Plan‐Do‐Study‐Adjust (PDSA):
A Deep Dive

Webinar
December 3, 2013
Welcome!
•
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•
•
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•

Argentina
Australia
Canada
Denmark
France
Great Britain
Ireland
Latvia

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Malaysi...
 Coach / Facilitator / Consultant / Trainer: 
Lead Lean transformations & develop people 
across all industries.
 Teache...
Hot 
off the 
press!
www.bit.ly/VSMbk

© 2013 The Karen Martin Group, Inc.

4
Upcoming Webinars

© 2013 The Karen Martin Group, Inc.
After the webinar…
• All recordings are available on:
– www.vimeo.com/karenmartingroup
– www.youtube.com/karenmartingroup
...
First,
a little history…

© 2013 The Karen Martin Group, Inc.
Two Great Minds

W. Edwards Deming 
(1900‐1993)

© 2013 The Karen Martin Group, Inc.

Walter Shewart
(1891‐1967)

8
Develop
hypothesis

Refine
Standardize 
Stabilize

Conduct 
experiment

Measure 
results
© 2013 The Karen Martin Group, In...
Clarifying the PDSA Cycle
Phase

Detailed Steps
  1.  Define and break down the  problem.

50‐80% 
of the 
total 
time

Ne...
1. Define and break down the problem (PLAN)

• What’s the 
problem?
• What is NOT the 
problem?
• What are the 
variables?...
2. Grasp the Current Condition (PLAN)

© 2013 The Karen Martin Group, Inc.

12
3. Set a Target Condition (PLAN)
What SHOULD it look like? 
How SHOULD it perform?
How does it need to perform? 
How do yo...
4. Conduct root cause & gap analysis (PLAN)
Cause-and-Effect Diagram

5 Why’s

People

Material / Info

Lack of experience...
5. Identify potential countermeasures (DO)
• The clearer you are about the problem, 
current state, and root cause, the mo...
6. Develop & test countermeasure(s) (DO)
• Test “live” if possible.
• Testing may be merely getting feedback from 
non‐ co...
7. Refine & finalize countermeasure(s) (DO)
• Document the new standard work.
– Process maps (occasionally, value stream m...
8. Implement countermeasure(s) (DO)
• Training! Training! Training!
– Include why & WIIFM
– Hands on, when possible
– If t...
9. Measure process performance (STUDY)
• OBSERVE, TALK, LISTEN
• Measure performance against target condition.
• What obst...
10. Refine, standardize & stabilize the process 
(ADJUST)
• Retrain if the process is adjusted.

© 2013 The Karen Martin G...
10. Refine, standardize & stabilize the process (ADJUST) ‐
continued

© 2013 The Karen Martin Group, Inc.

21
11. Monitor process performance (ADJUST)
• Requires a Process Owner.
• Define & monitor 2‐5 key performance indicators.
– ...
12. Reflect & share learning (ADJUST)
• Study and discuss process.
–
–
–
–
–
–

What obstacles did the team confront?
How ...
Requirements for Excellence 
in ANY Endeavor

Shingo award‐winning The Outstanding Organization
www.bit.ly/TOObk

© 2013 T...
Practice vs. Performance
100%

Perform 
99%

Train
90%

90%
80%
70%
60%

Train

50%

Perform

40%
30%

Perform 
10%

20%
1...
Which target condition do you             
want to achieve?
Problems solved?

OR
Problem‐solving 
capabilities developed?
...
Attaining Mastery

From The Outstanding Organization, p. 115
© 2013 The Karen Martin Group, Inc.

27
Improvement Coaching

REFLECTIVE DEVELOPMENT

DIRECTIVE DEVELOPMENT

From The Outstanding Organization, p. 117
© 2013 The ...
© 2013 The Karen Martin Group, Inc.
Building PDSA Capabilities
Strategy 
Deployment 
(Hoshin Kanri) 
or A3
Value 
Stream 
Mapping

Daily Improvement, Projects...
Annual Hoshin Planning 
(Strategy Deployment)

• Builds consensus
• Creates organizational focus on what matters most
© 20...
Tying Improvement to Overarching 
Business Goals

© 2013 The Karen Martin Group, Inc.

