Transcript Managing Quality Integrating the Supply Chain S. Thomas Foster

Managing Quality
Chapter 9
PDCA Method
11/24 – 5:45 AM
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Introduction
Chapter 9
To provide a method for coping with the wide-spread
problem of error-prone processes, Deming developed the
PDCA (i.e., Plan, Do, Check, and Act) cycle, which
provides a repeatable and reproducible, standardized,
structured, team-based, fact-finding, problem-solving
approach to process improvement and correction
using a set of simple, cost effective, low-tech tools.
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Why would you use a form such as the PDCA Worksheet in
managing improvement projects?
Communicate
Coordinate
Collaborate
Control
Codify
Institutionalize
Status Reports
Historical Analyses
First, the PDCA Worksheet provides for communication, coordination,
collaboration, and control of multiple correction and improvement projects.
Second, this form provides for the codification and institutionalization of
employee knowledge and experience about improvement and correction
projects. Finally, management can input the data on the worksheet into a
computer-based database which can provide status reports and historical
analyses about multiple correction and improvement projects.
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What questions are asked by the PDCA Worksheet?
Who should be on the team?
What is the problem?
What is the reason for working on the problem?
What is the quantified objective?
How do you characterize the process?
What data are you going to collect?
How are you going to collect the data?
How are you going to analyze the data?
How are you going to identify the root cause or the improvement?
How are you going to identify the best alternative, countermeasure?
How are you going to setup a pilot?
How are you going to test the pilot?
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Why does the PDCA cycle use the following approaches?
Standardized and Structured
The standardized and structured component means this approach (i.e., the
sequenced set of steps and set of tools) is repeatable for any specific improvement
or correction and the method is reproducible across all levels and functional areas of
an organization.
Team-based
The team-based component means that management selects six to nine people
from the process to work together as a team to take advantage of their knowledge
and perspectives of the process in implementing the PDCA cycle according to the
standardized structure. We use the team-based problem solving because we are all
smarter than any one of us. This team can call on upstream and downstream
process personnel and specialists to support their efforts. The team collaboration will
reduce or eliminate the selective abstractions caused by bounded rationality and
bounded awareness when one person solves a problem.
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Fact-finding
The fact-finding component means that before we start solving the problem
we use a standard set of tools to gather, examine, organize, question,
and integrate the facts into a model to avoid making decisions based on
assumptions, anecdotes, heuristics, hearsay, opinions and pseudo
facts. If we leapfrog the fact-finding process, we can fail to see the
uniqueness of the situation, and we will anchor on an incorrect
diagnosis. This tendency to leap-frog the fact-finding process is
typical of resident “experts” who have single, unified models which
give you solutions that are direct, simple, obvious, and wrong.
Problem-solving
The problem-solving component means that we use a repeatable,
reproducible, standardized, structured set of tools to generate,
debate, and test alternatives, to decide on an alternative, and to
implement a pilot to learn from experience.
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What is the purpose of the following steps in the PDCA cycle?
Plan
The purpose of the Plan step is to diagnose the problem and prescribe
a remedy. Diagnosis, fact-finding, is accomplished in steps #1, #2, and
#3 on the PDCA Worksheet (i.e., characterize the process, identify root
cause or improvement, find alternatives). Prescription, problem
solving, is accomplished in step #4 (i.e., select an alternative as a
countermeasure).
Do
The Do step, #5, is concerned with implementing a pilot to test the
proposed solution.
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Check
The Check step, #6, is concerned with determining if the pilot is
successful as defined by the operational definition of success for the
pilot.
Act
The Act step, #7, is concerned with returning to Plan step #1 and repeating
the PDCA cycle if the pilot is unsuccessful or, if the pilot is successful,
proceeding with an expanded, full-scale implementation and developing new
standards, policies, and procedures.
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Why should an improvement team not skip any steps in the PDCA
cycle?
If you skip any of the steps, you are likely to be making decisions
based on assumptions, anecdotes, heuristics, hearsay, opinions
and pseudo facts, and it is unlikely that you will eliminate the problem
or improve the process because you will leap-frog the fact-finding
process, you will fail to see the uniqueness of the situation, and
you will anchor on an incorrect diagnosis. This tendency to leapfrog the fact-finding process is typical of resident “experts” who
have single, unified models which produce solutions that are
direct, simple, obvious, and wrong.
