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Improve – I Intro - Getting to Tangible Action John Conway – PRO-DAIRY 607-547-2536.

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Presentation on theme: "Improve – I Intro - Getting to Tangible Action John Conway – PRO-DAIRY 607-547-2536."— Presentation transcript:

1 Improve – I Intro - Getting to Tangible Action John Conway – PRO-DAIRY

2 Learning Objectives:  Learn and directly apply problem solving/decision making process (using DMAIC cycle as guide)  Special emphasis on the importance of accurate root cause analysis and the need to involve the business’ people in generating alternative solutions and setting criteria to assess the merits Approximate Time Needed:  90 minutes AV Equipment Needed:  LCD Projector and screen  Laptop Computer running MS PowerPoint  Flip chart and pens  Overhead projector and pens Further Reading:  The Six Sigma Way, How GE, Motorola, and Other Top Companies Are Honing Their Performance Peter Pande, Robert Neuman, Roland Cavanagh  The Goal: A Process of Ongoing Improvement Eliyahu Goldratt, Jeff Cox  The Dancing Wu-Li Masters -- An Overview of the New Physics Gary Zukav

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4 Speaker Notes: The “Day 2” agenda (from the 10:00 – 3:00 format) was left in here to show how the “Improve” section was strung together. Examples used are from within dairy production systems, so with most Producers you will have familiarity and interest on your side.

5 Day 2 *What was Learned/Gained from Actions Taken over Week? (20) *Improve - I: Improving intro - Getting to Tangible Action (10) *Improve - II: Problem Diagnosis -- Measure & Analyze (40) *Improve - III: Explore, Create, Judge & Decide (40) *Improve - IV: Getting from Idea to Implementation (40) *Improve - V: Pitfalls -- Finding the Time to Implement (30) *Improve - VI: Overview of "Change Campaign" (Change, Conflict, Communication) (30) *Is it Working? Measured Impacts (Control) (20) *Next Steps – SWOT Analysis Challenge & Course Evaluation (15)

6 Speaker Notes: The “you are here” slide indicates that we are rolling through the entire cycle, but at a production systems level. DRIVE and SMART goals have been set up at the “Define” level. Now it’s time to look for what is at the root of unmet or never considered goals or goals that are conflicting with one another. Little “d” define implores us to cast the measures net broadly enough to catch the interactions between systems and processes. After measuring, our analysis needs to be deep enough that we’re confident we’ve found root causes. Improving takes in idea generation, deciding which idea will work the best, building an implementation plan around the idea, and co-creating a control plan that assures in the early going the idea is working and having the desired effect. Depending what we find in root cause analysis, improving may be strategic or operational. Within operations, it could be at a systems level or deep into processes. All of us do this (making decisions) all day long with different intensities and levels of consciousness. From deciding what size and roast coffee to pump from the 12 different canisters at the convenience store to the ramifications surrounding how much over the speed limit you’re about to set your cruise control. Quick, discreet and the stakes are relatively low. Move forward to a quarter of a million dollar a year or more smaller dairy business, and not only are the stakes higher, but the complexities are amplified many orders. There are few uses of time more profitable than upping the probability of success through a tried and true process. Strategy, execution and control all bundled together! Think of the four combinations of strategy and implementation (right strategy, poor implementation; wrong strategy, great implementation; wrong strategy, poor implementation and only right strategy, great implementation) has a shot at success. It’s no wonder that only one of four (or less) new businesses make it! Same applies to major changes within an existing business!!

7 Define Compelling Vision of Business Translated through Goals and into Systems of Interest define Determine interactions among systems and “where to look” Analyze Determine root cause(s) of sub optimal performance or accept current performance Improve Combine alternative generation, decision making and tactical planning Control Determine measures and performance standards – “Is it working”? DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma Measure Determine appropriate measures, apply and compare with benchmarks We’re Going Here (at all levels) Strategic  Operations  Systems  Processes

8 Speaker Notes: (Animated slide) Before getting started with the importance of deep and accurate diagnosis (root cause analysis) it pays to have another view of the bigger picture. This is the “change equation”. Someone must be dissatisfied enough with the status quo to come up with a vision of something better. That’s where we’re headed. Equally important is that it will still take a threshold of energy in the form of persuasion to overcome the resistance to change. We’re people and that is the way we function (in varying degrees)!

