Cont_Perf_Improv_ws

Continuous Performance ImprovementContinuous Performance Improvement
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Problem SolvingProblem Solving
&&
Continuous PerformanceContinuous Performance
ImprovementImprovement
Bill Hoberg
guyairmoe@yahoo.com

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in•san•it•y (ĭn-săné-tē) n
Doing the same thing the same way and
expecting different results.
Why process improvement???Why process improvement???
ALL WORK IS ACCOMPLISHED VIAALL WORK IS ACCOMPLISHED VIA
PROCESSES!!!PROCESSES!!!(INTEGRATED PROCESSES MAKE UP(INTEGRATED PROCESSES MAKE UP SYSTEMSSYSTEMS.).)

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TeamsTeams
““Lead Team”*Lead Team”*
Typical Organization Improvement Structure
* Includes teams such as Executive
Team, Leadership Team, Steering
Committee, Process Management
Team, etc.
OO
PP
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OO
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UU
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TT
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The team’s work must be a PRIORITY for ALL team
members.
NO working ‘in the margins’ or ‘when there’s time.’
Ownership & scope of control.
ALL affected people and/or organizations should actively
participate on the team.
DO NOT attempt to tell others what to do or how to do it.
Clear goal(s) and direction.
The team’s purpose and SUCCESS INDICATORS must be
clear, measurable, and understood by ALL affected people
and/or organizations.




TeamSuccessFactors

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Team staffing.
Number of team members – not too many; not too few.
(6-10 is ideal.)
Necessary skills & knowledge.
Recognize team members’ roles, e.g., Team Leader,
Facilitator, SMEs.
‘Right’ attitude (often more important than skills &
knowledge).
Follow/use a process.
Make (effective) use of available tools, techniques, and
methodologies.
Know HOW you will achieve your goal(s).





TeamSuccessFactors

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TeamFacilitator
What Can a Facilitator Do for a Team?What Can a Facilitator Do for a Team?
A facilitator is: A facilitator is not:
A formal member of the team.
An SME in the improvement
process & tools.
A guide, advisor, coach, and
referee for the team.
A liaison to the improvement
team’s sponsor and other
organization members (e.g.,
managers and executives).
Effective at keeping the team
on track.
The team’s ‘conscience.’
The team’s leader.
The team’s secretary.
A SME in the team’s problem/
issue.
A ‘tie-breaker.’
Directly accountable for the
team’s progress or success.

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ContinuousContinuous
CycleCycle
PlanPlan your improvements.
Who will do it?
What needs to change?
By when?
DoDo it!
Verify that the
improvements work
(that is, they produce
the desired results).
CheckCheck your
improvements.
Did you meet or
exceed your objectives?
Compare the
‘PlanPlan’ and ‘DoDo.’
What went well? What didn’t?
What did you learn?
ActAct to further improve what you did.
Apply what was
learned elsewhere.
Document and standardize
the improvements.

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1. Establish process management
responsibilities.
2. Define process and identify
customer requirements.
3. Define and establish measures.
4. Assess conformance to customer
requirements.
5. Investigate process to identify
improvement opportunities.
6. Rank improvement opportunities
and set objectives.
7. Improve process quality.
Management
Improvement
Ownership
Assessment
Opportunity
Selection
Phases Stages Steps
PProcessrocess QQualityuality MManagement &anagement & IImprovementmprovement
Improvement
Continuous
Improvement
Cycle
11
11 AT&T “ Process Quality Management & Improvement Guidelines (PQMI),” 1989.

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1. Establish process management1. Establish process management
responsibilities.responsibilities.
ProcessManagement
CycleCycle
Customer/Supplier Model
Customer/Supplier Questionnaire
Interview
FROMTHEFROMTHE
TOOLBOX
 Define the roles & responsibilities that support the application
of process quality management & improvement.
 Define the responsibilities unique to the process owner.
 Define criteria for process ownership.
Process Owner Responsibilities
 Organize the process management
team, as appropriate, and
communicate their roles and
responsibilities.
 Measure & track progress.
 Establish and maintain process control.
 Resolve/escalate process issues.
 Initiate process reviews.
 Allocate resources.
Process Owner Criteria
 Responsibility for process results.
 Authority or ability to effect changes.
 Ability to carry out process owner’s
responsibilities.
 Understand the process end-to-end.

