0904-FMEA

Project Management, Process Mapping, and Failure Mode and

Effects Analysis

Leon SpackmanPMP, LSS Master Black BeltKirtland Federal Credit Union

2

Agenda

• Project Management

• Process mapping

• What is FMEA?

• When do you use it?

• How do you use it?

• How do you interpret a FMEA?

• Pareto Charts--show results

3

Project Management

• Initiate—Select project, define initial scope• Plan—Establish schedule, budget, team, risk,

communications, project management plan• Execute—Work the plan• Monitor and Control—Quality control, monitor

schedule/budget, corrective actions• Close—Verify scope, deliver results, close

contracts and project

4

Project Definition

• Temporary endeavor with beginning and end

• Creates unique product or service

• Know more about the project as it progresses

5

Project Management

• Multiple processes in project management

• PMI defines the high level process

• Project processes should be defined clearly and understood by all on the project team

• Lean efficient processes result in successful projects

6

Integration Management Process (1)

• Develop project charter

• Develop preliminary project scope statement

• Develop project management plan

• Direct and manage project execution

• Monitor and control project work

• Integrated change control

• Close project

7

Scope Management Process (2)

• Scope planning

• Scope definition

• Create Work Breakdown Structure

• Scope verification

• Scope control

8

Time Management Process (3)

• Activity definition

• Activity sequencing

• Activity resource estimating

• Activity duration estimating

• Schedule development

• Schedule control

9

Cost Management Process (4)

• Cost estimating

• Cost budgeting

• Cost control

10

Quality Management Process (5)

• Quality planning

• Perform quality assurance

• Perform quality control

11

HR Management Process (6)

• Human resource planning

• Acquire project team

• Develop project team

• Manage project team

12

Communications Management Process (7)

• Communications planning

• Information distribution

• Performance reporting

• Manage stakeholders

13

Risk Management Process (8)

• Risk management planning

• Risk identification

• Qualitative risk analysis

• Quantitative risk analysis

• Risk response planning

• Risk monitoring and control

14

Procurement Management Process (9)

• Plan purchases and acquisitions

• Plan contracting

• Request seller responses

• Select sellers

• Contract administration

• Contract closure

15

Project Management Tools• Charter• WBS• Network Diagrams• Earned Value• Bar/Milestone Charts• Monte Carlo Analysis• Communication matrix• Fishbone Diagram• Risk Plan/Matrix• Contracting Tools/types

• Fast Tracking• Crashing• Cost Estimating

– Analogous– Bottom-up– Parametric

• Control Charts

• Scatter Diagram

• Design of Experiments

• Motivation Theories

16

Lessons Learned

• Lean Six Sigma projects must use sound project management principles– Initiating—project selection criteria– Planning—often not done– Team building tools – Communication—more is needed– Risk Management—often not done– Stakeholder management– Milestones (schedule management)– Close—wrap up, have a party, release resources

17

Lessons Learned• Project Managers must eliminate waste, and improve

their processes– Clearly define how projects will be selected—

establish and map the process– Establish templates and mistake-proof processes as

much as possible– Emphasize doing it right the first time (First Pass

Yield)– Eliminate waste in the project—Look for clutter,

rework, bottlenecks, and uneven work load– Gather metrics and use statistical tools if appropriate

18

Lessons Learned• Project Managers must eliminate waste, and

improve their processes– Spend time finding root causes—don’t just

use a band-aid fix– Manage using process mentality

(Remember:Y=f(x)) – Map processes

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Process Mapping

• Before we can manage processes, we must identify, define, and centralize them

• Provides a clear, visual way to examine processes

• Helps identify redundancies, waste, and weaknesses

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Why Map Processes?

The way it really functions.

What the customer expects, and is willing to pay for.

The way you think it is.

