LEANing Into Results Oriented Work Interactive Workshop

WHY WE ARE HERE Success for EVERY young person. Cradle to Career. OUR VISION A key component to a successful community includes academic achievement, and the safety and well-being of its children and youth. When ALL children and youth succeed, our community succeeds. Why? Because children and youth become our workforce, leaders and community members, and it’s no secret that communities who have a talented workforce attract and retain employers. With jobs, income, benefits, etc., families are able to live and contribute to a better quality of life. This IS our true north. Success for EVERY child – Cradle to Career.

WHAT ACYI IS ALL ABOUT Together we can do more/better on behalf of children and youth. Outcomes based work (using Continuous Improvement) is how we are going to make it happen.

NATIONAL AFFILIATION

Youth Initiative Institute Team WELCOME & INTRODUCTIONS Youth Initiative Institute Team FACILITATORS Latife Bulur Kowalski, North America Master Black Belt, Cummins Inc. Lisandra Gonzales, Partnership Director Ashley Edinger, Partnership Associate Check-In Name Organization What are you trying to improve in your space with CI? What is your background with CI? So Glad You Are Here!

HOUSEKEEPING ITEMS Today’s workshop is scheduled for the full day Interactive work session Breakfast, Lunch, and afternoon coffee/snacks will be provided Be on time from lunch and breaks! Ask questions at anytime Handouts in your notebook and will be available on our website Opportunity to provide us feedback via a survey at the end of the session Bathroom Located: Wifi Password:

SESSION GOALS Walk out of here today with a plan to improve the area you identified in your own work space Have a few ‘Continuous Improvement’ Tools to support your work Inspire you to use ‘Continuous Improvement’ in other areas of your work Help align you to more support from ACYI

Overview of Notebooks

CREDENTIALS Bachelor’s degree in Psychology & Sociology from the University of Colorado, Boulder Master’s degree in Statistics from the University of Denver. Since 2010, Latife has been working for Cummins Inc., currently as the Master Black Belt serving the North America Distribution Business. This role involves the management of the 6 Sigma and Continuous Improvement program for North America. This includes providing coaching for existing Green and Black Belts as well as training new Belts and Project Managers. Youth Initiative Team Credentials: Certified in LEAN by Denver Health Trained in Results Based Facilitation by StriveTogether and the Annie E. Casey Foundation Latife Bulur Kowalski North America Master Black Belt Cummins Inc.

CHARTERING NOTEBOOK SECTION 1

What Is A Project? First, what ISN’T a Project? A project is NOT a PROCESS, which is repeating the same task over and over again… A PROJECT is a unique, one-time event. A Project has: GOALS: Has clearly defined, unique goals and deliverables AN ENDING: Has a definite beginning and end. Is temporary and does not repeat. COMPLEXITY: Is complex enough that it needs to be managed (see the next page for more…)

The Project Cycle Plan Plan your project   Plan Plan your project Analyze your failures & predict results Do Do the plan Taking calculated risks Act Act on all improvements Take action to standardize & control Study Study the results Taking calculated risks

A3: YOUR BLUE PRINT Named after the size of paper Designed to help us begin eating the elephant Meant to be a pencil to paper tool – not to be overthought or to spend too much time getting it perfect Summarizes the story of the work that you are doing to solve your problem If the problem you are trying to solve is too large for the paper, it might be too large of a problem to focus on Meant to help you get started and is a living document that is continually updated to show progress

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Definition/Purpose of Chartering the Project Chartering the Project is formally starting and recognizing the existence of the project. A Project Charter should answer 3 key questions: Why are we doing this project? … in the form of a basic business case or financial analysis What are the objectives of this project? … in the form of a preliminary scope document Who is involved in the project? … in the form of identifying the key stakeholders in the project. Make the Invisible Visible

PROCESS MAP NOTEBOOK SECTION 2

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Process Flow Map Introduction We will discuss common process flow maps Basic flow maps Cross-functional flow maps

Basic Process Flow Maps

Basic Flow Map Introduction Basic process flow maps are very simple maps They graphically depict a process’s order-of-events Process flow maps reveal gaps, delays, strengths / weaknesses, hidden factories, etc. A project team might need multiple process flow maps

Scoping With Process Flow Maps Process flow maps help visualize a process and may help scope the project Ensure the project’s scope matches the start-to-end points of the process flow map This project’s Y statement: Improve the average order fulfillment time from 72 hours to 7±0.5 hours.