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 Focus on the interfaces between work groups.
 List/identify the inputs, outputs, suppliers,
customers, and the activities of work groups.
 Understand how work activities are
interconnected.
 Move on to more detailed process
flowcharting.
2. Define Process and Identify Customer2. Define Process and Identify Customer
RequirementsRequirements
CycleCycle
ProcessManagement
Interview
Block Diagram
Flowchart
Affinity Diagram
Customer Needs Analysis
Survey
Tree Diagram
Benchmarking
FROMFROM
THETHE
 Define your process in terms of its boundaries and interfaces.
 Develop a clear picture of how the process operates.
 Document process work-flows at a high level.
 Capture and quantify customer requirements so that process
quality management and improvement activities are properly
driven.
Tasks & Goals
TOOLBOX

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3.3. Define and Establish MeasuresContinuousContinuous
CycleCycle
ProcessManagement
Brainstorming
Multivoting
Block Diagram
Flowchart
Survey
FROMFROM
THETHE
TOOLBOX
 Identify/develop measures to gauge customer satisfaction.
 Identify/develop in-process measures and decision points at
which you will take action to assure conformance to customer
requirements. (In-process measures generally focus on internal
efficiency and respond to business as well as customer
requirements.
 Measure for input quality from suppliers.
 Assure an accurate and timely satisfaction feedback system.
 Review requirements.
 Determine effective measures.
 Review current measures.
 Install new measures.
 Implement reporting system.
 Establish feedback mechanism(s).
Tasks & Goals

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4. Assess Conformance to Customer4. Assess Conformance to Customer
Requirements.Requirements.
CycleCycle
ProcessManagement
Control Chart
Interview
Survey
Brainstorming
Cause & Effect Diagram
Multivoting
Pareto Diagram
Graph(s)
FROMTHEFROMTHE
TOOLBOX
 Assess the process performance.
 Process capability/performance versus customer satisfaction.
 Collect & review measurement data.
 Identify and remove any causes of
abnormal variation.
 Compare process performance to
requirements to determine chronic
problem areas.
Tasks & Goals
Processes With Frequent
Outputs
Processes With Infrequent
Outputs
 Collect & review measurement data.
Compare process performance to
requirements to determine chronic
problem areas.

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5. Investigate Process to Identify Improvement5. Investigate Process to Identify Improvement
Opportunities.Opportunities.
CycleCycle
ProcessManagement
Brainstorming
Interview
Multivoting
Decision Matrix
Pareto Diagram
Flowchart
FROMTHEFROMTHE
TOOLBOX
 Identify the critical internal process problems impacting
customer satisfaction and operating costs.
 Identify process simplification opportunities.
 Gather data on process problems.
 Identify potential process problems to pursue.
 Document potential problem areas.
 Gather data on sub-process problems (if necessary & appropriate).
 Identify potential sub-process problems to pursue (if necessary & appropriate).
Tasks & Goals

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6. Rank Improvement Opportunities and Set Objectives.6. Rank Improvement Opportunities and Set Objectives.ContinuousContinuous
CycleCycle
ProcessManagement
Decision Matrix
Graph(s)
Histogram
Multivoting
Pareto Diagram
FROMFROM
THETHE
TOOLBOX
 Establish reasonable expectations for the process based on
customer needs and process capability/performance.
 Make a documented commitment to customers stating the
scope and timeframe for improvement.
 Review improvement opportunities.
 Establish priority of each improvement opportunity.
 Negotiate objectives.
 Decide on improvement projects.
Tasks & Goals

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Management
1. Establish process management
responsibilities.
2. Define process and identify
customer requirements.
3. Define and establish measures.
4. Assess conformance to customer
requirements.
5. Investigate process to identify
improvement opportunities.
6. Identify improvement opportunities
and set objectives.
7. Improve process quality.Improvement
Ownership
Assessment
Opportunity
Selection
Phases Stages Steps
Process Quality Management & ImprovementProcess Quality Management & Improvement
Improvement
Continuous
Improvement
Cycle
11
11 AT&T “ Process Quality Management & Improvement Guidelines (PQMI),” 1989.

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Quality Improvement StoryQuality Improvement Story
1. Reason for Improvement
2. Problem Identification (a.k.a. Current Situation)
3. Root Cause Analysis
4. Potential Improvements
5. Verification
6. Full Implementation
7. Future Plans
QI StoryQI Story helps you define a problem, identify root
causes, determine possible remedies, and verify that
the improvements are effective.
Assumes PQMI Steps 1-6 are being managed.
ProcessImprovement
CycleCycle
** Original QI Story content developed by Florida Power & Light.

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1. Reason for Improvement1. Reason for Improvement
QualityImprovementStory
CycleCycle
Identify the general “theme” (problem area) and the
reason(s) for working on it. Many or all of the reason(s)
may be identified from the sponsoring “lead team.”
 Defined Process
 Ownership & Accountability
 Products and/or Services
 Customer(s)
 Suppliers
 Data/Success Indicator(s)
 Estimated Level/Degree of Improvement
 Schedule for QI Story Activities
Brainstorming/Multivoting
Process Flowchart
Block Diagram
Control Chart
Graphs & Data Collection
Form
FROMFROM
THETHE
TOOLBOX

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2. Problem Identification2. Problem Identification
CycleCycle
Data Collection Form
Control Chart
Graphs
Histogram
Pareto Chart
Problem Definition Checklist
FROMTHEFROMTHE
TOOLBOX
Select a specific problem from the “theme” identified in
Step 1 and set a target for improvement. (FOCUS!)
 Collect data on all aspects of the theme.
 Stratify the theme to a level specific enough to permit analysis.
 Select a (specific) problem.
 Verify the problem’s impact on customer requirements.
 Write a clear problem statement that includes the current and
targeted levels of performance. (Identify the ‘gap.’)
 Clarify the method used to set the target performance level.
 Present/confirm the theme and
problem statement with the
sponsoring team/manager.

