Change Your Tools (to ‘Re-tool’ Your Enterprise) LCEA Life Cycle Engineering Associates Tutorial for ASQ Section 0502 (Baltimore, MD) Presented by John Weisz, SSBB, CQE, CRE 10 November 2009 change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

change leadership tools_tutorial_ASQ_nov10 Meeting.ppt “Change can be good but is not always good…. …tools are always good…..if you know how to use them” (the old gray philosopher) change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

change leadership tools_tutorial_ASQ_nov10 Meeting.ppt Learning Plan Introduce ‘change tools’ FMEA -- Counter-Measures Matrix Force Field Analysis -- Action Plan Control mechanisms How tools align with the “Growth Curve” Applying the change tools to avoid risk during the “paradigm shift” (And finally, at the end), a new tool! …stay tuned! change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

Failure Modes & Effects Analysis [FMEA] Systematic technique for identifying all possible failure modes [& how to mitigate them] Prioritizes through Risk Priority Number [RPN] RPN = Severity X Occurrence X Detection change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

Countermeasures Matrix Simple matrix used to prioritize actions Tests each countermeasure in terms of… effectiveness feasibility [of implementation] Must address validated failure mode; otherwise time & money are wasted change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

Sample CM Matrix 10/14/09 6 of 15 6 of 19

change leadership tools_tutorial_ASQ_nov10 Meeting.ppt Force Field Analysis Used to identify potential roadblocks & problems associated with implementing a countermeasure facilitates brainstorming and offsetting forces against implementation with forces for it. Use this to help develop the action plan change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

Pitfalls in FFA & Overcoming Them change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

change leadership tools_tutorial_ASQ_nov10 Meeting.ppt Action Plans Why do we need them? Much work is involved getting to this point; at least 1/4 as much time could be devoted to assuring the corrective action is properly deployed Action plans… assure the countermeasures are effective don’t introduce new variables that ‘cloud’ results coordinate all elements to assure maximum benefit is derived. change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

change leadership tools_tutorial_ASQ_nov10 Meeting.ppt Sample Action Plan change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

Putting it All Together The only sure ways to verify all risk to your change plan are mitigated: Start early & synch your management program to your change plan Use the following tools: Action Plan PREPARE TO EXECUTE MONITOR/CONTROL Run charts, SPC,etc CM Matrix GAIN CONSENSUS FFA FMEA Plan for Change Failure modes Risks REFINE ACTIONS Disinterested /skeptical Disillusionment /Hostility Anticipation /Expectation Conviction 10/14/09

Transactional Outcome Analysis [TOA] Really Understanding the Impact of Future Decisions change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

change leadership tools_tutorial_ASQ_nov10 Meeting.ppt TOA: What is it? A glorified cause & effect analysis tool? …add probabilities of each occurrence …add Value assessment …apply a weighting to account for new opportunities ‘down the road.’ Sort of ?! Why is it important? -Identifies the importance of today’s choices over a stream of future decisions -Quantifies “opportunity cost” of delaying or avoiding a decision. -Takes the FMEA & makes it multi-dimensional change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

Example: “Don’t Fire the Wrong Guy”

TOA: Washington Crossing the Delaware 5 4A To Morristown Bordentown Trenton Brunswick Hillsborough Rocky Hill Kingston Princeton Basking Ridge Perth Amboy New York Delaware R. Hudson R. GEN. WASHINGTON 2 1 4B FERRY

Major Elements of TOA Outcome/decision map Probability & Outcome Value tables Strategic Impact tables An ‘engine’ to calculate all outcomes & associated values

TOA: Washington Crossing the Delaware 10/14/09

Sample Outcomes Only 19 possible paths through the TOA map [out of 100+ possible] are shown here. Evaluate the best possible path or the best possible set of paths. this technique identifies the need to see how to best get to the end game. planning for the short term means forsaking opportunities down the road that may be more attractive as time reveals more facts and opportunities to act upon. Blue3 =D18*N18+S$18*Z32+AA$29*AI31+AJ$29*AQ24 change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09

John Weisz SSBB, CQE, CRE 410-987-1287 Questions? John Weisz SSBB, CQE, CRE 410-987-1287 change leadership tools_tutorial_ASQ_nov10 Meeting.ppt 10/14/09 19 of 19