An Overview of the DMAIC Process at Work The Team Based Problem Solving Process © Max Zornada (2005)

Types of Teams Quality Circles Six Sigma Teams Quality Improvement Issues specific Localised Permanent membership Quality Circles Six Sigma Teams Quality Improvement Process Improvement Teams Problem Solving Teams Task Forces Project Teams Cross-functional Teams Issues specific Forming & reforming Temporary membership © Max Zornada (2005)

Problem Solving "If the only tool you have is a hammer, you tend to see every problem as a nail" Abraham Maslow (1908-1970) The DMAIC Team Based Problem Solving Process uses a suite of tools, applied within a structured framework to support the problem solving process using teams. © Max Zornada (2005)

The Quality Problem Solving Tools Ishikawa's 7 Tools of Quality Flowcharts Fishbone diagrams Pareto charts Histograms Run charts and graphs Control charts Scatter diagrams Other commonly used tools: Brainstorming Multi-voting Check sheets Dot plots Box plots © Max Zornada (2005)

Types of Problem Solving Issues driven problem solving, where the focus is on solving a specific, clearly identifiable and obvious problem (or symptom). This is usually the case during the first few years of implementing a team based problem solving process where many long standing problems have been flushed out into the open; Process Improvement driven problem solving, where the process improvement process provides the impetus to analyse the way things are done and seek out problems to be solved. © Max Zornada (2005)

The Six Sigma Approach DMAIC Define Measure Analyse Improve Control 6 Define the problem or opportunity. Control by standardising solution and monitoring performance. Measure the current performance and capability Improve by implementing potential solutions. Analyse to identify root causes. © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

South Eastern Food Packagers Team Based Problem Solving Case Study © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

Develop a Problem/Opportunity Theme Statement The problem/opportunity theme statement provides the initial definition of the problem/opportunity area to be pursued; It is on the basis of the problem/opportunity theme statement that management decide to allocate resources (the problem solving team) and time to develop a project team charter and determine whether the problem/opportunity is worth pursuing. © Max Zornada (2005)

Problem/Opportunity Theme Statement Project Title: Cost of Waste Reduction Project What is the area of concern? What first brought this problem or opportunity to the attention of your business? The cost of waste in the box packaging operations. Now that we are packaging to fulfil 3rd party contracts, we are having to absorb the cost of waste in order to be cost competitive on price. What impact has this problem already had? What evidence is there that it is a problem worthy of attention? The impact of this problem is that 3rd party box packaging operations runs at a loss. Actual costs/box are 44c above recovery rate. This is $1.44 above target. What will happen if the business does not address this problem? The remainder of the business will have to continue to cross-subsidise the loss making box packaging operation or box packaging will have to be shutdown. Summary problem statement (summarise the above in a concise statement). The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels. © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

The Define Stage During the Define Stage, we: Define our problem or opportunity and improvement objectives; Define the customers and their requirements - the Critical-to-Quality issues (CTQ); Define the process that will be affected; Develop a plan for completing the project; Key outputs of the Define Stage: Team Project Charter and Work Plan Measurable Customer Requirements - Customer Requirements Statement Process Map/Process Analysis. © Max Zornada (2005)

Six Sigma Project Team Charter Cost of Waste Reduction Project Project Title Process Box Packaging Expected Financial Impact $253,000 Green Belt Jane Verde Telephone Number 634-5789 John Briggs Champion Organization/Function Packaging Operations 1- October Start Date 1-April Target Completion Date Problem/Opportunity Definition The cost of waste in box packaging is excessive and causes box packaging operations to run at a loss. The cost of waste needs to be reduced to achieve target cost levels. What is the Problem to be solved or the opportunity this project will exploit. Objective Improvement target, impact on Sigma, COQ/COPQ and Customer Satisfaction Reduce net spoilage rate by 50% from 6% to 3%. Estimated Sigma level improvement from 3 to 3.4 Business Case What improvement in business performance is expected. $ impact and by when. Reduction in cost of waste of $253,000 p.a. from a baseline of $506,000. Will result in target processing cost/box being achieved. Team Members Who are the team members and key experts to be consulted. Jane Verde (Team Leader), Paul Black, Rachel Cintura, Roland Thompson, Sdravo Krysevic, Giovanni Nero (Black Belt) Project Scope Which part of the process will be investigated Box packaging from start of box filling through to placement of product on buyer shelves. Customer Benefit Who are the final customers. What benefits will they see and what are their most critical requirements. The packaging contractees for whom we package and deliver product to buyers such as supermarkets and wholesalers. Benefits: competitive costs and more accurate schedule compliance. Define completion Measure completion Analyse completion Improve completion Control completion Project Completion What are key milestone dates for completion of each stage. 20-April Schedule 1-June 1-August 1-September 15-September 1-October © Max Zornada (2005)