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3. Root Cause Analysis3. Root Cause Analysis
CycleCycle
Force Field Analysis
Graphs
Histogram
Ishikawa Diagram
Pareto Chart
Brainstorming
Affinity Diagram
Decision Matrix
FROMTHEFROMTHE
TOOLBOX
Identify & verify the root cause(s) of the specific problem
identified in Step 2. (Root Cause Analysis will be easier if
the problem statement has focus!)
 Analyze the problem’s cause(s) and effect(s).
 Continue analysis to the level of actionable root causes.
 Select the root causes with the greatest probable impact.
 Verify the selected root cause(s) with data.

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4. Potential Improvements4. Potential Improvements
CycleCycle
Action Plan
Block Diagram
Force Field Analysis
Decision Matrix
Tree Diagram
FROMTHEFROMTHE
TOOLBOX
Plan improvements that will remedy the root causes identified
in Step 3. Test these improvements on a limited scale.
 Develop and evaluate potential improvements based on Step 3.
• Resolve verified root cause(s).
• Satisfy Customer Requirements.
• Verify cost effectiveness.
 Develop an Action Plan that addresses:
• Who, what, when, where, and how.
• The forces (drivers & restrainers) impacting successful
implementation.
 Gain buy-in/support from
sponsoring team or manager on
the proposed changes.
 Test/pilot the potential improvements
on a limited scale.

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5. Verification5. Verification
CycleCycle
Control Charts
Graphs
Histogram
Pareto Chart
Survey
FROMTHEFROMTHE
TOOLBOX
Verify that the remedies have positively impacted the
root cause(s) of the problem – that is, the changes result
in achievement of the target level of performance. (If not,
return to Steps 3 & 4.)
 Confirm the effects of implemented improvement(s), making sure
the root causes have been reduced or eliminated.
 Confirm the improvement(s) using the target indicator (pre- and
post-remedy implementation).
 Implement additional improvements if the results fail to achieve the
target levels of improvement.

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6. Full Implementation6. Full Implementation
CycleCycle
FROMTHEFROMTHE
TOOLBOX
Prevent the problem and its root cause(s) from recurring.
Implement the improvements wherever possible.
 Make the improvements part of employees’ daily work.
• Create/revise process document or work instructions.
• Create/revise appropriate standards.
• Train employees on the revised process and standards.
 Establish a plan for periodic checks, including responsibilities to
monitor the improvements.
 Consider other areas for application/implementation.
 Present the results to your
sponsoring team and/or managers
with recommendations for other
possible areas that might benefit
from the improvements.
Control Charts
Graphs
Histogram
Pareto Chart
Survey

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 Analyze and evaluate any remaining problems related to the theme
(from Step 1).
 Plan further actions, if necessary.
 Review what you learned from your experience working on a
problem-solving team.
• Learned skills.
• Group dynamics/team effectiveness.
• What worked well?
• What could have been done better?
7. Future Plans7. Future Plans
CycleCycle
Action Plan
Decision Matrix
Plus/Delta
FROMTHEFROMTHE
TOOLBOX
Plan what to do about any remaining problems. Evaluate
the effectiveness or the problem-solving process,
including the effectiveness of the team.

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Six SigmaSix Sigma**
ContinuousImprovement
“A disciplined, data-driven approach and methodology for eliminating
defects (driving towards six standard deviations between and the
nearest specification limit) in any process – from manufacturing to
transactional and from product to service.”
A Six Sigma (6σ) process produces no more than 3.4 defects per
million opportunities.
*Source: www.isixsigma.com
Six Sigma DMAIC RoadmapSix Sigma DMAIC Roadmap
DDefine
MMeasure
AAnalyze
IImprove
CControl

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Six Sigma DMAIC PhasesSix Sigma DMAIC Phases **
DD – Define Phase: Define the project goals and customer (internal and external) deliverables.
• Define customers and requirements.
• Develop problem statement, goals, and benefits.
• Identify Champion, Process Owner, and Team.
• Define resources.
• Evaluate key organizational support.
• Develop Project Plan and milestones.
• Develop high-level process map.
• Project Charter.
• Process Flowchart.
• Stakeholder Analysis.
• DMAIC Work Breakdown Structure.
• CTQ Definitions.
• Voice of the Customer Gathering.
DMAIC Phase Activities Tools
MM – Measure Phase: Measure the process to determine current performance; quantify the
problem.
• Define defect, opportunity, unit, and metrics.
• Detailed Process Map of appropriate areas.
• Develop data collection plan.
• Validate the measurement system.
• Collect the data.
• Begin Developing Y=f(x) relationship.
• Determine process capability and Sigma baseline.
• Process Flowchart.
• Data Collection Plan/Example.
• Benchmarking.
• Measurement System Analysis.
• Voice of the Customer Gathering.
• Process Sigma calculation.
DMMAIC Phase Activities Tools

