Focused
Process
Improvement Managing for Results
847-919-6127
info@quantumassocinc.com
quantumassocinc.com

Introduction
• Leadership for Culture Change
• Leaders must provide true leadership for organization change to be successful
• Leaders must develop the mission, vision, and values (guiding principles)
• Leadership is not about minding the store, it is about forging new frontiers of
achievement
©Quantum Associates, Inc 2021 2

The Keys to Leading Successful Change
Module One
©Quantum Associates, Inc 2021 3

The Keys to Leading Successful Change
• Fire in the Belly
• Your vision must reflect a passion and urgency for change
• Your task is to create a compelling case for action in your own mind
• Don’t cause the pain of changing to be a “flavor of the month”
©Quantum Associates, Inc 2021 4

The Keys to Leading Successful Change
• Honest Self Assessment
• Know how the leadership team is perceived by the organization
• Conduct a survey to gather the pulse of the people and learn how the organization as a
whole, and the leadership team in particular is perceived
©Quantum Associates, Inc 2021 5

The Keys to Leading Successful Change
• Balance Time and Priorities
• The Leadership team must establish the strategic importance of the process improvement
initiative and define how each member of the team will spend time in support of the
effort
©Quantum Associates, Inc 2021 6

The Keys to Leading Successful Change
• Model the Principles
• Adopt a new paradigm for managing
• Provide the guiding principles that make continuous improvement a way of life in the
organization
©Quantum Associates, Inc 2021 7

The Keys to Leading Successful Change
• Incorporate Within Your Strategic Framework
• Make process improvement effort a part of your overall strategic plan
• Integrate the plan into the fabric of your organization
• Mainstream process improvement into the planning and objective-setting process
©Quantum Associates, Inc 2021 8

The Keys to Leading Successful Change
• Understand the Dynamics of Change
• You must be aware of the learning curves, intellectual and habitual, and the
accompanying emotional stages the people of your organization will experience
©Quantum Associates, Inc 2021 9

The Keys to Leading Successful Change
©Quantum Associates, Inc 2021 10
Success
Change
Begins
Excitement
Apprehension
Doubt
Disillusionment
Confidence
Conviction
Habit Change
Intellectual
Knowledge
The change gap
Change
Time

The Keys to Leading Successful Change
• Expect Cynicism
• Expect cynicism from employees who have been through one too many programs
• Cynicism is a result of cognitive dissonance-how we feel when there is an imbalance
between our stated beliefs, and our daily behavior.
• Enlist everyone in the change process to overpower cynicism
©Quantum Associates, Inc 2021 11

The Keys to Leading Successful Change
• Plan to Win With Results
• Develop a plan that is designed to win by articulating the important results that should be
achieved as the change process is implemented
• Set improvement goals in the soft category (cultural characteristics) and the hard
category (organizational performance)
©Quantum Associates, Inc 2021 12

The Keys to Leading Successful Change
• Stay Externally Focused on the Customer
• Constantly link the process improvement effort to the ultimate customer satisfaction
goals of the organization
• Stay customer focused by:
• Establishing customer satisfaction and retention as the most important measure of the company
• Sharing the voice of the customer with everyone in the organization (surveys or other customer
feedback)
©Quantum Associates, Inc 2021 13

The Keys to Leading Successful Change
• Savor the Journey
• Your vision and principles will make this journey a noble quest
• Embrace the philosophy of continuous process improvement at the outset
©Quantum Associates, Inc 2021 14

Leadership Roles and Responsibilities
• Form Implementation Team
• Appoint individuals who can lead and facilitate building the process
improvement system
• Members of the implementation team include
• Process owners
• Chief Improvement Officer
• Process Improvement experts
• Others as required
©Quantum Associates, Inc 2021 15

Leadership Roles and Responsibilities
• Develop Implementation Charter
• A directional road map for implementation of the continuous
improvement system in the organization—provides the business case
for improvement
• Separate charters are prepared for the entire organization and the
respective key processes
• Clearly state the benefits expected from the implementation of the
process improvement initiative
• Chief Improvement Officer creates corporate charter
• Process/Value Stream Owners create the charters for their respective
processes
©Quantum Associates, Inc 2021 16

Leadership Roles and Responsibilities
• Redesign the Organizational Structure
• Structure the organization around key processes or value
streams
©Quantum Associates, Inc 2021 17
Leadership Team

Leadership Roles and Responsibilities
• Install Anchors
• Building blocks that support the architecture of the
continuous improvement system
• The five anchors of continuous improvement
• People
• Processes
• Partners
• Promotions
• Problem Solving
• They are closely linked and work in tandem to deliver
the specific results and sustain the initiative
©Quantum Associates, Inc 2021 18

Leadership Roles and Responsibilities
• List All the Key Processes
• Four Types of Processes in an Organization
• Value-creating processes—directly help in the achievement of
business results, contribute to customer satisfaction and facilitate
output delivery i.e. Customer acquisition
• Value-enabling processes—work closely with value-creating
processes, but do not directly impact business results, customer
satisfaction or output delivery i.e. Market research
• Support processes—Support the value-creating and value-
enabling processes. They are similar across the organization and
cut across functional silos and SBUs i.e. Recruitment
• Management processes—help hold the above processes
together by making them function flawlessly. They help in the
governance and maintenance of a process management
framework i.e. document control
©Quantum Associates, Inc 2021 19

Leadership Roles and Responsibilities
• Customer Value Creating Processes and Key
Process Loops
• Value-creating processes are typically cross-functional in nature
• Key process loops must function flawlessly in unison to enable
consistent process performance
©Quantum Associates, Inc 2021 20
Sales Collections
Customer
Service
Credit
Customer
Satisfaction
Key Process Loops of a Value Creating Process