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Why does the PDCA cycle use an iterative approach symbolized as a
circle?
If you are sailing a boat with the intent to intercept another continuously moving
boat, you periodically recalculate the course to the continuously moving target.
Each time you make the best calculation you can.
What you don't do is follow your first course calculation without correction until
the original calculation indicates that you have reached the target, because the
target is not there anymore. You realize that despite your best initial efforts to
calculate the course to the target, the target may be moving in unforeseen
ways, and the currents and winds in which you are sailing may carry you off
the calculated course. You follow the principle of seeking frequent
feedback about your position and the target's position in relation to your
course so you can make fact-based adjustments.
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In business, however, people tend to think that they should be able to develop
the correct plan or procedure for meeting business needs without trial and
feedback using pilots or prototypes, without using “what-if” scenario
analyses of their selected plan, and without generating and exploring
alternative plans.
The PDCA principle of iteration gives you a system for continuously
making quick improvements and corrections in a step-by-step way, doing
the best job you can within relatively short improvement cycles. In that way
you can quickly try an improvement or correction (i.e., pilots or prototypes)
and get immediate, fact-based, feedback regarding how well the
improvement or correction performed. You want to do as little as possible
and learn from experience. You want to fail fast, fail small, and correct
quickly, without making costly errors, by performing a series of simple
improvement or corrections.
We always show the PDCA cycle as a circle to stress the continuous, iterative
nature of improvement and correction. All types of process improvement and
correction require iteration.
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What value does brainstorming add to the team throughout the PDCA
cycle?
We generally believe that humans can be rational problem-solvers. In other
words, a knowledgeable person supposedly, with some effort, can become
aware of all facts and alternatives for solutions and select the appropriate
alternative based on its value relative to the facts and other alternatives.
However, in many situations, the problem or opportunity under
consideration is sufficiently complicated that one person cannot
comprehend all of the relationships, their interdependencies, causes, effects,
surrounding facts, and possible alternatives for solutions, and then rank each
alternative based on its value relative to the other alternatives. These
constraints do not even consider situations with conflicting goals and
priorities or the personality, irrationality, hopes, beliefs, values, agendas,
selective abstractions, and expectations of the problem-solver, all of which
further complicate nontrivial decisions.
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In summary, one person either cannot think of everything in nontrivial situations,
because of their selective abstractions caused by bounded rationality and
bounded awareness, or does not want to think of everything because of their
personality, irrationality, hopes, beliefs, values, agendas, and
expectations, or misses the most important goal or priority. This limitation is
reduced in the PDCA cycle by using teams and the brainstorming technique
for generating diverse possibilities at every decision making point.
With the above qualifications to the rational decision making model in mind, the
statement that only the questions that get asked, get answered, and only
the problems that get recognized, get solved becomes an important heuristic
in process problem solving. Avoid insular, group-thinking. At the outset, you
do not want consensus and “team players.” You want uncomfortable
questions and debate to dominate. Team-based brainstorming helps to
assure that the team asks the right questions and the team identifies the real
problem and alternatives. Never decide alone – we are all smarter than any
one of us.
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What are the guidelines for team brainstorming?
a. define an objective
b. methodically ask the improvement questions or methodically ask
the correction questions
c. limit the suggestions to 3 words or less
d. make the suggestions visible
e. do not allow criticism or comments about the suggestions
f. do it quickly
g. rotate completely around the team repeatedly
h. you can allow anonymous suggestions in a politically influenced
team
i. revise the list of suggestions
j. clarify the suggestions
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What are the improvement questions you ask to guide team
brainstorming in generating improvement alternatives?
How can we: eliminate
add
combine
change
simplify or
substitute
manpower
to improve the process.
material
methods
machinery
feedback
environment
time
technology
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What are the correction questions you ask to guide team
brainstorming in generating correction alternatives?
What has changed in: manpower to cause the differences
materials between actual results and
methods
specifications
machinery
feedback
environment
time
technology
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How should we specify operational definitions?