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Six Sigma DMAIC PhasesSix Sigma DMAIC Phases **
AA – Analyze Phase: Analyze and determine the root cause(s) of the defects.
• Define performance objectives.
• Identify value/non-value added process steps.
• Identify sources of variation.
• Determine root cause(s).
• Determine Vital Few x’s, Y=f(x) relationship.
• Histogram.
• Pareto Chart.
• Time Series/Run Chart.
• Scatter Plot.
• Regression Analysis.
• Cause and Effect/Fishbone Diagram.
• 5 Whys.
• Process Map Review and Analysis.
• Statistical Analysis.
• Hypothesis Testing.
• Non-Normal Data Analysis.
DDMAAIC Phase Activities Tools
II – Improve Phase: Improve the process by eliminating defects.
• Perform Design of Experiments.
• Develop potential solutions.
• Define operating tolerances of potential system.
• Assess failure modes of potential solutions.
• Validate potential improvement by pilot studies.
• Correct/re-evaluate potential solution.
• Brainstorming.
• Mistake Proofing.
• Design of Experiments.
• Pugh Matrix.
• House of Quality.
• Failure Modes and Effects Analysis (FMEA).
• Simulation Software.
DMMAIIC Phase Activities Tools

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Six Sigma DMAIC PhasesSix Sigma DMAIC Phases
CC – Control Phase: Control future process performance.
• Define and evaluate monitoring and control
system.
• Develop standards and procedures.
• Implement statistical process control.
• Determine Process Capability.
• Develop transfer plan, handoff to Process Owner.
• Verify benefits, cost savings/avoidance, profit
growth.
• Close project, finalize documentation.
• Communicate to business; celebrate.
• Process Sigma calculation.
• Control Charts.
• Cost Savings Calculations.
• Control Plan.
DMAICC Phase Activities Tools
Process PerformanceProcess PerformanceBefore After
UCL
LCL

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METRICS&MEASUREMENTS
Metrics & MeasurementsMetrics & Measurements
“When all else fails,
manipulate the data.”
“Lies, damn lies,
and statistics.”
“Be careful what you ask
for – you might get it.” “In God we trust. All
others must have data.”
“What do you want
the answer to be?”
“What gets measured,
gets done.”
““The miracle of metrics and the art of charts.”The miracle of metrics and the art of charts.”

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METRICS&MEASUREMENTS
What Is A “GOOD” Metric?What Is A “GOOD” Metric?
Clear
Unambiguous
Understandabl
e
Stand-alone
Irrefutable
Meaningful
ActionableAND… based on sound, accurate, and timelyAND… based on sound, accurate, and timely
data!data!

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Customer/Supplier Questionnaire
Decision Matrix
Flowchart
Graphs
Histogram
Interview
Multivoting
Pareto Diagram
Plus/Delta
Problem Definition Checklist
Survey
Tree Diagram
TOOLS&TECHNIQUES
Action Plan
Affinity Diagram
Benchmarking
Block Diagram
Brainstorming
Cause & Effect (Fishbone)
Diagram
Cause & Effect/Force Field
Analysis
Control Charts
Customer Needs Analysis
TOOLSTOOLS
NOT Rocket
Science!!!

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TOOLS&TECHNIQUES
Tools alone are NOTNOT an answer or solution!!!
A supportive organizational environment is required
for tools’ effectiveness!
tooltool (tool) n
Anything used in the performance of an
operation; an instrument.
Anything regarded as necessary to the carrying out
of one’s occupation or profession.
D I S C L A I M E RD I S C L A I M E R
(Words of advice/warning.)

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Action PlanAction Plan
TOOLS&
TECHNIQUES
02-1
ID Descriptio
n
Owner
Success
Indicator
Baseline
Performance
2002
Goal
2003
Goal
Benchmar
k
Status
SUMMARY
PROJECT DETAILS
Reduce time to respond to
customer complaints.
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complaints
resolved
within 24
hours
43% 60% 75% Best
competitor:
72%
B-I-C: 94%
Oct-2002
QI Story Steps
4
Reason for Improvement 99/99
3
2
1
5
7
6
Current Situation 99/99
Analysis 99/99
Step 4 99/99
Step 5 99/99
Step 6 99/99
Standardization 99/99
Notes & Comments:
Performance Progress
TargetDescription# Jan
99% 99%
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
99% 99% 99%99% 99% 99%99%





TEAM
MEMBERS:

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Affinity DiagramAffinity Diagram
TOOLS&
TECHNIQUES
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea Idea Idea
Via
Brainstorming,
record all ideas
on ‘Post-It’ notes
and place them
randomly on
a wall or table.
Without speaking,
participants move
notes that reflect
similar or related ideas.
The result will be
logical groupings
of similar ideas.