Paradigms for Improvement
Module Two
©Quantum Associates, Inc 2021 21

Paradigms for Improvement
•Objectives
• Understand the seven paradigm shifts needed to implement
process improvement
• Conduct a self check of practices based on old and new
paradigms
©Quantum Associates, Inc 2021 22

Paradigm One: Quality Redefined
• Quality is no longer defined by technical experts, it is defined by the customer
• Quality is defined by meeting the requirements of the customer
• Quality is no longer defined by local competition, you must benchmark your
organization against the highest standards for quality in the world
©Quantum Associates, Inc 2021 23

What is Quality?
©Quantum Associates, Inc 2021 24

Paradigm Two: Continuous Improvement
• Continuous improvement is driven by the customer and requires a
vigilant focus on the customer and a constant evaluation of the value
customers receive from every step of the process
• Teams focus on improvement opportunities like
• Decreasing the cycle time of processes
• Decreasing the cost of processes
• Increasing the quality and value that processes deliver to customers
©Quantum Associates, Inc 2021 25
Vision
Mission
Values
Plan
Do
Check
Act

Paradigm Three: People Make the
Difference
• People are the lifeblood of the
organization
• People
• Serve customers
• Improve processes
• Think about a “better way”
of doing the work
©Quantum Associates, Inc 2021 26

Paradigm Four: Process Improvement
versus Results
• Shift from a focus on achieving results to how results are achieved
• The shift to process focus is fundamental to continuous improvement
and customer satisfaction
©Quantum Associates, Inc 2021 27

Process-oriented vs. Results-oriented
©Quantum Associates, Inc 2021 28
B C D
A E
Process-
Oriented
Support & Stimulate
Management Roles:
Process Operators: Improvement Efforts Performance
Control
Result-
Oriented

Paradigm Five: Systems Thinking
• Shift from the discipline of looking at the individual parts of
the system to the discipline of looking at the whole system
• Teams must be organized into units that have distinct
ownership for all parts of a vital business process
©Quantum Associates, Inc 2021 29

Paradigm Six: Horizontal Structure
• Business processes are cross-functional or horizontal in nature
• The horizontal organization emphasizes the fundamental work relationships
between suppliers and internal customers.
• Managers become process owners and coach the process operators
©Quantum Associates, Inc 2021 30

Horizontal Structure
©Quantum Associates, Inc 2021 31
Traditional Organizations
However, Work Flows Like This
External
Suppliers
External
Customers
Internal Processes

Paradigm Seven: Teams as a
System
• Everyone is part of a team, and each
team is responsible for continuously
improving its performance
• Characteristics of a Team System
• Teams are organized around
business processes
• Each action of the team adds
value
• Teams are linked across the
organization by customer and
supplier partnerships
• Teams are guided by a common
mission and focus on the
customer
©Quantum Associates, Inc 2021 32

Are These Paradigms For You?
• These paradigms offer the
beginning of a roadmap toward
future success if you are ready for
change
• To initiate change you must
completely examine your
organization and articulate a new
paradigm by defining its mission,
vision and guiding principles
©Quantum Associates, Inc 2021 33

The Goal: Ever Improving Organizational Capability
• Quality and continuous process
improvement initiatives should be
about improving organizational
capability and capacity
• Capability defines that set of
outputs that can be consistently
delivered to customers at a level
that meets or exceeds their
expectations
• Capacity is defined as the
quantity of output, products or
services, that can be produced at
a consistently high level of
quality
©Quantum Associates, Inc 2021 34

 Check Your Organization
Old Principles in Action
• Direction Driven
• Workers only want pay and time off
• Many layers of management and slow bureaucracy
• Jobs are broken into pieces
• Work as individuals
• Decisions are made at top
• Worker is viewed as a replaceable part
• Pay is geared to job class
• Others inspect for quality
• Work to catch mistakes
• Divide thinking and doing between managers and
workers
• Information is funneled to the top for decisions
New Principles in Action
• Purpose driven
• Workers want challenge and satisfaction
• Few layers of management and flat structure
• Job functions are combined
• Work as teams
• Decisions are made at all levels
• Worker is valuable and constantly trained
• Pay is linked to skills acquired
• Build in quality and self respect
• Work to celebrate success
• Everyone is a thinker, and learning occurs all the
time
• All levels collect and use information to make
decisions
©Quantum Associates, Inc 2021 35

Action Step
• Identify which of the seven
paradigms would be most important
for your team to begin adopting.
• Identify specific actions that the
Leadership team can take over the
next few weeks to begin to live by
this paradigm.
©Quantum Associates, Inc 2021 36

The Continuous Improvement
Cycle
• Module Three
©Quantum Associates, Inc 2021 37

The Continuous Improvement Cycle
•Objectives
•Understand the components of the continuous
improvement cycle
•Understand the two thrusts of continuous improvement
©Quantum Associates, Inc 2021
38
Vision
Mission
Values
Plan
Do
Check
Act

Vision, Mission, Values
• Vision
• The picture of the future that
defines what we seek to become
• Continuous process improvement is
guided by a compelling vision
• Mission
• The specific accomplishments that
must be achieved if the vision is to
be realized
• Values
• Statements of belief about the
nature of people and the practices
that will serve the interests of all
stakeholders
©Quantum Associates, Inc 2021 39

The Performance Promise
• The first step in continuous process
improvement is to establish your
organization’s performance promise
(plan) and the performance promise
of each team
• The team’s performance promise is
defined in the Team Charter
©Quantum Associates, Inc 2021 40

