1. “The Tools Get Easier to Choose and Use with a Guiding Blueprint” Twin Ports Performance Excellence Network (TPPEN) Gary Floss 18Aug104

2. Topics 1.Baldrige model 2.Decision tree for selecting tools 3.Most popular/often used 4.Examples 5.Help management understand the “Right Questions to Ask” that then link to reinforcing the use of tools.

3. Positioning the Application of Tools 1.Performance Excellence Model 2.Toolbox 1.7 Simple QC Tools 2.7 Management Planning Tools 3.Creativity (Innovation) Tools 4.5 Why Diagram 5.ISO 9000 6.Six Sigma 7.Lean Management Tools 8.A3 Project Template 9.Balanced Scorecard 10.5 S 11.(Others)

4. A Framework for Performance Excellence

5. Baldrige Overall Scoring Band Descriptors - Process ScoreBandDescription 0-1501 The organization demonstrates early stages of developing and implementing approaches to the basic Criteria requirements, with deployment lagging and inhibiting progress. Improvement efforts area a combination of problem solving and an early general improvement orientation. 151- 200 2 The organization demonstrates effective, systematic approaches responsive to the basic requirements of the Criteria, but some areas or work units are in the early stages of development. The organization has developed a general improvement orientation that is forward-looking. 201- 260 3 The organization demonstrates effective, systematic approaches responsive to the basic requirements of most Criteria items, although there are still areas or work units in the early stages of deployment. Key processes are beginning to be systematically evaluated and improved. 261- 320 4 The organization demonstrates effective, systematic approaches responsive to the overall requirements of the Criteria, but deployment may vary in some areas or work units. Key processes benefit from fact-based evaluation and improvements, and approaches are being aligned with overall organizational needs. 321- 370 5 The organization demonstrates effective, systematic, well-deployed approaches responsive to the overall requirements of most Criteria items. The organization demonstrates a fact-based, systematic evaluation and improvements process and organizational learning, including innovation, that result in improving the effectiveness and efficiency of key processes. 371- 430 6 The organization demonstrates refined approaches responsive to the multiple requirements of the Criteria. These approaches are characterized by the use of key measures, good deployment, and evidence of innovation in most areas. Organization learning, including innovation and sharing of best practices, is a key management tool, and integration of approaches with current and future organizational needs is evident. 431- 480 7 The organization demonstrates refined approaches responsive to the multiple requirements of the Criteria items. It also demonstrates innovation, excellent deployment, and good-to-excellent use of measures in most areas. Good- to-excellent integration is evident, with organizational analysis, learning through innovation, and sharing of best practices as key management strategies. 481- 550 8 The organization demonstrates outstanding approaches focused on innovation. Approaches are fully deployed and demonstrate excellent, sustained use of measures. There is excellent integration of approaches with organizational needs. Organizational analysis, learning through innovation, and sharing of best practices are pervasive. 5

6. Baldrige Overall Scoring Band Descriptors - Results ScoreBandDescription 0-1251 A few results are reported responsive to the basic Criteria requirements, but they generally lack trend and comparative data. 126- 170 2 Results are reported for several areas responsive to the basic Criteria requirements and the accomplishment of the organization's mission. Some of these results demonstrate good performance levels. The use of comparative and trend data is in the early stages. 171- 210 3 Results address areas of importance to the basic Criteria requirements and accomplishment of the organization’s mission, with good performance being achieved. Comparative and trend data are available for some of these important results areas, and some beneficial trends are evident. 211- 255 4 Results address some key customer/stakeholder, market, and process requirements, and they demonstrate good relative performance against relevant comparisons. There are no patterns of adverse trends or poor performance in areas of importance to the overall Criteria requirements and the accomplishment of the organization's mission. 256- 300 5 Results address most key customer/stakeholder, market, and process requirements, and they demonstrate areas of strength against relevant comparisons and/or benchmarks. Improvement trends and/or good performance are reported for most areas of importance to the overall criteria requirements and the accomplishment of the organization’s mission. 301- 345 6 Results address most key customer/stakeholder, market,and process requirements, as well as may action plan requirements. Results demonstrate beneficial trends in most areas of importance to the Criteria requirements and the accomplishment of the organization's mission, and the organization is an industry leader in some results areas. 346- 390 7 Results address most key customer/stakeholder, market, process, and action plan requirements. Results demonstrate excellence organizational performance levels and some industry leadership. Results demonstrate sustained beneficial trend in most areas of importance to the multiple Criteria requirements and the accomplishment of the organization's mission. 391- 450 8 Results fully address key customer/stakeholder, market, process, and action plan requirements and include projections of future performance. Results demonstrate excellent organizational performance levels, as well as nation and world leadership. Results demonstrate sustained beneficial trends in all areas of importance to the multiple Criteria requirements and the accomplishment of the organization's mission. 6

7. Baldrige Top Scoring Bands – on 1000 point scale (a 900-1000 point organization) Process – The organization demonstrates outstanding approaches focused on innovation. Approaches are fully deployed and demonstrate excellent, sustained use of measures. There is excellent integration of approaches with organizational needs. Organizational analysis, learning through innovation, and sharing of best practices are pervasive. Results – Results fully address key customer/stakeholder, market, process, and action plan requirements and include projections of future performance. Results demonstrate excellent organizational performance levels, as well as nation and world leadership. Results demonstrate sustained beneficial trends in all areas of importance to the multiple Criteria requirements and the accomplishment of the organization's mission.

8. 8 Purpose of the Toolset time Current State Desired Future State As-Is To-Be Measures of Success Now What is the Vision of the Future State? Improvements/Actions Needed Then Close the gap Define

9. The Challenge for Management & the Change Management Agent 1.What is that desired future state? 2.What is the current situation? 3.How do I close the gap? 4.How do I confirm that I am closing the gap? “The Right Questions to Ask?”