32
Classic Strategy Deployment (Hoshin Kanri)
X‐Matrix

© 2013 The Karen Martin Group, Inc.
Modified Strategy Deployment Annual Plan:
Regular Reviews Improve Focus & Drive Results
< Company Name >
2013 Priorities
2...
A3 Management
What is A3?
• The core of Toyota’s renowned management system.
• A structured method for applying the PDCA (plan‐do‐
check...
Common Components of the A3 Report
Plan
Theme:  “What is our area of focus?”
Background

Do, Study, Adjust
Owner: Person a...
Value Stream Mapping: 
Using PDSA to realize the future state

© 2013 The Karen Martin Group, Inc.
Kaizen Event – Definition
A two‐ to five‐day focused improvement 
activity during which a sequestered, cross‐
functional t...
5‐Day Kaizen Event: Typical Structure
Day 1 & 2          
(Plan)

Day 3 & 4
(Do, Study)

Day 5                
(Study, Adj...
Every person in the 
organization needs to have 
proficiency in PDSA.
In addition, managers need 
proficiency in improveme...
True Continuous Improvement

ACT
ACT
CHECK

ACT
CHECK
CHECK

© 2013 The Karen Martin Group, Inc.
“When PDSA is used as it was 
intended, there is no separation 
between improving and managing 
work—they are part of the ...
For Further Questions

Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Bl...
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Plan-Do-Study-Adjust: A Deep Dive

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Plan-Do-Study-Adjust is more than a tool to generate results for the current project at hand. It's a problem-solving approach that teaches people how to THINK methodically, generating long-lasting, culture-shifting benefits.

In this webinar, you'll learn the specific steps (many of which are often forgotten) that must be taken to successfully use the PDSA cycle to solve problems, and design new processes and products.

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Plan-Do-Study-Adjust: A Deep Dive