Deliver on the Promise
• Your organization must be able
to coordinate the actions of its
members so that internal and
external customers can count
on the organization to deliver
on the promise (Do)
©Quantum Associates, Inc 2021 41

Evaluate Performance Against the
Promise
• The evaluation (Check) step of
the continuous improvement
cycle provides the team with its
instrument panel to measure
how closely actual
performance matches the
performance promise (Plan)
©Quantum Associates, Inc 2021 42

Improve the Process
• In the fourth step of the continuous improvement process the team
works (Act) to improve the effectiveness and capability of work
processes
• Improve consist of
• Root cause analysis
• Identifying process capability gaps between actual and planned performance
• Implementing process improvement action plans that eliminate waste,
redundancy, and non-value adding process steps—improving cycle times,
output quality, and ease of operation for process owners
©Quantum Associates, Inc 2021 43

Check Your Performance Promise
•What are some of the components of the Performance
Promise that your customers expect you to deliver on?
•What part of the Performance Promise do you and your
team help to deliver?
•How could your team contribute to a better Performance
Promise?
©Quantum Associates, Inc 2021 44

Action Step
As a team discuss how well your
organization has fulfilled its
Performance Promise over the last
six months.
• Identify some recent
instances in which the
organization has delivered
on its Performance
Promise. What happened?
What factors contributed to
the organization’s
successful delivery on its
promise?
• Identify some recent
instances in which the
organization has not
delivered on its
Performance Promise.
What happened? What
factors affected the team’s
ability to fulfill its promise?
©Quantum Associates, Inc 2021 45

Process Management
• Module Four
©Quantum Associates, Inc 2021 46

What is Process Management?
• Process management refers to:
• Defining work as a process
• Tracking and analyzing the
performance of a process
• Redesigning a process to
improve its performance
©Quantum Associates, Inc 2021 47

What is Process Management?
• Process management
• Provides a common language
and way of addressing problems
• Is a concrete, preventive
approach to continuous
improvement
• Make work easier and more
efficient
• Enhances cross-functional
teamwork
©Quantum Associates, Inc 2021 48

The Importance of Process Management
• Process management represents a
systematic approach to
improvement
• It gives the team a practical model
and set of tools for analyzing and
redesigning their work
©Quantum Associates, Inc 2021 49

Process Management Steps
• Process management activities include:
• Looking at processes first, before
functions, departments or jobs
• Identifying internal and external
customer requirements
• Mapping current processes
• Using quality tools to analyze and
measure process performance
• Changing “we’ve always done it
that way” methods.
• Cross-functional boundaries
• Looking for breakthroughs in
defects, time and costs
• Redesigning processes
©Quantum Associates, Inc 2021 50

Types of Processes
©Quantum Associates, Inc 2021 51
Value Creating Processes
Help achieve business results
Contribute to customer satisfaction
Value-enabling Processes
Work closely with value-creating
processes
Do not impact business results or
customer satisfaction
Examples: Market Research,
Advertising

Types of Processes
•Support Processes
• Support the value-creating/enabling processes
• Similar across the organization and cut across functions
• Examples: Hiring, recognition, appraisal, salary administration,
ordering, invoicing, planning, budgeting, and project management
•Management Processes
• Help hold the above processes together by making them function flawlessly
• Help in governance and maintenance of a process management framework
• Examples: Document Control, Corrective Action
©Quantum Associates, Inc 2021 52

Key Partnerships For The Team
©Quantum Associates, Inc 2021 53
Suppliers
(Input)
Customers
(Output)
Work Processes
of Team
Team Partnerships and Work Processes
A team receives input from a supplier and delivers output to a customer.
Every team works to support other teams and counts on support from
supplier teams.

Team Work Flows
©Quantum Associates, Inc 2021 54
Design Engineering Assembly
Machining
External
Suppliers
External
Customers
Out
put
Out
put
Out
put
Each team takes input and transforms that input into value-added output.
Outputs are then handed-off to the next team in the chain.
Work Processes of the Organization
Feedback Feedback Feedback

Flowcharts
•Flowchart
• Shows unexpected complexity, problem areas, redundancy, waste, and non-
value-added steps.
• Compares and contrasts the actual versus the ideal flow of a process to identify
improvement opportunities.
• Identifies locations where additional data can be collected and investigated.
• Serves as a training aid to understand a process.
©Quantum Associates, Inc 2021 55

Flowcharts
•Flowchart
•How To Use It
• Determine the boundaries of the process
• Determine the steps in the process
• Sequence the steps
• Draw the flowchart using appropriate symbols
• Test the flowchart for completeness
• Finalize the flowchart
©Quantum Associates, Inc 2021 56

Flowcharts
•Basic Flowchart Symbols
• Oval – indicates boundary of process- start/end
• Rectangle- shows a task or activity
• Diamond- Decision point- yes or no question
• Arrows – shows direction or flow of process
• Connector- identifies break and continuation
©Quantum Associates, Inc 2021 57
A

Process Mapping
• Process mapping is the technique of using flowcharting to illustrate the flow of
the process. Proceeding from the most macro perspective to the level of detail
required to identify improvement opportunities
©Quantum Associates, Inc 2021 58

Mapping a Process
• Begin by drawing the process as it exists today at the most
global organization level
• The macro block diagram forces us to identify the
boundaries of the process as well as its inputs and outputs
©Quantum Associates, Inc 2021 59
Reservation
Process
Input:
Request for
Reservation
Output:
Confirmed
Reservation