Process Flow Mapping Process Overview Review the map and gain consensus that it adequately defines your overall process Update the maps regularly Visit the actual process to confirm the map is adequate

Cross Functional Maps

Cross Functional Map (Swim Lane) Cross functional maps (CFMs) build on the basic process flow map Place process steps in the appropriate “swim” lanes List functions in the left column Align concurrent processes vertically Processes move left to right with time Time

Mapping Media Many media options are available for process mapping Visio and Power Point versions of the same process Mapping Media Many media options are available for process mapping Computer programs: Visio, Power Point, Word, Excel, etc. Paper: Post Its on a wall, flip-chart / easel pads, etc. Choose a media option you and your team are comfortable using Record your map electronically (picture, file, etc.) for future reference

Cross Functional Process Mapping Exercise

DATA HANDLING/CHARTS NOTEBOOK SECTION 3

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Objectives Types of data Types of graphs Measures of the center, spread, and shape of the data

Types of Data Two types of data are available: Attribute (discrete) data Values are one or more of the following: ‘Counted’ Categorical (shoe size #5,6,7,8… ) Boolean (good/bad, true/false, yes/no) Example: number of typos per sales contract Variable (continuous) data Numeric values Example: GPA of high school students

Exercise: what type of data do you have?

Graph the Distribution of Data: Dotplot Car washing process Y: wash time in minutes Measured (variables) wash time for 150 washes Each dot is one “event” (i.e. Wash) at a given value As the dots accumulate, the actual process performance can be seen (“distribution”)

Graph the Distribution of Data: Histogram The car wash process data has been grouped into “intervals”, with the number of times that a data point falls within a given interval determining the height of the interval bar.

Graph the Distribution of Data: Pareto Chart Pareto charts are used to show how frequently a defect or event falls into a particular category Pareto charts are especially useful in the early stages of a project including initial capability

Graph Variables Over Time: Time Series Plot Graphically displays data collected over time Participant graphs should match the one on this slide. Review the graph structure. X axis = time progression Y axis = data point Size up the variation and look for runs and other patterns.

Measures of Data Center and Variation Some of the graphs in the remainder of this module refer to three important measures of data Center Variation Shape The next slides will define these measures

Measures of Data Center Mean: Arithmetic average of a set of values, denoted by 𝑋 Reflects the influence of all values Strongly influenced by extreme values 𝑥 =22.02 Median: Reflects the 50% rank The center number of a sorted list (21.94 in this case) Is not influenced by extreme scores

Graph the Distribution of Data: Boxplots Whisker (Upper): Highest Point w/in 1.5·Box Heights From Top Of Box 75% 3rd Quartile 50% (Median) Explain boxplot Any Asterisk Values Outliers Upper whisker end Extends to the maximum data point within 1.5 box heights from the top of the box Upper box end 75% Middle line 50% (Median) Lower box end 25% Lower whisker end Extends to the minimum data point within 1.5 box heights from the bottom of the box 25% 1st Quartile Outlier Whisker (Lower): Lowest Point w/in 1.5·Box Heights From Bottom Of Box Boxplots show the spread and center of the data

Measures of Data Variation Range: the distance between the extreme values of a data set (highest – lowest or maximum to minimum) Standard deviation (σ): the square root of the variance 8, 9, 10, 11, 12 -10, 0, 10, 20, 30

The Normal Distribution Most natural phenomena and man-made processes are distributed normally, or can be represented as normally distributed (through transformations) A normal distribution can be described completely by knowing only the: mean and standard deviation Distribution One Distribution Two Distribution Three What is the difference among these three normal distributions?

Data Planning Exercise

ROOT CAUSE ANALYSIS NOTEBOOK SECTION 4

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Objectives Review different failure analysis tools: 5 Whys Fault Tree Analysis (FTA) Failure Mode Effects Analysis (FMEA) Apply appropriate failure analysis tool in exercise

Video Example Show YouTube clips of Direct TV commercials to illustrate 5 Whys

Benefits Of The 5 Whys Help identify the root cause of a problem. Determine the relationship between different root causes of a problem. One of the simplest tools; easy to complete without statistical analysis.

Determine Root Cause (5 Whys) The 5 Whys is a great CI/Quality tool that doesn’t involve a statistical hypothesis and in many cases can be completed without a data collection plan. Asking “Why?” may be a favorite technique of a three year old child, but it could teach you a valuable quality lesson. By repeatedly asking the question “Why” (five is a good rule of thumb), you can peel away the layers of symptoms which can lead to the root cause of a problem.