  1. 1. Plan‐Do‐Study‐Adjust (PDSA): A Deep Dive Webinar December 3, 2013
  2. 2. Welcome! • • • • • • • • Argentina Australia Canada Denmark France Great Britain Ireland Latvia • • • • • • • • Malaysia Netherlands New Zealand Qatar Russia Saudi Arabia Sweden United States www.ksmartin.com/subscribe © 2013 The Karen Martin Group, Inc.
  3. 3.  Coach / Facilitator / Consultant / Trainer:  Lead Lean transformations & develop people  across all industries.  Teacher: University of California, San Diego  Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. www.ksmartin.com 2013 Shingo  Prize winner! © 2013 The Karen Martin Group, Inc. 3
  4. 4. Hot  off the  press! www.bit.ly/VSMbk © 2013 The Karen Martin Group, Inc. 4
  5. 5. Upcoming Webinars © 2013 The Karen Martin Group, Inc.
  6. 6. After the webinar… • All recordings are available on: – www.vimeo.com/karenmartingroup – www.youtube.com/karenmartingroup – www.slideshare.net/karenmartingroup – www.ksmartin.com/webinars • The materials are available on: – www.slideshare.net/karenmartingroup © 2013 The Karen Martin Group, Inc.
  7. 7. First, a little history… © 2013 The Karen Martin Group, Inc.
  8. 8. Two Great Minds W. Edwards Deming  (1900‐1993) © 2013 The Karen Martin Group, Inc. Walter Shewart (1891‐1967) 8
  9. 9. Develop hypothesis Refine Standardize  Stabilize Conduct  experiment Measure  results © 2013 The Karen Martin Group, Inc. 9
  10. 10. Clarifying the PDSA Cycle Phase Detailed Steps   1.  Define and break down the  problem. 50‐80%  of the  total  time New  Problem   2.  Grasp the current condition. Plan Develop  Hypothesis   3.  Set a target condition.   4.  Conduct root cause & gap analysis.   5.  Identify potential countermeasures. Continuous  Improvement   6.  Develop & test countermeasure(s) Do Conduct    7.  Refine and finalize countermeasure(s). Experiment   8.  Implement countermeasure(s). Study Study Evaluate  Results   9.  Measure process performance. 10. Refine, standardize, & stabilize the process. Adjust Adjust Refine  Standardize  11. Monitor process performance. Stabilize 12.  Reflect & share learning. © 2013 The Karen Martin Group, Inc. 10
  11. 11. 1. Define and break down the problem (PLAN) • What’s the  problem? • What is NOT the  problem? • What are the  variables? • What should we  focus on first? © 2013 The Karen Martin Group, Inc. 11
  12. 12. 2. Grasp the Current Condition (PLAN) © 2013 The Karen Martin Group, Inc. 12
  13. 13. 3. Set a Target Condition (PLAN) What SHOULD it look like?  How SHOULD it perform? How does it need to perform?  How do you want it to perform? © 2013 The Karen Martin Group, Inc. 13
  14. 14. 4. Conduct root cause & gap analysis (PLAN) Cause-and-Effect Diagram 5 Why’s People Material / Info Lack of experience Method No stnd spread sheet Changing schedule Time availability Why?    Why?     Why?  Why?     Why? Input rec’d late No sense of import No standard work Email vs. FedEx Budgets Submitted Late Forecast in other system Manual vs. PC No milestones System avail. Machine Weather delays $ vs. units Dispersed sales force Measurement Environment P a r e t o Cha r t Check Sheets Quantify Occurrences Reason Material shortage Tally Cr e di t Appl i c a t i on De l a y s 3500 ||||| || 3000 Quality issue requiring rework ||||| ||| ||||| ||||| 2000 ||||| ||||| ||| 1000 Order entry error Changing customer requirements w/ no adjustment to expected delivery Equipment failure 86% 80% 77% 2493 70% 60% 50% 1500 41% 40% 30% 627 561 20% 242 500 | 100% 90% 2500 Staffing/absenteeism 100% 97% 94% 2909 180 0 10% 0% N o Si g n a t u r e I nsuf f i ci e nt N o pr i or C ur r ent N o C r edi t B ank I nf o addr ess C u s t o me r Ot he r H i s t or y Re a son f or D e l a y © 2013 The Karen Martin Group, Inc. 14
  15. 15. 5. Identify potential countermeasures (DO) • The clearer you are about the problem,  current state, and root cause, the more  obvious the countermeasures become. • Brainstorming may or may not work. © 2013 The Karen Martin Group, Inc. 15
  16. 16. 6. Develop & test countermeasure(s) (DO) • Test “live” if possible. • Testing may be merely getting feedback from  non‐ core team members. • Use rapid iterative cycles (mini‐PDSA cycles). © 2013 The Karen Martin Group, Inc. 16
