150206 Unit3 8-StepProcessImprovementRev6# 6.0 Implementation% Date ... SIPOC Example: Upgrading laptop memory ... Stage FinalInspection Date 12thJan Checked%by John*Doe

Lean Tools Contents

Unit 3: Lean 8-‐Step Process Improvement

Procedure 3.0

Revision # 6.0

Implementation

Date30.08.2012

Last Reviewed 06.02.2015 Approval S. Halpin

www.etacsolutions.com: ETAC Limited Your Lean Business Partner

Sticking with our approach to looking at everything as a process…………….

What steps would you normally take to solve a problem?

Brainstorm

How to solve problems?


Decision making based on data. Analysis using statistical tools & visual presentation.

CUSTOMERRequirements

Respect for People & Involve

EVERYBODY

Add VALUE

and eliminateWASTE

Lean – A simple message

Employees come up with effective and creative ideas

Satisfying customers’ needs


PLAN 1. Problem Definition2. Current State3. Target to Achieve4. Root cause Analysis5. Agreed

Countermeasures

DO small scale trials6. Implementation PlanIncluding: Experimental design; PilotData collection

CHECK to see if changes are working7. Evaluate results and processIncluding: Graphical analysisKey performance indicators

ACT to get the greatest benefit 8. Standardise Success; learn from failuresIncluding:Formal trainingStandard processes; Error proofing

Developed by Walter Shewhart at Bell Laboratories in the 1930s. Popularized by W. Edwards Deming in the 1950s onward. Frequently referred to as “the Deming Wheel.”

8-‐step methodology

ContinuousImprovement


Kaizen

StandardWork

StandardWork


Basic

JustDoIt!


Six Sigma


“A problem clearly stated is a problem half solved”

Charles “Boss” Kettering-‐ General Motors Corporation

Step 1: Clarify the problem


Problem Statement

“Most conflicts in organisations are due to people arguing about solutions without having

reached an agreement on the problem”

Michael BalléESG Consultants

Step 1


Your Problem Statements

Problem Statement Exercise


Customers from the MidWestregion have been complaining about product availability since September 2013. Complaints

have increased by 15% compared with the previous quarter according to the customer service database

11

Problem Statement Example

WHERE?

WHAT?

WHEN?

IMPACT?

HOW WE KNOW?


Project Charter

Business Case (Problem Statement) Opportunity

Clearly outline the project impact -‐ideally on bottom-‐line or customer service

Any other potential improvement within the business from this project

Target (Measure) Scope

A clear time-‐based target.The measure you will use.

What is in scope and what is out of scope

Plan Team

Milestones -‐ dates Who will you need on your team (consider key stakeholders)


Project Charter - Example

Business Case (Problem Statement) Opportunity

Getting quotations done faster will reduce quotation losses by 10% (estimate)Reducing the cycle time will increase revenue by an estimated €250,000

Customers are dissatisfied with the quotation processing time of 15 days.Competitors are achieving 10 days.We estimate that we lose 25% of quotations due to long lead times.


Reduce our cycle time to 9 days by March 2015. Domestic quotes for jobs of less than €10,000 in value.Process begins with initial request and ends with acceptance or rejection from customer.

Plan Team

Step Begin End1 Project Charter 5/1 12/12 Current State / VOC 13/1 30/13 Target 31/1 1/24 Root Cause Analysis 3/2 17/25 Select Countermeasures 19/2 26/26 Implement trials 28/2 21/37 Evaluate Results 22/3 26/38 Standardise & Learning 27/3 31/3

Gary Smith Sponsor / DirectorMike Hanley Project OwnerCeline Clarke Customer ServiceMargaret Bowes FinanceRichie Dawson EngineeringJohn Morgan Sales RepPaul Byrne OperationsGemma Storey IT


Gets everyone on the same page


Task 2 of 12: Complete a project charter for your chosen improvement area (5%)

Business Case (Problem / Opportunity Statement) Opportunity

Getting quotations done faster will reduce quotation losses by 10% (estimate)Reducing the cycle time will increase revenue by an estimated €250,000

Customers are dissatisfied with the quotation processing time of 15 days.Competitors are achieving 10 days.We estimate that we lose 25% of quotations due to long lead times.