How To Complete The 5 Whys Write down the specific problem. Writing the issue helps you formalize the problem and describe it completely. It also helps a team focus on the same problem. Ask Why the problem happens and write the answer down below the problem. If the answer you just provided doesn’t identify the root cause of the problem that you wrote down in step 1, ask Why again and write that answer down. Loop back to step 3 until the team is in agreement that the problem’s root cause is identified. Again, this may take fewer or more times than five Whys.

5 Whys & FTAs The 5 Whys can be used individually or as a part of an FTA. The FTA helps you explore all potential or real causes that result in a single defect or failure. Once all inputs are established on the FTA, you can use the 5 Whys technique to drill down to the root causes.

FTA = FMEA (assessing risks in Project Management) FMEA is for “what can happen” (assessing risks in Project Management) FTA is for “what has or is happening” (assessing issues in Project Management)

FTA Creation Build the FTA left-to-right Use the “5 Why’s” method Why could that happen? Why could that happen? Why could that happen? Build the FTA left-to-right Use the “5 Why’s” method Physics and logic Must be data based Must be specific assignable cause assignable cause assignable cause physics & logic physics & logic physics & logic physics & logic physics & logic physics & logic physics & logic Why could that happen? physics & logic Why could that happen? physics & logic and measureable Failure Mode physics & logic

FTA Creation Each section, or “branch” of the FTA must have the two following characteristics Branches assignable cause physics & logic physics & logic assignable cause – A physical or logical feature assignable cause Load, stress, strength, voltage, physics & logic resistance, temperature, etc assignable cause Failure Mode physics & logic – A measureable adjective Too high, too low, etc physics & logic assignable cause assignable cause physics & logic

FTA Creation 1. Process Not Followed 2. Process Doesn’t Exist Step 7 Root Cause for Assignable Cause: “The Big 3” 1. Process Not assignable cause It may take 5 levels, or maybe only 3, or maybe 9… physics & logic physics & logic assignable cause assignable cause physics & logic assignable cause physics & logic assignable cause physics & logic physics & logic assignable cause Followed 2. Process assignable cause physics & logic assignable cause physics & logic Doesn’t Exist 3. Process Is assignable cause physics & logic physics & logic assignable cause assignable cause Inadequate physics & logic Failure Mode assignable cause physics & logic assignable cause physics & logic physics & logic assignable cause assignable cause physics & logic physics & logic assignable cause

FTA Sanity Check The best FTA check Proof / edit the FTA by which causes this? cause this? Does this… The best FTA check which causes this? assignable cause physics & logic physics & logic assignable cause Proof / edit the FTA by assignable cause physics & logic reading right-to-left which causes this? assignable cause physics & logic assignable cause – Scrutinize the logic physics & logic physics & logic assignable cause assignable cause which causes this? physics & logic physics & logic assignable cause assignable cause physics & logic physics & logic assignable cause assignable cause Failure Mechanism physics & logic Failure Mode assignable cause physics & logic assignable cause physics & logic physics & logic assignable cause assignable cause physics & logic physics & logic assignable cause

FTA Project Lead Tips Stay focused on the failure mechanism – not the solution. Use open-end questions to engage entire team: How is this happening? What can cause this? Keep team emotions in check – just the facts! Face to face FTAs to encourage discussion

FTA Team Member Tips Incomplete teams will result in incomplete FTAs! No “Lone Ranger” processes Requires good cross-functional participation Tap into knowledge Share what you KNOW has been going wrong Be open to learn about other failures you may not know about

Failure Modes and Effects Analysis Overview FMEA

FMEA Definition Failure Modes and Effects Analysis (FMEA) is a structured approach to: Identify the ways a product or process can fail Estimate and prioritize the risk associated with specific failure causes Identify actions needed to reduce or eliminate excessive risk FMEA is meant to be a “before – the – event” action, not an “after – the – fact” exercise, however they may be used as a factor filter when the problem does not have adequate evidence for the FTA approach 1: AIAG “FMEA”, 4th Edition

Risk FMEAs help organize risk assessment and track mitigating actions and results FMEA risk levels are numerical assessments of: The severity of the effects of a failure mode on the customer and The likelihood the failure may occur during the life of the product or process and The effectiveness of existing ways to prevent or detect the failure mode before the customer is affected There are many sources of risk; some are shown below

Project Teams FMEAs depend on a cross-functional group of experts including someone experienced in leading them FMEA teams include the project core team and project-related experts such as: Affected operators, administrators, and supervisors Technical experts Finance / human resources / information technology (IT) experts

