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PDCA / Scientific Thinking

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Presentation on theme: "PDCA / Scientific Thinking"— Presentation transcript:

1 PDCA / Scientific Thinking
Continuous Learning

2 What is Scientific Thinking?
Goal is PERFECTION!! Eliminate any waste in value creation processes Therefore, Scientific Thinking is the PROCESS for WASTE: Finding Understanding Eliminating Scientific Thinking is the PROCESS for improving the PROCESSES which create value Ultimately, scientific thinking is the process for continuous learning

3 Examples of Problem Situations
Correcting weakness in skill levels and development of training plans Purchasing new equipment Cost reduction activities Team improvement activities Improving productivity and process flow Annual planning and strategy development

4 Where are the Opportunities?

5 PDCA at the Problem Solving Level

6 The Foundation of Hoshin Kanri
P Grasp the Situation Plan Adjust Check Do

7 What is your problem Consciousness?
What should be happening (WSBH) What is actually happening (WAH) Problem

8 Problem Solving Image Countermeasures Breakdown Grasp the situation
Vague Big Concerns WHY? WHY? WHY? Breakdown Grasp the situation Actual vs. Standard Actual vs. Ideal Go and See Point of Cause Point where events cause abnormality 5 Why Analysis Root Cause Countermeasures

9 Grasp the Situation Take careful aim – ready-aim-fire vs. ready-fire-aim Potential value of the project Potential cost of the project Compare the ratios of various projects Decide which problems to solve before searching for solutions – “Go See” Find the “True Problem” to get the most significant results Clearly connect the true problem to primary performance measures

10 Grasp the Situation Defining the Problem Make a Strong Case
Actual current performance with some historical data Desired performance Magnitude of the problem as defined by the difference between current performance and desired performance The extent and characteristics of the problem Make a Strong Case Symptoms of the problem provide supporting evidence Importance Urgency Tendency

11 Grasp the Situation Clear Ownership of the Problem
What, who, when, where (and how) Individual responsibility (not a group or team)

12 Grasp the Situation Thorough Root Cause Analysis
Good thinking, good products Principles Eliminate preconceived ideas Use data to decide “where” to “Go and see” Analysis continues until we are certain of the root cause Almost always multiple root causes – get them all Focus on the most significant root causes Find causes you can fix – don’t blame others Clearly defined root problems usually have clearly defined solutions Thorough analysis provides data which will predict the outcome of the solution

13 5 Whys and 5 Therefore(s) Why? Therefore?

14 Plan Countermeasures - Problems are never really solved
Overall permanency of countermeasure Short-term Long-term Length of time to implement Minutes to hours One week to one month Develop consensus during the plan process Predict results

15 Plan (Continued) Consider alternative solutions while building consensus Broadly consider all possibilities Criteria for good solutions Simple Low cost Within area of control Can be implemented quickly Develop consensus

16 Do Models Make a prototype Run a test case Simulations
Run experiments (last resort!) Whatever it takes to be sure! Now we test our solutions to see what works best Action frequently leads to identifying additional opportunities

17 Check Verify Results All the way to desired performance measure
5 Therefores

18 Check Did the countermeasure alter THE PROBLEM?
Measure locally (effect on root cause) Measure globally (effect on THE PROBLEM) We are not focused on projects, just results

19 Adjust (Reflect) Make necessary adjustments to solutions and the Action Plan Standardize Create stability in process with new processes Establish standardized work with new process Monitor performance results of new process Identify future steps Where is the next opportunity?

20 Adjust Problem solving is a learning process
We learn from mistakes, near successes, and clear successes Experimentation and simulation can minimize surprises Stand in the circle and observe Establish stable operations Reflection** The learning process must achieve learning

21 Practice Problem My friend comes to share every Christmas Eve with me. I live on the fifteenth floor. Unfortunately, he arrives without being announced by the doorman (who waits outside the elevator), puffing and panting from walking the last five flights. When he leaves, however, he gets into the elevator for the ride down. How can this be?

22 Practice Problem It’s a mistake to hire amateurs, as the archaeologist found to his great distress. One of his new staff came running in one day, all excited. He had just paid a local a great deal of money for an extremely valuable coin. As he said, “I’ve never seen one like this before, and I’ve been looking in museums for thirty years. It’s a genuine Egyptian coin marked “100 B.C. – solid gold!” The director of the expedition sighed wearily and fired him. Why?