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10 Speaker Notes: We decided to break this module into smaller pieces. Each has its own title slide. The roman numeral changes as you move forward.

11 Improve - II Problem Diagnosis Measure, Analyze, get to the Root Cause

12 Speaker Notes: Unless a problem is discreet and relatively easy to diagnose, you will most often bounce between measuring and analyzing to get to the root cause(s).

13 You are here Define Analyze Improve Control DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma Measure define

14 Speaker Notes: (Animated slide) Let’s connect this back to strategy. From the farm’s vision came some long term DRIVE goals supported by shorter term SMART goals. A snipped example is in red. It’s handy to think of goals as being either something that is unmet (having enough corn silage to bridge the year), unset (not really considering that having someone responsible for performance even if several people may be doing the work is critical) or conflicting (have a set crop rotation so devoting more acres to corn is not an option). That makes it easier to re-state the goal as a problem.

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16 Speaker Notes: (Animated slide) Same goals re-stated.

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18 Speaker Notes: (Animated slide) Your steadfast tool in getting to root causes is borrowed from your experience of parent to a 2 year old. Asking “why” until you just can’t go any further! Note that sometimes a “why” leads to a “so”, which takes you to a deeper “why”. “Drilling down” has become a popular phrase for this process.

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20 Speaker Notes: (Animated slide) Problems emerge at all levels in a business. Those of us working with Producers are familiar with this list of statements. They are all symptoms of a deeper problem. Looking at them one at a time, ask the audience to comment on what “level” of the business you are in, and what additional information you would like to see to “drill down” towards root cause(s). Responses can be recorded on a flip chart and posted. If time is short, verbal responses are another option.

21 Insufficient root cause analysis (problem diagnosis) can leave you frustrated! “This farm business is just not cutting it anymore for the needs of my family.” “Cows are not milking like they were a year ago.” “Darn! We’re down 3 pounds per cow this morning.” Is there likely a deeper “why” to these often heard statements? What kinds of data would you mine to get to the root cause(s): “Two thirds of our grass hay crop tests over 64% NDF.”

22 Speaker Notes: (Animated slide) Here is an example of the complexities that can emerge when the symptoms observed are broad in scope and are rooted in different production systems. We’re taking the statement from the previous slide in red and following it through. Probable root causes are in red. One root cause is terminal and in the past – nothing can be done about it. Another had to be taken further with a “so”, since action was already taken with new consequences. Eventually all lines of analysis converge at the bottom.

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24 Speaker Notes: (Animated slide) What does it look like when it’s a people oriented problem? Here is another example of lines going from symptom to root causes. Solutions here may send you all the way back up to how the business strategy is laid out.

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26 Speaker Notes: (Animated slide) You can see why we added the little “d” define to the DMAIC cycle. When Motorola is manufacturing a cell phone things are pretty measurable and discreet. Either the right piece went in the right place at an optimal speed or it did not. Biological systems are never that discreet and often you have to measure a lot of different things to make sense of the symptom observed. Then you hope you’ve guessed right!

27 So more often than not, starting with the problem and moving your way through analysis towards the root cause helps determine how complex the situation is (define) and what measures will help tell you what really is wrong!

28 Speaker Notes: (Animated slide) It’s worth noting that other industries take root cause analysis a little further. This view happened to involve 3 “C’s”. We’ve talked a lot about “Cause”. A business based on the coming together of several complicated biological systems (think soil, silo and rumen for starters) there will be times where specialized expertise may be needed. You may be perfectly “Competent” for many analyses, but may need to call in reinforcements (Veterinarian, Nutritionist, Financial Advisor, Crop Consultant, etc.) for others. The final “C”, “Climate” to do something about it will get its own treatment when we talk about the other “3-C’s” – Change, Conflict and Communication.

