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PDCA
PROBLEM SOLVING
Innovate, Iterate, Improve
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting
LEARNING OBJECTIVES
2
Acquire knowledge of
key concepts and
principles in PDCA
problem solving.
Familiarize yourself with
the step-by-step PDCA
problem-solving process
and the use of analytical
tools.
Understand team
dynamics and define
roles within the PDCA
problem-solving team.
Master process
management and
discover key strategies
for successful PDCA
problem-solving.
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
© Operational Excellence Consulting
CONTENTS
3
01 KEY CONCEPTS &
PRINCIPLES
02 PROBLEM SOLVING
TEAMS & ROLES
03
PDCA PROBLEM-SOLVING
PROCESS
04
ANALYTICAL TOOLS IN
PDCA
05 PROCESS MANAGEMENT
06
PRACTICAL TIPS FOR
SUCCESS
© Operational Excellence Consulting
Problems are often perceived differently
by different people.
4
THE BLIND MEN AND THE ELEPHANT
It’s a
snake!
It’s a
wall!
It’s a
rope!
It’s a
fan!
It’s a
tree!
It’s a
spear!
Image: Mythgyaan
Problems are often perceived differently
by different people.
© Operational Excellence Consulting
COMMON PITFALLS IN PROBLEM SOLVING
5
Overly ambitious
scope
(attempting to
address everything)
Unclear or vague
problem
description
Ineffective team
participation
(lack of cross-
functional expertise)
Rushing through
or skipping
problem-solving
steps
Succumbing to
management
impatience/
pressure, leading
to inadequate
analysis
Superficial
problem analysis
without drilling
down
Failure to
implement
permanent
corrective actions
Permanent
corrective actions
failing to address
root causes
Neglecting a
systematic
process to
prioritize, analyze,
and review
data/information
Lack of familiarity
with problem-
solving methods
and tools among
team members
(lack of technical
skills)
© Operational Excellence Consulting
WHAT IS A PROBLEM?
A problem is a deviation from a standard, i.e., a difference between
what should be happening and what is actually happening.
Standard – what should
be happening
Current situation – what is
actually happening
Gap = Problem
6
© Operational Excellence Consulting
PROBLEM SOLVING FUNNEL
7
Source: Adapted from Dennis
Breakdown
Go See
Grasp the situation
§ Actual vs. standard
§ Actual vs. ideal
Point of cause
§ Time and place where
events cause abnormality
5 Why
Analysis Why?
Root cause
Countermeasures
Big vague concern
© Operational Excellence Consulting
BENEFITS OF PROBLEM SOLVING
8
Improved customer
satisfaction
Improved culture of
innovation
Increased
profitability
Increased efficiency
Lower costs Faster delivery time
Improved
employee morale
Increased market
share
© Operational Excellence Consulting
PDCA CONCEPT
9
● PDCA stands for Plan-Do-Check-Act,
a four-step problem-solving
methodology
● It follows a continuous cycle of
improvement
● Emphasizes iterative refinement for
better outcomes
The
PDCA
Cycle
© Operational Excellence Consulting
● Adopted as a fundamental
methodology for continuous
improvement
● Widely embraced in various
industries
● Used to address quality control,
process improvement, and safety
concerns
WHAT IS PDCA PROBLEM SOLVING?
● Applicable across diverse
organizational contexts
● A versatile and efficient problem-
solving approach
● Suitable for teams and individuals
alike
10
© Operational Excellence Consulting
WHY USE PDCA?
Allows adjustments based on
real-time feedback.
Flexibility and Adaptability
Encourages cross-functional
collaboration.
Team Collaboration
Systematic cycle of Plan, Do,
Check, and Act.
Structured Approach
Iterative process for refining
strategies over time.
Continuous Improvement
Evaluates results and
standardizes successful
processes.
Prevention of Recurrence
Emphasis on factual
information over
assumptions.
Based on Facts
11
© Operational Excellence Consulting
ALIGNING PDCA CYCLE WITH THE PROBLEM-SOLVING PROCESS
12
1
2
3
4
5
6
7
8
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
PLAN
ACT
CHECK
DO
© Operational Excellence Consulting 13
CONCEPT OF PROBLEM SOLVING TEAMS
A Problem Solving Team is a group of employees
performing similar or related tasks, who get
together on a regular basis, to discuss a topic or
theme affecting their work or workplace.
