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PDCA Problem Solving Tools & Technique

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In this training presentation, you will be able to teach employees on the structured Plan-Do-Check-Act (PDCA) approach to problem solving. Many world class companies such as Toyota uses the PDCA problem solving process for relentless pursuit of continuous improvement. When combined with the basic quality tools, this approach identifies problems, analyzes root causes and generates solutions. Teach your staff to put effective solutions in place to prevent similar problems from recurring in the future.

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  • 1. © Operational Excellence Consulting. All rights reserved.© Operational Excellence Consulting. All rights reserved. Problem Solving Tools & Technique
  • 2. 4© Operational Excellence Consulting. All rights reserved. Outline 1. Introduction to Problem Solving 2. Concept of Problem Solving Teams 3. Overview of Process Management 4. PDCA Approach to Problem Solving 5. Basic Problem Solving Tools 6. Project Reporting Using A3 Storyboard 7. 10 Common Mistakes 8. Critical Success FactorsThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 3. 7© Operational Excellence Consulting. All rights reserved. Continuous Improvement "Continuous effort - not strength or intelligence - is the key to unlocking our potential." - Sir Winston Churchill This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 4. 10© Operational Excellence Consulting. All rights reserved. Productivity loss is caused by three major sources of waste Plan DoCheck Act Inflexibility This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 5. 13© Operational Excellence Consulting. All rights reserved. There are five types of inflexibility that impact the performance of a system Custom and practice Capability Configuration Capacity Changeover • Inability of people and the organization to adapt to customer needs • Inability of product, process, or IT systems to meet customer demand • Inability to provide the product or service the customer needs • Inability of product, process, or network to meet customer demand • Inability to change processes to meet customer demand Inflexibility adds cost, but does not increase the value added This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 6. 16© Operational Excellence Consulting. All rights reserved. Problem Solving Philosophy Problem solving involves identifying and eliminating all activities that are waste. Current State Future State Solve Problems Expose Problems “True North” Value Added Time = Lead Time Full of Waste, Variation, and Constraints This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 7. © Operational Excellence Consulting. All rights reserved. Session 2: Concept of Problem Solving Teams This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 8. 22© Operational Excellence Consulting. All rights reserved. Philosophy of Problem Solving Team • People take interest and pride in their work • Shared decision-making process • Development of individual capabilities • Creating a cordial atmosphere in the workplace • Benefits both management and staffThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 9. 25© Operational Excellence Consulting. All rights reserved. Benefits of Problem Solving Activities 1 • Company Reduced absenteeism and staff turnover Increase productivity Improve quality of products/services Increase revenue • Management Smooth workflow Reduce control and supervision This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 10. 28© Operational Excellence Consulting. All rights reserved. • Productivity • Quality • Cost • Delivery • Housekeeping • Safety • Service Topics Discussed by Problem Solving Teams This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 11. 31© Operational Excellence Consulting. All rights reserved. Problem solving structure parallels the formal organizational structure CEO Key Managers Senior & Executive Staff Supervisors Frontliners Structure of a Company Structure of Problem Solving Activities Members Secretariat Facilitators Leaders Steering Committee This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 12. 34© Operational Excellence Consulting. All rights reserved. Ingredients for Problem Solving Team Success 1 1. All staff understand problem solving concept and its benefits 2. A committed and supportive CEO and senior management 3. A steering committee that sets clear policies and a focused problem solving action plan 4. A Secretariat or PMO who enthusiastically carries out the problem solving team action plan and monitors its progress This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 13. 37© Operational Excellence Consulting. All rights reserved. Everyone realizes the importance of having a motivated, quality work force but... Continuous Improvement Leverage Points PEOPLE PROCESS TECHNOLOGY Major determinants of product/ service cost, schedule and quality ...even our finest people can’t perform at their best when the process is not understood or operating “at its best”. Not simply a matter of competencies! This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 14. 40© Operational Excellence Consulting. All rights reserved. Process Management Sustain Process Improve/Modify Process Yes No Plan DoCheck Act Use & Analysis of Information Key Performance Indicators Meet Targets & Goals? • Customer Feedback • Market Data • Product/Service Performance • Operational Results • Supplier Quality Process This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 15. 