An operational definition should provide communicable meaning to a
concept by specifying the unit of measure, the who, what, when,
where, why, how we measure, how much we measure, and how
we respond to the measurement of a concept within a particular set of
circumstances. Strictly speaking, operational definitions aren't "tools"
in the same sense that flowcharts are. However, they are the vital
underpinning that helps us to use all of the other tools successfully.
Operational definitions provide quantified, explicit specifications
which are not ambiguous.
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MCTR
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Please describe the elements of an operational definition.
a. metric – unit of measure
b. criteria – variable we measure
c. test – how we measure
d. response – pass/fail action
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Why should teams physically characterize a process before
starting improvement efforts?
The purpose of the physical characterization of the process is to
assure that:
the measurement systems are correct,
the specifications and standards are correct,
the inputs and outputs meet the specifications and standards,
and
the team understands the historical behavior of the process, using
pivot table analyses of the process data, before the correction or
improvement efforts begin.
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What are the steps in physically characterizing a process?
The team physically characterizes the process by:
a. performing gauge studies,
b. resetting the process to prescribed specifications
and standards,
c. performing input and output variance analyses,
and
d. performing pivot table analyses on historical
process data.
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Why do we perform gauge studies?
Teams perform gauge studies to assure that the process measurement
devices and the operators using them are accurate. Otherwise, we could
have a biased fact-finding process because of unreliable and inaccurate
feedback information.
How do we perform gauge studies?
CR2
Teams accomplish these studies by first calibrating the measurement
devices, then comparing the measurements made on a single characteristic
on a single item across all measurement devices to assure the measurements
are repeatable across all devices. Finally, the team compares the
measurements made by all operators for a single item and measurement
device combination to assure that identical measurements are reproducible
across all operators.
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Distinguish between the actions you take if measurements are not
accurate, repeatable or are not reproducible.
If the measurements are not accurate or are not repeatable across all
devices, then technicians correct the problem with the devices. If the
measurements are not reproducible across all operators, then the
operators need training. The team should complete any technical
repair on the measurement devices and operator training before the
fact-finding process begins.
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Process Characterization
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Why do we reset the process to prescribed specifications and
standards?
You reset the process to prescribed specifications and standards to
assure that the initial starting conditions (i.e., inputs, activities,
connections, pathways, and tests) for the improvement or
correction are correct. You do not want to be correcting or improving
a process based on incorrect inputs, activities, connections, pathways,
or tests. This step is analogous to making sure you plug the printer
into an appropriate receptacle and check it for paper before you try to
find out why it is not operating correctly.
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What is the purpose of the input variance analysis?
The input variance analysis lists and compares information about
the inputs that process personnel expect and get from the
upstream process. The purpose is to identify who is supplying what,
when, where, how, how much, and why to this process. The metrics
used to control the inputs need to be identified. The results contrast
the expectations of process personnel and suppliers to identify
differences and opportunities for improvement.
Cross-functional teams which include members from upstream
processes can use specifications and standards and brainstorming to
complete the input expectation sheet. The team needs to correct the
variances before proceeding with process improvements or
corrections.
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Input Analysis Form
Characteristic
Supplier
Target
Metric
Delivered
Process
Target
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Variance?
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What is the purpose of the output variance analysis?
The output variance analysis lists and compares information about
the product or service that process customers expect and get
from the process. The purpose is to identify who is receiving what,
when, where, how, how much, and why from this process. The
metrics used to control the outputs need to be identified. The results
contrast the expectations of process personnel and process customers
to identify differences and opportunities for improvement.
Cross-functional teams which include members from downstream
processes can use specifications and standards and brainstorming to
complete the output expectation sheet. The team needs to correct the
variances before proceeding with process improvements or corrections.
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Output Analysis Form
Characteristic
Process
Target
Metric
Delivered
Customer
Target
© 2007 Pearson Education
Variance?
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What is the difference between a variance and variability?
A variance is the gap between "what is" and "what should be." The
team can use the input and output variance analyses to reveal
variances. Any quality gap is a variance and an opportunity for
correction or improvement.
A variance is different from variability. Every process produces at least
some random variability. If that variability is within specifications, then
that natural variability is not necessarily a quality gap. A variance is
something that does not meet the process's target specifications or the
customer's target specifications.