Mapping a Process
•Draw the next level of detail- two options
•Macro Map – a broad overview of the process-the
“30,000 foot view”
•Relationship (cross-functional) Map- Shows the
steps in the process as well as who performs them
©Quantum Associates, Inc 2021 60

Macro Map Example
• Report Writing Process
©Quantum Associates, Inc 2021 61
Site
Visit
First
Draft
Team
Edit
Second
Draft
Graphics Mail
Inputs:
Interview
notes,
observations,
research,
record
template
Output:
Report
including data
&
recommended
action

Relationship Map Example
• Project Planning Process
©Quantum Associates, Inc 2021 62
Customer
Sales Rep
Developer
States
wants &
needs to
Sales Rep
Proposal
Accepted
Calls
customer
to identify
needs
Translates
Needs
into specs
Contact
Developer
Receives
specs &
develops
draft of
project plan
Presents
draft of
plan to
customer
Rework
draft
Draft
OK?
Describes
gap in
draft vs.
needs
Final Plan

SIPOC Analysis
• What does it do
• Identify process boundaries
• Identifies the customers and suppliers of a process
• Identifies the process inputs supplied by suppliers and the process outputs used
by the customers
• Helps in identifying data collection needs
©Quantum Associates, Inc 2021 63

SIPOC Analysis
• Creating a SIPOC
1. Provide a description of the process
2. Define the boundaries of the process
3. List the outputs of the process, their
requirements and how they will be measured
4. List the customers of the outputs
5. List the inputs required for the process and how
they will be measured
6. List the suppliers of the process inputs
©Quantum Associates, Inc 2021 64

Suppliers Inputs Process Outputs Customers
Providers of the
process
Inputs into the
process
Top level
process
description
Outputs of the
process
Receivers of the
process outputs
Start
2
6 5 1 3 4
End
2
©Quantum Associates, Inc 2021 65
SIPOC Analysis

SIPOC Analysis
•As applicable, list the operating specification and
process targets for controllable inputs
• For controllable inputs that have these targets list the target
input and the specified lower and upper limits on the setting.
©Quantum Associates, Inc 2021 66

SIPOC Analysis
©Quantum Associates, Inc 2021 67
Suppliers Inputs Process Outputs Customers
Subject
expert
Department
head
University
Department
head
Department
head
Department
head
Printing
company
Class
objectives
Class
subject
Teaching
guidelines
Subject
expert
Target time
Per lecture
(45-55 min)
Reviewers
Printing
Services
Start:
Need for
Lecture
development
Develop
Class
lecture
End:
Lecture
Materials
printed
Class
outline
Department
head
Lecture
Developed in
two weeks
Department
head,
teacher
Reviews
Subject
expert
Printed
materials
Lecturer
Lecture Development Process- SIPOC

SIPOC Analysis
• High Level Process Map/Flowchart
• Define the scope of the process
• Document all the steps in the process
• List all the outputs (Y’s) at each process step
• List all the inputs (X’s) at each process step
©Quantum Associates, Inc 2021
68

SIPOC Analysis
•Classify all inputs as follows
• Controllable (C): inputs that can be changed to see the impact
on output (Y)
• SOPs (S): Standard methods for operating the process, i.e.
training, data entry items, etc
• Noise (N): Things that cannot or that have been chosen not to
be controlled due to cost or difficulty, i.e. ambient temperature,
humidity, computer network, etc.
©Quantum Associates, Inc 2021 69

SIPOC Analysis
©Quantum Associates, Inc 2021 70
Class Lecture Development Process
Develop
Class
Outline
Develop
Lectures
Review
Lecture
Materials
Print
Lecture
Materials
Lectures
OK?
Yes
No
Class outline
documents
Lectures Reviewed
Lectures
Printed
Lectures
C-Class
objectives
N-Class
Subject
N-Teaching
guidelines
N-Subject
expert
C-Target time
per lecture
N-Subject
expert
N-Teaching
guidelines
N-Audience
C-Teaching
medium
S- Class
outline
C-No. of
reviewers
N-Reviewers
S-Copy of
lectures
S-Review
time
S-Review
guidelines
S-Electronic
copy of
lecture
C-Printing
company
C-Quantity
of copies
C-Copy
format
KPIV: Target
time
Target: 50 min
Lower spec: 45
Upper spec:55

Process Redesign
• Once a map is created, a team can study the current state.
• To redesign the process ask the following:
• Does the team structure support the operation of the process?
• Do we have accidental bureaucracy?
• Does every step add value?
• Are we duplicating our work?
• Can we simplify?
• Can we save time?
• Can we standardize work flow?
• Can we better utilize tools and equipment?
©Quantum Associates, Inc 2021 71

©Quantum Associates, Inc 2021 72
Widget Works Quoting Process

Process Value-add Analysis
• Purpose—Identify the waste, rework, and delay that can be
eliminated from the process
• Over time processes become cumbersome, inefficient and ineffective.
This complexity consumes more time and accomplishes less. Each
activity, decision and arrow on the process map represents time and
effort. From the customer’s point of view little of this time and effort
adds value, most of it is non-value added. From their point of view,
delay, rework, transporting do not add value. Analyzing the process
for non-value-added activities can help simplify and streamline the
overall process.
©Quantum Associates, Inc 2021 73

Process Value-add Analysis
•On a process map/flowchart, most of the non-value-
added time will be found in one of four places
• The arrows (time required for processing steps)
• Delays (delays between processing steps/tasks)
• Rework loops (fixing errors that should have been prevented)
• Scrap processes (discarding or recycling defects)
©Quantum Associates, Inc 2021 74