FMEA Step 1 List process input, items, or functions and their requirements in the FMEA Entries come from upstream tools such as process maps Teams detail requirements; these should be measurable

FMEA Step 2 Determine failure mode(s) Failure modes are ways the function or item could fail to meet the requirement as perceived by the customer One failure mode per line; add lines to capture all relevant failure modes

Add sufficient detail to comments so future readers understand them FMEA Step 3 Determine the effect on the customer for each failure mode Effects must be stated from the customer’s perspective (warning light illuminated, reduced power, delay in payment received, amputation possible, etc.) Multiple effects may be listed in each row Add sufficient detail to comments so future readers understand them

FMEA Step 4 Identify potential assignable causes of each failure mode These are the assignable causes for the project; describe them as things that can be corrected or controlled Possible assignable causes verified to significantly contribute to the problem become the focus of the project; these are what you’ll fix! In many cases, there will be more than one cause for a failure mode Add sufficient detail to comments to be clear to future readers Cause Failure Mode Effect

FMEA Step 5 List current prevention and detection controls for each cause and failure mode Prevention (leading control): these eliminate the cause of the failure or failure mode and are the preferred ‘control’. (e.g. failsafing, automated control, setup verifications) Detection (lagging control): these recognize and flag the failure before the customer is exposed (e.g. audits, checklists, inspection, testing, training, PMs) If an obvious control is available, the team should consider immediate action on it. List only real, current, and in-use controls. Include documented procedures and instructions where they exist. 18 of 34

FMEA Step 6 Assign 1-10 integer SEV, OCC, and DET ratings to each row SEV (1=not severe, 10=severe) OCC (1=no occurrences likely, 10=occurrence very likely) DET (1=failure is not possible, 10=failure will not be detected) These values will be used to calculate the risk priority number (RPN) Each failure mode will have only one SEV value Find the highest SEV for each failure mode and use that SEV for all entries of that failure mode

RPN = Severity x Occurrence x Detection FMEA Step 7 Calculate RPNs and sort the FMEA by RPN Use the “calculate RPNs” macro command RPN is not absolute; teams scale or bias SEV, OCC, and DET scores, even if unintentionally RPN = Severity x Occurrence x Detection Effects Likelihood Controls

FMEA Step 8 Determine recommended actions to reduce the high RPN risks Actions are recommended for only the high RPNs Actions are derived by the team through brainstorming and other creative innovation approaches An action can be to conduct follow up analysis!

FMEA – Re-Ranking Save your FMEA for after all your improvements are in place! After improvements, did the severity, occurrence or detection improve? Re-rank the same failures now that your improvements are in place:

Root Cause Analysis Exercise

LUNCH BREAK

SOLUTION SELECTION NOTEBOOK SECTION 5

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Objectives Review tools used to identify potential solutions Evaluate/ select potential solutions

Brainstorming: What is it? Brainstorming and / or Mind Mapping Group creativity technique Efforts are made to find a conclusion for a specific problem Gathering a list of ideas spontaneously contributed by its members

Brainstorming Tips Identify the problem to be solved (Problem Statement) Capture individual ideas first (Post-it Notes) Consolidate ideas into a central place Avoid criticism while brainstorming Evaluate and build on each other’s ideas Encourage diversity in thinking Include stakeholders, subject matter experts and the project team

“Itself” Method The Ideal Final Result can be expressed in terms of “The Problem Taking Care of Itself” Examples of Ideal Final Result “Itself” Method Lawn uses seed that only grows to a specific set length Pet dishes dispense food / water on a schedule Cars drive themselves

Possible Resources to Consider: Material resources Modified materials, waste, raw materials, system elements Time resources Parallel operations, pre/post work Information resources People resources Field resources Energy in system or environment Space resources Empty space, partially allocated space (ex: one shift uses) Function resources Primary & secondary effects of features or attributes

Titanic Exercise What is the Ideal Final result? 2,224 people were on board Had enough lifeboats for 1,178 people Rescue ship is 4 hours away It will take 2 hours for the Titanic to sink (and they knew it!) The engine kept working for 20 minutes 4 minutes in the water is fatal There was a large iceberg that the boat hit What resources: Did they have that they didn’t use or could have used differently? Just brainstorm and write down ideas for now

Selecting the Best Solution We did a good job of brainstorming ideas, what do we do with them? The Pugh Matrix is the tool commonly used for solution evaluations.