(Themes)

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BenchmarkingBenchmarking
TOOLS&
TECHNIQUES
No matter how good you are, there is always somebody better!No matter how good you are, there is always somebody better!
Benchmarking assesses your process(es) and results against
those of recognized leaders and/or competing organizations. Use
this information to establish priorities and targets of performance
that will achieve a competitive advantage.
 HOWHOW they do things?
 WHATWHAT are their results?
 Average competitor.
 Best competitor.
 Best-in-class. (May be a non-
competitor outside of your industry!)
1. Determine what items to benchmark. (Should be integral to your
customers, business, and success.)
2. Determine who to benchmark.
3. Determine benchmarks.
4.4. USEUSE the information/knowledge to drive internal improvements!
GIVE &GIVE &
TAKETAKE
Y
O
Y
O
UU
BenchmarkBenchmark
OrganizationOrganization

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Block Diagram*Block Diagram*
TOOLS&
TECHNIQUES
Engineering Production InspectionCustomer
Places Order
Customer
Order Ships
Verify customer
requirements
Confirm DFM
(Design for
Manufacturability)
Verify suppliers’
capability
(w/Procurement)
Design the
production
process
Implement
production
design
Fulfill customer’s
order
Verify products
against
requirements
Repair faulty
product(s)
Pack & ship
*Useful for defining
high-level processes.

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BrainstormingBrainstorming
TOOLS&
TECHNIQUES

THE IDEA GENERATORTHE IDEA GENERATOR
A facilitator or team member records ideas, preferably
on an easily visible flip chart or ‘Post-It’ notes.
Everyone is encouraged to provide a single idea each
time around the group.
It’s OK to “Pass” on your turn.
Continue around the group until no more ideas are
forthcoming.
Questions of
clarification
ONLY!
NONO
CRITICIZINGCRITICIZING!!!
No talking!!!
(Unless it’s your
turn.)




Go for volume;
forget
feasibility!

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Cause & Effect (Fishbone/Ishikawa) DiagramCause & Effect (Fishbone/Ishikawa) Diagram
TOOLS&
TECHNIQUES
Relates potential or confirmed causes to (undesirable) outcomes.
Chronically
late for
work.
Machinery
Man Methods
Materials
Car won’t start.
Road construction.
Alarm clock
doesn’t go off.
Alarm clock
not set.
Multiple hits of
‘snooze’ bar.
Starbuck’
s
addiction.
Spouse ‘needed’
me.
“Nothing to wear.”
Does not take direct route.
(Starbuck’s not on the way.)
Lollygagging.
Just plain lazy. Get up too close
to start time.
Disorganized.
Bad weather.Flat tire.
Traffic lights
not working.
Get kids
to school.
Stay up too late.
Dr. Ishikawa

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‘Standard’ Categories
(‘Default Bones’)
Cause & Effect (Fishbone/Ishikawa) DiagramCause & Effect (Fishbone/Ishikawa) Diagram
TOOLS&
TECHNIQUES
The 4 M’sThe 4 M’s
Methods
Machines
Materials
Man(power)
The 4 P’sThe 4 P’s
Place
Procedure
People
Policies
The 4 S’sThe 4 S’s
Surroundings
Suppliers
Systems
Skills












 Use whatever bones/categories work for you.
 Including ALL ideas is more important than
the category names or the category ‘fit’!

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Cause & Effect – Force Field AnalysisCause & Effect – Force Field Analysis
TOOLS&
TECHNIQUES

DrivingForcesRestrainingForces
Belief that
our quality
is already
good.
Misunderstanding
of meaning of
quality.
Lack of
understanding
of “bottom
line” impact.
Viewed as a
competing
priority.
No perceived
quality crisis –
no proaction.
Direct
customer
contact.
Institute quality
improvement goals
and tie to executive
compensation.
Top executives lead by example.
Actively implement quality policy,
demonstrate by mandate and
participate in executive training.
Level of Perception of Quality as aLevel of Perception of Quality as a
Strategic Priority is Too LOWStrategic Priority is Too LOW
A B C D E
1 2 3
1
A
B
E
2
A
B
C
D
E
3
A
B
C
D
E
Key
Force Field AnalysisForce Field Analysis can be used to supplement
Cause & Effect (Fishbone) Diagram in determining
the most significant cause(s) of a problem.

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Control ChartsControl Charts
TOOLS&
TECHNIQUES
 Used to monitor the ongoing performance of a process.
 Requires an understanding of statistical process control
concepts.
• All processes fluctuate with time.
• Individual points are unpredictable.
• A stable process fluctuates
randomly, and groups of points from
a stable process tend to fall within
predictable bounds.
• An unstable process does not
fluctuate randomly, and the
nonrandom fluctuations are generally
those that fall outside of predictable
boundaries.
Control charts are based
on four concepts:
• Out of control but capable of
meeting customer requirements
(process control/management
required).
• In control but incapable of meeting
customer requirements (process
improvement required).
• Out of control and incapable of
meeting customer requirements
(process control/management
required; process improvement
required).
Control charts can be used to
determine that a process is:

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TOOLS&
TECHNIQUES
Average Number of Days
for Standard Shipping
1 2 3 4 5 6 7 8 9 10
0
5
1
2
3
4
Range of Delivery in Days
1 2 3 4 5 6 7 8 9 10
0
5
1
2
3
4
X-Bar ChartX-Bar Chart
UCL=4.7
LCL=2.7
MEAN=3.7
Cust. Req.=3.0
Week Week
R ChartR Chart
UCL=3.6
LCL=0.
0
MEAN=1.7
Dr. Shewhart

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TOOLS&
TECHNIQUES
Dr. Shewhart
Process PerformanceProcess Performance
Before After
UCL
LCL
‘Tighter’/less variable process results.
(Less range between the Upper Control Limit & Lower Control Limit.)
Process ‘in control.’
Control charts are derived from actual process
performance.
UCL & LCL DO NOTDO NOT reflect customer requirements!!!



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Customer Needs AnalysisCustomer Needs Analysis
TOOLS&
TECHNIQUES
Used to determine the key, measurable characteristics that are
important to your customer(s).
Working WITH your customer(s),
determine… What are the key outputs of our process?
 Who are the customers (immediate, downstream, and end)
for each of the outputs?
 What are your customer(s)’ requirements for each of the
outputs?
 How can you measure your performance on the key
characteristics?
 What goal(s) or expected level(s) of performance do your
customer(s) expect?

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Customer Needs AnalysisCustomer Needs Analysis
TOOLS&
TECHNIQUES
Key product/service characteristics might include:
Timeliness.
Understandability.
Uniformity.
Flexibility.
Relevance.
Reliability.
Accuracy.
Completeness.
Consistency.
Measurements might include:
Physical parameters.
Time.
Work output.
Cost(s).
Customer satisfaction.
Defects & rework.
Methods to acquire customer information might include:
Mail & telephone market surveys.
Business office complaints analysis.
Executive complaint analysis.
Interviews with
- Customers.
- Sales personnel.
- Business office personnel.
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Customer/Supplier ModelCustomer/Supplier Model
TOOLS&
TECHNIQUES
YOUYOU
or
YourYour
OrganizationOrganizationSupplier Customer
Inputs Outputs
Feedback Feedback
ADD
ADD
VALUE
VALUEWho are your suppliers?
What are their products
and/or services?
How do you inform them of
your satisfaction?
Who are your customers?
What are your products
and/or services?
How do they inform you of
their satisfaction?
SYSTEMS &SYSTEMS &
PROCESSESPROCESSES
CONTINUOUSCONTINUOUS
PERFORMANCEPERFORMANCE
IMPROVEMENTIMPROVEMENT

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Customer/Supplier QuestionnaireCustomer/Supplier Questionnaire
TOOLS&
TECHNIQUES
Used to supplement Customer/Supplier Model development.
(May also prove useful in developing organizational strategy.)
Ask questions about your relationship(s) with your customers:
1. What are your primary outputs (products & services) as a supplier?
2. Who are your customers – primary, direct users, or recipients – of your
products & services?
3. What are your customers’ requirements for your products & services?
4. How do you determine customers’ requirements?
5. How satisfied are your customers with your products & services?
6. How do you measure your customers’ satisfaction?
Ask questions to solicit feedback about your process performance:
1. What output characteristics can be measured to determine whether outputs
meet customers’ requirements?
2. What major quality problems prevent you from meeting your customers’
requirements?
3. What obstacles stand in the way of resolving these problems?
4. What would it take to resolve these problems?

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Customer/Supplier QuestionnaireCustomer/Supplier Questionnaire
TOOLS&
TECHNIQUES
Ask questions about your relationship(s) with your suppliers:
1. Who are your suppliers: Who do you depend upon for input(s) – information,
products and/or services – to fulfill your customers’ requirements?
2. What primary inputs do you receive for those inputs?
3. What are your requirements for those inputs?
4. How do you communicate your requirements to your suppliers?
5. How satisfied are you with your suppliers’ products & services?
6. How do you provide feedback to suppliers about their performance?
Used to supplement Customer/Supplier Model development.
(May also prove useful in developing organizational strategy.)

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Data Collection FormData Collection Form
TOOLS&
TECHNIQUES
Used to collect & record data; promotes consistency of data and
facilitates comparisons.
1. Establish the specific purpose of collecting these data.
2. Identify categories of data or information (e.g., consequences of the
problem) required to address these questions.
3. Brainstorm factors that affect these categories by asking fact-finding
questions about, for example, frequency, timing, location, etc.
4. Determine how the data will be analyzed.
5. Multivote to reduce lists to an appropriate/practical number.
6. Construct a tabular form using categories in Step 2 for the column
headings, factors in Step 3 for the row labels. Provide a place to
record information about:
(1) Who collected the data?
(2) Where, when & how they were collected?
(3) The total population if data are from a single sample.

