Continuous Improvement "System-ism"

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Presentation given at a regional ASQ meeting in Central Nebraska - March 2011

Material based largely on S. Spears "Chasing the Rabbit" and Toyota Supplier Training.

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  • Every year Toyota produces more products per employee. The company works in many different ways to achieve high productivity.One reason why the company’s productivity remains so high, aside from its investment in new equipment, is that its production procedures and organizational methods are constantly being improved. These factors, combined with the dedication and creativity of all of our team members, are crucial for maintaining this high productivity.
  • Continuous Improvement "System-ism"

    1. 1. Continuous Improvement “Systemism” Failure Mode Analysis of Continuous Improvement Systems Nick Ruhmann
    2. 2. Agenda • The Common “Continuous Improvement Programs” • Failure Modes of These Programs • Effects of Failure • Causes of Failure • Countermeasures for the Causes
    3. 3. Continuous Improvement “Programs” Taylor’s Scientific Management Training Within Industry Job Methods Crosby’s “Zero Defects” Motorola / GE Six Sigma Shainin's Statistical Engineering (SE) TPS (Lean Manufacturing) Lean Six Sigma Deming and TQM Some of this was progress, some were just new labels
    4. 4. Most Common Today... 6 Sigma Lean Lean Six Sigma
    5. 5. Scott Adams doesn’t just make this stuff up...
    6. 6. Why Do We Fail? • Failure • Copy “tools” only without making work selfdiagnostic • Failure • Mode 3: Don’t share systemically what has been learned locally • Failure • Mode 2: Workaround problems even when they are recognized • Failure • Mode 1: Mode 4: Don’t develop the capabilities of others to design work, improve work, and institutionalize new knowledge
    7. 7. Effects (Symptoms) Of Failure... 1. 2. 3. 4. 5. 6. Relying on technology to solve problems Seeking examples to follow rather than developing solutions (implement the new, cool thing) Excuses, such as "our problems are different“ Relying on quality inspection rather than improving product quality Reliance on quality control departments to solve problems rather than management, supervisors, and production workers solving problems Placing blame on workforces who are only responsible for 15% of mistakes when the system designed by management is responsible for 85% of them
    8. 8. Causes... • Failure Mode 1: • • Copy “tools” only without making work self-diagnostic Causes: • We look only with our eyes...so we only see what is visible "I think that people here expect miracles. American management thinks that they can just copy from Japan—but they don't know what to copy!“ -W. Edwards Demming
    9. 9. Causes... • Failure Mode 2: • • Workaround problems even when they are recognized Causes: • Scientific Problem Solving isn’t taught • Problems aren’t seen as opportunities • Focus on Short Term Goals • This week • This Month • This Quarter • This Fiscal Year
    10. 10. Causes... • Failure Mode 3: • • Don’t share systemically what has been learned locally Causes: • No predefined method of sharing • No way of knowing when sharing has not occurred • Running an organization with functional “Silos”
    11. 11. Causes... • Failure Mode 4: • • Don’t develop the capabilities of others to design work, improve work, and institutionalize new knowledge Causes: • Problem Solving is thought of as a specialist role, rather than a core capability of every worker to be developed • Problem Solving and the ability to develop problem solving in others is not a key requirement of managers everywhere • Ignoring the importance of mentor / student ratio’s on the plant floor.
    12. 12. Countermeasures • Forget whatever “Cool” name you’ve given your CI Program – the name matters not • Stop measuring CI by short term Goals – focus on customer satisfaction, profits will come • Move away from functional silo’s of disciplinary “experts” – move towards organization built around products • Give every employee a capable mentor – expect that every employee continue learning
    13. 13. Countermeasures (what to teach) How to Design Work to see problems 1. • Make All work highly specified as to content, sequence, timing, and outcome Insist on swarming problems 2. • Problems must be immediately addressed, both to contain their effects from propagating, and to trigger problem solving
    14. 14. Countermeasures (what to teach) Problem Solving Using the Scientific Method 3. • Any improvement must be made in accordance with the scientific method, under guidance of a teacher, at the lowest possible level within the organization Leaders Must be Teachers 4. • The most senior management level has to own the capability development process – it must cascade downhill
    15. 15. Capability 1 : Design work to see problems 15
    16. 16. The FOUR Levels of Process Design 1. Defining objectives/outputs for the system 2. Creating pathways by assigning responsibilities 3. Connecting adjacent nodes on the pathway 4. Designing individual work activities 16
    17. 17. Capability 2 : Swarming problems when they occur And where they occur 17
    18. 18. Problem Solving is Mostly Simple... Both Demming and Ishikawa agreed that basic problem solving will solve up to 95% of all problems typical in manufacturing. The problem is one of data collection and rigorous execution of a structured methodology.
    19. 19. Basic PDCA* Problem Solving Key Points: Act Plan • Standardize or revise • Definition & Analysis Check Do • Confirm result • Try Countermeasure •Constantly repeat the cycle as a problem solving tool & management routine •Was the Toyota starting point for quality improvement in the 1960’s. *Originally known as the Shewart Cycle, developed by Walter Shewart in his 1939 book titled “Statistical Methods From the Viewpoint of Quality Improvement” and later popularized by Edward Demming.
    20. 20. Scientific Method in each... PDCA 8D Steps Six Sigma Pathwise • Plan • Do • Check • Act • Use Team Approach • Describe the Problem • Containment • Root Causes • Verify Corrective Actions • Implement Permanent Corrective Actions • Prevent Recurrence • Congratulate Your Team • • • • • • Problem • Investigate • Compare • Clues • Cause define Measure Analyze Improve Control
    21. 21. 7 Classic QC Tools • The 7 Classic QC Tools are essential in gathering data and analyzing problems, they also make relevant information visible. Check Sheet C&E Diagram Graphs Pareto Chart Control Chart Histogram Scatter Diagram
    22. 22. Capability 3 : Sharing knowledge where it is created 22
    23. 23. Capability 3 : Sharing knowledge where it is created 23
    24. 24. Capability 4 : Leaders train, coach, assist, & teach 24
    25. 25. Capability 4 : Leaders train, coach, assist, & teach Are all your employees afforded a close mentor / teacher? 25
    26. 26. Problem Solving -is Endless
    27. 27. QUESTIONS?

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