, OCC and DET ratings and place the value in the RPN (risk priority number) column. The largest RPN numbers should get the greatest focus. For those RPN numbers which warrant corrective action, recommended actions and the person responsible for implementation should be listed.
Sev x Occ x Det = RPN ( 2 x 3 x 9 = 54 )
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil from supplier
Wrong type of oil
Engine wear
2 Misread oil chart for vehicle
3 None 9 54
No oil added
Engine Failure
10
Hurrying 3 Engine light 3 90
45
FMEA Rankings
Severity Occurrence Detection
Hazardous without warning
Very high and almost inevitable
Cannot detect or detection with very low probability
Loss of primary function
High repeated failures
Remote or low chance of detection
Loss of secondary function
Moderate failures Low detection probability
Minor defect Occasional failures Moderate detection probability
No effect Failure Unlikely Almost certain detection
Rating
10
1
High
Low
Source: The Black Belt Memory Jogger, Six Sigma Academy
46
Action Results
Step 8
• After corrective action has been taken, place summary of the results in the ‘Actions Recommended’ block• Assign new value for:
– Severity– Occurrence– Detection
• Calculate new RPN number
47
FMEA Worksheet
Process or Product Name
Change Oil in Car Prepared by: Leon Page _____ of ______
Person Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN Actions Recommended
Sev
Occ
Det
RPN
Fill with new oil
New Oil from supplier
Wrong type of oil
Engine wear
2 Misread oil chart for vehicle
3 None 9 54
No oil added
Engine Failure
10
Hurrying 3 Engine light 3 90 Oil level checked by partner
10
3 1 30
Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)
48
FMEA Example
Source: Quality Digest/ August 2006 Quality Service at the Special Olympics World Games, Tang Xiaofen
Process or Product Name: Hotel Service at Special Olympics Prepared by: Page _____ of ______
Person Responsible: Joe Quality Date (Orig) ___________ Revised __________
Process Step
Key Process Input
Potential Failure Mode
Potential Failure Effect
Sev
Potential Causes
Occ
Current Controls
Det
RPN
Actions Recommended
Sev
Occ
Det
RPN
Register guest
Service Desk
Cannot Register in time
Complaints 5 Lack of language and communication skills, support of volunteers not sufficient
4 No plan on training content; training and volunteer support sufficient
3 72
Provide Guest Services
Guest Support
Lack of barrier-free facility
Inconvenience and injury
10 Cannot provide barrier-free facility
3 Providing barrier-free facility
7 210
Provide Meals
Food Service
Food goes bad
Disease or injury
10 Past shelf life
6 No control of raw material
8 240
Provide Medical Service
Medical Service
Service not in time
Illness changes for worse
10 No 24 Hour service
6 12 hour service
3 180
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Summary
• FMEA identifies risk in our processes– Impact/Severity– Probability of Occurrence– Detection
• Helps identify what can go wrong and what we should fix
• Can be used in multiple stages of process improvement
50
Continuous Improvement
• Process improvement not a linear process
• Never really ends
• Journey not a destination
Define
Measure
AnalyzeImprove
Control
51
Challenge
“We are what we repeatedly do. Excellence, therefore, is not an act but a habit.”
-- Aristotle
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Group Exercise
• Build a FMEA to identify problem areas to be addressed in your process (Cake Baking) – Identify process step(s) to analyze – Use Affinity Diagram to brainstorm for possible
failure modes, effects, causes and detection controls
– Rate severity, occurrence, and detection– Analyze results with a Pareto Chart
• Report to the group
54
Baking a Cake
Birthday Arrives
SelectType of cake
Get Recipe Mix Dry Ingredients
Add Liquid Ingredients Bake Frost and
DecorateServe at Party
55
Pareto Chart
• Sorted Bar Chart with the bars arranged in descending order from left to right
• Useful in taking a spreadsheet of data and showing which category stands out from the rest.
• Identify where the biggest “pain” occurs in process
• Help determine where to focus our efforts• Based on 80/20 rule
56
Pareto Chart—Example
Pareto Chart--Special Olympics
050
100150200250300
Food goesbad
Lack ofbarrier-free
facility
Medicalservice not
in time
CannotRegister in
Time
Failure Modes
Ris
k P
rio
rity
Nu
mb
er
57
20 20 43 85312
4.2 4.2 9.017.765.0100.0 95.8 91.7 82.7 65.0
500
400
300
200
100
0
100
80
60
40
20
0
Defect
CountPercentCum %
Perc
ent
Coun
t
Pareto Chart of Paint Defects
Pareto Chart--Example
58
Pareto Chart Hints
• Must have category/attribute data
• List categories in descending order on horizontal line & frequencies on vertical line
• Break down tall pole into another Pareto Chart for further analysis
• Involve customer/sponsor in selecting area to focus on