© Operational Excellence Consulting
● People take interest and pride in their
work
● Shared decision-making process
● Development of individual capabilities
● Creating a cordial atmosphere in the
workplace
● Benefits both management and staff
© Operational Excellence Consulting. All rights reserved. 14
14
PHILOSOPHY OF PROBLEM
SOLVING TEAM
© Operational Excellence Consulting
THE PROBLEM-SOLVING STRUCTURE PARALLELS THE FORMAL
ORGANIZATIONAL STRUCTURE
15
CEO
Division
Managers
Department
Managers
Supervisors
Frontliners
Structure of a Company Structure of Problem Solving Activities
Members
Secretariat
Facilitators
Leaders
Steering
Committee
© Operational Excellence Consulting
PROBLEM SOLVING – ORGANIZATIONAL ROLES
16
Role Description
Steering Committee Oversees the entire Problem Solving development within a company
such as setting the corporate theme and appointing key personnel.
Secretariat (PMO) As a Project Management Office, maintains Problem Solving records,
organizes promotional activities, registers new teams and keeps track
of progress of teams.
Team Manager Is a head of a division/department and is responsible and accountable
for the promotion of activities of Problem Solving Teams in the
department including assigning resources, providing moral support and
encouragement.
© Operational Excellence Consulting
“
W. EDWARDS DEMING
17
85% of the reasons for failure
to meet customer expectations
are related to deficiencies in
systems and processes…
rather than the employee.”
© Operational Excellence Consulting
THE 8-STEPS OF PDCA PROBLEM SOLVING
18
PDCA Problem Solving Process:
A systematic approach for
continuous improvement, involving
planning a change, executing it,
checking the results, and acting to
make necessary adjustments.
1
2
3
4
5
6
7
8 Select the
Theme
Plan the
Schedule
Grasp the
Present
Situation
Establish
the Target
Analyze the
Cause & Identify
Corrective
Action
Implement
Corrective
Action
Evaluate
the Result
Standardize &
Follow Up
PDCA
PROBLEM
SOLVING
PROCESS
© Operational Excellence Consulting
STEP 1: SELECT THE THEME
19
PURPOSE:
Clearly define the problem or opportunity for focused
resolution.
© Operational Excellence Consulting
EXAMPLE: IDENTIFYING THE SPECIFIC PROBLEM OR THEME
20
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
1. Corporate Goals 2023
§ Increase global market share
§ Improve quality and service
§ Increase corporate profits
2. Manufacturing Goals 2023
§ Reduce cost by 5%
§ Reduce scrap by 15%
§ Improve productivity by 7%
§ Improve HSE index by 10%
3.2
2.6
2.7
3
2
1
2.3%
Goal
Not meeting
goal for 2023!
2021 2022 2023
(YTD)
Overall
Scrap %
© Operational Excellence Consulting
EXAMPLE: SELECTING PROJECTS
21
Problem
Criterion 1:
Relevance
Criterion 2:
Impact
Criterion 3:
Feasibility
Total Score
High scrap rate 4 3 5 12
High defect rate 3 5 2 10
Long machine setup time 5 2 4 11
Low staff morale 2 4 3 9
High absenteeism rate 1 1 5 7
ILLUSTRATIVE
Illustration of Matrix Data Analysis Chart for Problem Prioritization: Evaluating 5 Problems Against 3 Selection
Criteria.
In this example, based on the total scores, “High scrap rate” has the highest score and would be selected for
further analysis.
© Operational Excellence Consulting
STEP 1: PRACTICAL TIPS
22
Encourage Diverse
Participation
Ensure diverse
participation from
different team members
for a well-rounded set of
project themes.
Focus on Clear and
Specific Statements
Encourage clear and
specific statements for
project themes, avoiding
vagueness.
Use Matrix Diagram
Effectively
Use the Matrix Diagram
effectively for systematic
theme ranking,
employing clear criteria
and a rating scale.
Prioritize Based on
Consensus
Prioritize themes based
on consensus, ensuring
collective agreement on
the most crucial
problems or
opportunities.
