QC Story Board

Quality CircleQuality CircleSTORYSTORY

Quality CircleQuality CircleSTORYSTORY

Conducted by:MAQ Center for Quality and Productivity

MINDANAO ASSOCIATION FOR QUALITY, Inc. A Productivity Improvement Circles Association of the Phils. (PICAP)

Northern Mindanao Chapter

Quality Circles StoryQuality Circles StoryHandbookHandbook

Productivity Improvement Circles Associationof the Philippines (PICAP)

2001 EditionAdapted by: MAQ Inc. January 2002

OBJECTIVESOBJECTIVES

To introduce the steps of problem-solving adopted by MAQ, Inc.

To learn the basic tools and concepts of problem solving via the QC Story

To be able to solve actual problems in the

workplace

EIGHT STEPS IN QC STORYEIGHT STEPS IN QC STORY STEP 1: Problem Identification STEP 2: Grasp Present Situation STEP 3: Analyze and determine

Root Causes STEP 4: Solution Formulation STEP 5: Implementation Plan STEP 6: Evaluate Results STEP 7: Standardize Actions Taken STEP 8: Self-Evaluation and Future Planning

Step 1: Step 1: Problem Problem IdentificationIdentification

ObjectiveTo provide focus by systematically weighing the identified problems

OutputA Priority Problem

Problem IdentificationProblem Identification

Not causal nor disguised solution

Controllability

Impact to members

Alignment to Company’s objective

Data-based selection

What’s a Problem ?What’s a Problem ? PROBLEM = OBJECT + DEFECT

* Deviation - something has gone wrong

* Threat - might cause future trouble

* Opportunity for Improvement

- challenging the existing system

What is a problem ?What is a problem ?

A problem is a deviation or an in-balance between what SHOULDSHOULD be and what ACTUALLYACTUALLY is happening.

EventsThroughTime

What should behappening if allwere going well

What actually is happening

Some unanticipatedchange

Types of Problem Which Types of Problem Which Circle Can Deal WithCircle Can Deal With

Quality Improvement Work Simplification Waste Reduction Safety Energy Conservation Production Targets

Problems That Members Problems That Members Are Not Asked To SolveAre Not Asked To Solve

Incentives Personnel Policies Problems outside their control Wage and Salaries

Problem DefinitionProblem Definition

Put half the effort in looking for the

real problem.

Gather data to reach the real problem

“A problem well-defined is a half-

solved problem”.

Be specific, not vague.

Classification of Classification of controllability of the controllability of the problemproblem

A problem can be Controllable Uncontrollable or Interface

Controllable by the Controllable by the CirclesCircles

The process is fully owned by the circle members themselves

The boundaries of the process are within the circle’s responsibility

Circle members are the one performing the activities within the process

Classify problem according Classify problem according to its significanceto its significance

Significant Simple concern

* Problems with obvious or ready solution

* The extent of the problem is relatively small against its target performance

* 5S - related issues

How to Construct a How to Construct a Prioritization MatrixPrioritization Matrix

1. List of identified problems

2. Brainstorm on appropriate

criteria

3. Put value for each criteria

4. Prepare the matrix

5. Rank them

SampleSampleProblem Prioritization Problem Prioritization MatrixMatrix

Tota

l Pts

.

Ranki

ng

C r i t e r i a

A B C D

List of Problems

Legend: Criteria Rating Scales A - Cost B - Controllability Low - 1 C - Availability of Data Medium - 2 D - Seriousness/Urgency High - 3

Step 2: Step 2: Grasp Present Grasp Present SituationSituation

Objective To clearly specify the magnitude

of the problem

OutputFinal Problem Statement and Objective Statement

Understanding the Present Understanding the Present SituationSituation

Review the current system and standard

Agree on the scope of the problem

Validate extent of the problem

Finalize problem statement (What, When, Where and Extent of the Problem)

Finalize Problem Finalize Problem StatementStatement

Effective Problem Statement

Summarizes the project /problem

Indicates complete information about the

project

Contains the following What Where When Extent

Sample of Problem Sample of Problem StatementStatement

Insufficient water supply in Brgy. Lumbia Cagayan de Oro City

Downtime at CRT Engine Circuit test process contributes to low efficiency of the assembly line from March to June 2009

High rejection rate of SSS Salary Loan applications in Sector 1 from January to March 2009 averaging 47.3 %.