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Why does the team perform pivot table analyses during the
process characterization step?
The purpose of pivot table analyses is to help the team to identify the
scope of the improvement or correction. You are trying to define which
part of the organization, organizational categorical variables, and
which part of the process, operational categorical variables, the
team should focus upon in an improvement or correction project.
Pivot table analyses can help to describe who, what, when, where,
how, and how much of the improvement or correction. Pivot table
analyses are a rough cut of the process information to locate your
problems.
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Why do we use the Is/Is-Not matrix to help diagnose a problem?
You use the Is/Is-Not Matrix analysis to help you locate the exact point
in the process, with regard to the operational categorical variables,
which are causing the differences you need to correct when you do not
have computer-based data about the operational categorical
variables.
The Is/Is-Not matrix stratifies data about process variation to
expose underlying patterns in the operational categorical
variables. Discovering such patterns helps to localize a problem,
making it easier to diagnose the cause of the problem.
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Is-Is Not Matrix
Conditions
Is a
variance?
Is not a
Is there a
variance? difference
What has
changed?
Who?
What?
When?
Where?
How (method)?
Why?
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How do you setup the Is/Is-Not matrix?
a. First, the team needs to identify the specification of concern.
b. Next, the team needs to provide answers to the following questions:
1. Who is performing the operation when the variance occurs? Who is
performing the operation when the variance does not occur?
2. What product/service has the variance? What product/service does
not have the variance?
3. When does the variance occur? When does the variance not occur?
4. Where does the variance occur? Where does the variance not occur?
5. What method (operation) is used when the variance occurs?
What method (operation) is used when the variance does not occur?
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These answers will be the symptoms of the problem situation (i.e., the Is
column for variance) and the symptoms of the normal situation (i.e., the Is
Not column for no variance) across five dimensions. These two sets of
facts opposite each of these dimensions describe precisely the attributes
of the situation when you have a variance, the Is column, and the
attributes of the situation when you do not have a variance, the Is Not
column.
The Is column is completed with only those facts directly affected by the
problem, and the Is Not column will be completed with the facts that are
closely related to the problem but not affected by the problem.
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The specification of the facts as either Is or Is Not will separate the problem
from everything that Is Not the problem. This process draws a tight line around
the problem, to describe it precisely, define the scope, and provide clues
about the cause of the problem. This process also limits the amount of
information needed for the solution. There is no need to get all of the facts, only
the relevant facts.
c. Third, the team needs to identify the differences between the problem
situation and normal situation. Whatever caused the problem produced only
those effects in the Is column. If there are one or more differences between
the Is and Is Not column, then these differences will lead to the cause of the
problem.
d. Fourth, the team needs to identify what has changed in the process (i.e.,
manpower, materials, methods, machinery, feedback, environment, time,
and technology) that can cause these differences. If the process was running
correctly, then something has changed.
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In using pivot tables and the Is/Is-Not matrix, why should teams identify
differences between the problem situation and the normal situation?
We have a tendency to leap-frog the fact collection process, ignore the
uniqueness of the situation, and to anchor on an incorrect diagnosis. The
purpose of the pivot table and the Is/Is Not matrix is to have the teams think
in terms of differences before thinking in terms of similarities with regard to
their past experience.
This approach avoids attribute error (i.e., misclassification) which is caused
by equifinality (i.e., multiple causes can have some of the same effects and
multiple effects can have some of the same causes).
Jumping to conclusions anchored on intuition and hunches (i.e., flawed
pattern matching using assumptions, anecdotes, heuristics, hearsay,
opinions, and pseudo facts) is natural and is effective when equifinality does
not exist. However, flawed pattern matching occurs when process “experts”
use single unified models which give answers that are direct, simple,
obvious, but wrong because equifinality exists.
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“Experts” and the rest of us use our single unified models most of the time
successfully. However, when you have unrecognized uniqueness and
equifinality, you will likely commit attribute error, because your single unified
model is based on a flawed hidden assumption that the situation is the same
as the past (i.e., treating different things the same).
Remember: It’s not what we don’t know that hurts us. It’s what we know
that ain’t so (i.e., hidden assumptions).
