Transcript Service Quality

An Overview of the DMAIC Process
at Work
The Team Based Problem Solving Process
© Max Zornada (2005)
Slide 1
Types of Teams
Quality Circles
 Six Sigma Teams
 Quality Improvement
 Process Improvement Teams
 Problem Solving Teams
 Task Forces
 Project Teams
 Cross-functional Teams

© Max Zornada (2005)
Issues specific
Localised
Permanent membership
Issues specific
Forming & reforming
Temporary membership
Slide 2
Problem 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 3
The 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 4
Types 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 5
The Six Sigma Approach
DMAIC
Control by standardising
solution and monitoring
performance.
Improve by
implementing potential
solutions.
Define the problem or
opportunity.
Control
Improve
Define
6 Measure
Analyse
Measure the current
performance and
capability
Analyse to identify root
causes.
© Max Zornada (2005)
Slide 6
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 7
South Eastern Food Packagers
Team Based Problem Solving
Case Study
© Max Zornada (2005)
Slide 8
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 9
Develop a Problem/Opportunity Theme
Statement


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 10
Problem/Opportunity Theme Statement
Project Title:
Cost of Waste Reduction Project
What is the area of concern? What first brought this problem or opportunity to
the attention of your business?
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.
What impact has this problem already had? What evidence is there that it is a
problem worthy of attention?
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.
What will happen if the business does not address this problem?
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.
Summary problem statement (summarise the above in a concise statement).
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 11
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 12
The 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 13
Six Sigma Project Team Charter
Project Title
Cost of Waste Reduction Project
Start Date
Box Packaging
Jane Verde
John Briggs
1-April
Problem/Opportunity
Definition
What is the Problem to be solved or the
opportunity this project will exploit.
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.
Objective
Improvement target, impact on Sigma,
COQ/COPQ and Customer Satisfaction
Reduce net spoilage rate by 50% from 6% to 3%. Estimated
Sigma level improvement from 3 to 3.4
Business Case
What improvement in business performance
is expected. $ impact and by when.
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.
Team Members
Who are the team members and key experts
to be consulted.
Jane Verde (Team Leader), Paul Black, Rachel Cintura, Roland
Thompson, Sdravo Krysevic, Giovanni Nero (Black Belt)
Project Scope
Which part of the process will be investigated
Box packaging from start of box filling through to placement
of product on buyer shelves.
Customer Benefit
Who are the final customers. What benefits
will they see and what are their most critical
requirements.
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.
Process
Green Belt
Champion
Schedule
Expected Financial Impact
Telephone Number
Organization/Function
Target Completion Date
Define completion
Measure completion
Analyse completion
Improve completion
Control completion
Project Completion
© Max Zornada (2005)
What are key milestone dates for completion
of each stage.
$253,000
634-5789
Packaging Operations
1- October
20-April
1-June
1-August
1-September
15-September
1-October
Slide 14
Example: SEFP’s Customer Requirements Statement
Customer:
Outputs:
Customer Requirements
Measure
Contract Box Packaging Customers
Boxed product delivered to buyers according
to customer manifest.
Target
Importance Customer
to Customer Satisfaction
Priority
Rating
(Importance x
Satisfaction)
1. Cost competitiveness
Processing
cost $/Box
$22.50
3
3*
9*
2.1. On-time delivery/right day/right time. % On time
97%
2
1
2
2.2. Right product delivered
95%
2
1
2
99%
3
2
6
99%
3
3
9
2. Schedule compliance
Returns: wrong
product %
Returns: offspec product %
2.4. Right amount/ amount as per manifest. Order
shortfall %
2.3. Product quality to specification
What is this customer’s major complaint? What issue would they want us to work on?
*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.
Ranking Scheme
Importance to customer:
Customer Satisfaction:
1 = Nice to Have,
1 = Very Satisfied,
2 = Important,
2 = OK. Could be better,
© Max Zornada (2005)
3 = Critical, Must Have
3 = Unhappy, Must be improved
Slide 15
Process Mapping Symbols
Symbol
Name
Brief Definition
Operation or
process step
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.
Decision Point
Point where a decision must be made before
any further action can be taken.
Document
Generated
Point at which a form or report is generated
by the process.
Continuation
Point