Problem Problem StatementStatement

Excess Hydrogen Gas produced from Methanol Cracking Plant during Hydrogenation (H1) Plant Shutdown equivalent to 310 m3/Hr

Gas Coolers lead tubes downtime from April – December 2008 resulted to an average of 7.4 hours per month.

Problem Problem StatementStatement

Objectives SettingObjectives Setting

After establishing the problem decide how much improvement is attainable and manageable by the circle.

Three ways to set Three ways to set objectiveobjective

Management direction

Maker/User

benchmark

Industry/Job standard

Why set project Why set project objectivesobjectives

Circle sees clarity of goals.

Members unified by common goal.

Circle stays focused. Unnecessary activities are set aside.

Targets draw competitive spirit among members.

Objectives provide measure of a project’s growth and success.

A Circle Project Objectives A Circle Project Objectives HasHas

QualitativePart

+

QuantitativePart

What action will circle do?

Measurable, observableBy how much?By when?By whom?Where?

Objective SettingObjective Setting

Use

SS - SPECIFIC

MM - MEASURABLE

AA - ATTAINABLE

CC - CHALLENGING

TT - TIME-BOUND

Objective Objective SettingSetting

Total ImprovementPossible

Easily attainablew/o much effort

Attainablewithchallenge

Set this as objective!

Sample of Different Sample of Different Objective StatementsObjective Statements

• Eliminate delay in Line B

•Significantly reduce breakdown occurrence from an average of 90 to 20 per month

•To bring down rework in body painting section from 30% to 5% by December 2010

Step 3: Step 3: Analyze and Analyze and DetermineDetermine Root CausesRoot Causes

ObjectiveTo identify the root causes of the problem

Output True causes of the problem

How to Make Fishbone How to Make Fishbone DiagramDiagram

Step 1:State the problem in precise term

Delay in RetrievingDocuments from

the Archives

The problem is the effect and is written in the box to the right. The possible cause for the problem are written in the area to the left.

Step 2: Determine the major grouping. 4 M’s is the favorite

Delay in RetrievingDocuments from

the Archives

Material

Manpower

Method

Machine

Step 3: Brainstorm for Possible Causes

Delay in RetrievingDocumentsfrom the Archives

Manpower

No facilities forarchives user

No budget

Not planned Method

Disarranged file

No location guide/master-list

Inconvenient means of storage

Mixed up of boxes//supplies

No location guide

Displaced files Improper labeling

Mixed/assorted files

Inconvenient storage

Block-piling of filesNo storage

Machine

No monitoring of

files No Custodian

Material

Limited space

Not properly designed

No proper ventilation

Wrong designed/

location

Identify Probable CausesIdentify Probable Causes

Nominate probable causes of the problem

Preferably use cause-and-effect diagram

Sub-causes should reach to at least 5th

“why” level

Relationship between causes and effects

must be clearly understood

Analysis of Root CausesAnalysis of Root Causes

Activities

Identify probable causes

Validate most probable causes

Identify controllability of verified

causes

Identify true causes

Identify Controllability of the Identify Controllability of the verified MPCverified MPC

Classify each MPC if it is within control, beyond control or interface

Review boundaries of the process

using input-process-output approach

Identify concern group or individual

for uncontrollable MPC

Root Cause ValidationRoot Cause Validation

RootCause

Verification Method

In-Charge

Findings

Controlla-bility

ConclusionTrue Cause/ Not True Cause

Step 4: Step 4: Solution Solution FormulationFormulation

ObjectiveTo eliminate the true or real causes of the problem

OutputSolution and Implementation Plan

Good Ideas

Creativity

Ingenuity

Flexibility of thought

Critical Mind

Finding Finding SolutionsSolutions

Solution FormulationSolution Formulation

PROBLEM

Most Probable Causes

Formulate Solutions

Select best solution alternatives

Objectives

Selection of Best Selection of Best AlternativesAlternatives

Characteristics of the solutions

Solvability, feasibility and controllability

Approach

Activity Planning

Anticipate potential problems that

may occur

Generate Alternative Generate Alternative SolutionsSolutions

Give members enough time to look for possible solutions

Allow members to source for other solutions outside the company if necessary

Seek expert’s advice

Identify recommendations for uncontrollable root causes

Evaluate and Select Best Evaluate and Select Best Alternative SolutionsAlternative Solutions