Step 1: Form Screening Matrix Team discusses criteria (requirements or metrics) Attach individual solution ideas across the top. Requirement Statements on left vertical axis – Black levels from KJ Ideas across the top horizontal

Step 2: Select a Reference Datum Determine datum against which to compare ideas Current process is typically set as reference datum Otherwise pick “best” solution (team judgment)

Step 3: Run the Matrix Complete one requirement or metric at a time Compare each solution to the current state for that requirement When you rate the solution against the requirement or metric, use: + Better than reference S Same as reference - Worse than reference

Step 4: Evaluate the Matrix The Pugh matrix document calculates the +, -, and S independently for each individual solution. Value each individual solution, no matter how many +’s or -’s that you may get from it. Although you may get 3 +’s and 10 -’s, the solution still has 3 good characteristics and may prove valuable. Build Hybrid solutions from combining +’s. Add the Hybrids to the matrix

Step 5: Attack Negatives Look at each negative (-) and, where possible, generate new solutions to turn it into a positive (+) Create more hybrid solutions Review the slide.

Step 6: Rerun the Matrix (repeat step 3) Helps verify the best solutions. Once again… Complete one row or column at a time Compare each solution to datum for that requirement or metric Review the slide.

Step 7: Establish a New Reference Datum Based on analysis, select new datum. The hybrid solution now becomes the datum Gives different perspective Review the slide.

Step 8: Select Dominant Solution Review solutions with stakeholders In some cases, customers may need to be involved in the final solution selection process Review the slide.

Solution Selection Example

Exercise Work with your team to understand the requirements and how your current process measures up. (Pugh matrix steps 1 & 2) If your team has solutions in mind already, continue to the next steps. Be prepared to review your results with the class.

MANAGING SCHEDULES & RESOURCES NOTEBOOK SECTION 6

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Definition/Purpose of Schedule Management Schedule management is identifying and tracking work tasks, dependencies, and timing for a project. A schedule helps you: Track the day-to-day progress of work Anticipate events that can impact the project (vacations, holidays..) Focus on and understand the CRITICAL PATH. The Critical Path is that sequence of dependant tasks which will impact the timing of the entire project if delayed or accelerated. Manage change… to demonstrate in a data-based way the impact of changes and the need for resources. What is the power of a deadline?

Let’s Outline This Module … We will build a schedule in 4 steps: Figure out which tasks must go in what order Estimate/establish the task durations Calculate the critical path Map that information onto a schedule diagram

Module Outline We will build a schedule in 4 steps: Figure out which tasks must go in what order Estimate/establish the task durations Calculate the critical path Map that information onto a schedule diagram

Let’s Map A Project’s Task “Dependencies” B D C H J F I G E Logic Connection Activity This is called a “Network Diagram”

Can you create a Network Diagram for Project X? Data Set For Project X 1. A is first activity 2. B, C, and D are dependent on A 3. E and F are dependent on B 4. G is dependent on C 5. H is dependent on C and D 6. I is dependent on F and G 7. J is dependent on E, I, and H 8. J is the last activity Logic Connection Activity Can you create a Network Diagram for Project X?

Network Diagram (Project X) B F A C G I J D H Logic Connection Activity Why is this exercise a lot harder to do in reality? Rev 7

Module Outline We will build a schedule in 4 steps: Figure out which tasks must go in what order (Precedence) Estimate/establish the task durations Calculate the critical path Map that information onto a schedule diagram

Activity Time Estimates Deterministic time estimates are used for activities: That are well defined That are similar to activities that have been done before To which there is high confidence in the ability to estimate the duration Deterministic estimates are usually determined by: Previous experience Lessons Learned Project documentation

How much buffer? Option 1: Westheimer’s Rule: “To estimate the time it takes to do a task, estimate the time you think it should take, multiply by two, then change the unit of measure to the next highest unit. Thus we allocate two days for a one-hour task.” Option 2 (recommended!): Be realistic: Where there is risk/variability, plan for it! Be up-front: Don’t hide your buffer, make it visible! Hidden buffer may just add unnecessary time to your project: Parkinson’s Law: “Work will expand to fill the time allocated for it!”

Module Outline We will build a schedule in 4 steps: Figure out which tasks must go in what order (Precedence) Estimate/establish the task durations Calculate the critical path Map that information onto a schedule diagram

Introduction to Critical Path Notice: In this project, tasks B, C, and D can’t start until task A is complete, and task E cannot start until tasks B, C and D are complete.

Introduction to Critical Path Now let’s map that project over time… Note that this view of a schedule is called a “Gantt Chart”

Introduction to Critical Path Float (or Slack Time) is the amount of time that an activity can be delayed without delaying the project.