Used to indicate the process is continued
elsewhere on the flow diagram or on another sheet.
Input/Output
Block
Optionally used to describe an input or output
from a processing block.
Flow lines
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 16
SEFP’s Box Packing & Fulfilment Process
Process Map
Start
Customer Unload & Check
Load flat into Flat Feeder
Pallet OK?
Yes
Box Folding
Box Jam?
Yes
No
Restart the Process
Unpack & receive boxes
Stop and Clear
Boxes OK?
Yes
Box Filling
Underweight?
No
Overweight?
No
No
Return to SEFP
Return to SEFP
Place on shelf in Warehouse
Yes
Yes
No
Lid sealing and close
Remove & Recycle
Unpack Box when required
Remove Excess
Contents OK?
Yes
No
Return to SEFP
Place on shelf for sale
Printing Bar Code & Date
End
Stack and Wrap
Truck Loading and Shipping
© Max Zornada (2005)
Slide 17
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 18
SEFP’s Box Packing & Fulfilment Process
Determining What to Measure
Start
Customer Unload & Check
Load flat into Flat Feeder
Pallet OK?
Yes
Box Folding
Box Jam?
Yes
No
Restart the Process
Unpack & receive boxes
Stop and Clear
Boxes OK?
Yes
Box Filling
Underweight?
No
Overweight?
No
No
Return to SEFP
Return to SEFP
Place on shelf in Warehouse
Yes
Yes
No
Lid sealing and close
Remove & Recycle
Unpack Box when required
Remove Excess
Contents OK?
Yes
No
Return to SEFP
Place on shelf for sale
Printing Bar Code & Date
End
Stack and Wrap
Truck Loading and Shipping
© Max Zornada (2005)
Slide 19
Identifying Measures using a CTQ Tree
Y = f(x)
Brainstorm things
that could affect the
outcome. Refer
previous analysis.
Box Packaging
Cost of Waste
The Outcome
Measure (Y)
Number & %
Box Jams in
Process
Underweight
Boxes
Returned
Pallets
Number & %
Identify measures for
each of the things
that can affect the
outcome (the x’s)
Number & %
Returned
Boxes
© Max Zornada (2005)
Packed Boxes
Number & %
Unpacked
Boxes
Number & %
Slide 20
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 21
The Anatomy of a Check Sheet
Example: Lost Time Injury Data for a Security Firm
Progressive “Tally” count of each
occurrence, collected from raw
data or directly from the field
Note: = 1,
=5
The categories in
which the data
occurs
Category
Numerical frequency
count or summary of
the “tally” or
occurrences in each
category
Frequency
Tally
1
Allergy
8
2
Broken limb
12
3
Back/Neck
6
4
Concussion
14
5
Contusion
7
6
Heart Attack
1
7
Sprains
23
8
Other
3
Total
Overall Total
© Max Zornada (2005)
78
Slide 22
The Pareto Principle
(Also know as the 80/20 Rule):
“A few causes account for most of the effect”
Trivial
Many
20% of the causes
account for 80% of
the effect!
Critical
Few
Causes
Effect
© Max Zornada (2005)
Slide 23
Pareto Analysis
Example: Pareto Analysis for SEFP Numbers of Boxes
Critical few towards the Y-Axis
Trivial many trail away from Y-axis
© Max Zornada (2005)
Slide 24
Brainstorm
possible causes
and show as
feeding into the
most appropriate
spine.
Example: Fishbone Diagram
(Cause and Effect Analysis)
People
Procedures
Credit check takes too long
No communication with Sales
No procedure for guaranteeing
tech and transport
Order entered incorrectly
Unrealistic delivery
data quoted
When items
come up related
to ones already
on the diagram.
Show as feeding
into the
appropriate item
Stock damaged
Late order
delivery
Truck breakdowns
Item not in stock
Computer system down
Equipment/Systems
Problem of focus
placed at the
head of the fish
Materials/Environment
© Max Zornada (2005)
Slide 25
Fishbone Diagram
SEFP Case
People
Procedures
Bar code in
wrong place
Equipment/Systems
Materials/Environment
© Max Zornada (2005)
Slide 26
Assessing the Cause & Effect Analysis and
preparing to collect data
People
Procedures
Check out each potential cause
and eliminate ones that can be
verified as not happening
Possibly use List Reduction or
Multivoting.
Credit check takes too long
No procedure for
No communication with Sales guaranteeing tech and
transport
Order entered incorrectly
Unrealistic
delivery data
quoted
Truck breakdowns
Stock damaged
Late order
delivery
Data Collection Instrument:
Check Sheet
Item not in stock
Computer system down
Category
Tally
Frequency
1
2
3
Equipment/Systems
Materials/Environment
4
5
6
7
8
© Max Zornada (2005)
Slide 27
SEPF Pareto Chart of Bar Code Wrong Place
Causes
Frequency/ Number of Occurrences
50
Cause Codes
1. Trip lever
sticking
2. Box askew on
belt
3. Operator
accidental lever trip
4. Box misfeed
5. Print head loose
6. Other
44
40
27
30
20
15
9
10
5
1
2
3
4
2
5
© Max Zornada (2005)
6
Slide 28
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 29
Potential Solutions Matrix
Potential Solutions
Cost
Ranking
Ease of
% of problem Overall
Ranking
Implementation it fixes
Scale: 0 = None, 1 = Low, 3 = Moderate, 9 = Strong
© Max Zornada (2005)
Slide 30
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 31
Improve: 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 32
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 33
Control