  17. 17. 7. Refine & finalize countermeasure(s) (DO) • Document the new standard work. – Process maps (occasionally, value stream maps  will do the trick) – Flow charts – Check lists – Concise, visual work instructions – Etc. © 2013 The Karen Martin Group, Inc. 17
  18. 18. 8. Implement countermeasure(s) (DO) • Training! Training! Training! – Include why & WIIFM – Hands on, when possible – If there’s a gap between implementation and people  engaging with the new process, you must retrain. • DO NOT MERELY COMMUNICATE BY EMAIL. © 2013 The Karen Martin Group, Inc. 18
  19. 19. 9. Measure process performance (STUDY) • OBSERVE, TALK, LISTEN • Measure performance against target condition. • What obstacles to success remain? – How can you remove them? © 2013 The Karen Martin Group, Inc. 19
  20. 20. 10. Refine, standardize & stabilize the process  (ADJUST) • Retrain if the process is adjusted. © 2013 The Karen Martin Group, Inc. 20
  21. 21. 10. Refine, standardize & stabilize the process (ADJUST) ‐ continued © 2013 The Karen Martin Group, Inc. 21
  22. 22. 11. Monitor process performance (ADJUST) • Requires a Process Owner. • Define & monitor 2‐5 key performance indicators. – How do you define success?  – What does success look like? – Note: KPIs are dynamic, not static. Measure what matters NOW. © 2013 The Karen Martin Group, Inc. 22
  23. 23. 12. Reflect & share learning (ADJUST) • Study and discuss process. – – – – – – What obstacles did the team confront? How did they overcome them?  What organizational discoveries did they make?  What needs to be adjusted going forward? What went well? What could been better? • Hold “Grand Rounds” or Improvement Briefings. • Physically post story boards and results. • Post on Intranet home page. © 2013 The Karen Martin Group, Inc. 23
  24. 24. Requirements for Excellence  in ANY Endeavor Shingo award‐winning The Outstanding Organization www.bit.ly/TOObk © 2013 The Karen Martin Group, Inc. 24
  25. 25. Practice vs. Performance 100% Perform  99% Train 90% 90% 80% 70% 60% Train 50% Perform 40% 30% Perform  10% 20% 10% Train 1% 0% Athletes Businesses Jim Loehr & Tony Schwartz, The Power of Full Engagement 25
  26. 26. Which target condition do you              want to achieve? Problems solved? OR Problem‐solving  capabilities developed? © 2013 The Karen Martin Group, Inc. 26
  27. 27. Attaining Mastery From The Outstanding Organization, p. 115 © 2013 The Karen Martin Group, Inc. 27
  28. 28. Improvement Coaching REFLECTIVE DEVELOPMENT DIRECTIVE DEVELOPMENT From The Outstanding Organization, p. 117 © 2013 The Karen Martin Group, Inc. 28
  29. 29. © 2013 The Karen Martin Group, Inc.
  30. 30. Building PDSA Capabilities Strategy  Deployment  (Hoshin Kanri)  or A3 Value  Stream  Mapping Daily Improvement, Projects,  & Rapid Improvement Events © 2013 The Karen Martin Group, Inc.
  31. 31. Annual Hoshin Planning  (Strategy Deployment) • Builds consensus • Creates organizational focus on what matters most © 2013 The Karen Martin Group, Inc.
  32. 32. Tying Improvement to Overarching  Business Goals © 2013 The Karen Martin Group, Inc. 32
  33. 33. Classic Strategy Deployment (Hoshin Kanri) X‐Matrix © 2013 The Karen Martin Group, Inc.
  34. 34. Modified Strategy Deployment Annual Plan: Regular Reviews Improve Focus & Drive Results < Company Name > 2013 Priorities 2013 Goals & Objectives 1. Increase sales 5%. 3. Achieve 10% profit. 2. Achieve 50% gross margin. 4. Improve morale (metric TBD). X = Planned Priority 5 8 9 17 29 32 33 10 30 31 25 26 15 20 22 Content removed for confidentiality  21 ● =  Actual Jan Feb 3,500 uni ts  s ol d by 12/31/2013 through a l l  cha nnel s   (a pprox. $700K) 2 11 Goal or Measurable Objective X X X X X X Devel op & del iver tra i ni ng to top 50 Dea l ers X X X X X X X X Educa tion: 1 s chool  di s tri ct s pec'd/underperforming  COM dis tri butor (25) by 12/31 va l ued a t mi n $35K ea ch 10 new dea lers on boa rd (net) ($500K per dea l er thi s   yea r) 5 new di s tri butors  bri ngi ng $200K a nnua l  rev (& 5  termi na ted) X X X X X X X X X X X X X X Howa rd Mi cha el   S X X X X X X X X X Howa rd X X Mktg Ops 3 HR Fin 3 3 Bob 2 PE Pario COM  CDs /  PD  PD  BMD SWS Direct  AMs Rec Mgmt 3 1 1 3 2 1 3 2 3 3 3 2 3 1 3 3 3 Mi ke B 3 3 2 3 3 2 X X X X X X X X X X Howa rd Howa rd 2 3 X X X X X X X X X X Howa rd Da na 1 3 3 X X X X X X X X X Howa rd