29 One more wrinkle… the root Cause may be only the first of the 3 C’s of thoroughly analyzing a problem. The 3 C’s of problem analysis:  Causes of the problem?  Competency to deal with it?  Climate exists to promote changes?  Causes demand quality information.  Competency promotes the analysis team approach  Climate gets back to the change equation, business’ vision and involvement of all stakeholders

30 Speaker Notes: Finally a chance to do something with this section! This worksheet can be used in conjunction with either goals set for the Case Farm or goals that come from participants’ farms. Some examples from participants can be sketched out on the flip chart and posted.

31 Using a SMART Goal from either your farm or one you created for the Case Farm:  re-state it as a problem  work it down towards the root cause  list what measures you need to be certain you have indeed nailed the root cause

32 Speaker Notes: Title slide for Improve – III.

33 Improve – III Explore, Create, Judge & Decide

34 Speaker Notes: The “you are here” for generating ideas and making darn sure you’re choosing the best one(s).

35 Defi ne Analyze Improve Control DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma Measure  You are here

36 Speaker Notes: A reality check slide. There is a lot of hard physical work on a dairy and days that expand by hours when the unexpected happens. This just gets at  quality time for quality decisions  keep a paper log so no good idea gets lost and  there’s power in synergy… two heads are better than one!

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38 Speaker Notes: (Animated slide) John Thurgood argues: Do you see many of these producers doing this? Do you risk scaring them off with a big group concept like this?? I think one or two people to kick something around over coffee or dessert is a more likely scenario. We do have here a decent sized group. Let’s follow the informal protocol on the lower right of this slide and see what we come up with. Use a root cause problem that was generated within the group. Record ideas generated on the flip chart and post. Let them go either “x” number of minutes or until ideas are exhausted.

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40 Speaker Notes: (Alternative to large group brainstorming exercise) If preferable, have smaller groups work together on generating solutions to problems by sticking with the Case Farm situation. Here they can “declare” a root cause, so they can brainstorm solutions.

41 … Continuing with Problem Root Cause We’ll work in teams of 4 (if possible). Assume you did get to a root cause. Don’t worry if you feel forced to speculate due to insufficient data. Go with this as a “root cause”. Take it to “improve” mode. Brainstorm as many ideas as possible in 5 minutes that will improve this situation and lead towards meeting the SMART goal you started with. You can use the next page as a worksheet

42 Speaker Notes: (Alternative to large group brainstorming exercise, page 2) If preferable, have smaller groups work together on generating solutions to problems by sticking with the Case Farm situation. Here they can “declare” a root cause, so they can brainstorm solutions.

43 Improvement ideas:

44 Speaker Notes: (Animated slide) Introduce the relative importance of setting criteria with which you will judge the options. While the people in the business have to agree on criteria and “weighting”, the advisory group may be instrumental in providing information for a grid item that allows an easily agreed upon score.

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46 Speaker Notes: Special title slide to bring on the “grid”.

47 The Decision Making Grid…

48 Speaker Notes: Blank grid first to point out general lay out. The default criteria are based upon a combination of experience (knowing what almost always makes it) and some borrowed from the “Holistic Management” folks. The latter is to get people to consider ramifications down the road and beyond the farm’s gate. You may want to have a few copies of this empty grid on acetate. You can take the ideas generated for a problem and have the group tell you as individuals how they would fill in the cells. Invariably you will hit cells that call for information that needs to be chased down. That gets at the amount of time it may take to fully populate the grid. The other dynamic is disagreement between individuals on how to score a cell. That’s natural! Resolution is imperative if this change to the business is to “get legs”.

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50 Speaker Notes: These are actual grids from the farm battling fresh cow and repro problems, if you need a concrete example.

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52 Speaker Notes: These are actual grids from the farm battling fresh cow and repro problems, if you need a concrete example.

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54 Speaker Notes: Alternative to large group, acetate and overhead projector…

55 …Back to your list of improvement ideas We’ll stay in our teams of 4. Let’s now take all of those great alternatives you came up with and see which of them stand up to the criteria you agree upon to judge them by. Use the “empty” grid, but feel free to amend the criteria written into the left side column.

56 Speaker Notes: Alternative to large group, acetate and overhead projector…

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