Process Value-add Analysis
•Value-Add Analysis
•Step One
• For each activity (rectangle, diamond, delay, handoff, arrow) list its function
and the time spent (in minutes, hours, days) on the checklist.
•Step Two
• Walk in the customer’s shoes. As the customer, ask the following questions:
• Is the order or output idle or delayed?
• Is this inspection, checking, testing, review necessary?
• Does it change the output in a valuable way, or is this just “fix it” error correction
work or waste?
©Quantum Associates, Inc 2021 75

Process Value-add Analysis
•Value-Add Analysis
• Step Three
• If the answer to any of these questions is “yes”, then the step may be non-
value-added. If so, can we remove it from the process? Much of the “idle”
non-value-added time in a process lies in the arrows: Orders or outputs sit in
boxes or computers waiting to be processed, Calls wait in queue for a
representative to answer. How can we eliminate delay?
©Quantum Associates, Inc 2021 76
© Quantum Associates, Inc, 2004

Process Value-add Analysis
• Step Four
• How can activities and delay be eliminated, simplified, combined or
reorganized to provide a faster, higher quality flow through the process?
Investigate hand-off points: how can you eliminate delays and prevent lost,
changed or misinterpreted information or work products at these points? If there
are simple, creative or obvious ways to improve the process now, refine the map
to reflect those changes.
©Quantum Associates, Inc 2021 77

Process Value Add
Worksheet
This is an illustration of a
partially completed PVA
worksheet for completing an
insurance claim the red dots
are non-value-added activities
and the green dots represent
value added activities.
©Quantum Associates, Inc 2021 78

Seeing the Process: Preparing a Quote- VA
Analysis of Widget Works Process
Quantum Associates 2020
Preparation of a Quotation
Customer Sends
RFQ
Sales Rep 1
Acknowledges
RFQ
Sales Rep 2
Begin QEF
Estimation
Manager
Approve
Estimation Assist 1
Checks Inventory
Estimation Assist 2
Quote unit cost
and lead time
Estimation
Manager Approve
Estimation Assist 1
Make File Copy
Sales Manager
Quotes Sales
Price
Sales Rep. 2
Create Quotation
Sales Rep. 1 Fax
Quotation
Customer
Receives Quote
RFQ RFQ QEF/RFQ
QEF/RFQ QEF/RFQ QEF/RFQ
RFQ Q Q
RFQ RFQ RFQ
QEF
RFQ
QEF
RFQ
RFQ RFQ
RFQ
RFQ Q Q
QEF
QEF QEF
QEF
VA =1
BNVA = 3
NVA = 5

Seeing the Process: Preparing a Quote –
Redesigning for Value
Quantum Associates 2020
Customer
Send RFQ
Sales Rep 1
Start QEF
Check Inventory
Estimator
Finish QEF
Sales Rep 2
Generate
Quotation
Customer
Receives quote
RFQ RFQ RFQ Q
QEF QEF
Handoffs – 2
Space – 576 sf
12 On time Quotes/day
($)600K

Problem Solving Tools
• Module Five
©Quantum Associates, Inc 2021 81

Stating The Problem
• Measurable—It indicates the scope of the problem in quantifiable
terms
• Manageable—A manageable problem is one that can probably be
solved in 6 to 12 months. If a problem is too large it should be broken
down into several smaller, more manageable projects.
• A problem statement should also include a business case—the impact
on the business.
©Quantum Associates, Inc 2021 82

Stating The
Problem
©Quantum Associates, Inc 2021 83
• The problem to be resolved
• The objective of the project
The
problem
statement
describes:
• Specific—It explains exactly
what is wrong and
distinguishes the deficiency
from similar problems
• Observable—It describes
visible evidence of the
problem
Criteria
for
describing
the
problem

Stating The
Problem
©Quantum Associates, Inc 2021 84
The Problem Statement:
The problem statement describes:
• The problem to be resolved
• The objective of the project
Criteria for describing the problem
• Specific—It explains exactly what is
wrong and distinguishes the deficiency
from similar problems
• Observable—It describes visible evidence
of the problem

Stating The
Problem
©Quantum Associates, Inc 2021 85
The Problem Statement (cont)
• Measurable—It indicates the scope of
the problem in quantifiable terms
• Manageable—A manageable problem
is one that can probably be solved in 6
to 12 months. If a problem is too large
it should be broken down into several
smaller, more manageable projects.
A problem statement should
also include a business case—
the impact on the business.

Stating The Problem
Sample problem statement:
©Quantum Associates, Inc 2021 86
During the first five months of the year, withholding
errors accounted for 35% of all incorrect paychecks,
which was two times higher than the next highest
contributor (printing) and resulted in 78 employee
complaints
Target: 50% reduction in withholding errors

What’s The Mission
©Quantum Associates, Inc 2021 87
Criteria for Describing the
mission
• Indicates the objective of the
project
• Should contain the same variable
and unit of measure as the problem
statement
Things to avoid
• Do not imply a cause
• Do not suggest a remedy
• Do not assign blame

Project Goal Statement
©Quantum Associates, Inc 2021 88
PDI Project Proposal
Team Name: “Margin Makers”
Project Title: Improve the PDI field operations process for package
pick-up and delivery.
Problem Statement: PDI gross margin is insufficient to sustain
business operations and create growth. The current field operation
process for package pick-up and delivery results in sales rebates and
idle time that degrade gross margin.
Goal Statement: Reduce sales rebates and idle time by 85%
Business Case and Estimated Benefits: An 85% reduction in sales
rebates and idle time will increase gross margin by roughly $11,000
per month and increase ROS to roughly 30%.
Benefit Calculations or Basis:
Prior month sales rebates = $9,400
Prior month idle time = $3,600
85% reduction = $11,050 per month
Executive Project Approval Board Use Only
Approval: Yes No
Verified Benefits Amount: $11,050 per month in gross margin