21

Micro-Level Processes

Payroll

CollectEmp. Data

CollectTimesheet

Info

CalculatePay,

Benefits, etc

Cut Checkor DirectDeposit

EndProcess

Send/makepay infoavailable

Update Vac,sick time,YTD info

Detailed steps that must be followed in order to produce a product/result.

22

Macro-Level Processes

Mid level detail showing how an overall task or deliverable is accomplished.

BusinessDeployment

Gather inputsfrom One-PageStrategy and

Quarterly Plan

Incentive Goalsnegotiated with

Managers

Incentive Goalsnegotiated with

all otheremployees

Incentive PlanProgress

reviewed monthly

Incentive Plangoals scored

quarterly

Quarterly PlanUpdated

ManagementResponsibility

23

Business System--High Level Relationships Across Functions

HumanResources

Finance OperationsEngineering Marketing

Department

Department

Organization

Department Department Department

Department

Department

Department

Department Department Department Department

DepartmentDepartment

Department

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Process Symbols

Boundary

Task

Decision

Embedded Process

Reference Document

Multiple Documents

Connector

DataBase

25

Putting It All TogetherN

o

Yes

DataBase

26

Interactive Electronic Map

27

Online Electronic Document

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What is FMEA?

• FMEA--a tool to identify risks in your process• Can be used in multiple places in process

improvement– Determine where problems are– Help identify cause/effect relationships– Highlight risks in solutions and actions to take

• Starts with input from processes• Identifies three risk categories

– Severity of impact– Probability of occurrence– Ability to detect the occurrence

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When to Use

• Early stages (Define) to understand process and identify problem areas

• Analyze data (Analyze) to help identify root causes

• Determine best solutions (Improve) with lowest risk

• Close out stage (Control) to document improvement and identify actions needed to continue to reduce risk

30

FMEA Worksheet

Process or Product Name

Prepared by: Page _____ of ______

Person Responsible

Date (Orig) ___________ Revised __________

Process Step

Key Process Input

Potential Failure Mode

Potential Failure Effect

Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Sev - Severity of the failure (what impact will it have on our process?)Occ – How likely is the event to occur (probability of occurrence)Det – How likely can the event be detected in time to do something about itRPN – Risk Priority Number (multiply Sev, Occ, and Det)

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How To Complete the FMEAGeneral Suggestions• Use large white board or flip chart with a FMEA

form drawn on it during the generation phase • Focus the team on the specific area of study

(product or process). • Have process map available• Have all subassemblies and component part of

a product.

32

Process for FMEA

Process to Change Oil in a Car

3000 miles driven

Drive caron lift

Fill withnew oil

Drain Oil ReplaceFilter

Take Car off lift

Process Complete

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How to Complete the FMEA

Step 1. Complete header information

Step 2. Identify steps in the process

Step 3. Brainstorm potential ways the area of study could theoretically fail (failure modes)

Suggestion: Use Affinity Diagram as a brainstorming tool

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FMEA Worksheet


Change Oil in Car Prepared by: Leon Page _1____ of __1____

Person Responsible

Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________

Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Fill with new oil

New Oil—Mechanic

Wrong type of oil

Engine wear

No oil added

Engine Failure


35

How to Complete a FMEAStep 4

• For each failure mode, determine impact or effect on the product or operation using criteria table (next slide)

• Rate this impact in the column labeled SEV

(severity)

36

Severity (SEV) Rating

SEV Severity Product/Process Criteria

1 None No effect

2 Very Minor Defect would be noticed by most discriminating customers. A portion of the product may have to be reworked on line but out of station

3 Minor Defect would be noticed by average customers. A portion of the product (<100%) may have to be reworked on line but out of station

4 Very Low Defect would be noticed by most customers. 100% of the product may have to be sorted and a portion (<100%) reworked

5 Low Comfort/convenience item(s) would be operable at a reduced level of performance. 100% of the product may have to be reworked

6 Moderate Comfort/convenience item(s) would be inoperable. A portion (<100%) of the product may have to be scrapped

7 High Product would be operable with reduced primary function. Product may have to be sorted and a portion (<100%) scrapped.