© Operational Excellence Consulting
EXAMPLE: GRASPING THE PRESENT SITUATION
23
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
Scrap by Department
Process: Milling Turning Drilling
Rough
Grinding
Final
Grinding
Scrap % 1.5 0.9 0.7 3.7 8.7
Scrap $ 40K 27K 23K 150K 460K
Status * Δ ¢ ¢ ✕ ✕
Breakdown of Machine Shop Scrap Rates
*Legend: ¢ 0-1% Δ 1-2% ✕ >2%
700K
86K
200K
6
4
2
Machine
shop
Welding
shop
Assembly
shop
$K
5
3
1
© Operational Excellence Consulting
EXAMPLES OF PROBLEM STATEMENTS
24
Customers in the Northern region are
dissatisfied with the ordering service. Errors
have increased by 23% during the last 3
months.
The unexpected downtime in our
manufacturing line has led to a 15%
decrease in production output.
Recurring outages, reaching a 25%
occurrence in recent instances, negatively
impact customer satisfaction.
Since the rationalization of the patient
registration services, complaints of long
waiting times have increased by 35%.
© Operational Excellence Consulting
EXAMPLE: ESTABLISHING THE TARGET
25
By December 2024:
§ Reduce scrap in rough grinding from
3.7% to less than 2%.
§ Reduce scrap in final grinding from
8.7% to less than 2%.
8.7
2.0
3.7
8
4
2
Final
grind
Rough
grind
Target
level
%
7
3
1
5
6
Grinding Machine Scrap
Gap from target
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
© Operational Excellence Consulting
RELATIONSHIP OF PROBLEMS, SYMPTOMS AND CAUSES
26
PROBLEM
(Don’t feel well)
ROOT CAUSES
(Infection)
ANALYSIS
LEADS
TO
AS A RESULT OF THE
PROBLEM
SYMPTOMS
(Aches and fever)
© Operational Excellence Consulting
EXAMPLE: IDENTIFYING ROOT CAUSES USING THE CAUSE & EFFECT
DIAGRAM
27
72%
6%
80
40
20
Undersized
shaft
%
70
30
10
50
60
Pareto by Defect Type
Main
problem!
2%
20%
Grinder
burn
Others
Scratches
&
dents Undersized
Shaft
defect
Manual offsets
Grinding wheel setup
Contamination
Man
Grinding wheel
Clamp & locator
Spindle
Machine
Material
Dimensions
Hardness
Surface finish
Method
Grinding conditions
Coolant concentration
Wheel dressing
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
© Operational Excellence Consulting
STEP 7: EVALUATE THE RESULT
28
Performance Evaluation with Radar
Chart
● Evaluate team members’ performance
using a Radar Chart, highlighting
achievements and Team Self-
Evaluation.
● Include this in the Project Summary of
the Project Report.
28
0
2
4
6
8
10
Follow PDCA
Process
Use of
Analytical Tools
Teamwork
Communication
Report Writing
Reducing Scrap at Machining Shop
Team A
ILLUSTRATIVE
© Operational Excellence Consulting
EXAMPLE: IMPLEMENTING AND MONITORING CORRECTIVE ACTIONS
29
0
1
2
3
4
5
6
7
8
9
10
02-Nov 03-Nov 04-Nov 05-Nov 06-Nov 07-Nov 08-Nov 09-Nov 10-Nov 11-Nov 12-Nov 13-Nov
Finish grinder
Rough grinder
Target
Coolant
replaced!
Target level
Spindle bearing
tightened!
Defect
%
Dates of action items and results confirmation
ILLUSTRATIVE
Source: Adapted from Sobek & Smalley
© Operational Excellence Consulting
PROPER APPLICATION OF THE
PDCA CYCLE
30
Correct Application is Crucial
● Emphasize the importance of correct
PDCA cycle application.
● If desired results are not achieved or
proposed solutions are not accepted,
encourage revisiting earlier steps for
project revision and review.
30
© Operational Excellence Consulting
WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING?