Age of the Customer
• Flawlessly delivery on your
performance promise to the customer
depends upon seamless execution
internally.
• Seamless execution is the result of
strong links between internal
customers and suppliers.
• Every team can think about its role in
helping to accomplish the greater
purpose of the organization by
considering those relationships.
• Every team receives inputs from its
suppliers and transforms those inputs
into outputs that are delivered in the
form of products and services to
customers. Customers and suppliers
can be internal or external.
©Quantum Associates, Inc 2021 89

Hearing the Voice of the Customer
• To hear the voice of the customer
clearly, the organization must think
about the horizontal work and
processes not the vertical nature of
organizational structure.
• In order for each team to hear the
voice of the customer, you must be
aware of the processes that provide
customers with products and
services.
©Quantum Associates, Inc 2021 90

Voice Of The Customer
• Identify Customer Needs in the
Language of the Customer—
How?
• Customer interviews
• Customer focus groups
• Surveys and questionnaires
• For internal customers usually
customer interviews will suffice
©Quantum Associates, Inc 2021 91

Operational Definitions
•An operational definition is something you and I can do
business with
•Defines the problem in the language of the customer
•Examples:
• Reduce the number of late reports
• Eliminate lengthy delays in guest check in
©Quantum Associates, Inc 2021 92

Operational Definitions
•What does “late” and “lengthy” mean.
•Definitions:
•Late- more than two days after the close of the period
•Lengthy- more than 10 minutes after the guest arrives at
the desk
©Quantum Associates, Inc 2021 93

Operational Definitions
•It is important to ensure that all team members and
the customers agree on the definitions of key terms
because it will save time later and keep everyone
focused on the same problem.
©Quantum Associates, Inc 2021 94

Voice of The Customer
©Quantum Associates, Inc 2021 95
Customer Evaluation Grid
Customer
Needs
Total
Weight
Factor
10
Customer
Score
Weight X
Score

Voice of The Customer
©Quantum Associates, Inc 2021 96
Functional Analysis Summary Sheet
Example
Supplier: Quality Director
Customer: Staff
Product or Service: Written Communication
Customer Evaluation Grid
Customer
Needs
Timely Efficient Meaningful Total
Weight
Factor
3.0 3.0 4.0 10
Customer
Score
6.0 8.0 7.0
Weight X
Score
18.0 24.0 28.0 70.0

Brainstorming
• Classic Brainstorming
• Most popular form of idea
generation
• Separates the creation of ideas
from the evaluation of ideas
• Encourages open thinking
• Gets all team members involved
• Allow team members to build on
each other’s creativity
©Quantum Associates, Inc 2021 97

Brainstorming
• How To Use Brainstorming
• Define/clarify the topic
• Brainstorming statement
should be
• Specific
• Broad
• Unbiased
©Quantum Associates, Inc 2021 98

Brainstorming
•Structured Brainstorming
• Central issue or problem is stated, agreed on, and written down for
everyone to see.
• Each team member, in turn, gives an idea. No idea is criticized.
• Ideas are written on a flip chart as they are generated.
• Ideas are generated in turn until each person passes.
©Quantum Associates, Inc 2021 99

Brainstorming
•Structured Brainstorming (cont.)
• Review the list of ideas for clarity and to combine or discard any
duplicates.
•Unstructured Brainstorming
• Process is the same except ideas are given by everyone at any
time. There is no need to pass since the ideas are not given in
rotation.
©Quantum Associates, Inc 2021 100

©Quantum Associates, Inc 2021 101
 Step 1 Generate Items
 Step 2 Record Items
 Step 3 Clarify Items
 Step 4 Record the Final List
 Step 5 Rank Items Individually
 Step 6 Combine Rankings
Nominal Group Technique (NGT)

©Quantum Associates, Inc 2021 102
NGT Essentials
 Key Success Behaviors
 Focus on the purpose of the activity when ranking
 Respect the values of other team members in the ranking
process
 Try to understand the logic behind each other’s opinions

Step by Step: Using NGT
©Quantum Associates, Inc 2021 103
 Record the Final List
Example: Why does the department
have inconsistent output?
A Lack of Training
B No documented process
C Unclear quality standards
D Lack of cooperation with other
departments
E High turnover

Step by Step: Using NGT
 Rank Items Individually
©Quantum Associates, Inc 2021 104
Example: Larry’s sheet of paper looks like this:
A 4
B 5
C 3
D 1
E 2

Step by Step: Using NGT
• Combine Rankings
©Quantum Associates, Inc 2021 105
A
B
C
D
E
Larry
4
5
3
1
2
Nina
5
4
1
2
3
Norm
2
5
3
1
4
Paig
2
2
3
4
5
Sy
1
5
4
2
3
Total
= 14
= 22
= 15
= 11
= 13
“No documented process,” B is the highest priority and is addressed
first and then move through the rest of the list as needed.