Introduction to Critical Path Critical Path is the path through the project tasks in which none of the activities have slack time.

Why Critical Path Analysis? It’s where you have the most risk It’s where you can improve It helps you track impact on your project when things change

How Do I Calculate Critical Path? You need two pieces of information: Dependencies for every task… All tasks have a predecessor (except for the very first project task) All tasks have a successor (except for the very last project task) Duration for every task Then you can calculate critical path, By hand! For simple projects, you can get an idea by finding the sequence/path of tasks that takes the longest from project start to finish!

Module Outline We will build a schedule in 4 steps: Figure out which tasks must go in what order (Precedence) Estimate/establish the task durations Calculate the critical path Map that information onto a schedule diagram

Schedule Formats There are two basic schedule formats… “Network Diagram* Gantt Chart Jan Feb Mar Apr May Jun A B C D E F G H I Task A Task B Task C Task D Task E Task F Focused on task sequence and dependencies Focused on durations and start/finish dates * Note that Network Diagrams are sometimes called “Precedence Diagrams”

Schedule Formats …with multiple versions and combinations of those two basic formats to combine information or to provide a simpler presentation: Linked Gantt Chart Milestone Chart Jan Feb Mar Apr May Jun Task A Task B Task C Task D Task E Task F Combines Network and Gantt Chart together Simplifies a Gantt Chart to just the key Milestones

Schedule Formats …or to compare or present different information: Tracking Gantt Chart Baseline Gantt Chart Depicts % completion of task Shows Latest Plan versus Baseline Plan

What’s The Best Schedule Format? The best format is the one that people will use. If your team doesn't understand and own the schedule themselves, it is less useful. You may have different versions of schedules for different audiences: yourself, the project team, upper management, or customers. What level of detail is needed? Is time or task dependencies more important to show? There are lots of suitable formats, and none are necessarily the best: MS Project Excel A paper Wall Chart A high-level PowerPoint timeline with symbols A poster listing Key Dates for the entire project … and many more.

How do we get to actual dates? Even at this point in the process of developing our schedule, we haven’t actually established any dates – we just have tasks with durations and dependences. Now that we have a Gantt Chart, we can see what calendar dates are established as a result of the durations and dependencies. BUT… What if our schedule doesn’t match the expected project timing? Customer/ Management expected completion date “Calculated” completion date Jan Feb Mar Apr May Jun Task A Task B Task C Task D Task E Task F

Should I just create my schedule going backwards from the customer expected end date? Why waste time doing the “forward calculation” we just taught you? The schedule you just made is the team telling you what they REALLY think it will take. This is valuable information! You also identify the Critical Path! If you see you have a gap against the customer expectations, you need to systematically evaluate options to accelerate the schedule.

I have a gap - What are my options? If you have a schedule gap, you can: Change the way we do a task (Affect Schedule) Deliver less and drop the task (Affect Plan) Get more resources (Affect Resources) EXAMPLES: Use an analytical model instead of a hardware test Remove half of the customer features Hire a contractor

Definition/Purpose Of Managing Resources Resource management is identifying and tracking the resources necessary to deliver a project. Resources include: People (including cross functional resources, by skill type) Money (budget, including development expense and capital) Things (including equipment, facilities, fuel, etc.) No project can progress without resources. Resources are the fuel of the project. Without adequate resources a project will “run out of gas”. Resource planning is the only way to make sure that you will really get the resources you need. Your project will still get some resources, but probably not enough, not the right ones, and not at the right time. PURPOSE: Define the module.

RACI R = Responsible Executes the task. Does the work. A = Accountable Accountable for the task. On the hook for it to get done. C = Consulted Has input to the task. Could be an expert resource. (2-way flow of information) I = Informed Informed of task progress. (1-way flow of information)

RACI Example Use specific names, not just departments The Gantt chart we just made can serve as the basis for the RACI

Managing Resources: More Tools! What is everybody’s role?  RACI Diagram When do we need what?  Resource Plan Are there resource limits?  Resource Leveling How much is it all going to cost?  Budgeting How do I obtain the resources?  Contracting How are we doing against plan?  Metrics To be considered for future “advanced” project management courses.

RACI Exercise

MANAGING RISK NOTEBOOK SECTION 7

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Definition/Purpose Of Managing Risk Risk management is identifying and prioritizing program risks and mitigating those risks by establishing and tracking countermeasures. It is far too easy for a project team to reach the end of the planning stage and “forget” or “ignore” or just hurry past their instincts that tell them where something could go wrong. The Nine-Box and the Project FMEA (Failure Mode Effects Analysis) are both excellent tools for risk management. Today we will focus on the Nine-Box. Make the Invisible Visible!