10. Examples: Problem (Opportunity for Improvement or OFI) indications 1.Key performance metric is not where it should be/we want it to be? 2.Audits indicating non-conformance issues? 3.Benchmarking indicates process results are woeful to comparisons? 4.Pattern of customer service complaints not understood? 5.Our department layout is a “mess”!

11. Over-Arching Tool PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step management method used in business for the control and continuous improvement of processes and products. It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA).DemingShewhart Another version of this PDCA cycle is OPDCA. The added "O" stands for observation or as some versions say "Grasp the current condition." This emphasis on observation and current condition has currency with Lean manufacturing/Toyota Production System literature. [Lean manufacturingToyota Production System [ The PDCA Cycle

12. 12 PDCA Cycle: Establish the Focus Act on the Causes Check the Results Standardize the Changes Draw Conclusions Examine the Current Situation Analyze the Causes Flow Chart After Improvement Control Chart Before Improvement Control Chart Control Chart Run Chart Pareto Diagram After Improvement Flow Chart Matrix Impact Wheel DOE Cause and Effect Diagram............... Scatter Diagram If data is available-- Pareto Diagram or Dot Plot Data Collection/ Stratification Control Chart Run Chart Flow Chart Histogram DPO DPU DPMO Process Sigma DPO DPU DPMO Process Sigma DPO DPU DPMO Process Sigma Control Chart Pareto Diagram Before Improvement Flow Chart Plan Do Check Act Process Control Plan http://goalqpc.com/ PLAN CHECKDO ACT

13. The Seven Simple QC Tools 1.Cause-and-effect diagram (also known as the "fishbone" or Ishikawa diagram)Cause-and-effect 2.Check sheetCheck sheet 3.Control chartControl chart 4.HistogramHistogram 5.Pareto chartPareto chart 6.Scatter diagramScatter diagram 7.Stratification (alternately, flow chart or run chart)Stratificationflow chartrun chart 13

14. Seven Simple QC Tools 3. Cause and Effect Diagrams 14 http://goalqpc.com/ 2. Pareto Charts1. Flow Charts 4. Histograms 5. Check Sheet6. Scatter Plots 7. Control (Run) Charts

15. Cause & Effect (Fishbone Diagram) Often use the 5 Why Tool in conjunction with Fishbone Diagram Utilize the Thought Process that Y=f(x)

16. 16 5 Whys & Root Causes Root Cause An identified reason for the presence of a defect or problem. The most basic reason, which if eliminated, would prevent recurrence. The source or origin of an event. Determine The Root Cause: 5 Whys Problem Statement Why?

17. Process Flow Diagram

18. Pareto Chart

19. Run Chart

20. 7 Management Planning Tools 1.Affinity Diagram: organizes a large number of ideas into their natural relationships.Affinity Diagram 2.Interrelationship Diagraph: An interrelationship diagram is an analysis tool that allows a team to identify the cause-and-effect relationships among critical issues. The analysis helps a team distinguish between issues that serve as drivers and those that are outcomes. Use an interrationship diagram when a team is struggling to understand the relationships among several issues associated with a process. The tool can also be useful in identifying root causes, even when objective data is unavailable.Interrelationship Diagraph: 3.Tree Diagram: breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.Tree Diagram: 4.Matrix Diagram: shows the relationship between two, three or four groups of information and can give information about the relationship, such as its strength, the roles played by various individuals, or measurements.Matrix Diagram: 5.Matrix Data Aanalysis: a complex mathematical technique for analyzing matrices, often replaced in this list by the similar prioritization matrix. One of the most rigorous, careful and time-consuming of decision- making tools, a prioritization matrix is an L-shaped matrix that uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s).L-shaped matrix 6.Arrow Diagram: shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions.Arrow Diagram: 7.Process Decision Program Chart (PDPC): systematically identifies what might go wrong in a plan under development.Process Decision Program Chart (PDPC):

21. Affinity Diagram

22. Interrelationship Digraph

23. Creativity Tools http://www.goalqpc.com/products_detail.cfm?ProductID=5 Tools that show you how to restate the problem so you can see it differently, generate new ideas, transfer knowledge from other areas, and identify all possible solutions to the problem.

24. 24 Opportunity Identification/Business Case 1.What is the key OFI (opportunity for improvement) to be addressed? Why is the OFI an issue and why is it important to fix? 2.What are the Current State key metric data (levels, trends, comparative data)? [Charts and figures are better here than words] 3.What is the “Business Case” for addressing this opportunity? 4.What is the desired future state (To-Be)? 5.What are the gaps between the as-is and the to-be? 6.What is your Y= f(x) model -- the hypothesis regarding key “Causes” and how they are impacting the Y? A3 Methodology Template Questions

25. Improvement Plan/Risk Analysis 7.What are the characteristics of the improvement strategy? 8.What are important actions to be implemented? 9.What are the key metrics that will determine success of the improvement strategy? How will you know it worked, and how well it worked? 10.What are possible “unintended” consequences that could occur as a result of improvement actions? 11.Tactical plan & Schedule to Implement (Start/Stop/Keep?). Include Who will need to do What and by When, and what Outcomes will happen from those actions; tie back to Items 2 and 4 on the previous page. 25 A3 Methodology Template Questions

26. Summary Chart 1.Understand the current situation 2.Define the desired future state 3.Characterize the gap using the analysis tools 4.Build the improvement plan (the “gap-closer” 5.Track progress to the plan

27. 27 Questions