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 34
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 35
Future 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 36
SEPF 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 sideeffect. The main contributor to incomplete orders was the
rejected & returned boxes.
© Max Zornada (2005)
Slide 37
DMAIC Process Storyboard
DEFINE
TEAM FORMATION
Objective: Select problem/
opportunity theme, select team
members
MEASURE
Objective: Identify and implement the measures required to
establish baseline performance and quantify the opportunity.
Key Steps:Cause and Effect Diagram
Run chart or
Objective: Define the Problem/Opportunity,
Customers, Customer Requirements, and Process.
Team charter
Key Steps:Flowchart
•Determine what to measure
•Understand the measures
•Understand Variation
•Assess measurement system
•Assess process performance
•Develop business case
•Develop project team charter
•Understand Customer Requirements
•Understand the Process.
Output: Problem/Opportunity
selected, Team members selected.
Output: Team Project Charter, Work Plan, Measurable Output: A quantified picture of the current process
Customer Requirements, Process Map/Process Analysis performance, problem impact. The process sigma rating.
ANALYSE
IMPROVE - I : Generate Potential Solutions
Objective: Identify and verify the root cause(s) of the problem.
Key Steps:•Analyse data
•Analyse process
•Determine potential root causes
•Hypothesis Testing
•Verify root causes
Cause and Effect Diagram
(Fishbone)
Checksheet
Pareto Chart
Output: Root cause(s) identified.
IMPROVE - II: Implement and Check
Objective: Implement the preferred solution. Confirm that the
problem and its root cause(s) have been reduced or eliminated.
Key steps:•Implement preferred
After
solution
•Verify effectiveness
•Apply comparative
methods if necessary.
Output: Confirmation that the best solution to eliminate the
problem & its root cause(s) has been implemented.
Before
control chart
Objective: Determine possible solutions that will address the identified root
cause(s) of the problem.
Key Steps:Potential Solutions
Action Plan
•Generate potential solutions
•Assess potential solutions
•Select preferred solution
•Test/Pilot preferred solution
•Develop implementation plan
Output: Preferred solution or countermeasures
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
CONTROL - Standardise
Objective: Prevent the problem and its root
cause from recurring.
Flowchart
Key steps:Standard
procedure
•Standardise the solution
(standards & procedures)
•Document project
•Implement scorecard
•Implement controls
Output: Solution embedded and “routinised” in
relevant process, procedures and standards.
© Max Zornada (2005)
FUTURE PLANS
Objectives: Review team effectiveness,
plan to address remaining issues and
institutionalise the learning.
D
C
Key Steps:Define,
I
M
•Review remaining project
opportunities
•Review other applications
•Review learnings
Measure,
Analyse,
Improve,
Control
A
Output: Recommendations for future projects
and improvements to team processes. Project
documentation and learnings “pack”
Slide 38
Analysing for Root Causes - Revisited
© Max Zornada (2005)
Slide 39
The Problem Solving Process
Causes and Root Causes
Observed Problem Symptom
Cause
Not Actionable
Cause
Not Actionable
Cause
Not Actionable
Root Cause
© Max Zornada (2005)
Actionable
Slide 40
South Eastern Food Processors
High level objective:
Reduce costs of box packaging process
Cost of waste
Box Returns
Bar Code Wrong Place
Boxes Underweight
Trigger lever sticking
Root Cause
Solution
Light beam printer trigger
© Max Zornada (2005)
Slide 41
South Eastern Food Processors
High level objective:
Reduce costs of box packaging process
Cost of waste
Box Returns
Bar Code Wrong Place
Boxes Underweight
Trigger lever sticking
Root Cause
Solution
Light beam printer trigger
© Max Zornada (2005)
Slide 42
South Eastern Food Processors
High level objective:
Reduce costs of box packaging process
Cost of waste
Level 1
Box Returns
Level 2
Bar Code Wrong Place
Boxes Underweight
Root Cause
Solution
Trigger lever sticking
Light beam printer trigger
© Max Zornada (2005)
Level 3
Level 4
Level 5
Slide 43
Analysing for Root Causes
Define the problem