Teams have a tendency to quickly see how a problem situation is similar to other
situations in their experience (i.e., anchoring on the most recent or available
similar experience) and then to judge this situation as they correctly did with the
similar situation(s). They hear hoof beats and they think horses. They don’t
see the zebra.
Their hidden assumptions cause them to leap-frog the fact collection process,
ignore the uniqueness of the situation, and to incorrectly diagnose the
problem.
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Attribute error caused by equifinality frequently affects diagnoses by
experts. For example, approximately 15% of all diagnoses by medical
doctors are wrong because of attribute error. Also, medical doctors have
approximately 20-30% inter-observer variance and a 20-30% intraobserver variance. This means that 20-30% of the diagnoses by two
different doctors for the same patient will be different (inter-observer
variance). And 20-30% of the diagnoses by the same doctor for the
same patient will be different (intra-observer error). And these
professionals complete 4 to 12 years in graduate studies and
internships to master their specialties.
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As stated above, when we use single unified models anchored on
flawed hidden assumptions, we are ignoring the uniqueness of a
situation. When teams hear hoof beats they think horses, and they
do not see the zebras. The zebras indicate the situation is unique and
different. Look carefully for the zebra (i.e., the uniqueness).
Finally, completing the columns in the Is/Is Not matrix will prevent the
teams from treating different things the same or treating the same
things differently and will require them to translate their opinions
into facts.
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In using pivot tables and the Is/Is-Not matrix, what should the
team do if the team finds differences between the problem
situation and the normal situation?
The team needs to go to the physical location of the problem and
observe the process to identify possible changes that could create
the differences in the facts between the IS and IS NOT columns. Do
not rely on reports, interviews, surveys, aggregated or
transaction data, or statistics. Go see it for yourself.
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In using the Is/Is-Not matrix, how do you confirm that the cause you find
when you go see the problem is the actual cause?
The cause must explain all of the differences in the Is/Is-Not matrix. If the
process was running correctly before the problem was detected, then one or
more factors (i.e., manpower, materials, methods, machinery, feedback,
environment, timing, technology) have changed in the process to cause the
problem. If a change fails to explain all the differences, then it will not be
the actual cause. The actual cause will produce exactly all the facts in the
IS column and will explain the differences in those facts and the facts in
the IS NOT column. If you do not check a possible cause this way, you may
be taking action on something that is not the cause at all.
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In using the Is/Is-Not matrix, what should the team do if the team cannot
find any differences between the problem situation and the normal
situation?
If you cannot find any difference between the problem situation and the normal
situation, then you need to check your variance specification, your
measurement systems, your data collection systems, and your analyses
and reporting systems. If the process was running within specifications
and is now not running within specifications, one or more of the factors
(i.e., manpower, materials, methods, machinery, feedback, environment,
timing, and technology) had to change. If the Is/Is-Not matrix does not show
differences in who, what, when, where, how, and how much, then you have
errors in the variance, measurement, data collection, analyses, and
reporting processes you used to implement the Is/Is-Not matrix.
Once you have corrected the information systems, you have to repeat the
process. Specify your Is/Is-Not matrix again.
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What is the relationship between changes in the process and
differences in the Is/Is-Not matrix?
If there is a change in process behavior, there has to be at least one
difference between the Is and the Is Not columns (i.e., who, what,
when, where, how, and how much), and there has to be at least one
change in the factors (i.e., manpower, materials, methods,
machinery, feedback, environment, timing, and technology) that
works through this area of difference to cause the problem.
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What is the purpose of the “as is” process flow diagrams?
Process flow diagrams describe the way in which work "flows" through
a process. The purpose of the “as is” process flow diagrams is to
provide a single picture of the process that the whole team can
view and confirm before beginning process improvement (i.e.,
everyone should be on the same page). A picture is worth a
thousand words. Trying to get a team to understand and agree on a
written description of the process would bottleneck the improvement
process.
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How do you prepare “as is” process flow diagrams?
Anyone who knows about the process should be involved on the team
preparing the “as is” process flow diagram. Use brainstorming and
complete the process flow diagram by asking who, what, when,
where, how (i.e., the method), and how much about manpower,
materials, methods, machinery, feedback, environment, timing,
and technology for each input, activity, connection, pathway, test,
and output. You want to annotate your diagram with boxes noting any
non-value-added time, just-in-case buffers, and waste. Finally, you
want to note any variances from specification and standards.