Reduce our cycle time to 9 days by March 2015Domestic quotes for jobs of less than €10,000 in value.Process begins with initial request and ends with acceptance or rejection from customer

Plan Team

Step Begin End1 Project Charter 5/1 12/12 Current State / VOC 13/1 30/13 Target 31/1 1/24 Root Cause Analysis 3/2 17/25 Select Countermeasures 19/2 26/26 Implement trials 28/2 21/37 Evaluate Results 22/3 26/38 Standardise& Learning 27/3 31/3

Gary Smith Sponsor / DirectorMike Hanley Project OwnerCeline Clarke Customer ServiceMargaret Bowes FinanceRichie Dawson EngineeringJohn Morgan Sales RepPaul Byrne OperationsGemma Storey IT


Step 2: The Current Situation


Without Data.... ...you're just another person with an opinion!

Data


How many pages?

Count the number of pages in the book. Record your answer on the ‘Post-‐It’

NOTE: You are to work independently – no questions to others.

www.etacsolutions.com: ETAC Limited Your Lean Business Partner19

Process

Laptop Owner

Business OwnerEnvironmental waste

CustomersInputs Outputs

SIPOC Example: Upgrading laptop memory

CustomerTrained TechnicianMemory/tools vendorUtility provider

Suppliers

RequirementsUpgraded memoryQuick TurnroundGood priceLaptop in same Condition

Test Laptop

Shutdown

Anti-‐Static Gloves

Replace memory module

Power Up

Test Laptop

RequirementsLaptopAnti-Static Gloves/ToolsMemoryPower SupplyToolbox


Process Mapping


Process Mapping


Process MappingPlaceh

olde

rPlaceh

olde

rPlaceh

olde

rPlaceh

olde

r

Placeholder Text Placeholder Placeholder

Placeholder

PlaceholderText

PlaceholderText Placeholder

Text

Text

Yes

Yes

Yes

No

No

No

Process Decision Start or Stop


Exercise

Map process steps including inputs and outputs


Data available?

Without data, you’re just another person with an opinion!

What data?

How accurate?

How long?

Who is responsible?

How is it reported?

Data


Operational Definition:

A description

-‐ those affected will have a common understanding

-‐ all parties will have no ambiguity over what is being measured

Operational Definition

Think 5Ws & 1H

Data Collection Planning

What to Measure How to Measure Who will do it? Sample Plan

MeasureType of Measure(O/P/I)

Type of data Operational Definition

Measurement or Test Method

Data Tags Needed to Stratify the

Data

Data Collection Method

Person(s)Assigned What? Where? When? How Many? Remarks

Name what is being

measured

Input / Process / Output measure

Continuous or discrete

Clear definition for repeatable results from different observers

Procedures for data collection are defined

E.g. Date, Time, Location,

Person, Customer etc.

Manual, Spreadsheet, Computer-based, etc.

Who is responsible?

What measure is being collected

Location for data collection

How often the data is collected

the number of data points collected per sample

1


Data Collection

Product <product name> ID R123 Number Inspected 265

Stage Final Inspection Date 12th Jan Checked by John Doe

Type of Error / Reason Count / Check SubtotalMon. Tues. Wed. Thu. Fri.

1. Description of Type //// // // //// // //// / 22

2. Description of Type // /// // /// //// / 16

3. Description of Type //// / //// //// / //// // 23

4. Description of Type //// / /// //// // /// 19

…

…

…

Grand Total 16 9 13 18 22 80


The most common Quality Tools that can be used to solve the vast majority of quality-‐related issues

Checklist / Check Sheet

Pareto Chart

Frequency

Percent

A B C D E

Control Chart

Upper control limit

Lower control limit

Time

Cause-‐and-‐effectCause Effect

Materials Methods

Manpower Machinery

Scatter Diagram

Variable 2

Varia

ble 1

Flow Chart

HistogramDistribution

Frequency

Task / Process StepCount

Repeat Mon. Tues. Wed. Thu. Fri. Sat. Sun.