31
Phase Problem Solving Steps Applicable Tools
PLAN
1. Select the Theme
Brainstorming / Matrix Diagram / Selection Criteria / Team
Consensus
2. Plan the Schedule Gantt Chart
3. Grasp the Present Situation
Data Collection / Stratification / Flowcharting / Pie Chart / Check
Sheet / Pareto Diagram / Bar Chart / Histogram
4. Set the Target Pareto Analysis / Conduct Experiments / Check Past Trends
5. Analyze the Cause & Identify
Corrective Action
Brainstorming / Cause & Effect Diagram / 5 Whys / Tree Diagram /
Control Chart / Scatter Diagram / Alternative Solutions
DO 6. Implement Corrective Action Arrow Diagram / Process Flowchart / Pictures / Diagrams
CHECK 7. Evaluate the Result
Collect New Data / Check Sheet / Pareto Comparison / Bar Chart
Comparison / Radar Chart / Target Variance
ACT 8. Standardize & Follow Up
In the standardization plan, document the new procedures. Display
on notice board or intranet or conduct briefings.
Show the follow-up actions using the PDPC.
© Operational Excellence Consulting
EXAMPLE 2: STRATIFICATION BY MACHINE
32
0
5
10
15
20
25
30
35
40
1 2 3 4 5 6
Machine A
Machine B
Machine C
Defect
Quantity
Month
© Operational Excellence Consulting
PARETO CHART: COMPARING ‘BEFORE’ AND ‘AFTER’
33
ILLUSTRATIVE
Before:
Jan-Jun 2021
Errors Made on Faxed Orders
After:
Jul-Dec 2021
10
20
30
40
50
60
70
80
90
100
110
120
0
Missing
Information
Wrong Product
Information
Unreadable Wrong Billing
Information
PO and Order
Form don’t Match
Other
Count
Error Type
© Operational Excellence Consulting
EXAMPLE 1: 5 WHYS ANALYSIS
34
Symptom: The machine stopped!
Causes:
2. The shaft wore down and seized up
3. Metal cutting chips penetrated the area
4. Chips passed through the lubrication system
5. There was no strainer on the inlet pipe from the tank
1. The circuit overload tripped
1st Why
2nd Why
3rd Why
4th Why
5th Why
ILLUSTRATIVE
© Operational Excellence Consulting
HIGH
SCRAP OF
BARCODE
LABELS
MAN MACHINE
MATERIAL METHOD
Handling
Wrinkled
Torn
Improper
training
Machine
Breakdown
Ineffective
adhesive
Illegible
Smear
Printwheel Dirty
Worn Ribbon
Design of label
Damage
Poor printing
Improper storage
Wrong orientation
Process changes
Improper storage
Size of label
Process changes
EXAMPLE 1: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF
BARCODE LABELS” ILLUSTRATIVE
© Operational Excellence Consulting
EXAMPLE OF AFFINITY DIAGRAM
36
Orders Consistently Late Last Quarter
Communications Issues
Sales & Marketing
Fail to alert when price
changes may affect
volume
Inconsistent adherence to
due dates
Fail to check production
schedule before promising
product
Manufacturing
Fail to keep production
schedule updated
Fail to keep inventory
updated
Fail to communicate
unscheduled equipment
down-time
Equipment Issues
Equipment Breakdown
Inconsistent adherence to
maintenance dates
Equipment operated
outside of specifications
Old equipment, due to be
replaced, not operating at
peak capacity
External Factors
Major Supplier Filed
for Bankruptcy
Just-in-time inventory
system failed
Lack of inventory affects
60 orders
New supplier overloaded
with new clients
ILLUSTRATIVE
© Operational Excellence Consulting
EXAMPLE 2: RISK BREAKDOWN STRUCTURE
37
Project Risks
Technical
Requirements
Technology
Complexity
External
Subcontractors
Regulatory
Market
Customer
Weather
Organizational
Project
Dependencies
Resources
Funding
Prioritization
Project
Management
Estimating
Planning
Controlling
Communication
ILLUSTRATIVE
Vertical Tree Diagram
© Operational Excellence Consulting
OVERVIEW OF PROCESS
MANAGEMENT
● Process management is a systematic
approach to achieving organizational
goals through effective control and
improvement of processes
● It involves understanding, designing,
implementing, and continuously
optimizing processes
● Essential for enhancing efficiency,
quality, and overall performance
38
© Operational Excellence Consulting
“
Quality is not an act, it is a
habit.”
