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PDCA / Scientific Thinking Continuous Learning. What is Scientific Thinking?What is Scientific Thinking?  Goal is PERFECTION!!  Eliminate any waste.

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Presentation on theme: "PDCA / Scientific Thinking Continuous Learning. What is Scientific Thinking?What is Scientific Thinking?  Goal is PERFECTION!!  Eliminate any waste."— Presentation transcript:

1 PDCA / Scientific Thinking Continuous Learning

2 What is Scientific Thinking?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 2

3 Examples of Problem SituationsExamples 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 3

4 Where are the Opportunities?Where are the Opportunities? 4

5 PDCA AT THE PROBLEM SOLVING LEVEL 5

6 The Foundation of Hoshin KanriThe Foundation of Hoshin Kanri 6

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

8 Problem Solving ImageProblem Solving Image 8 WHY? WHY? WHY? ConcernsBigVague

9 Grasp the SituationGrasp 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 9

10 Grasp the SituationGrasp the Situation  Defining the Problem  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 10

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

12 Grasp the SituationGrasp 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 12

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

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 14

15 Plan (Continued)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 15

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 16

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

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 18

19 Adjust (Reflect)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? 19

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 20

21 Practice ProblemPractice 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? 21

22 Practice ProblemPractice 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? 22

23 What is Hoshin KanriWhat is Hoshin Kanri ho = direction shin = needle “policy, direction” kan = control, chanelling ri = reason, logic “management” 23

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

25 A Touch of Fresh AirA 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 25

26 The Foundation of Hoshin KanriThe Foundation of Hoshin Kanri 26

27 PDCA in Lean CompaniesPDCA in Lean Companies 27

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

29 Plan – Telling Compelling StoriesPlan – 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... 29

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31 Do – Deploying the PlanDo – 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 31

32 “Catchball”  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” 32

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

36 Check – Making Problems VisibleCheck – 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: 36

37 Checking as a System of GearsChecking as a System of Gears 37

38 Adjust – Solving ProblemsAdjust – 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 38

39 10 Step Hoshin Kanri Process10 Step Hoshin Kanri Process 1.Assess Current State 2.Envision Future State 3.Identify Breakthrough Objectives 4.Identify Links to Daily Management 5.Create Breakthrough Strategies (A3) 6.Deploy Plan through Catch Ball 7.Implement Plan 8.Review Plan (micro check & adjust dashboard) 9.Conduct Annual Review 10.Improve Planning & Execution Process 39

40 Hoshin Kanri ReviewHoshin 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 40

41 Tell the Story – A3Tell the Story – A3  An A3 is a story explaining a:  What’s in it for me? (WIFM) 41

42 Proposal StoryProposal Story 42

43 Problem Solving StoryProblem Solving Story 43

44 Chapters in the Problem Solving StoryChapters 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! 44

45 Status StoryStatus Story 45

46 Formatting TipsFormatting 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 46

47 Questions?


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