Process 1

1. Task Description D <Value>

2. Task Description D ü

3. Task Description AN -‐


Process 2


2. Task Description AN ü

3. Task Description D ü

… …

Type of Error / ReasonCount Total

ScoreMon. Tues. Wed. Thu. Fri.

1. Description of Type //// // // //// / / / /// / 22

2. Description of Type // /// // /// //// / 16

3. Description of Type //// / //// //// / / / // / / 23

4. Description of Type //// / / / / //// // /// 19

…

…

…

Total Errors 16 9 13 18 22 80

The 7 Classic Tools of Quality


– Based on a principle thought through by Vilfredo Pareto (Italian Economist). Pareto’s premise: 80% of the wealth of nations comes from a 20% minority.

– We arrange the data to highlight the impact of the ‘vital few’ causes on a high number of effects.

Pareto Chart


Pareto Example


Complaint Feb Mar Apr Total1 Refund 1 4 10 152 DPA-‐Fulfillment 175 100 85 3603 Delay 23 20 11 544 Incorrect Data 10 13 60 835 Incorrect Advice 324 265 373 9626 Incorrect Quote 7 12 21 407 DPA 12 8 12 328 Action not completed 25 52 50 1279 Agent Attitude 30 50 17 97

10 DPA breach 21 4 8 3311 Follow Up 300 110 95 505

How might you present this data in Pareto format?

Exercise


– Used to assess the shape and spread of sample data. – Suitable for use with variable data. – Minimum of 50 data points recommended. – To draw a histogram

– Divides sample values into intervals called bins. – Bars represent the number of observations falling within

each bin (its frequency).

This image cannot currently be displayed.

Watch Out!Histograms obscure the ‘time value’ of data and can obscure data meaning if too few or many horizontal bars are used.

Histogram


Histogram Example


CustomerRequirement

ProcessCentered

ProcessToo High

ProcessToo Low

Location -‐ Is the process distribution Variation -‐ What is the spread of thecentered, too high or too low? data? Is it too variable?

CustomerRequirementsProcess

withinRequirements

Processtoo Variable

Histogram Interpretation


50.64 47.55 50.62 60.00 50.6749.11 52.22 57.40 62.58 51.1445.41 56.86 53.77 48.53 49.5943.91 51.17 54.28 46.99 58.4140.24 60.02 44.38 45.44 54.8240.79 50.13 47.00 48.03 42.8249.63 42.31 51.69 38.13 51.6643.91 42.86 60.51 51.15 52.1740.24 49.62 52.69 47.52 52.7451.18 52.21 49.08 50.10 42.82

Here are 50 data samples.Present this data as a histogram

Histogram Exercise


Binmin max count37 40 140.1 43 743.1 46 546.1 49 649.1 52 1652.1 55 855.1 58 258.1 61 461.1 64 1 0

2

4

6

8

10

12

14

16

18

40 43 46 49 52 55 58 61 64

37 40.1 43.1 46.1 49.1 52.1 55.1 58.1 61.1

Histogram

Histogram Exercise


Qty Temp30 7021 7540 8052 9057 9359 9833 7238 7532 7545 8053 9056 9562 9851 91

Y axis is the Dependant variable (Number of cans drank on a hot day)The X axis is the Independent variable (The Temperature)

100959085807570

60

50

40

30

20

Temp

Qty

Scatterplot of Qty vs Temp

Scatter Plot


Scatter Plot : Example


Scatter Plot : Regression Example


A sequence of observations over regularly spaced intervals of time. For example:·∙ Monthly unemployment rates for the past five years·∙ Daily production at a manufacturing plant for a month·∙ Decade-‐by-‐decade population of a state over the past century

A plot of the dataversus time.

Time Series


Time Series


Time Series


This time series plot shows the monthly sales for two store locations over 9 months.

Ø Store 1 sales show slow, fairly steady growth.