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The following types of questions are representative of those you
need to ask to prepare the “as is” process flow diagram.
1. Where does the input for this operation come from?
2. How does the input get to this operation?
3. Is the input ever delayed during its movement to this
operation?
4. Where and for how long is the input stored before it is
used?
5. Is this operation ever delayed for some reason?
6. Are the procedures in this operation altered frequently
because of exceptions?
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7. What decisions are necessary in this operation?
8. What tests are performed on the output for this operation?
9. What happens if the output is out of tolerance or incorrect?
10. Who makes the decision?
11. What happens if the decision is "yes" or "no"?
12. Where is the output from this operation stored and for how
long?
13. Where does the output from this operation go?
14. How does the output get to the next operation?
15. Is the output ever delayed during its movement from this operation?
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Give an example of a system of symbols you can use to diagram the
flows in a process?
Any system of symbols to represent the process is acceptable if you use
it consistently because it is the understanding you gain from preparing the
process flow diagram that is important, not the format. One system is to use:
1. diamonds for decisions;
2. lines with arrows for material flows (inputs and pathways);
3. dotted lines with arrows for information flows (connections);
4. circles for activities;
5. triangles for inspections (tests);
6. boxes with labels describing waste, non-value-added time, just-in-case
buffers, and variances.
If there is more than one output arrow out of an activity circle, a decision
diamond may be required. Finally, make sure every decision diamond has one
line entering it and at least two lines leaving it.
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PDCA Method
Identify Root Causes or Process Flaws
Chapter 9
How do you prepare a “should be” process flow diagram for
improving a process?
You evaluate the process to support process improvement with the
following procedure:
1. you begin with the process "as is" flow diagram in the
physical characterization step;
2. you refine the flows to reduce or eliminate waste, non-valueadded, just-in-case buffers, and variances from
specifications and standards:
3. you redraw the process flow diagram integrating the
results from step 2 to show the process as it "should be."
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PDCA Method
Identify Root Causes or Process Flaws
Chapter 9
What is the typical ratio between throughput time and value-added
time?
When you first examine the activities in a process using a process flow
sheet, you may be surprised to see that the material or service, as it
flows through the process, spends more time waiting (approximately
90% of the through-put time) than in actual operations. A great deal of
waste in processes is in delays because of bottlenecks. Value-added
time consumes only 10% of the throughput time. The typical ratio
between throughput time and value-added time is 10:1.
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PDCA Method
Identify Root Causes or Process Flaws
Chapter 9
What is the objective of process improvement flow analyses?
The objective of process improvement analyses is to achieve an
interruption-free, continuous, linear, level, one-piece flow of 100%
value-added operations producing 100% yield with 100%
utilization which exactly matches the mix, volume, and timing of
customer demand. You will never achieve this objective. But if you
consistently can get closer to this objective than your competitors, you
will own your market.
© 2007 Pearson Education
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
Multi-voting, the Ben Franklin Balance Sheet, and Bracket Elimination are
useful in situations where the team produces more than two or three
alternatives in their brainstorming session.
Describe the procedure used in generating and evaluating the
alternatives for improvements and corrections?
The team evaluates the proposed correction or improvement using the
following procedure.
1. First, the team brainstorms for alternatives.
2. Second, the team uses Multi-voting to reduce the number of alternatives to
6 or less.
3. Third, the team uses the Ben Franklin Balance Sheets for each alternative
retained from the multi-voting process.
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
4. Fourth, the team uses the Bracket Elimination technique to reduce
the alternatives to one.
5. Fifth, the team assures the selected alternative will not require too
much time to implement, too much project cost, and will be accepted
by the operators.
6. Sixth, the team evaluates the selected alternative with regard to
quality, reliability, cycle time, and cost.
With regard to quality, reliability, cycle time, and cost, if quality is the
problem and it is not improved, then the alternative obviously does not
solve the problem. Next, the alternative must be reliable or, in other
words, stable and consistent over time. Third, the alternative must be
efficient with respect to cycle time. Finally, the alternative must be cost
effective for the product or service.