Check Sheets
•Check Sheet
• A structured, prepared form for collecting and analyzing data
• Allows a team to systematically record and compile data
• Creates easy to understand data
• Forces agreement on the definition of each condition or event.
• Makes patterns in the data obvious
©Quantum Associates, Inc 2021 106

Check Sheets
•Check Sheet
•How to Use it
• Agree on the definition of the events or conditions being
observed
• Decide who will collect the data, for how long, and the
source(s)
• Design a check sheet that is clear, complete and easy to use
• Collect the data consistently and accurately
©Quantum Associates, Inc 2021 107

Check Sheets
©Quantum Associates, Inc 2021 108
Types of
defects in
finished pies
Data collected by: Carl
Location: Heavenly, Maine plant
Dates: June 20-26
Lot size: 200
Defect June 20 June 21 June 22 June 23 June 24 June 25 June 26 Total
Too much cream
Too little cream
Too crumbly
Too big
Too small
Has a bite in it
24
9
21
13
14
9
Not chocolaty
enough
6
1
Not sweet
enough
Project:
Carmen’s World Famous Whoppi Pies

Pareto Analysis
• Pareto Chart
• A Pareto chart is a bar graph
where the length of the bars
represent frequency of
occurrence or cost
• Focuses effort on the problems
that offer the greatest potential
for improvement by showing
their relative frequency or size
• Based on the proven Pareto
principle: 20% of the sources
cause 80% of any problems.
• Displays the relative importance
of problems in a simple, easily
interpreted, visual format
• Progress is measured in a highly
visible format
©Quantum Associates, Inc 2021 109

Pareto Analysis
•Pareto Chart
•How To Use It
• Decide on the problem
• Choose the causes of the problems that will be monitored, and
rank order by brainstorming or with existing data.
• Choose the most meaningful unit of measurement such as
frequency or cost.
• Choose the period for the study
©Quantum Associates, Inc 2021 110

Pareto Analysis
•Pareto Chart
•How To Use It
• Gather the necessary data on each problem category
• Compare the relative frequency or cost of each problem
category.
• List the problem categories on the horizontal line and
frequencies on the vertical line
• Draw the cumulative percentage line showing the portion of the
total each problem represents
• Interpret the results
©Quantum Associates, Inc 2021 111

Pareto Analysis
©Quantum Associates, Inc 2021 112
Step 1: Raw Data- Hotel Guest Complaints
Cause Number of Complaints
Inadequate Lighting 8
Poor Internet connection 20
Invoice/Billing Error 4
Key Card Malfunction 32
Poor Room Temperature Regulation 6
Slow Bathtub Drains 3
73

Pareto Analysis
©Quantum Associates, Inc 2021 113
Step 2: Ordered Causes Hotel Guest Complaints and Data
Cause Number of Complaints
Key Card Malfunction 32
Poor Internet Connection 20
Inadequate Room Lighting 8
Poor Room Temperature Regulation 6
Invoice/Billing Error 4
Slow Bathtub Drains 3
73

Pareto Analysis
Cause No. of Complaints Cumulative %
Keycard Malfunction 32 44%
Poor Internet Connection 20 71%
Inadequate Room Lighting 8 82%
Room Temperature Regulation 6 90%
Invoice/Billing Error 4 96%
Slow Bathtub Drain 3 100%
©Quantum Associates, Inc 2021 114
Hotel Guest Complaints

Pareto Analysis-Guest Complaints
©Quantum Associates, Inc 2021 115
32
20
8
6
4 3
44%
71%
82%
90%
96%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
60
70
Keycard Internet Lighting Temperature Invoice Error Slow Drains
Number
of
Complaints
Guest Complaints
Complaint Item
Useful Many
Vital
Few
Awkward
Zone

Cause and Effect Diagram
• Cause and Effect Diagram
• Allows a team to identify,
explore, and graphically display
all of the possible causes of a
problem.
• Enables a team to focus on the
content of the problem
• Creates a snapshot of the
collective knowledge and
consensus of a team around a
problem
• Focuses the team on causes not
symptoms
©Quantum Associates, Inc 2021 116

Cause and Effect Diagram
•Cause and Effect Diagram
•How to Use it
• Agree on a problem statement (effect)
• Brainstorm the major categories of causes of the problem.
• Construct the Cause & Effect diagram
• Place the problem statement in a box on the right-hand side of a flipchart
sheet.
©Quantum Associates, Inc 2021 117

Cause and Effect Diagram
•Cause and Effect Diagram (cont.)
• Draw major cause categories. Connect them to the backbone of the of the
fishbone chart.
• Brainstorm all the possible causes of the problem
• Place the brainstormed list or data-based causes in the appropriate
category
• Ask repeatedly of each cause and sub-cause:
• Why Does this Happen?
• What Could Happen?
©Quantum Associates, Inc 2021 118

Cause and Effect Diagram
•Cause and Effect Diagram
•Interpret or test for root cause(s) by:
• Looking for causes that appear repeatedly within or across major cause
categories
• Focus attention on places where ideas or few
• Select through multi-voting
• Gather data using check sheets to determine frequencies of different causes
•Causal Tree
• A variation of the diagram but sometimes easier to construct.
©Quantum Associates, Inc 2021 119

Cause and Effect Diagram
©Quantum Associates, Inc 2021 120
System incorrect
Machine (PCIS)
Timing
Hospital procedures Communication
Patient waits
for bed
Not entered
Not used
No trust
Need more training
Functions not useful
Not used
pending discharge
Discharged patient
did not leave
Wait for results
Wait for lunch
Wait for ride
Call housekeeping
too late
Wait for MD
Call housekeeping
too early
Think it will take
more time
Patient arrives
too early
Transfer too early
from another hospital
Call housekeeping
when clean
Nursing shortage
Unit clerk staffing
Unit clerk training
Resources
Unit clerk unaware
of discharge or transfer
On break
Not told
Shift change
Reservation
unaware
Not entered
Unit switch bed
Admitting unaware
bed is clean
Delayed
entry
Sandbag
Too busy
Inappropriate
ER admittance
Many
transfers
Specialty beds
Cardiac monitors
Double rooms
Physician did
not write order
Medicine
admit quota
Physician misuse –
inpatient
MD procedures