43© Operational Excellence Consulting. All rights reserved. Process Definition & Documentation • Identify key process elements • Document the process Narrative documentation Flowcharting Process mapping Value stream mapping Process modeling toolsThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 16. 46© Operational Excellence Consulting. All rights reserved. Process Control • Control relates to conformance with requirements • A problem exists when the process deviates from its norms in terms of process parameters • In such an event, a problem solving methodology is employed to bring the process back into control This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 17. 49© Operational Excellence Consulting. All rights reserved. The PDCA Approach to Problem Solving • A systematic approach to problem solving • Provides the framework for a team to carry out improvement Plan DoCheck Act This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 18. 52© Operational Excellence Consulting. All rights reserved. Tips for Step 1: Select the Theme • Select credible projects • Projects should be reasonably easy (but not too easy!) to do • Projects should give significant results • Balance the cost, potential benefits and chance of success This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 19. 55© Operational Excellence Consulting. All rights reserved. Step 3: Grasp the Present Situation • Map out the process and identify problem areas • State the problem • Define scope of the project • Define success measures (what is success?) • Decide what data to collect and how to collect it • Use appropriate tools for data collection and analysis (e.g. check sheet, Pareto chart, fishbone diagram) • Compare actual versus desired performance This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 20. 58© Operational Excellence Consulting. All rights reserved. Step 5: Analyze the Cause & Determine Corrective Action • Brainstorm possible causes of the problem • Identify root cause(s). Use: Cause-&-effect diagram Why-why (or Why-Because) analysis • Measure and verify root cause(s) • Propose solutions using 5W1H This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 21. 61© Operational Excellence Consulting. All rights reserved. Tips for Step 6: Implement Corrective Action • Select solutions that have a significant impact on the desired results • Minimize disruptions whenever possible • Document! Document! Document! This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 22. 64© Operational Excellence Consulting. All rights reserved. Step 8: Standardize & Follow Up 2 • Identify additional improvements that may be made for the future • Present the results to managers and other teams • Use the lessons learned to improve the improvement process itself • Celebrate the success • Plan for future projects This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 23. 67© Operational Excellence Consulting. All rights reserved. "As much as 95% of quality related problems in the factory can be solved with seven fundamental quantitative tools." - Dr. Kaoru Ishikawa This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 24. 70© Operational Excellence Consulting. All rights reserved. 1. Stratification • Purpose To separate different data sources To collect data separately for different sources (e.g. by shift, by machine, by location, etc.) • Involves the use of other basic tools: Check sheets Scatter diagrams, etc. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 25. 73© Operational Excellence Consulting. All rights reserved. How to Make a Recording Check Sheet 1. Indicate the purpose of the data collection. 2. Decide on how to collect the data. 3. Estimate the total quantum of data. 4. Decide on the check sheet format. 5. Enter the data and draw up the check sheet. 6. Does it meet the objectives? Is it easy to record? Make improvements as necessary.This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 26. 76© Operational Excellence Consulting. All rights reserved. Example: Control Chart Phase 1 Phase 3Phase 2 Xbar Chart Data points outside the control limits suggest that there are special causes to the process deviation This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 27. 79© Operational Excellence Consulting. All rights reserved. Examples: Run Chart Run Chart of CONC, COC & Total COQ This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 28. 82© Operational Excellence Consulting. All rights reserved. Pareto’s Principle (80/20 Rule) Examples: • 80% of your profits come from 20% of your customers • 80% of your complaints come from 20% of your customers • 80% of your profits come from 20% of the time you spend • 80% of your sales come from 20% of your products • 80% of your sales are made by 20% of your sales staffThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 29. 85© Operational Excellence Consulting. All rights reserved. How to Construct a Pareto Chart 1. First, information must be selected based on types or classifications of defects that occur as a result of a process. 2. The data must be collected and classified into categories. 3. Then a histogram or frequency chart is constructed showing the number of occurrences.This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 30. 88© Operational Excellence Consulting. All rights reserved. HIGH SCRAP OF BARCODE LABELS MAN MACHINE MATERIAL METHOD Handling Wrinkled Torn Improper training Machine Breakdown Ineffective adhesive Illegible Smear Printwheel Dirty Worn Ribbon Design of label Damage Poor printing Improper storage Wrong orientation Process changes Improper storage Size of label Process changes Example 1: Cause and effect diagram used in solving the problem of “High Scrap of Barcode Labels” This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 31. 