Ma rk H 2 3 Howa rd Howa rd X X X X X X X X X Howa rd Howa rd Ji m Ra nda l l Ji m Jos h TBD X X X TBD Useful  reporti ng a nd metri cs a re es ta bl i shed a nd i n  pl a ce  X X TBD X X TBD X X X X X X X X X 1 3 X X X X X X X X X Jos h Ji m  Sys tem 7.0's  i n pl a ce 1 1 X Sha nnon  1 Ji m  Ra nda l l 1 3 1 X X X Phyl l is 1 Mi cha el  M 2 Ma tt D 3 Nea l l X 1 Da na Da vi d R 1 1 1 1 1 1 1 1 1 1 1 1 1 3 2 Sus a n X 3 3 Nea l l X 3 1 Jos h X 3 1 Mi cha el  M X 3 1 1 1 1 3 Ji m TBD © 2013 The Karen Martin Group, Inc. Josh R? X X La y out compl ete; equi pment i ns ta l led 2 X X 30 pa rts  s ourced in U.S.; compl eted pl a n for ma na gi ng  Chi na ‐s ourced pa rts Wa rehous e l a id out; ka nba n revi s ed; Sys pro  i mplemented Da na Rex/Tim  X X Des ign cha nged to s ol ve dela m i ss ue  l ong‐term Bob X 20 by yea r‐end 1 14 X X 10 projects  s pec'd  by 12/31; $300K rev by 12/31 100% a ccura te pa yrol l ; 100% ma na gement s a ti sfa cti on  a t Apri l mgmt. meeting Internet ta s k l is t is  si mpl i fi ed a nd strea ml i ned for  PDs  then pl a n is  rol led out to PDs   Des ign Ca l cul a tor i s  upda ted success ful l y a nd rol l ed  out Level of Effort/Involvement Required IT Exec Owner X Competi tive Ana l ys i s  compl ete a nd di stri buted for us e 13 Aug Sep Oct Nov Dec Tactical  Owner Bob Mar Apr May Jun Jul Revis ed cours e ma teri a l s  by 6/30/2013 Plan review dates: Bob X 24 12 Created: 01‐14‐13 Revised:  1 2 3 1 1 3 3 3 2 1 X X X Susa n Sha nnon 3 X X X Susa n Sha nnon X X Susa n Da vi d R 3 2 2 3 3 X X X X X X 2 3 3 3 3 2 3 3 3 X 3 3 1 2 2 3 34
  35. 35. A3 Management
  36. 36. What is A3? • The core of Toyota’s renowned management system. • A structured method for applying the PDCA (plan‐do‐ check‐act) approach to problem solving. • International designation for 11 x 17” paper. © 2013 The Karen Martin Group, Inc. 36
  37. 37. Common Components of the A3 Report Plan Theme:  “What is our area of focus?” Background Do, Study, Adjust Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context ‐ Why is this a problem? How large is the  problem? • Who? Current Condition • When? • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state Effect Confirmation • What measurable results did the solution  achieve (or will be measured to verify  effectiveness)? • Who’s responsible for ongoing measurement? • Measurable targets – how will we know that the  improvement has been successful? Follow‐up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root)  causes © 2013 The Karen Martin Group, Inc. • Where else in the organization can this solution  be applied? • How will the improved state be standardized  and communicated? 37
  38. 38. Value Stream Mapping:  Using PDSA to realize the future state © 2013 The Karen Martin Group, Inc.
  39. 39. Kaizen Event – Definition A two‐ to five‐day focused improvement  activity during which a sequestered, cross‐ functional team designs and implements  improvements to a defined process or work  area, generating rapid results and learned  behavior. Karen Martin & Mike Osterling The Kaizen Event Planner 39 © 2013 The Karen Martin Group, Inc.
  40. 40. 5‐Day Kaizen Event: Typical Structure Day 1 & 2           (Plan) Day 3 & 4 (Do, Study) Day 5                 (Study, Adjust) © 2013 The Karen Martin Group, Inc. Kick‐off Analyze current state  Perform root cause analysis Design future state Interim briefing Design & test improvements Obtain buy‐in Interim briefing Finalize improvements Train process workers & stakeholders Present results CELEBRATE! 40
  41. 41. Every person in the  organization needs to have  proficiency in PDSA. In addition, managers need  proficiency in improvement  coaching. © 2013 The Karen Martin Group, Inc.
  42. 42. True Continuous Improvement ACT ACT CHECK ACT CHECK CHECK © 2013 The Karen Martin Group, Inc.
  43. 43. “When PDSA is used as it was  intended, there is no separation  between improving and managing  work—they are part of the same  cycle.” The Outstanding Organization, p. 120  © 2013 The Karen Martin Group, Inc.
  44. 44. For Further Questions Karen Martin, President 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Blog & newsletter:  www.ksmartin.com/subscribe © 2013 The Karen Martin Group, Inc. 44
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