ARISTOTLE
39
© Operational Excellence Consulting
Operational Excellence Consulting is a
management training and consulting firm
that assists organizations in improving
business performance and effectiveness.
Based in Singapore, the firm’s mission is to
create business value for organizations
through innovative design and operational
excellence management training and
consulting solutions. For more information,
please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING

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PDCA Problem Solving Process & Tools

  • 1. PDCA PROBLEM SOLVING Innovate, Iterate, Improve © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting LEARNING OBJECTIVES 2 Acquire knowledge of key concepts and principles in PDCA problem solving. Familiarize yourself with the step-by-step PDCA problem-solving process and the use of analytical tools. Understand team dynamics and define roles within the PDCA problem-solving team. Master process management and discover key strategies for successful PDCA problem-solving. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting CONTENTS 3 01 KEY CONCEPTS & PRINCIPLES 02 PROBLEM SOLVING TEAMS & ROLES 03 PDCA PROBLEM-SOLVING PROCESS 04 ANALYTICAL TOOLS IN PDCA 05 PROCESS MANAGEMENT 06 PRACTICAL TIPS FOR SUCCESS
  • 4. © Operational Excellence Consulting Problems are often perceived differently by different people. 4 THE BLIND MEN AND THE ELEPHANT It’s a snake! It’s a wall! It’s a rope! It’s a fan! It’s a tree! It’s a spear! Image: Mythgyaan Problems are often perceived differently by different people.
  • 5. © Operational Excellence Consulting COMMON PITFALLS IN PROBLEM SOLVING 5 Overly ambitious scope (attempting to address everything) Unclear or vague problem description Ineffective team participation (lack of cross- functional expertise) Rushing through or skipping problem-solving steps Succumbing to management impatience/ pressure, leading to inadequate analysis Superficial problem analysis without drilling down Failure to implement permanent corrective actions Permanent corrective actions failing to address root causes Neglecting a systematic process to prioritize, analyze, and review data/information Lack of familiarity with problem- solving methods and tools among team members (lack of technical skills)
  • 6. © Operational Excellence Consulting WHAT IS A PROBLEM? A problem is a deviation from a standard, i.e., a difference between what should be happening and what is actually happening. Standard – what should be happening Current situation – what is actually happening Gap = Problem 6
  • 7. © Operational Excellence Consulting PROBLEM SOLVING FUNNEL 7 Source: Adapted from Dennis Breakdown Go See Grasp the situation § Actual vs. standard § Actual vs. ideal Point of cause § Time and place where events cause abnormality 5 Why Analysis Why? Root cause Countermeasures Big vague concern
  • 8. © Operational Excellence Consulting BENEFITS OF PROBLEM SOLVING 8 Improved customer satisfaction Improved culture of innovation Increased profitability Increased efficiency Lower costs Faster delivery time Improved employee morale Increased market share
  • 9. © Operational Excellence Consulting PDCA CONCEPT 9 ● PDCA stands for Plan-Do-Check-Act, a four-step problem-solving methodology ● It follows a continuous cycle of improvement ● Emphasizes iterative refinement for better outcomes The PDCA Cycle
  • 10. © Operational Excellence Consulting ● Adopted as a fundamental methodology for continuous improvement ● Widely embraced in various industries ● Used to address quality control, process improvement, and safety concerns WHAT IS PDCA PROBLEM SOLVING? ● Applicable across diverse organizational contexts ● A versatile and efficient problem- solving approach ● Suitable for teams and individuals alike 10
  • 11. © Operational Excellence Consulting WHY USE PDCA? Allows adjustments based on real-time feedback. Flexibility and Adaptability Encourages cross-functional collaboration. Team Collaboration Systematic cycle of Plan, Do, Check, and Act. Structured Approach Iterative process for refining strategies over time. Continuous Improvement Evaluates results and standardizes successful processes. Prevention of Recurrence Emphasis on factual information over assumptions. Based on Facts 11
  • 12. © Operational Excellence Consulting ALIGNING PDCA CYCLE WITH THE PROBLEM-SOLVING PROCESS 12 1 2 3 4 5 6 7 8 Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow-up PLAN ACT CHECK DO
  • 13. © Operational Excellence Consulting 13 CONCEPT OF PROBLEM SOLVING TEAMS A Problem Solving Team is a group of employees performing similar or related tasks, who get together on a regular basis, to discuss a topic or theme affecting their work or workplace.