Ø Store 2 sales started below store 1 sales, but overtook and surpassed store 1 sales by the second month.

Ø Store 2 had greater monthly sales fluctuations than store 1.

Time Series Plot

0

2

4

6

8

10

12

Jan Feb Mar Apr May Jun Jul Aug Sep

€€€

Sales


Basic graphical techniques that help explore, present and interpret dataTime Series Chart of Response Time

21.38188981

31.38188981

41.38188981

51.38188981

61.38188981

71.38188981

81.38188981

1 3 5 7 911 131517 192123 252729 313335 373941 434547 49515355 575961 636567 697173 757779 818385 878991 939597 99

Run Chart: Column 1

Histogram

ParetoRun / Control Chart

Scatter Diagram

Baseline Data


Step 3: Define how you will measure your success


The 5 criteria that define a goal so that it can be used in project management

Specific

Objectives have to be specific and positively described.

Measurable

A goal achievement should be measurable.

Attainable

It should be attractive for the project team to reach the goal.

Relevant

The objective needs to be

relevant to the aims of the organisation.

Time-‐bound

The goal has to set within a time frame.

Goal Criteria − SMART


Step 4


Open Flow -‐ group spontaneously shout out ideas that are recorded by facilitator or nominated recorder

Silent/Sharing -‐ ideas recorded individually on post-‐it notes in silence and only then shared amongst group

Round Robin -‐ group take it in turn to give ideas that are then recorded

Brainstorming Techniques


Young Woman or Old Lady?

We may see different things when looking at exactly the same situation


Words

Logic

Linearity

Analysis

Lists

Numbers

Academic

Colour

Imagination

Rhythm

Spiritual Awareness

Holistics

Creativity

Left Right

Left & Right Brain Thinking


Why so difficult? Left brain = words, right brain = colour

Read out the colour not the word

Left & Right Brain Thinking example


Brainstorm Exercise

Problem: Bad meetings in my business

Brainstorm using silent sharing-‐ causes of bad meetings

(or class examples)


Effect that needs

improvement

Problem / Quality

Characteristic

Cause Effect

Description 1 Description 3Description 2

Description 4 Description 6Description 5

Placeholder

Placeholder

Placeholder

Placeholder

Placeholder

Placeholder

Placeholder Placeholder Placeholder

Placeholder Placeholder Placeholder

Developed by Dr. Kaoru Ishikawa in 1943

Fishbone Diagram (Cause and Effect / Ishikawa)


Affinity



Now Group common causes


What is a Root Cause ?

Root Cause


5 Whys -‐ ExampleSymptom

A well known monument was disintegrating Why?

Use of harsh chemicals to clean pigeon droppings

They eat spiders and there are a lot of spiders at monument

Why so manypigeons?

Why so manyspiders? They eat gnats

and lots of gnats at monument

Why so manygnats? They are

attracted to the lights at dusk.

Cause

Action: Turn on the lights at a later time.


Only the one who experienced the problem is qualified to perform the analysis. There are usually more than one root cause

Why? Reason

Why 1 Why was our customer unhappy? The service has been delivered to late. The customer was unsatisfied.

Why2 Why was the service not prepared on time?

We did not prepare the service on time because it took much longer than we expected.

Why3 Why did it take so much longer? Because we did not receive all approvals on time and underestimated the duration of the project.

Why4 Why did we underestimate the project duration?

Because we forgot to prepare a detailed list of all tasks.

Why5 Why did we forget about it? Because we were running behind on other projects and failed to review our task list and time estimation during the project.

Root Cause*

Because we didn’t have a checklist to clearly identify all tasks that we must achieve to estimate time accurately. We need to develop a systematic approach to include these factors in future projects.

5 Why Analysis


Apply 5 Whys



Now Group common causes

Select 3 key group causes and apply ‘5 Whys’

Does the cause (symptom) change to a root cause?