Weigh the advantages and disadvantages

Measure effectiveness of alternative solutions

Best alternative solution must significantly reduce the root-causes

Identify Details of the Identify Details of the SolutionsSolutions

Discuss the required process of implementation

All resources needed for effective implementation must be identified

Solution Solution FormulationFormulation

True Causes Solution

sAdvantage Disadvantag

e

Controlla- bility

Circle’s

Decision

Draw an Action Draw an Action PlanPlan

Identify all the activities to be performed

Preferably, use the Gantt Chart

Time frame of the project completion must conform to the objective

Implementation PlanImplementation Plan

ActivityMONTH/WEEK IN-

CHARGE

Anticipate Potential Anticipate Potential ProblemsProblems

Identify factors that may hinder implementation

Always consider the needs of the person in-charge

Draw preventive and contingency plan

Use Potential Problem Analysis table

Potential Analysis TablePotential Analysis Table

Solution

Most likely cause

Potential Problem

Counter-measures In-charge

Seek Approval from Seek Approval from ManagementManagement

Management Presentation is an effective way for seeking approval

Prepare for written and oral management presentation

Management must be given an ample time to review the project

Step 5: Solution Step 5: Solution ImplementationImplementation

Objective:To perform the activities according to plan

Output: Measurements

Activities for Implementation Activities for Implementation StageStage

Start the implementation

Monitor progress of implementation

Identify concerns

Initiate corrective actions

Start The Start The ImplementationImplementation

Acquire all the resources needed to implement proposed solutions

Inform all concern that will be affected

Agree on the methods of monitoring and tools to use for measuring results

Perform all activities in the action plan religiously

Step 6: Step 6: Evaluation of ResultsEvaluation of Results

ObjectiveTo validate effectiveness of the proposed solutions

OutputEffective solutions

Evaluation of ResultsEvaluation of Results Summarize and compare data from the

set target

Compare results against the target as direct

consequence of the solutions

Identify benefits of the project (tangible and intangible)

Summarize the difficulties and learning the circle had experienced

Form conclusions

Form ConclusionsForm Conclusions

Clearly show the deviation of actual results from the target

Identify other things the circle will attain from implementing the solutions

Evaluation of Evaluation of ResultsResults

Use Pareto Diagram to show conditions before and after the project.

BeforeDefectives / Mo.

AfterDefectives / Mo.

400

300

350

100

250

200

150

50

100

200

50

A B C D others A B C D others

100%

100%

0

50

Improvement

Step 7: Step 7: StandardizationStandardization

ObjectiveTo ensure efficient integration of the new procedure in the company’s SOP’s.

OutputNew Standard Procedure, and Targets

Standardization ActivitiesStandardization Activities

Extent - Identify areas where the solutions can be applied

Documentation

Disseminate the new SOP

Follow through for proper implementation of the new system to ensure non-recurrence of the problem and consistency of results

Step 8: Step 8: Self-Evaluation andSelf-Evaluation and Future PlanningFuture Planning

ObjectiveTo ensure circle’s existence and enhancement of ability to solve problems using QC story with the QC Tools and Techniques.

OutputNew project to tackle and the circle’s development plan

Self-Evaluation ActivitiesSelf-Evaluation Activities

Continuing commitment to circle work

Assess circle’s skills in applying the QC tools and techniques

Identify things that went well and not in the process of problem solving

Develop a Plan to Improve the Develop a Plan to Improve the CircleCircle

Address all the weaknesses of the circle

Find ways to build on things that went well

Identify the training that the circle needs

Identify Next Project to TackleIdentify Next Project to Tackle

The circle may chose to tackle the next in the priority list, or

Nominate new problems apart from what have been identified

End of Presentation