  • 14. © Operational Excellence Consulting ● People take interest and pride in their work ● Shared decision-making process ● Development of individual capabilities ● Creating a cordial atmosphere in the workplace ● Benefits both management and staff © Operational Excellence Consulting. All rights reserved. 14 14 PHILOSOPHY OF PROBLEM SOLVING TEAM
  • 15. © Operational Excellence Consulting THE PROBLEM-SOLVING STRUCTURE PARALLELS THE FORMAL ORGANIZATIONAL STRUCTURE 15 CEO Division Managers Department Managers Supervisors Frontliners Structure of a Company Structure of Problem Solving Activities Members Secretariat Facilitators Leaders Steering Committee
  • 16. © Operational Excellence Consulting PROBLEM SOLVING – ORGANIZATIONAL ROLES 16 Role Description Steering Committee Oversees the entire Problem Solving development within a company such as setting the corporate theme and appointing key personnel. Secretariat (PMO) As a Project Management Office, maintains Problem Solving records, organizes promotional activities, registers new teams and keeps track of progress of teams. Team Manager Is a head of a division/department and is responsible and accountable for the promotion of activities of Problem Solving Teams in the department including assigning resources, providing moral support and encouragement.
  • 17. © Operational Excellence Consulting “ W. EDWARDS DEMING 17 85% of the reasons for failure to meet customer expectations are related to deficiencies in systems and processes… rather than the employee.”
  • 18. © Operational Excellence Consulting THE 8-STEPS OF PDCA PROBLEM SOLVING 18 PDCA Problem Solving Process: A systematic approach for continuous improvement, involving planning a change, executing it, checking the results, and acting to make necessary adjustments. 1 2 3 4 5 6 7 8 Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow Up PDCA PROBLEM SOLVING PROCESS
  • 19. © Operational Excellence Consulting STEP 1: SELECT THE THEME 19 PURPOSE: Clearly define the problem or opportunity for focused resolution.
  • 20. © Operational Excellence Consulting EXAMPLE: IDENTIFYING THE SPECIFIC PROBLEM OR THEME 20 ILLUSTRATIVE Source: Adapted from Sobek & Smalley 1. Corporate Goals 2023 § Increase global market share § Improve quality and service § Increase corporate profits 2. Manufacturing Goals 2023 § Reduce cost by 5% § Reduce scrap by 15% § Improve productivity by 7% § Improve HSE index by 10% 3.2 2.6 2.7 3 2 1 2.3% Goal Not meeting goal for 2023! 2021 2022 2023 (YTD) Overall Scrap %
  • 21. © Operational Excellence Consulting EXAMPLE: SELECTING PROJECTS 21 Problem Criterion 1: Relevance Criterion 2: Impact Criterion 3: Feasibility Total Score High scrap rate 4 3 5 12 High defect rate 3 5 2 10 Long machine setup time 5 2 4 11 Low staff morale 2 4 3 9 High absenteeism rate 1 1 5 7 ILLUSTRATIVE Illustration of Matrix Data Analysis Chart for Problem Prioritization: Evaluating 5 Problems Against 3 Selection Criteria. In this example, based on the total scores, “High scrap rate” has the highest score and would be selected for further analysis.
  • 22. © Operational Excellence Consulting STEP 1: PRACTICAL TIPS 22 Encourage Diverse Participation Ensure diverse participation from different team members for a well-rounded set of project themes. Focus on Clear and Specific Statements Encourage clear and specific statements for project themes, avoiding vagueness. Use Matrix Diagram Effectively Use the Matrix Diagram effectively for systematic theme ranking, employing clear criteria and a rating scale. Prioritize Based on Consensus Prioritize themes based on consensus, ensuring collective agreement on the most crucial problems or opportunities.