23 What is Hoshin Kanri ho = direction shin = needle “policy, direction”
kan = control, chanelling ri = reason, logic “management” Hoshin Management = Policy Deployment Toyota’s planning & execution system

24 Hoshin Kanri (Policy Deployment)
Keep all problem solving / continuous improvement activities coordinated Ensure common goals and direction Facilitate consensus understanding and decision making

25 A Touch of Fresh Air Hoshin Kanri is the antidote for Conventional Planning Analysis + Intuition Intuition The mood in the plant The look on the customer’s face The supplier’s tone of voice

26 The Foundation of Hoshin Kanri
P Grasp the Situation Plan Adjust Check Do

27 PDCA in Lean Companies A P C D GTS P Daily Work Problem Solving
A3 Strategies Policy Deployment P A P GTS C D

28 Annual Planning & Execution Cycle
9. Record in database (Book of Knowledge) 1. Determine current state 8. Year-end Review Perfection: Learning points next steps Current Status A3 2. Determine future state 7. Mid-Year Review Current Status A3 P Grasp the Situation Plan Adjust Check Do 3. Prioritize needs & choose breakthrough objectives 6. Micro Check & Adjust (weekly?) Dashboard 4. Create one-page plan (A3) to achieve breakthrough objectives 5. Deploy the plan Output – a Tree Diagram, action plans 5. Each level implements its action plan

29 Plan – Telling Compelling Stories
The A3 report is the “currency” of Hoshin Kanri One-page storyboard on 11” x 17” paper Can you tell a compelling story? “Let’s talk about our business . . .” A3 Thinking The piece of paper is not the point The point is . . .


31 Do – Deploying the Plan We can’t tell people what to do
We need to translate our plans level by level And engage people thereby (leads to empowerment) Mental models: What do you think? vs. Thou shalt Keep it simple

32 “Catchball” Example: “Mr. Cho and “the beloved company”
Refers to the horizontal and vertical give & take required to - Align activities Translate & thereby engage Objectives Focus & alignment Example: “Mr. Cho and “the beloved company”



35 Check – “The Pacemaker” or “Daily Management”

36 Check – Making Problems Visible
Check entails Simple, connected meetings wherein the problems become visible to all Exception management What are the hot spots? What are you doing about them? Mental model: Problems are nuggets to be mined – not garbage to be buried Image:

37 Checking as a System of Gears
Plant Check / Adjust Meeting Department Check / Adjust Meeting Team Check / Adjust Meeting

38 Adjust – Solving Problems
Adjust phase requires simple, shared problem solving approach Six sigma and other advanced approaches are needed for ~ 10% of problems Problem solving requires support strategy

39 10 Step Hoshin Kanri Process
Assess Current State Envision Future State Identify Breakthrough Objectives Identify Links to Daily Management Create Breakthrough Strategies (A3) Deploy Plan through Catch Ball Implement Plan Review Plan (micro check & adjust dashboard) Conduct Annual Review Improve Planning & Execution Process

40 Hoshin Kanri Review A Policy Deployment Process
Focuses on vital few breakthrough objectives Tells stories Challenges conventional mental models Engages each level Provides umbrella structure for PDCA Checks and improves planning process Supports organizational learning

41 Tell the Story – A3 An A3 is a story explaining a:
What’s in it for me? (WIFM) Proposal Problem- Solving Status Info Story

42 Proposal Story

43 Problem Solving Story

44 Chapters in the Problem Solving Story
Thoroughly understand situation & Identify “THE SITUATION” Complete a detailed root cause analysis Consider alternative solutions while building consensus Plan-Do-Check-Act (PDCA) Plan: Develop an action plan Do: Implement solutions rapidly Check: Verify results (improve “THE SITUATION”?) Adjust/ Reflect: Make necessary adjustments, standardize solutions, and reflect and learn. Start all over!

45 Status Story

46 Formatting Tips No “one” way Avoid excessive verbiage
A picture is worth 1000 words Use familiar formats for particular information Use consistent scales on charts for comparison Eliminate the “noise” or small issues Avoid color Overlay arrows to show logical flow

47 Questions?

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