Example: SEFP’s Customer Requirements Statement What is this customer’s major complaint? What issue would they want us to work on? Outputs: Customer: Customer Requirements Measure Importance to Customer Customer Satisfaction Priority Rating 1. Cost competitiveness Boxed product delivered to buyers according to customer manifest. Contract Box Packaging Customers (Importance x Satisfaction) Target 2. Schedule compliance 2.1. On-time delivery/right day/right time. 2.2. Right product delivered 2.3. Product quality to specification 2.4. Right amount/ amount as per manifest. Processing cost $/Box % On time Returns: wrong product % Returns: off-spec product % Order shortfall % Ranking Scheme Importance to customer: 1 = Nice to Have, 2 = Important, 3 = Critical, Must Have Customer Satisfaction: 1 = Very Satisfied, 2 = OK. Could be better, 3 = Unhappy, Must be improved $22.50 97% 95% 99% 3 3* 9* 2 1 6 9 *Note: customer has not complained about price because we are absorbing difference between market price and actual costs. If customer were charged actual cost we would lose the business. In addition to price, getting the delivery amount right is a Critical-to-Quality issue for the customer. © Max Zornada (2005)

Process Mapping Symbols Name Brief Definition Operation or process step Depending on the level of detail being developed, can be used to denote anything from a simple task, major activity or a whole sub-processes. Decision Point Point where a decision must be made before any further action can be taken. Document Generated Point at which a form or report is generated by the process. Continuation Point Used to indicate the process is continued elsewhere on the flow diagram or on another sheet. Input/Output Block Optionally used to describe an input or output from a processing block. Flow lines Use to connect all blocks to display the sequence in which operations are performed. Termination point Used to indicate the start and end of a process. © Max Zornada (2005)

SEFP’s Box Packing & Fulfilment Process Process Map Start Customer Unload & Check No Load flat into Flat Feeder Pallet OK? Return to SEFP Yes Box Folding Restart the Process Unpack & receive boxes Yes No Box Jam? Stop and Clear Boxes OK? Return to SEFP No Yes Box Filling Place on shelf in Warehouse Yes Underweight? Remove & Recycle Unpack Box when required No Yes No Overweight? Remove Excess Contents OK? Return to SEFP No Yes Lid sealing and close Place on shelf for sale Printing Bar Code & Date End Stack and Wrap Truck Loading and Shipping © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

SEFP’s Box Packing & Fulfilment Process Determining What to Measure Start Customer Unload & Check No Load flat into Flat Feeder Pallet OK? Return to SEFP Yes Box Folding Restart the Process Unpack & receive boxes Yes No Box Jam? Stop and Clear Boxes OK? Return to SEFP No Yes Box Filling Place on shelf in Warehouse Yes Underweight? Remove & Recycle Unpack Box when required No Yes No Overweight? Remove Excess Contents OK? Return to SEFP No Yes Lid sealing and close Place on shelf for sale Printing Bar Code & Date End Stack and Wrap Truck Loading and Shipping © Max Zornada (2005)

Identifying Measures using a CTQ Tree Y = f(x) Brainstorm things that could affect the outcome. Refer previous analysis. Number & % Box Jams in Process Identify measures for each of the things that can affect the outcome (the x’s) Underweight Boxes Number & % Box Packaging Cost of Waste Returned Pallets The Outcome Measure (Y) Number & % Packed Boxes Number & % Returned Boxes Unpacked Boxes Number & % © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Key Steps:- Key Steps:- Team charter Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram Key Steps:- (Fishbone) Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Checksheet Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 2 Step 4 Step 3 Pareto Chart Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

The categories in which the data occurs The Anatomy of a Check Sheet Example: Lost Time Injury Data for a Security Firm Progressive “Tally” count of each occurrence, collected from raw data or directly from the field Note: = 1, = 5 Numerical frequency count or summary of the “tally” or occurrences in each category The categories in which the data occurs Category Tally Frequency 1 2 3 4 5 6 7 8 Allergy Broken limb Back/Neck Concussion Contusion Heart Attack Sprains Other 8 12 6 14 7 1 23 3 78 Total Overall Total © Max Zornada (2005)

20% of the causes account for 80% of the effect! The Pareto Principle (Also know as the 80/20 Rule): “A few causes account for most of the effect” Trivial Many 20% of the causes account for 80% of the effect! Critical Few Causes Effect © Max Zornada (2005)

Pareto Analysis Example: Pareto Analysis for SEFP Numbers of Boxes Critical few towards the Y-Axis Trivial many trail away from Y-axis © Max Zornada (2005)