  • 23. © Operational Excellence Consulting EXAMPLE: GRASPING THE PRESENT SITUATION 23 ILLUSTRATIVE Source: Adapted from Sobek & Smalley Scrap by Department Process: Milling Turning Drilling Rough Grinding Final Grinding Scrap % 1.5 0.9 0.7 3.7 8.7 Scrap $ 40K 27K 23K 150K 460K Status * Δ ¢ ¢ ✕ ✕ Breakdown of Machine Shop Scrap Rates *Legend: ¢ 0-1% Δ 1-2% ✕ >2% 700K 86K 200K 6 4 2 Machine shop Welding shop Assembly shop $K 5 3 1
  • 24. © Operational Excellence Consulting EXAMPLES OF PROBLEM STATEMENTS 24 Customers in the Northern region are dissatisfied with the ordering service. Errors have increased by 23% during the last 3 months. The unexpected downtime in our manufacturing line has led to a 15% decrease in production output. Recurring outages, reaching a 25% occurrence in recent instances, negatively impact customer satisfaction. Since the rationalization of the patient registration services, complaints of long waiting times have increased by 35%.
  • 25. © Operational Excellence Consulting EXAMPLE: ESTABLISHING THE TARGET 25 By December 2024: § Reduce scrap in rough grinding from 3.7% to less than 2%. § Reduce scrap in final grinding from 8.7% to less than 2%. 8.7 2.0 3.7 8 4 2 Final grind Rough grind Target level % 7 3 1 5 6 Grinding Machine Scrap Gap from target ILLUSTRATIVE Source: Adapted from Sobek & Smalley
  • 26. © Operational Excellence Consulting RELATIONSHIP OF PROBLEMS, SYMPTOMS AND CAUSES 26 PROBLEM (Don’t feel well) ROOT CAUSES (Infection) ANALYSIS LEADS TO AS A RESULT OF THE PROBLEM SYMPTOMS (Aches and fever)
  • 27. © Operational Excellence Consulting EXAMPLE: IDENTIFYING ROOT CAUSES USING THE CAUSE & EFFECT DIAGRAM 27 72% 6% 80 40 20 Undersized shaft % 70 30 10 50 60 Pareto by Defect Type Main problem! 2% 20% Grinder burn Others Scratches & dents Undersized Shaft defect Manual offsets Grinding wheel setup Contamination Man Grinding wheel Clamp & locator Spindle Machine Material Dimensions Hardness Surface finish Method Grinding conditions Coolant concentration Wheel dressing ILLUSTRATIVE Source: Adapted from Sobek & Smalley
  • 28. © Operational Excellence Consulting STEP 7: EVALUATE THE RESULT 28 Performance Evaluation with Radar Chart ● Evaluate team members’ performance using a Radar Chart, highlighting achievements and Team Self- Evaluation. ● Include this in the Project Summary of the Project Report. 28 0 2 4 6 8 10 Follow PDCA Process Use of Analytical Tools Teamwork Communication Report Writing Reducing Scrap at Machining Shop Team A ILLUSTRATIVE
  • 29. © Operational Excellence Consulting EXAMPLE: IMPLEMENTING AND MONITORING CORRECTIVE ACTIONS 29 0 1 2 3 4 5 6 7 8 9 10 02-Nov 03-Nov 04-Nov 05-Nov 06-Nov 07-Nov 08-Nov 09-Nov 10-Nov 11-Nov 12-Nov 13-Nov Finish grinder Rough grinder Target Coolant replaced! Target level Spindle bearing tightened! Defect % Dates of action items and results confirmation ILLUSTRATIVE Source: Adapted from Sobek & Smalley
  • 30. © Operational Excellence Consulting PROPER APPLICATION OF THE PDCA CYCLE 30 Correct Application is Crucial ● Emphasize the importance of correct PDCA cycle application. ● If desired results are not achieved or proposed solutions are not accepted, encourage revisiting earlier steps for project revision and review. 30
  • 31. © Operational Excellence Consulting WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING? 31 Phase Problem Solving Steps Applicable Tools PLAN 1. Select the Theme Brainstorming / Matrix Diagram / Selection Criteria / Team Consensus 2. Plan the Schedule Gantt Chart 3. Grasp the Present Situation Data Collection / Stratification / Flowcharting / Pie Chart / Check Sheet / Pareto Diagram / Bar Chart / Histogram 4. Set the Target Pareto Analysis / Conduct Experiments / Check Past Trends 5. Analyze the Cause & Identify Corrective Action Brainstorming / Cause & Effect Diagram / 5 Whys / Tree Diagram / Control Chart / Scatter Diagram / Alternative Solutions DO 6. Implement Corrective Action Arrow Diagram / Process Flowchart / Pictures / Diagrams CHECK 7. Evaluate the Result Collect New Data / Check Sheet / Pareto Comparison / Bar Chart Comparison / Radar Chart / Target Variance ACT 8. Standardize & Follow Up In the standardization plan, document the new procedures. Display on notice board or intranet or conduct briefings. Show the follow-up actions using the PDPC.
