![Continuous Performance ImprovementContinuous Performance Improvement
wah
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
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success.]](https://image.slidesharecdn.com/df46e653-044c-4c3e-adbf-208a2a606cdf-160523201847/85/Cont_Perf_Improv_ws-62-320.jpg)
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- 1. Continuous Performance ImprovementContinuous Performance Improvement wah Problem SolvingProblem Solving && Continuous PerformanceContinuous Performance ImprovementImprovement Bill Hoberg [email protected]
- 2. Continuous Performance ImprovementContinuous Performance Improvement wah 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.).)
- 3. Continuous Performance ImprovementContinuous Performance Improvement wah ImprovementImprovement 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 PP OO RR TT UU NN II TT II EE SS
- 4. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 5. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 6. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 7. Continuous Performance ImprovementContinuous Performance Improvement wah ContinuousContinuous ImprovementImprovement 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.
- 8. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 9. Continuous Performance ImprovementContinuous Performance Improvement wah 1. Establish process management1. Establish process management responsibilities.responsibilities. ProcessManagement ContinuousContinuous ImprovementImprovement 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.
- 10. Continuous Performance ImprovementContinuous Performance Improvement wah 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 ContinuousContinuous ImprovementImprovement CycleCycle ProcessManagement Interview Block Diagram Flowchart Affinity Diagram Customer Needs Analysis Customer/Supplier Model 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
- 11. Continuous Performance ImprovementContinuous Performance Improvement wah 3.3. Define and Establish MeasuresContinuousContinuous ImprovementImprovement 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
- 12. Continuous Performance ImprovementContinuous Performance Improvement wah 4. Assess Conformance to Customer4. Assess Conformance to Customer Requirements.Requirements. ContinuousContinuous ImprovementImprovement 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.
- 13. Continuous Performance ImprovementContinuous Performance Improvement wah 5. Investigate Process to Identify Improvement5. Investigate Process to Identify Improvement Opportunities.Opportunities. ContinuousContinuous ImprovementImprovement 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
- 14. Continuous Performance ImprovementContinuous Performance Improvement wah 6. Rank Improvement Opportunities and Set Objectives.6. Rank Improvement Opportunities and Set Objectives.ContinuousContinuous ImprovementImprovement 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
- 15. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 16. Continuous Performance ImprovementContinuous Performance Improvement wah 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 ContinuousContinuous ImprovementImprovement CycleCycle ** Original QI Story content developed by Florida Power & Light.
- 17. Continuous Performance ImprovementContinuous Performance Improvement wah 1. Reason for Improvement1. Reason for Improvement QualityImprovementStory ContinuousContinuous ImprovementImprovement 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
- 18. Continuous Performance ImprovementContinuous Performance Improvement wah 2. Problem Identification2. Problem Identification QualityImprovementStory ContinuousContinuous ImprovementImprovement 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.
- 19. Continuous Performance ImprovementContinuous Performance Improvement wah 3. Root Cause Analysis3. Root Cause Analysis QualityImprovementStory ContinuousContinuous ImprovementImprovement CycleCycle Data Collection Form 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.
- 20. Continuous Performance ImprovementContinuous Performance Improvement wah 4. Potential Improvements4. Potential Improvements QualityImprovementStory ContinuousContinuous ImprovementImprovement CycleCycle Action Plan Block Diagram Force Field Analysis Decision Matrix Data Collection Form 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.
- 21. Continuous Performance ImprovementContinuous Performance Improvement wah 5. Verification5. Verification QualityImprovementStory ContinuousContinuous ImprovementImprovement CycleCycle Control Charts Graphs Histogram Pareto Chart Data Collection Form 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.
- 22. Continuous Performance ImprovementContinuous Performance Improvement wah 6. Full Implementation6. Full Implementation QualityImprovementStory ContinuousContinuous ImprovementImprovement 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 Data Collection Form Survey
- 23. Continuous Performance ImprovementContinuous Performance Improvement wah 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 QualityImprovementStory ContinuousContinuous ImprovementImprovement 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.
- 24. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 25. Continuous Performance ImprovementContinuous Performance Improvement wah 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 *Source: www.isixsigma.com
- 26. Continuous Performance ImprovementContinuous Performance Improvement wah 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 *Source: www.isixsigma.com
- 27. Continuous Performance ImprovementContinuous Performance Improvement wah 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 *Source: www.isixsigma.com
- 28. Continuous Performance ImprovementContinuous Performance Improvement wah 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.”
- 29. Continuous Performance ImprovementContinuous Performance Improvement wah 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!
- 30. Continuous Performance ImprovementContinuous Performance Improvement wah Customer/Supplier Questionnaire Data Collection Form 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 Customer/Supplier Model TOOLSTOOLS NOT Rocket Science!!!
- 31. Continuous Performance ImprovementContinuous Performance Improvement wah 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.)
- 32. Continuous Performance ImprovementContinuous Performance Improvement wah 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. wah % of 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:
- 33. Continuous Performance ImprovementContinuous Performance Improvement wah 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)
- 34. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 35. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 36. Continuous Performance ImprovementContinuous Performance Improvement wah 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!
- 37. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 38. Continuous Performance ImprovementContinuous Performance Improvement wah ‘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’!
- 39. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 40. Continuous Performance ImprovementContinuous Performance Improvement wah 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:
- 41. Continuous Performance ImprovementContinuous Performance Improvement wah Control ChartsControl Charts 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
- 42. Continuous Performance ImprovementContinuous Performance Improvement wah Control ChartsControl Charts 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!!!
- 43. Continuous Performance ImprovementContinuous Performance Improvement wah 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?
- 44. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 45. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 46. Continuous Performance ImprovementContinuous Performance Improvement wah 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?
- 47. Continuous Performance ImprovementContinuous Performance Improvement wah 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.)
- 48. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 49. Continuous Performance ImprovementContinuous Performance Improvement wah 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:
- 50. Continuous Performance ImprovementContinuous Performance Improvement 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.
- 51. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 52. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 53. Continuous Performance ImprovementContinuous Performance Improvement wah 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.
- 54. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 55. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 56. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 57. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 58. Continuous Performance ImprovementContinuous Performance Improvement wah 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
- 59. Continuous Performance ImprovementContinuous Performance Improvement 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.
- 60. Continuous Performance ImprovementContinuous Performance Improvement 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.)
- 61. Continuous Performance ImprovementContinuous Performance Improvement 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
- 62. Continuous Performance ImprovementContinuous Performance Improvement wah 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.]
- 63. Continuous Performance ImprovementContinuous Performance Improvement 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)?
- 64. Continuous Performance ImprovementContinuous Performance Improvement 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.
- 65. Continuous Performance ImprovementContinuous Performance Improvement 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