Elements Of Managing Risk Define risks (Brainstorm) Prioritize Define countermeasures Document/integrate countermeasures

Elements Of Managing Risk Brainstorm Prioritize Define countermeasures Document/integrate countermeasures 9-Box

9-Box Note that “Likelihood” is a combination of capability to detect/respond to the issue, and the likelihood of occurrence

9-Box Tips Don’t try to do this by yourself! As with the other tools, it is critical to get team participation and input. Don’t make the list too long! Let the brainstorming flow as long as needed, but recognize that once you are done with the 9-box you’ll need to focus on probably no more than about 10 risks. Don’t get “stuck” arguing – keep it moving! If the team can’t agree on the priority, always take the highest priority or worst capability, and highlight it and go back to it before you are done. Know your team’s risk sensitivity. Some teams think they are OK, and they need these tools to simply IDENTIFY the risks. BUT, some teams are so overwhelmed with worries, that they need these tools to PRIORITIZE which ones to address. Ask “Why” if the risk is too generic. Get more specifics if the risk is something like “Not enough resources”. Which resources? When?

9-Box Exercise

Elements Of Managing Risk Brainstorm Prioritize Define countermeasures Document/integrate countermeasures Updated A3!

Countermeasures If you can’t: avoid a risk (remove irrelevant work) and/or transfer the risk to someone else (currency hedging, insurance) … then you must mitigate it with countermeasures. To establish countermeasures: Get ideas from your team (yes, brainstorming again!) Evaluate each idea for its impact on the project Select the best option(s) Define the owner and timing for each countermeasure Document your key risks/countermeasures in your Contract

Prerequisites For Risk Assessment You can’t do a risk assessment unless you have a pretty robust A3. Without clear plan, schedule and resources, during the risk assessment different team members will make different assumptions and a real area of risk might be missed. NO TBD’s should be left on your plan!!! Write down SOME assumption before doing the Risk Assessment

Tips On Countermeasures The point of risk assessment is PROACTIVE countermeasures. Check yourself: You’re wasting your time if the risk assessment hasn’t changed your plan (unless you have a perfect project!). Do not maintain a separate “Countermeasures Plan”, the countermeasures must become a part of your project plan. This is an ongoing exercise. Managing risk is a step in creating your plan, but it isn’t the only time you should be doing it. This is NOT a product/design FMEA. A PRODUCT (or design) FMEA focuses on how the end product might fail once in use by the end-user, and it results in a change to the design or test plans. A PROJECT FMEA focuses on how the project contract might fail during the life of the project, and it results in a change to the contract triangle.

MANAGING CHANGE/SUSTAINABILITY NOTEBOOK SECTION 8

A3 TEMPLATE What is the problem? Why is this a problem? Where are you now? What are the current conditions? What are the symptoms? What impact is it having? Who is involved in the work? What is the problem? Why is this a problem? What measurement are you using to know the problem? Does the data show this is actually a problem? Where do you want to be? What is the target you want to achieve? What is your goal for improvement? Consider both long-term and short-term targets. What is preventing you from getting there? What are the root causes? Where will you focus your work? What is within your sphere of influence and control to accomplish? What will you work on? How will you know it is working? Be specific about the steps you will take, and identify what specific data you will collect to measure the impact of your intervention. What happened? What were your results? Collect data quickly to test your theory about the problem. Use your data to Adapt, Adopt, or Abandon. Did everything go according to plan? What did you learn? Based on what you learned, what will you do next? A3 TEMPLATE

Objectives Introduce tools for sustainability of improvements: Identify causes of failure Failsafe techniques to prevent recurrence Control plans to sustain improvement Standardization across the business

Connecting to FMEA and Control Plan After we identify and verify failure cause(s) Update FMEA (review changes and rescore RPN) Review and revise Control Plan FMEA Control Plan

What is failsafe? A failsafe is a means of incorporating some feature for automatically counteracting the effect of a potential failure

A,B, & C fix explanation scenario The Problem: Automobiles are crossing the train tracks and getting hit by a train. The “C” fix: Detection increased but not adequate. A quick, easy fix that raises attention but does little to deter operator from crossing tracks. Risk in FMEA is better but RPN is still too high as Detection increases but Prevention is not addressed adequately. Place flashing cross signs at the crossing to alert vehicles. Dilemma: Vehicles are alerted of oncoming trains but can still cross. Problem not solved.