  • 32. © Operational Excellence Consulting EXAMPLE 2: STRATIFICATION BY MACHINE 32 0 5 10 15 20 25 30 35 40 1 2 3 4 5 6 Machine A Machine B Machine C Defect Quantity Month
  • 33. © Operational Excellence Consulting PARETO CHART: COMPARING ‘BEFORE’ AND ‘AFTER’ 33 ILLUSTRATIVE Before: Jan-Jun 2021 Errors Made on Faxed Orders After: Jul-Dec 2021 10 20 30 40 50 60 70 80 90 100 110 120 0 Missing Information Wrong Product Information Unreadable Wrong Billing Information PO and Order Form don’t Match Other Count Error Type
  • 34. © Operational Excellence Consulting EXAMPLE 1: 5 WHYS ANALYSIS 34 Symptom: The machine stopped! Causes: 2. The shaft wore down and seized up 3. Metal cutting chips penetrated the area 4. Chips passed through the lubrication system 5. There was no strainer on the inlet pipe from the tank 1. The circuit overload tripped 1st Why 2nd Why 3rd Why 4th Why 5th Why ILLUSTRATIVE
  • 35. © Operational Excellence Consulting HIGH SCRAP OF BARCODE LABELS MAN MACHINE MATERIAL METHOD Handling Wrinkled Torn Improper training Machine Breakdown Ineffective adhesive Illegible Smear Printwheel Dirty Worn Ribbon Design of label Damage Poor printing Improper storage Wrong orientation Process changes Improper storage Size of label Process changes EXAMPLE 1: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF BARCODE LABELS” ILLUSTRATIVE
  • 36. © Operational Excellence Consulting EXAMPLE OF AFFINITY DIAGRAM 36 Orders Consistently Late Last Quarter Communications Issues Sales & Marketing Fail to alert when price changes may affect volume Inconsistent adherence to due dates Fail to check production schedule before promising product Manufacturing Fail to keep production schedule updated Fail to keep inventory updated Fail to communicate unscheduled equipment down-time Equipment Issues Equipment Breakdown Inconsistent adherence to maintenance dates Equipment operated outside of specifications Old equipment, due to be replaced, not operating at peak capacity External Factors Major Supplier Filed for Bankruptcy Just-in-time inventory system failed Lack of inventory affects 60 orders New supplier overloaded with new clients ILLUSTRATIVE
  • 37. © Operational Excellence Consulting EXAMPLE 2: RISK BREAKDOWN STRUCTURE 37 Project Risks Technical Requirements Technology Complexity External Subcontractors Regulatory Market Customer Weather Organizational Project Dependencies Resources Funding Prioritization Project Management Estimating Planning Controlling Communication ILLUSTRATIVE Vertical Tree Diagram
  • 38. © Operational Excellence Consulting OVERVIEW OF PROCESS MANAGEMENT ● Process management is a systematic approach to achieving organizational goals through effective control and improvement of processes ● It involves understanding, designing, implementing, and continuously optimizing processes ● Essential for enhancing efficiency, quality, and overall performance 38
  • 39. © Operational Excellence Consulting “ Quality is not an act, it is a habit.” ARISTOTLE 39
  • 40. © Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg ABOUT OPERATIONAL EXCELLENCE CONSULTING