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Data Collection FormData Collection Form
TOOLS&
TECHNIQUES
Americans’ Car Purchasing Habits
America Japan Germany Korea Sweden UK Other TOTAL
S
Maker
Sedan
2-door
Sports car
SUV
Pickup
Other
TOTALS
Date: Site: Collected by:

wah
Decision MatrixDecision Matrix
TOOLS&
TECHNIQUES
Determine & use selection criteria to select ‘best’ choices or
alternatives.
FeasibilityFeasibility
What is the feasibility that the idea
could be successfully implemented
considering such factors as cost,
time, staff, organization culture and
resistance?
EffectivenessEffectiveness
What is the probable/likely
organizational impact of the idea IFIF
it is successfully implemented?
55 = No problem!
44 = Likely.
33 = Some roadblocks/obstacles.
22 = Doable – but not easily.
11 = Forget it!
55 = The greatest thing ever!
44 = Significant.
33 = Will do us good.
22 = Marginal impact.
11 = Little or no impact.
** Feasibility & Effectiveness are good ‘default’ criteria. Use additional/different criteria as needed.

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Decision MatrixDecision Matrix
TOOLS&
TECHNIQUES
FFeasibility EEffectiveness RankFF*EE# Description
E X A M P L EE X A M P L E
Re-engineer the End-to-End Process.1 2 5 10 3
Go back to customer to ask for an
extension of the delivery date.
2 3 4 12 2
Upgrade development cycle technology –
PCs, servers, test equipment.
3 4 4 16 1
Require 80-hour work weeks for all design
& test engineers – with no overtime pay.
4 1 5 5 4
Provide project executives with prime
private parking spaces.
5 5 1 5 4
(Development project behind schedule.)
Evaluation of possible solutions.
From brainstorming

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FlowchartFlowchart
TOOLS&
TECHNIQUES
Termination (Begin/End)
Electronic (Disk) Storage
e.g., Database
Paper/Report Output
Predefined
Process
Process (or Process
Step)
Decision
Common Flowchart SymbolsCommon Flowchart Symbols
Surf
Click to
next
channel.
Interested
???
Watch
End
Yes
No
Channel Surfing Process
E X A M P L EE X A M P L E

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GraphsGraphs
TOOLS&
TECHNIQUES

• Bar Chart
• Line Graph
• Pie Chart
• Histogram*
• Control Chart*
Use whichever graph type serves
as the best representation of data
for analysis & communication.
GraphGraph
TypesTypes
Graph UseGraph Use
• Graph Title
• Clear labels for X and Y axes.
• Scale adjusted to best illustrate
the data.
• Indicate # data points in the
analysis, e.g., N= .
• An arrow indicating the good or
positive direction.
Graph GuidelinesGraph Guidelines
* Described in other sections.

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GraphsGraphs
Graphs–BarChart
Bar ChartBar Chart
Bar ChartsBar Charts show a comparison of quantities by the relative length of
the bars representing them. Quantities may be frequencies of events,
costs, or other kinds of data breakdowns. (See also: Histogram.)
Air Car Train
2001 2002
$
Americans’ Personal Travel Expenditures
N=32,512

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GraphsGraphs
Graphs–LineGraph
Line GraphLine Graph
Line GraphsLine Graphs show trend lines and can display several sets of data on
one chart. They are useful to monitor process performance to identify
meaningful shifts in the long-range average. Line Graphs are
commonly used to graph the results of a process over time.
2002
(est.)
200120001999199819971996
$
My 401(k) Value
N=8239

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GraphsGraphs
Graphs–PieChart
Pie ChartPie Chart
Pie ChartsPie Charts show relationships among quantities by dividing a circle into
wedges of proportionate size. It is most useful when the whole pie
(circle) represents 100%. The size of each wedge indicates a
percentage of the whole.
39
36
10
8
7
Brown
Blue
Green
Gray
Other
Americans’ Eye
Colors
(% of population)N=58,344

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GraphsGraphs
Graphs–TheIdealChart
The ‘Ideal’ Results ChartThe ‘Ideal’ Results Chart
Performance Indicator 'X'
0
5
10
15
20
25
30
35
1 2 3 4 5 6 7 8
Period
YOU
Projection
Best Competitor
Best-in-Class
 Several periods of results
(per production interval,
hour, day, week, month,
annual).
 Your results.
 Relevant comparisons/
benchmarks.
 A projection for future
performance.
 A ‘good’ directional
indicator.
GOO
D
Quantity
Attributes
N=nnnn