Example: Fishbone Diagram (Cause and Effect Analysis) Brainstorm possible causes and show as feeding into the most appropriate spine. Example: Fishbone Diagram (Cause and Effect Analysis) People Procedures No communication with warehouse Credit check takes too long No procedure for guaranteeing tech and transport No communication with Sales No communication with techs Order entered incorrectly Unrealistic delivery data quoted Incorrect item picked When items come up related to ones already on the diagram. Show as feeding into the appropriate item Late order delivery Too many truck out for maintenance Stock damaged Truck breakdowns Out of Stock Not enough trucks Item not in stock Problem of focus placed at the head of the fish Computer system down Item ordered not a stocked item Equipment/Systems Materials/Environment © Max Zornada (2005)

Fishbone Diagram SEFP Case People Procedures Bar code in wrong place Equipment/Systems Materials/Environment © Max Zornada (2005)

Assessing the Cause & Effect Analysis and preparing to collect data People Procedures Check out each potential cause and eliminate ones that can be verified as not happening Possibly use List Reduction or Multivoting. Credit check takes too long No communication with warehouse No procedure for guaranteeing tech and transport No communication with Sales No communication with techs Order entered incorrectly Unrealistic delivery data quoted Incorrect item picked Late order delivery Too many truck out for maintenance Stock damaged Truck breakdowns Out of Stock Data Collection Instrument: Check Sheet Not enough trucks Item not in stock Computer system down Item ordered not a stocked item Category Tally Frequency 1 2 3 4 5 6 7 8 Equipment/Systems Materials/Environment © Max Zornada (2005)

SEPF Pareto Chart of Bar Code Wrong Place Causes 10 20 Frequency/ Number of Occurrences 30 40 50 44 27 15 9 5 2 1 2 3 4 5 6 Cause Codes 1. Trip lever sticking 2. Box askew on belt 3. Operator accidental lever trip 4. Box misfeed 5. Print head loose 6. Other © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

Potential Solutions Matrix Cost Ranking Ease of Implementation % of problem it fixes Overall Ranking Potential Solutions Scale: 0 = None, 1 = Low, 3 = Moderate, 9 = Strong © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Key Steps:- Key Steps:- Team charter Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 2 Step 3 Step 6 Step 5 Step 4 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Key Steps:- Define, Measure, Analyse, Improve, Control After Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

Improve: Implement and Check Implement preferred solution; Verify effectiveness by checking current performance against original baselines; Apply statistical comparative methods if necessary. Before Pareto Chart After Pareto Chart © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Key Steps:- Team charter Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 2 Step 3 Step 5 Step 4 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls procedure Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

Control Standardise the solution by making it part of the standard procedure for the process; Update the performance measurement scorecard for the process; Implement control charts; Document the project. © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

Future Plans Review the previous non-pareto causes to see which ones have upgraded themselves and assess whether these are worth going after; Review any obvious opportunities to apply the solution in other areas; Communicate the solution to other parts of the organisation where it may also apply; Review and document lessons learnt and institutionalise the learning. © Max Zornada (2005)

SEPF Epilogue The benefit generated by this project was $208,000 per annum. This is $45,000 short of target; Addressing the next two highest causes could potentially yield the following benefits: Incorrect coding of contents: $39,000 p.a. Box not sealed: $34,000 p.a. I.e. a total of $73,000 p.a. if both eliminated. This would exceed the original target. Note: The second CTQ characteristic of concern to customers - schedule compliance - amount delivered benefited as a side-effect. The main contributor to incomplete orders was the rejected & returned boxes. © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE Objective: Identify and implement the measures required to establish baseline performance and quantify the opportunity. Objective: Select problem/ opportunity theme, select team members Objective: Define the Problem/Opportunity, Customers, Customer Requirements, and Process. Team charter Key Steps:- Key Steps:- Cause and Effect Diagram Run chart or control chart Flowchart Determine what to measure Understand the measures Understand Variation Assess measurement system Assess process performance Develop business case Develop project team charter Understand Customer Requirements Understand the Process. Output: Problem/Opportunity selected, Team members selected. Output: Team Project Charter, Work Plan, Measurable Customer Requirements, Process Map/Process Analysis Output: A quantified picture of the current process performance, problem impact. The process sigma rating. ANALYSE IMPROVE - I : Generate Potential Solutions Objective: Identify and verify the root cause(s) of the problem. Objective: Determine possible solutions that will address the identified root cause(s) of the problem. Key Steps:- Cause and Effect Diagram (Fishbone) Pareto Chart Checksheet Key Steps:- Analyse data Analyse process Determine potential root causes Hypothesis Testing Verify root causes Potential Solutions Action Plan Generate potential solutions Assess potential solutions Select preferred solution Test/Pilot preferred solution Develop implementation plan Step 1 Step 3 Step 2 Step 4 Step 5 Step 6 Output: Root cause(s) identified. Output: Preferred solution or countermeasures IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS Objective: Implement the preferred solution. Confirm that the problem and its root cause(s) have been reduced or eliminated. Objective: Prevent the problem and its root cause from recurring. Objectives: Review team effectiveness, plan to address remaining issues and institutionalise the learning. Key steps:- Key steps:- Flowchart Standard procedure D M A C I Before After Key Steps:- Implement preferred solution Verify effectiveness Apply comparative methods if necessary. Standardise the solution (standards & procedures) Document project Implement scorecard Implement controls Define, Measure, Analyse, Improve, Control Review remaining project opportunities Review other applications Review learnings Output: Recommendations for future projects and improvements to team processes. Project documentation and learnings “pack” Output: Confirmation that the best solution to eliminate the problem & its root cause(s) has been implemented. Output: Solution embedded and “routinised” in relevant process, procedures and standards. © Max Zornada (2005)