8 Very High Product would experience complete loss of primary function. 100% of the product may have to be scrapped

9 Hazardous Warning

Failure would endanger machine or operator with a warning

10 Hazardous w/out Warning

Failure would endanger machine or operator without a warning

37

FMEA Worksheet


Change Oil in Car Prepared by: Leon Page _____ of ______

Person Responsible


Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Fill with new oil

New Oil—Mechanic

Wrong type of oil

Engine wear

2

No oil added

Engine Failure

10


38

How to Complete a FMEA

Step 5• For each potential failure mode identify one or

more potential causes (Could use Affinity Diagram again to brainstorm ideas)

• Rate the probability of each potential cause occurring based on criteria table (next slide)

• Place the rating in the column labeled OCC (occurrence).

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FMEA Occurrence (OCC Rating)OCC Occurrence Criteria

1 Remote 1 in 1,500,000 Very unlikely to occur

2 Low 1 in 150,000

3 Low 1 in 15,000 Unlikely to occur

4 Moderate 1 in 2,000

5 Moderate 1 in 400 Moderate chance to occur

6 Moderate 1 in 80

7 High 1 in 20 High probability that the event will occur

8 High 1 in 8

9 Very High 1 in 3 Almost certain to occur

10 Very High > 1 in 2

40

FMEA Worksheet



Person Responsible


Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Fill with new oil

New Oil—Mechanic

Wrong type of oil

Engine wear

2 Mis-labeled

3

No oil added

Engine Failure

10

Hurrying 3


41

How to Complete the FMEA

Step 6• Identify current controls or detection• Rate ability of each current control to prevent or

detect the failure mode once it occurs using criteria table (next slide)

• Place rating in Det column

42

FMEA Detection (DET) RatingDET Detection Criteria

1 Almost Certain

Current Controls are almost certain to detect/prevent the failure mode

2 Very High Very high likelihood that current controls will detect/prevent the failure mode

3 High High Likelihood that current controls will detect/prevent the failure mode

4 Mod. High Moderately High likelihood that current controls will detect/prevent the failure mode

5 Moderate High Likelihood that current controls will detect/prevent the failure mode

6 Low Low likelihood that current controls will detect/prevent failure mode

7 Very Low Very Low likelihood that current controls will detect /prevent the failure mode

8 Remote Remote likelihood that current controls will detect/prevent the failure mode

9 Very Remote

Very remote likelihood that current controls will detect/prevent the failure mode

43

FMEA Worksheet



Person Responsible


Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det

RPN Actions Recommended

Sev

Occ

Det

RPN

Fill with new oil

New Oil from supplier

Wrong type of oil

Engine wear

2 Misread oil chart for vehicle

3 None 9

No oil added

Engine Failure

10

Hurrying 3 Engine light 3


44

How to Complete the FMEAStep 7

Multiply SEV, OCC and DET ratings and place the value in the RPN (risk priority number) column. The largest RPN numbers should get the greatest focus. For those RPN numbers which warrant corrective action, recommended actions and the person responsible for implementation should be listed.

SEV * OCC * DET = RPN ( 2 * 3 * 9 = 54 )

Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det


Sev

Occ

Det

RPN

Fill with new oil


Wrong type of oil

Engine wear


3 None 9 54

No oil added

Engine Failure

10

Hurrying 3 Engine light 3 90

45

FMEA Rankings

Severity Occurrence Detection

Hazardous without warning

Very high and almost inevitable

Cannot detect or detection with very low probability

Loss of primary function

High repeated failures

Remote or low chance of detection

Loss of secondary function

Moderate failures Low detection probability

Minor defect Occasional failures Moderate detection probability

No effect Failure Unlikely Almost certain detection

Rating

10

1

High

Low

Source: The Black Belt Memory Jogger, Six Sigma Academy

46

Action Results

Step 8

• After corrective action has been taken, place summary of the results in the ‘Actions Recommended’ block• Assign new value for:

– Severity– Occurrence– Detection

• Calculate new RPN number

47

FMEA Worksheet



Person Responsible


Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det


Sev

Occ

Det

RPN

Fill with new oil


Wrong type of oil

Engine wear


3 None 9 54

No oil added

Engine Failure

10

Hurrying 3 Engine light 3 90 Oil level checked by partner

10

3 1 30


48

FMEA Example

Source: Quality Digest/ August 2006 Quality Service at the Special Olympics World Games, Tang Xiaofen

Process or Product Name: Hotel Service at Special Olympics Prepared by: Page _____ of ______

Person Responsible: Joe Quality Date (Orig) ___________ Revised __________

Process Step

Key Process Input



Sev

Potential Causes

Occ

Current Controls

Det

RPN

Actions Recommended

Sev

Occ

Det

RPN

Register guest

Service Desk

Cannot Register in time

Complaints 5 Lack of language and communication skills, support of volunteers not sufficient

4 No plan on training content; training and volunteer support sufficient

3 72

Provide Guest Services

Guest Support

Lack of barrier-free facility

Inconvenience and injury

10 Cannot provide barrier-free facility

3 Providing barrier-free facility

7 210

Provide Meals

Food Service

Food goes bad

Disease or injury

10 Past shelf life

6 No control of raw material

8 240

Provide Medical Service

Medical Service

Service not in time

Illness changes for worse

10 No 24 Hour service

6 12 hour service

3 180

49

Summary

• FMEA identifies risk in our processes– Impact/Severity– Probability of Occurrence– Detection

• Helps identify what can go wrong and what we should fix

• Can be used in multiple stages of process improvement

50

Continuous Improvement

• Process improvement not a linear process

• Never really ends

• Journey not a destination

Define

Measure

AnalyzeImprove

Control

51

Challenge

“We are what we repeatedly do. Excellence, therefore, is not an act but a habit.”

-- Aristotle

Questions

Leon [email protected](505) 254-4330 (Work)(505) 401-8850 (Cell)

53

Group Exercise

• Build a FMEA to identify problem areas to be addressed in your process (Cake Baking) – Identify process step(s) to analyze – Use Affinity Diagram to brainstorm for possible

failure modes, effects, causes and detection controls

– Rate severity, occurrence, and detection– Analyze results with a Pareto Chart

• Report to the group

54

Baking a Cake

Birthday Arrives

SelectType of cake

Get Recipe Mix Dry Ingredients

Add Liquid Ingredients Bake Frost and

DecorateServe at Party

55

Pareto Chart

• Sorted Bar Chart with the bars arranged in descending order from left to right

• Useful in taking a spreadsheet of data and showing which category stands out from the rest.

• Identify where the biggest “pain” occurs in process

• Help determine where to focus our efforts• Based on 80/20 rule

56

Pareto Chart—Example

Pareto Chart--Special Olympics

050

100150200250300

Food goesbad

Lack ofbarrier-free

facility

Medicalservice not

in time

CannotRegister in

Time

Failure Modes

Ris

k P

rio

rity

Nu

mb

er

57

20 20 43 85312

4.2 4.2 9.017.765.0100.0 95.8 91.7 82.7 65.0

500

400

300

200

100

0

100

80

60

40

20

0

Defect

CountPercentCum %

Perc

ent

Coun

t

Pareto Chart of Paint Defects

Pareto Chart--Example

58

Pareto Chart Hints

• Must have category/attribute data

• List categories in descending order on horizontal line & frequencies on vertical line

• Break down tall pole into another Pareto Chart for further analysis

• Involve customer/sponsor in selecting area to focus on

0904-FMEA

Documents

incentive

potential

key process

potential

failure mode

process mapping

embedded process

process step