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HistogramHistogram
TOOLS&
TECHNIQUES
A visual representation of the distribution of variable data.
100
75
50
25
0
Support Center Call Volume
(North America Market; Central Time)
#CallsperHour
00:00 12:00
PM
12:00
noon
4:00
AM
8:00
AM
4:00
PM
8:00
PM
Measures of Central TendencyMeasures of Central Tendency
Mean
Arithmetic Average
Median
‘Middle’ Value
Mode
Most Frequent
Value
N=748

wah
InterviewInterview
TOOLS&
TECHNIQUES
An important information gathering technique that also enhances
working relationships (internally and/or with customers). More
people interviewed will produce more valid (accurate) results.
Before the interview:
Gather background info on
topic & interviewee.
Outline areas to be covered
and major questions to be
asked.
- Open-ended questions
often produce the most
useful responses.
Tell interviewee the
interview purpose & length.
Choose a comfortable
meeting place.
During the interview:
Help interviewee feel
comfortable.
Remain analytical and
objective.
Take notes as appropriate.
Summarize and reflect back
answers to verify what you
have learned.
After the interview:
Thank the interviewee.
Review and interpret the
responses/data as soon as
possible (while still fresh in
your mind).
When appropriate, contact
the interviewee to tell them
how their input was used.

wah
MultivotingMultivoting
TOOLS&
TECHNIQUES
A structured series of votes used to help teams:
 assign priorities in a list of many items, and
 reduce the list to a manageable few (3-5).
This technique may be especially helpful after brainstorming.
For each round of voting:For each round of voting:
 Each person votes for no more than a set number of items.
(Rule of Thumb: ½-plus-one the number of items.)
 Each person can vote only once for any single item.
 A person does not need to use all her/his votes.
 Select the top vote getters for a subsequent round of voting.
Continue rounds of voting until the list is reduced to 3-5 items.
(Never multivote down to only one.)

wah
Pareto DiagramPareto Diagram
TOOLS&
TECHNIQUES

Mortgage Car(s) Groceries UtilitiesSavings Entertain-
ment
Others
‘‘80/20 Rule’80/20 Rule’
(a’la Juran)
20% of monthly expense items consume
80% of the monthly household budget.
Vilfredo Pareto

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Plus/DeltaPlus/Delta
TOOLS&
TECHNIQUES
This technique is very useful for performing a summary or
‘postmortem’ at the conclusion of a meeting or project.
The Plus/Delta items are used to improve the next
meeting or project’s efficiency and/or effectiveness.
+ ∆
[Brainstorm/list
what worked
well or was
positive to the
team’s
progress and
success.]
[Brainstorm/list
what didn’t
work well or
was detrimental
to the team’s
progress and
success.]

wah
Problem Definition ChecklistProblem Definition Checklist
TOOLS&
TECHNIQUES
A well-stated problem statement describes what is wrong in specific,
concrete terms, avoiding hidden situations.
State where and when the problem is occurring. It should locate the “pain” of the
problem.
State the problem clearly and definitely, not as a question or an incomplete statement.
State the difference between “what is” and “what should be” in measurable terms.
Some problems are difficult to quantify. However, a problem that is impossible to
quantify should be reexamined.
Consciously avoid implicit assumptions about a solution or cause; state only the facts.
Any problem definition using “lack of,” “due to,” or similar phrasing implies a cause or
solution.
Specific:
Declarative:
Quantified:
Factual:
Does the problem definition answer the
questions who, what, when, and where?
Does the problem definition focus on the
effect, not the cause, of the problem?
Does the definition clearly describe the
difference between “what is” and “what
should be?”
Does the definition describe this
difference in measurable terms?
Does the problem definition avoid broad categories?
Is the definition positive (avoiding such phrases as
“lack of”)?
Is it a declarative statement (as opposed to a
question)?
Does it focus on the “pain aspect” of the problem
(how things are affected)?
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wah
SurveySurvey
TOOLS&
TECHNIQUES
A written questionnaire soliciting participants’ input/feedback on a relevant
topic. Like interviews, surveys can be an effective means of determining
customer needs or satisfaction.
Careful planning is critical to conducting successfulCareful planning is critical to conducting successful
surveys!!!surveys!!!Survey Design
Expectations vs.
experience?
Response scale: 2, 3, 5, 7,
or 10.
Feedback on importance
and/or experience.
Opportunity for ‘ad hoc’
comments.
Designed to provide
actionable feedback.
(“Design for Usability”)
Enough – but not too many –
questions.
Survey Strategy
Determine survey target
population:
- Demographics.
- Population size.
Response rates:
- Must be adequate to
assure meaningful
feedback.
- Consider incentives and/or
follow-up.
Survey delivery:
- Paper vs. electronic vs.
phone.
Survey Use
Plan (in advance!) for how
survey feedback will be
analyzed and used.
Act on opportunities!
Follow-up with survey
participants w/r/t how
feedback was considered
and/or used.

wah
Tree DiagramTree Diagram
TOOLS&
TECHNIQUES
A systematic approach to define a hierarchy of needs, objectives,
characteristics, or goals. The Tree Diagram method is best suited for:
- Translating very ill-defined needs into operational characteristics.
- Exploring all the possible causes of a problem.
- Defining specific tasks to reach higher level goals.
(Use brainstorming, multivoting, or other tools to determine items.)
A “Quality”
Dining
Experience
Food
Servic
e
Ambienc
e
Tast
eTemperature
Presentation
Fast
Friendly
Efficient
Space
Temperature
Cleanliness
Noise

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