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
In summary, first you go through the Brainstorming, Multi-voting, Ben
Franklin Balance Sheets, and Bracket Elimination procedures. Then, if
you have the time to do it, the total cost of the correction or improvement is
reasonable, and the operators accept it, the team needs to evaluate the
alternative with further, more fine-grained analyses with respect to quality,
reliability, cycle time, and cost effectiveness. This matrix carefully
eliminates the obvious and moves the team to a more fine-grained
investigation of the proposed alternatives that remain.
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
Alternative Evaluation Matrix
Root Cause/Process Improvement
Yes/No
(3)
(4)
(5)
(1)
(2)
Cycle
Time/Cost Operators Quality Reliable
& Scrap Downtime Time
Alternatives
accept it
© 2007 Pearson Education
(6)
Cost
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
Why do we use Multi-voting?
We need a democratic method for reducing the number of
alternatives produced by the brainstorming session to a reasonable
number for evaluation. If the team produces more than six alternatives
in the brainstorming session, the team uses multi-voting after the
brainstorming session for countermeasures to reduce a long list of
alternatives to six or less alternatives.
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
Summarize the procedure for using Multivoting.
a. list the alternatives
b. everyone votes for one-half plus one of the alternatives
c. eliminate the alternatives not receiving a vote
d. repeat the voting process until you have 6 or less
alternatives left
For example, assume the team brainstorming session produced 16
alternatives. On the first round of voting, everyone on the team would
vote for one-half plus one of the total number of alternatives or 9
alternatives. If 10 alternatives remain after the first round of voting,
then on the second round of voting, everyone on the team would vote
for 6 alternatives. This process continues until 6 or less alternatives
remain.
© 2007 Pearson Education
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
Why do we use the Ben Franklin Balance Sheet?
We need a visible, democratic method for evaluating the
alternatives retained from the Multi-voting session. Once the team
has reduced the alternatives to six or less, the team displays each
alternative and draws a T-chart beneath each alternative. The
left side is for the advantages (i.e., assets) and the right side is
for the disadvantages (i.e., liabilities). The team then
brainstorms about advantages and disadvantages for each
alternative.
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PDCA Method
Identify Alternatives and Select Counter Measures
Chapter 9
Why do we use the Bracket Elimination technique?
We need a visible, democratic method for selecting the best
alternative. This is the same paired comparison method used to
eliminate all teams down to two teams in sports. The team divides
the alternatives into pairs, and then the team selects a winner
from each pair. The team then pairs these winners and selects a
winner from these pairs. Finally, the team has reduced the
competition to two alternatives and the team selects the winner
between these two remaining alternatives.
© 2007 Pearson Education
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
How do you prepare for the implementation of a pilot?
To prepare for the implementation of a pilot, the team needs to
prepare:
1. a cost/benefit analyses,
2. an action plan for implementing and testing the pilot,
3. indicator design checklist,
4. process score sheet,
5. an operational definition for success of the pilot project (i.e.,
metric, criteria, test, response), and
6. a presentation checklist.
These steps are necessary to support the implementation and testing
of the proposed countermeasure in the pilot.
© 2007 Pearson Education
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Why should teams use cost/benefit analyses?
Cost/benefit analyses simply identify the current costs, projected
costs, projected savings, actual costs, and actual savings of the
activities affected by a correction or improvement project to help in
measuring the cost effectiveness of the countermeasure. This tool is
used by the team to cost-justify their proposed countermeasure to
management and then to confirm the projected
cost-justification after the pilot is accomplished and a full-scale
implementation of the countermeasure is being considered.
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Cost Benefit Analysis
Operations Manpower Materials
Methods
Machinery
Current Costs
- Projected
Costs
= Projected
Savings
Actual Costs
Current –
Actual Costs
= Savings
© 2007 Pearson Education
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Why should teams prepare action plans?
The team action plan ensures that all elements of your pilot of the
proposed countermeasure are considered.
The basic questions of who, what, when, where, when, why, how,
and how much are asked and answered about each of the steps the
team must perform to execute the pilot, and are assembled in a matrix
format.
With a visible team action plan, members of the team can participate
in the design and implementation of the solution, thereby gaining
commitment. This tool provides a basis for review and suggestions
by higher level teams before implementation takes place.