91© Operational Excellence Consulting. All rights reserved. Cause & Effect: Considerations • Differentiate between symptom, cause and solution; only cause should be used to develop diagram Symptom: “We are way too busy” Cause: “Lack of Documentation” Solution: “Assign someone to do documentation” • Think in negative terms when brainstorming • Best used with team that has expertise to represent entire problem This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 32. 94© Operational Excellence Consulting. All rights reserved. How to Create a Histogram 1. Collect data and sort it into categories. 2. Then label the data as the independent set or the dependent set. The characteristic you grouped the data by would be the independent variable. The frequency of that set would be the dependent variable. 3. Each mark on either axis should be in equal increments. 4. For each category, find the related frequency and make the horizontal marks to show that frequency. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 33. 97© Operational Excellence Consulting. All rights reserved. How to Construct a Scatter Diagram 1. First, collect two pieces of data and create a summary table of the data. 2. Draw a diagram labeling the horizontal and vertical axes. It is common that the “cause” variable be labeled on the X axis and the “effect” variable be labeled on the Y axis. 3. Plot the data pairs on the diagram. 4. Interpret the scatter diagram for direction and strength. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 34. 100© Operational Excellence Consulting. All rights reserved. Brainstorming Considerations 1. Make sure everyone understands and is satisfied with the central question before you open up for ideas. 2. You may want to give everyone a few seconds to jot down a few ideas before getting started. 3. Begin by going around the table or room, giving everyone a chance to voice their ideas or pass. After a few rounds, open the floor. 4. More ideas are better. Encourage radical ideas and piggybacking. 5. Suspend judgment of all ideas. 6. Record exactly what is said. Clarify only after everyone is out of ideas. 7. Don't stop until ideas become sparse. Allow for late-coming ideas. 8. Eliminate duplicates and ideas that aren't relevant to the topic. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 35. 103© Operational Excellence Consulting. All rights reserved. Gantt Chart • Purpose To show the actual time to spend in tasks • When to use When planning, to show actual calendar time spent in each task When planning work for several people To track progress of work against scheduled activities To show who does what and when To communicate the plan to other people This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 36. 106© Operational Excellence Consulting. All rights reserved. Pareto Chart of Scrap in XT3120 Production Example of QC Storyboard 0 10 20 30 40 50 60 Labels Balance Weight Gasket Screws Others PercentofScrap Type of Part Scrapped Types of Scrap in XT3120 Production Labels form the largest group of scrap. But which particular label is the highest? This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 37. 109© Operational Excellence Consulting. All rights reserved. Identify the Magnitude of Causes Domain Defects Causes % % Total Method Out of position Wrong orientation/process changes 52 52 Machine Print illegible Smear 1 Worn printer ribbon 5 Printwheel dirty 23 29 Man Print illegible Contamination/dirty 2 Damage Fold/torn 10 12 Material Damage Handling/delivery 2 2 Example of QC Storyboard This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 38. © Operational Excellence Consulting. All rights reserved. Session 6: Project Reporting Using A3 Storyboard This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 39. 115© Operational Excellence Consulting. All rights reserved. Why Use the A3 Storyboard Format? • Enhances logical thinking • Enhances decision-making • Provide standardized method of communication • Focuses on problem solving activities • Eliminates waste A3 storyboard ties to Lean Thinking initiatives This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 40. 118© Operational Excellence Consulting. All rights reserved. 1 2 4 3 5 6 7 A3 Storyboard Format This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 41. 121© Operational Excellence Consulting. All rights reserved. Example 3 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 42. 124© Operational Excellence Consulting. All rights reserved. 10 Common Mistakes 1 1. Project is not aligned to organization’s objectives 2. Not agreeing on the goal or outcome 3. Trying to “boil the ocean” 4. Not utilizing the power of the Gemba 5. Not measuring the performance metricThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 43. 127© Operational Excellence Consulting. All rights reserved. Critical Success Factors 2 5. Use the Pareto chart to ensure that you get the most bang for the buck 6. Validate the root causes 7. Ensure project handover is thorough and the improved performance is sustainable 8. Celebrate success; recognize the team This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
  • 44. © Operational Excellence Consulting. All rights reserved. Appendix This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/pdca-problem-solving-tools-and-technique-151
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