Analysing for Root Causes - Revisited © Max Zornada (2005)

Observed Problem - Symptom Causes and Root Causes Observed Problem - Symptom Cause Not Actionable The Problem Solving Process Cause Not Actionable Cause Not Actionable Root Cause Actionable © Max Zornada (2005)

South Eastern Food Processors High level objective: Reduce costs of box packaging process Cost of waste Box Returns Boxes Underweight Bar Code Wrong Place Root Cause Trigger lever sticking Solution Light beam printer trigger © Max Zornada (2005)

South Eastern Food Processors High level objective: Reduce costs of box packaging process Cost of waste Box Returns Boxes Underweight Bar Code Wrong Place Root Cause Trigger lever sticking Solution Light beam printer trigger © Max Zornada (2005)

South Eastern Food Processors High level objective: Reduce costs of box packaging process Cost of waste Level 1 Box Returns Level 2 Boxes Underweight Bar Code Wrong Place Level 3 Root Cause Trigger lever sticking Level 4 Solution Light beam printer trigger Level 5 © Max Zornada (2005)

Analysing for Root Causes Define the problem Cause & Effect Analysis (Fishbone diagram). Brainstorm possible causes. Vote on most likely. Collect Data. Outcomes of Fishbone used to design Checksheet or other appropriate data gathering proforma. Analyse Data using Pareto chart, determine most likely cause. If cause not actionable, redefine problem to determine causes of this cause. No Is cause actionable? Yes © Max Zornada (2005)

Flushing out root causes vs reacting to symptoms Observed symptom - "The Problem" Apply problem solving process Cause found NO Not a root cause Is cause actionable ? YES NO Does action(s) fix problem ? Not the right cause YES Problem Solved © Max Zornada (2005)

The Root Cause Analysis Process Define/ Redefine the Problem Select Pareto Cause as the Problem of Focus Brainstorm Possible Causes Root Cause Analysis No Actionability Test Collect Data on Possible Causes Is the Pareto Cause Actionable? Yes Apply Pareto Analysis to the Data Collected Root Cause Found © Max Zornada (2005)

Reference Sheets © Max Zornada (2005)

Generating Improvement Opportunities Present Reason Alternatives Selection Improvement Concerning Purpose Place Sequence Person Means What is done ? done ? Can it be Should it be Eliminate Combine or Change Simplify done in the it ? done there ? could it be Where should done then ? done by that done that When should it Who should it How should it Method Means of Questions Aspects Examined Why is it eliminated ? Where is it When is it sequence ? Who does How is it Where else it be done ? person ? way ? When else Who else done by ? How else be done ? be done by ? © Max Zornada (2005)

The 5W2H Questions Who What Where Who does it ? Who is doing it ? Who should be doing it ? Who else can do it ? Who else should do it ? What to do ? What is being done ? What should be done ? What else should be done ? Where to do it ? Where is it done ? Where should it be done ? Where else can it be done ? Where else should it be done ? When Why How How much? When to do it ? When is it done ? When should it be done ? What other time can it be done ? What other time should it be done ? Why does he/she do it ? Why do it ? Why do it there ? Why do it then ? Why do it that way ? How to do it ? How is it done ? How should it be done ? Can this method be used in other areas ? Is there any other way to do it ? How much does it cost now ? What will the cost be after the improvement ? © Max Zornada (2005)

DMAIC Process Storyboard TEAM FORMATION DEFINE MEASURE ANALYSE IMPROVE - I : Generate Potential Solutions IMPROVE - II: Implement and Check CONTROL - Standardise FUTURE PLANS © Max Zornada (2005)

Conclusion of Team Based Problem Solving Module © Max Zornada (2005)