Cause and Effect Diagram
©Quantum Associates, Inc 2021 121
Process
Yield is
Down
18%
Materials
3%
Machines
7%
People
8%
Measurement
2%
Methods
80%
Planning- 20%
Missing Drawings – 55%
Instructions- 5%
Causal Tree

The Why-Why Diagram
©Quantum Associates, Inc 2021 122

Histogram
•Histogram
• A graph in which the classes are marked on the horizontal axis and
the class frequencies on the vertical axis
• Displays large amounts of data that are difficult to interpret in
tabular form
• Shows relative frequency of occurrence of the various data values
• Reveals the centering, variation, and shape of the data
• Indicates quickly the underlying distribution of the data
©Quantum Associates, Inc 2021 123

Histogram
•Histogram
•How To Use It
• Decide on the process measure
• Gather data (at least 50-100 points)
• Prepare a frequency table from the data
• Use 2k Rule to determine number of columns
• Draw a histogram from the frequency table
• Interpret the histogram
©Quantum Associates, Inc 2021 124

Histogram
©Quantum Associates, Inc 2021 125

Dot Plots
©Quantum Associates, Inc 2021 126

Stem and Leaf Display
•Stock prices on twelve
consecutive days for a
major publicly traded
company 86, 79, 92, 84, 69, 88, 91
83, 96, 78, 82, 85.
©Quantum Associates, Inc 2021 127

Stem and Leaf Display
stem leaf
6 9
7 8 9
8 2 3 4 5 6 8
9 1 2 6
©Quantum Associates, Inc 2021 128
Stem and leaf display of stock prices

Scatter Diagram
•Why Use it
• To study and identify the possible relationship between two
variables
•What does it do
• Supplies data to confirm your hypothesis that two variables are
related
• Provides a visual and statistical means to test the strength of a
potential relationship
• Is a good follow-up to a Cause & Effect Diagram to determine if
there is more than just a consensus connection between causes and
the effect
©Quantum Associates, Inc 2021 129

Scatter Diagram
•Constructing a scatter diagram
• Collect 50 – 100 paired samples of data that you think may be
related and construct a data sheet
• Draw the horizontal (x axis) and vertical (y axis) lines of the
diagram
• Plot the data on the diagram
• Interpret the data
©Quantum Associates, Inc 2021 130
© Quantum Associates, Inc, 2004

Scatter Diagram
©Quantum Associates, Inc 2021 131
Testing the theory that
the number of
components in the
installation led to
more service calls
later.
Is there a relationship?

Scatter Diagram
©Quantum Associates, Inc 2021 132
Testing the theory
that large number of
change orders during
the design and
manufacture of the
equipment led to
more service calls
later.
Is there a
relationship?

Run Chart
• Run Chart
• Monitors the performance of one
or more processes over time to
detect trends, cycles, or shifts
• Allows the team to compare
performance measures before
and after implementation of a
solution to measure its impact
• Focuses attention on truly vital
changes in the process
• Tracks useful information for
predicting trends
©Quantum Associates, Inc 2021 133

Run Chart
•Run Chart
•How To Use It
• Decide on the process performance measure
• Gather data
• Create a graph with a vertical line (y-axis) and a horizontal line
(x-axis)
• Plot the data
• Interpret the chart
©Quantum Associates, Inc 2021 134

Run Chart
0
5
10
15
20
25
Jan Feb Mar Apr May Jun
©Quantum Associates, Inc 2021 135
Process Avg.

Benchmarking
Module Six
©Quantum Associates, Inc 2021 136

Benchmarking
• Benchmarking
• The process of measuring
product, services, and practices
against competitors or industry
leaders
• It is one of the most popular and
potent management techniques
to emerge during the past 30
years
©Quantum Associates, Inc 2021 137

Benchmarking
• Key Points
• Benchmarking is a critical part of initiatives designed to achieve
performance gains
• It pinpoints existing weaknesses and reveals possibilities for
improvement that organizations may not have otherwise
envisioned
• Choose organizations to benchmark that are renowned for
performing a particular process so well that it is a source of
sustainable competitive advantage
©Quantum Associates, Inc 2021 138

Benchmarking
•Key Points
• No initiative to improve a process will succeed without the
involvement of the people actually performing the function. They
are the best source of information about what currently does and
does not work
• Benchmarking for performance breakthroughs requires significant
investment in employee communications and training
©Quantum Associates, Inc 2021 139

Five Phases of Benchmarking
• Planning Phase
• Identify what is to be benchmarked
• Identify comparative companies
• Determine data collection methods and collect data
• Analysis Phase
• Determine current performance “gap”
• Project future performance levels
©Quantum Associates, Inc 2021 140

Five Phases of Benchmarking
• Integration Phase
• Communicate benchmark findings and gain acceptance
• Establish functional goals
• Action Phase
• Develop action plans
• Implement specific actions and monitor progress
©Quantum Associates, Inc 2021 141

Five Phases of Benchmarking
• Maturity Phase
• Attain leadership position
• Fully integrate practices
• Recalibrate benchmarks
©Quantum Associates, Inc 2021 142

Copyrights of all the pictures used in this presentation are held by their respective owners.
©Quantum Associates, Inc 2021 143

DO NOT BE
AFRAID, MY
FRIEND
©Quantum Associates, Inc 2021
144