Task 3 of 12: Identify goals and team-members for a Kaizen event.Run event. Record outcome. (5%)


Step 5


Narrow down to most practical and effectiveImpact / EaseFMEA

Can we error-‐proof it?Does the countermeasure affect quality, productivity, safety, cost or person?Can we quantify the expected outcome?Use problem, cause, action spreadsheetCreate a clear and detailed action plan

Prioritise


Impact (I)

Ease of fix (E)

Score (I x E) Action

Man

Machine

Method

Measurement

Material

Mother Nature (Environment)

Cause & Effect Ranking


Impact

Ease

Impact / Ease Chart

JUSTDoIT!

JUSTDoIT!

JUSTDoIT!

JUSTDoIT!

JUSTDoIT!

WHYNOT?

WHYNOT?

WHYNOT?

WHYNOT? WHY

NOT?

WHYNOT? WHY

NOT?

PROJECT

PROJECT

PROJECT

PROJECT

PROJECT

NOTNOW

NOTNOW

NOTNOW

NOTNOW


Must Haves

Quick Wins

Money Pits

Low Hanging Fruit

High

Low

EasyHard

BusinessImpact

Ease ofImplementation

Impact / Ease Chart


FMEA – Failure Mode & Effect Analysis

Severity

Occurrence

Detection

Risk Priority


Failure Mode & Effects Analysis (FMEA)

Process Name Process NumberDate:

Revision:

Failure Mode

A) Severity

Rate 1-‐1010 = Most Severe

B) Probability ofOccurance

Rate 1-‐1010 = HighestProbability

C) Probability of Detection

Rate 1-‐1010 = LowestProbability

Risk PreferenceNumber (RPN)

A x B x C

1) Selectwrong color seat belt 5 4 3 60

2) Seat belt bolt not fully tightened 9 2 8 144

3) Trim Cover clip misaligned 2 3 4 24

Failure Mode Effect Analysis (FMEA)


Step 6


What data do we need to collect on counter-‐measures?For how long?Who collects it?How is it reported?Do you need permission?Is revalidation required?Is additional training required?Are additional resources required?Have we communicated the counter-‐measure?

How?




Step 7


Were the results consistent with the expected result?

If not, can you explain the difference?

What was learnt?

Step 7


Step 8


StandardisePreventMonitor Document

Close out the projectComplete A3Can this counter-‐measure be applied elsewhere?

Opportunity


What Did the Team Learn (from what didn’t go to plan)


Complete A3


Kaoru Ishikawa

“95% of quality related problemscan be solved with

7 fundamental quantitative tools”

Good presentation makes data analysis and decision making easy

77

7 basic quality tools


Cause & Effect

Scatter PlotPareto

Flow diagram

Histogram

Mean CL: 0.10

-6.80

7.00

-19

-14

-9

-4

1

6

11

16

21

26

31

Individuals - Delivery Time Deviation

Before Improvement After Improvement

Run/Control Charts

Check Sheets

7 basic tools


Yes

Start

Select Likely Causes

Brainstorm action optionsFinish

Is the Cause a Root Cause?

No

Planning Phase

0 Problem / Opportunity

1 Problem Statement / Charter

3Set a target

& plan improvement

2 Establish the Team. Define current state with process team

4 Brainstorm – Identify CausesSelect Countermeasures 5

Implement Solution 6

Stanadardise or document learning 8

Evaluate Solution 7

SUMMARY: 8-‐step problem-‐solving –Project framework


Task 4 of 12: Apply 8-step improvement methodology to your process improvement. Include appropriate lean tools. Brainstorm & identify root causes to your process (10%)

1. Problem

2. Current State

3. Target

4. Root Cause Analysis

5. Select Countermeasures

6. Implementation

7. Evaluation

8. Standardisation & Learnings

Documents

150206 Unit3 8-StepProcessImprovementRev6# 6.0 Implementation% Date ... SIPOC Example: Upgrading laptop memory ... Stage Final*Inspection Date 12th*Jan Checked%by John*Doe

150206 Unit3 8-StepProcessImprovementRev6# 6.0 Implementation% Date ... SIPOC Example: Upgrading laptop memory ... Stage FinalInspection Date 12thJan Checked%by John*Doe