Is cause
actionable?
No
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.
Yes
© Max Zornada (2005)
Slide 44
Flushing out root causes vs reacting to
symptoms
Observed symptom - "The Problem"
Apply problem solving process
Cause found
Not a root cause
NO
Is cause actionable ?
YES
Not the right cause
NO
Does action(s) fix
problem ?
YES
Problem Solved
© Max Zornada (2005)
Slide 45
The Root Cause Analysis Process
Define/ Redefine
the Problem
Select Pareto
Cause as the
Problem of Focus
No
Brainstorm
Possible Causes
Root Cause
Analysis
Actionability Test
Collect Data on
Possible Causes
Is the Pareto Cause
Actionable?
Yes
Apply Pareto
Analysis to the
Data Collected
Root Cause
Found
© Max Zornada (2005)
Slide 46
Reference Sheets
© Max Zornada (2005)
Slide 47
Generating Improvement Opportunities
Questions
Concerning
Present
Method
Reason
Alternatives
Selection
Means of
Improvement
Aspects Examined
Purpose
Place
Sequence
Person
Where is it
done ?
When is it
done in the
sequence ?
Who does
it ?
How is it
done ?
Why is it
done ?
Why is it
done there ?
Why is it
done then ?
Why is it
done by that
person ?
Why is it
done that
way ?
Can it be
eliminated ?
Where else
could it be
done ?
When else
could it be
done ?
Who else
could it be
done by ?
How else
could it be
done ?
What is done ?
Should it be
eliminated ?
Eliminate
Where should When should it Who should it
it be done ?
be done ?
be done by ?
Combine or Change
© Max Zornada (2005)
Means
How should it
be done ?
Simplify
Slide 48
The 5W2H Questions
What
Who





Who does it ?
Who is doing it ?
Who should be doing it
?
Who else can do it ?
Who else should do it ?
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 ?






Where
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 ?
Why










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 ?
How
Why does he/she do it ?
Why do it ?
Why do it there ?
Why do it then ?
Why do it that way ?





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)
How much?
How much does it
cost now ?
What will the cost
be after the
improvement ?
Slide 49
DMAIC Process Storyboard
TEAM FORMATION
ANALYSE
IMPROVE - II: Implement and Check
DEFINE
MEASURE
IMPROVE - I : Generate Potential Solutions
CONTROL - Standardise
© Max Zornada (2005)
FUTURE PLANS
Slide 50
Conclusion of Team Based Problem Solving Module
© Max Zornada (2005)
Slide 51