Chapter 13 Tools for Process Improvement MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 1

The Deming Cycle MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 2 Plan DoStudy Act

Plan (1 of 2) 1.Define the process: its start, end, and what it does. 2.Describe the process: list the key tasks performed and sequence of steps, people involved, equipment used, environmental conditions, work methods, and materials used. 3.Describe the players: external and internal customers and suppliers, and process operators. 4.Define customer expectations: what the customer wants, when, and where, for both external and internal customers. 5.Determine what historical data are available on process performance, or what data need to be collected to better understand the process. MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 3

Plan (2 of 2) 6.Describe the perceived problems associated with the process; for instance, failure to meet customer expectations, excessive variation, long cycle times, and so on. 7.Identify the primary causes of the problems and their impacts on process performance. 8.Develop potential changes or solutions to the process, and evaluate how these changes or solutions will address the primary causes. 9.Select the most promising solution(s). MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 4

Do 1.Conduct a pilot study or experiment to test the impact of the potential solution(s). 2.Identify measures to understand how any changes or solutions are successful in addressing the perceived problems. MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 5

Study 1.Examine the results of the pilot study or experiment. 2.Determine whether process performance has improved. 3.Identify further experimentation that may be necessary. MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 6

Act 1.Select the best change or solution. 2.Develop an implementation plan: what needs to be done, who should be involved, and when the plan should be accomplished. 3.Standardize the solution, for example, by writing new standard operating procedures. 4.Establish a process to monitor and control process performance. MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 7

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 8 The Deming cycle focuses on both short-term continuous improvement and long-term organizational learning.

FADE Focus Analyze Develop Execute MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 9

Juran’s Breakthrough Sequence Proof of the need Project identification Organization for breakthrough Diagnostic journey Remedial journey Holding the gains MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 10

Creative Problem Solving Mess Finding – identify symptoms Fact Finding – gather data; operational definitions Problem Finding – find the root cause Idea Finding – brainstorming Solution Finding – evaluate ideas and proposals Implementation – make the solution work MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 11

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 12 How one approaches problem solving is not as critical as doing it in a systematic fashion, whether one uses the Deming cycle, FADE, Juran’s approach, CPS, or some hybrid variation.

The Seven QC Tools 1.Flowcharts 2.Check sheets 3.Histograms 4.Cause-and-effect diagrams 5.Pareto diagrams 6.Scatter diagrams 7.Control charts MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 13

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 14 A flowchart or process map identifies the sequence of activities or the flow of materials and information in a process. Flowcharts help the people involved in the process understand it much better and more objectively by providing a picture of the steps needed to accomplish a task.

Flowcharts Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible Compares and contrasts actual versus ideal flow of a process Allows a team to reach agreement on process steps and identify activities that may impact performance Serves as a training tool MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 15

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 16 Run charts show the performance and the variation of a process or some quality or productivity indicator over time in a graphical fashion that is easy to understand and interpret. They also identify process changes and trends over time and show the effects of corrective actions.

Run Chart Monitors performance of one or more processes over time to detect trends, shifts, or cycles Allows a team to compare performance before and after implementation of a solution to measure its impact Focuses attention on truly vital changes in the process MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 17 * * * *

Control Chart Focuses attention on detecting and monitoring process variation over time Distinguishes special from common causes of variation Serves as a tool for on-going control Provides a common language for discussion process performance MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 18 * * * *

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 19 Check sheets are special types of data collection forms in which the results may be interpreted on the form directly without additional processing.

Check Sheet Creates easy-to-understand data Builds, with each observation, a clearer picture of the facts Forces agreement on the definition of each condition or event of interest Makes patterns in the data become obvious quickly MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 20 xx xxxxxx x

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 21 Histograms provide clues about the characteristics of the parent population from which a sample is taken. Patterns that would be difficult to see in an ordinary table of numbers become apparent.

Histogram Displays large amounts of data that are difficult to interpret in tabular form Shows centering, variation, and shape Illustrates the underlying distribution of the data Provides useful information for predicting future performance Helps to answer “Is the process capable of meeting requirements? MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 22

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 23 A Pareto distribution is one in which the characteristics observed are ordered from largest frequency to smallest. A Pareto diagram is a histogram of the data from the largest frequency to the smallest.

Pareto Diagram Helps a team focus on causes that have the greatest impact Displays the relative importance of problems in a simple visual format Helps prevent “shifting the problem” where the solution removes some causes but worsens others MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 24

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 25 A cause-and-effect diagram is a simple graphical method for presenting a chain of causes and effects and for sorting out causes and organizing relationships between variables.

Cause and Effect Diagram Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions Focuses the team on causes, not symptoms MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 26 Effect Causes

Scatter Diagram Supplies the data to confirm a hypothesis that two variables are related Provides both a visual and statistical means to test the strength of a relationship Provides a good follow-up to cause and effect diagrams MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 27 * * * *

Other Tools for Process Improvement Kaizen Blitz Poka-Yoke Process Simulation MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 28

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 29 A kaizen blitz is an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional kaizen applications, which are performed on a part-time basis.

Poka-Yoke (Mistake-Proofing) An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 30

Three Levels of Mistake-Proofing Design potential errors out of the product or process – Eliminates any possibility that the error or defect might occur Identify potential defects and stopping a process before the defect is produced – Requires time to stop a process and take corrective action. Find defects that enter or leave a process – Eliminates wasted resources that would add value to nonconforming work, but clearly results in scrap or rework. MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 31

Common Poka-Yoke Examples (from John Grout’s Poka-Yoke Web Page) MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 32

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 33 Process simulation is an approach to building a logical model of a real process, and experimenting with the model to obtain insight about the behavior of the process or to evaluate the impact of changes in assumptions or potential improvements to it.

Engaging the Workforce in Process Improvement Technical skills Shared vision Behavioral skills MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 34

Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 35 Compared to the technical tools for gathering and analyzing data, the “soft skills” — those that involve people — such as project management and team facilitation, are more difficult to teach and learn.

Skills for Team Leaders Conflict management and resolution Team management Leadership skills Decision making Communication Negotiation Cross-cultural training MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 36

Skills for Team Members Effective meetings Shared decision making MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing 37