ABC fix explanation scenario “B” fix: Better prevention than “C” fix. Use crossing gates to further deter crossing of vehicles. Dilemma: Vehicles are alerted and have limited crossing ability; however does not prevent those who arbitrarily want to cross. Problem deterred but not solved. Detection better than “C” but does not prevent operator bypassing the system. FMEA risk is lower than with “C” but still not acceptable (RPN is still too high) “A” fix: Improved prevention. Solution is failsafe. Train overpass allows trains and autos to pass without incident. Dilemma: None. Problem is solved. Prevention risk is greatly improved: operator prevented from coming into contact with train. Risk is lowered to acceptable RPN value. Go to next highest risk in FMEA and address the next issue 8 of 40

Objectives Introduce basic concepts of tools: Identify causes of failure Failsafe techniques Control plans Standardization

What is a control plan? Documented plan for maintaining improvements Documents critical elements to sustain improvements Controls for key process inputs and outputs (from your maps!) Prevents recurrence of failures, if well written & followed. Tool to provide guidance to… Address issues identified during improvement effort Define actions required to maintain improvement Mitigate identified risks It is not just a form or “check the box” exercise!

Importance to Customer Control plan ensures our process output consistently meets the customers’ requirements EVERY TIME! Customers expect us to control our processes to ensure quality Customer Requirements Process Characteristics Drive Process Capability Drive Control Plan Drive

Factors Impacting a Good Control Plan Several factors need considered in a Control Plan Initial & Risk Analyses FMEA Process Maps Requirements 9-Box Documented Procedures SOP Training Materials Review and Update as required

Questions for Control Plan Evaluation Key Process Input & Output Variables How are they monitored/verified? How much variation is there around the target value? What causes the variation? Uncontrollable inputs What are they? Do we know how to compensate for changes in them? How robust is the system to uncontrollable inputs? FMEA or 9-Box On your FMEA, have we recalculate RPN based on improvements? Have we established recommended actions, based on the risks found?

Questions for Control Plan Evaluation (cont.) Standard Operating Procedures (SOPs) Do they exist? Are they understood and being followed? Measurement procedures What needs to be measured? What equipment/process is needed for measurement? What is the measurement capability? Are measurement intervals documented?

Control Plan Example A control plan is necessary to sustain improvements Inputs for control plan typically come from the FMEA Works with all types of projects

Control Plan Exercise

Objectives Introduce basic concepts of tools: Identify causes of failure Failsafe techniques Control plans Standardization

Standardizing = Keep Process in Control Too little standardization Too much standardization The right amount of standardization Everyone does their own thing Frustration, fighting the system Everybody does things the same way across the business

Approaches to Standardization The main method of Standardization is documentation: Written procedures (Engineering Standard Work, Standard Operating Procedures, etc.) Videos Visual standards (e.g. Illustrated Worksheets, Pictures, Master Sample Parts, etc.) Other Methods of Standardization include: Training Mistake-Proofing Review current standards for writing procedures Follow Cummins standards Write Smart! (Seek offline training and/or help from others)

Attributes of Quality Documentation Accurate & consistent information correctly reflects the process Documentation needs to be accessible and easy to follow Revision control and management is critical Compliance with Standards and Regulations Adheres to current standard practices (e.g. GAAP, NIST, ASTM, etc.) Complies to applicable regulations (e.g. EPA, OSHA, etc.) Visible and straightforward accountability Objectives stated clearly Easy to determine if objectives are being achieved

Sustainability Exercise – Fun with Planes! Each team send one member out of the room (this team member represents your new employee). Design a paper airplane which can fly from starting line to hangar. Document the process of building an airplane for the new employee. Have new employee come back into the room, and silently produce an airplane using only the provided documentation (no verbal communication). Each new employee will attempt to launch the newly designed plane. Team will present their documentation results.

Sustain Improvements Most process improvement initiatives fall short of goals. Recent studies suggest nearly 60% of all initiatives and projects fail to yield the desired results* Failure is not an option: Our project efforts have been structured so we will not fail As Project Managers, it is up to us to establish process control and ensure the success of our projects! * * Where Process-Improvement Projects Go Wrong. by Satya S. Chakravorty. WSJ. January 25, 2010

CLOSE OUT Next Steps/Opportunities for Support Workshop Evaluation/Feedback

Together We CAN. Cummins.com ACYI.org Thank You!