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
How does the team prepare a team action plan?
The team develops the action plan on flip charts using the
following four steps:
1. Using brainstorming, the team members generate a draft of
the team action plan by listing all actions, with their affected
operations, people, objectives, and required resources
without comment or criticism, and the team records these
actions in the basic team action plan on a flip chart.
2. After the brainstorming session is completed, the team
clarifies and confirms each of the actions, operations,
people, and resources.
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
3. Then the team revises the draft action plan and lists the actions
chronologically as milestones.
4. The team then answers the questions who, what, when, where, how,
how much, and why about each of the actions.
The team can post the action plan in a visible place so that the team
members can easily monitor the project’s progress.
© 2007 Pearson Education
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Team Action Plan
Team Problem:
Action
(What?)
Date:
Date/Time Manpower Operations
(When?) (Who?)
(Where?)
Resources
(How?)
© 2007 Pearson Education
Objective
(Why?)
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Why should teams use indicator design checklists and process
score sheets?
The team uses indicator design checklists and process score sheets
as aids in developing and monitoring process control and process
performance indicators. Process control and process performance
indicators help your team keep score on the process during the pilot
and the full-scale implementation that follows a successful pilot. You
must specify who, what, when, where, how, how much, and why for
each of the process control and performance indicators.
The team can first brainstorm to generate a list of process control and
performance indicators. Then the list can be reviewed, clarified, and
pared down to the "vital few" that are critical to the process's
success.
© 2007 Pearson Education
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Indicator Design Checklist
Process
Control
Metrics
Operation
(Where?)
Measure
(What?)
Manpower
(Who?)
Date/Time
(When?)
Method
(How?)
Objective
(Why?)
Process
Perform
ance
Metrics
Operation
(Where?)
Measure
(What?)
Manpower
(Who?)
Date/Time
(When?)
Method
(How?)
Objective
(Why?)
© 2007 Pearson Education
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Process Score Sheet
Process
Control
Metrics
Operation Measure Objective
(Where?) (What?) (Why?)
Manpower &
Schedule
(Who?)
Latest
Measure
Date/Time
Initials
Process
Perform
ance
Metrics
Operation Measure Objective
(Where?) (What?) (Why?)
Manpower &
Schedule
(Who?)
Latest
Measure
Date/Time
Initials
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
What is the difference between process control and process
performance indicators?
Process control indicators keep track of the vital signs of a process
as it is operating. The team should select process control indicators at
process leverage points where the team can achieve the greatest
amount of control. We call these types of indicators process lever
variables.
Process performance indicators are targets that represent the
outputs of the process. The process control and performance
indicators are specifications.
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Why should teams prepare presentation checklists?
You might need to present your proposed improvement project to a
management team for approval and funding. You can enhance or
jeopardize the worth of everything you have done with your
presentation.
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
What are the components of a presentation checklist?
1. Arrange for the presentation room to be the right size with the right
atmosphere and audio visual equipment.
2. Decide who the key decision makers are and evaluate their vested
interests in the improvement or correction project.
3. Mark your various flip charts and slides with notes as to how the
action plan affects each of these vested interests.
4. Invite the key decision makers to the presentation and get
confirmation that they will attend.
5. Assign presentation responsibilities.
6. At the presentation speak clearly and slowly. Listen to questions
carefully; they tell what you what to stress in the presentation.
Summarize recommendations simply and clearly.
If management approves the pilot implementation, then the team
implements the pilot.
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PDCA Method
Prepare and Implement a Pilot
Chapter 9
Describe the Check step.
In the check step, you use the operational definition for success of the
pilot project (i.e., metric, criteria, test, response) to determine if the
correction or improvement is a success.
In the Act step, what is the next step for the team if the pilot is a success
or if the pilot is not a success?
If the pilot is a success, then the team can proceed with full-scale
implementation of the solution. If the pilot is not a success, then the team
returns to step #1.
But this next iteration through the PDCA cycle will utilize the facts and
experience gathered from the first iteration of the cycle. Therefore, the team
will be gathering facts only to fill gaps revealed by the pilot and focusing
on causes and alternatives that are relevant to the experience gained
from the pilot.
© 2007 Pearson Education
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