White Belt Training 2

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Basic Process Improvement

Training

Version 1.5

3rd March 2011

1



Objectives

• The objective of Process Improvement is to produce

effective and efficient processes

– Effectiveness : Does the process produce thedesired result and meet the customer’s needs?

– Efficiency : Does the process use the absolute

minimum machine, manpower and time toproduce the desired results for the customer?

2



Process Improvement Roadmap (using DMAIC)

Define 1. Identify VOC2. Identify

Process

3. ProduceInitial Project

Charter

Measure 4. TranslateVOC to CTQ

5. MeasureBaseline

6. Set the Goal7. Update the

Project Charter

Analyze8. Process

Analysis (CTQ isCycle Time)*

9. ProcessAnalysis (CTQ isnot cycle time)

Improve

10.

ImprovementIdeation

11. Implement

12. Before /

AfterComparison

Control13. Plan toControl the

Gains14. Celebrate

3

Any Project where you are trying

to improve the end to end process

time or cycle time, use Step 8,

otherwise use Step 9



Step 1 – Identify Voice of the Customer


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process

Analysis (CTQ isCycle Time)


Improve

10.

ImprovementIdeation 11. Implement

12. Before /

AfterComparison


Gains14. Celebrate

4



What is VOC?

Voice of the customer (VOC) is a term to describe the

in-depth process of capturing a customer's

expectations, needs, wants, preferences and aversions

The output of a VOC exercise are these “raw” customer

sound bites that captures their expectations, needs,

wants, preferences and aversions.

5



1.1 Identify Customers (Groups)

• Who are the customers?

• Does it make sense to divide them into customer groups or segments?

Typical groups:

– Customer type

– Type of usage (direct customer / end user, consumer) – Product/service type they buy

– Importance to your business (revenue, profit, volume purchased from

your company)

– Region

– Demographics (age, education, gender…)

– other



1.2 Gather Customer Data

Reactive data

• The data comes to you

Proactive data

• You’ve got to go to get the data

For the customers/customer groups it’s important to find out what’s important tothem regarding your products or services:

What do they consider as good performance vs. bad performance

What do they need your product/service for?

How would a different performance of your product/ service make their life

easier?



Reactive Data

Examples

• Revenue analysis

• Complaints

• Hotline reports

• Service call reports

• Warranty claims• Web site hit-rate

Customers

• Current and former customers

Data on

• Issues and difficulties

• Unmet needs• Specific interests



Proactive Data

Examples

• Comment/registration cards

• Interviews, focus groups

• Gemba visits

• Market research

• Benchmarking

Customers

• Future, current and formercustomers

Data on

• Met and unmet needs• Product/service features’ relative

importance to the customer

• General interests



1.3 Organize the VOC

• Organize the information as statements in customer

language (cards/post-it notes)

• Group the customer needs into groups (affinity

diagram)



• Write the customer statements on cards or post-it

notes (one statement per card).

Example: VOC for a Pizza Delivery Service

Fast Pick up

immediatelyPick upimmed

Statements in Customer Language

Tasty pizzaFast

On time Friendly



Grouping of Needs

Fast delivery

Delivery as

announced

Right color Salami cut

evenlyThin pizza

shell

Round

Not stressed

deliverer

GM

shows up

Courier

smiles

No damage

of pizza box

Box looks

good

Right

Location

Miscellaneous

Behavior Timeliness

Appearance

Color Shape

Example: VOC for a Pizza

delivery service

On-time

delivery



Exercise 1 – Structured Interview

1. Work in Pairs

2. Work out a list of questions you want to answer the

customers of the process you want to improve

3. One of the Pair will play the role of the customerand the other will play the role of the interviewer

4. Collect the VOC

5. Organize the VOC

13



Step 2 – Identify Process


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process



Improve

10.


12. Before /

AfterComparison


Gains14. Celebrate

14



2. Identify the Process (that causes the Problem)

A simple process map helps in defining the project:

• It brings the process view into the project

(What is the project’s related process?).

• It clarifies the project scope

(What are the process boundaries under consideration?).

• It lists the customers and their requirements to the process (outputs).• It gives a first idea of possibly important inputs (Xs) of the process and who supplies them.

Suppliers Inputs Process Outputs Customers

S t a r t

S t o p



Creating a High-Level Process Map

1. Start by clarifying the process boundaries (start and stop)

2. List the process customers (internal and external, direct and indirect)

3. List the process outputs (physical outputs as well as features and measurables)

4. List the main process steps (not more than 5-8), use verb / noun structure to

describe the steps (e.g. “initiate payment” and not “operations”)

5. List the inputs necessary to perform the process steps6. List the suppliers that provide the inputs

Suppliers Inputs Process Outputs Customers

S t a r t

S t o p



SIPOC Example:

Medical Service ProcessOncological Customer Service Process:

Servicing hospitals with problems related to oncological product

Supplier Input Process Output Customer

Hospital Trouble report from customer Receive call Machine running Hospital

EngineeringProblem solving tools for call

center

Define problem (including

severity defined)Problem solved

Internal Service Group Training for call center repsTry to solve the problem over

the phoneSatisfaction

Training DepartmentTraining for FSE (Field

Service Engineers)Contact FSE

Spare Parts Work Team Tools for FSEOrganize visit (including

suspected spare parts)

Spare Parts Onsite trouble shoot

Replace spare part

Check of system



Exercise 2 – Draw the SIPOC of the Process you are

trying to improve

Supplier Input st

ar

t

Process e

n

d

Output Customers

18



Step 3 – Produce Initial Project Charter


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process



Improve

10.


12. Before /

AfterComparison


Gains14. Celebrate

19



Project Charter

Name of Project

Name of Process

Problem Statement

What is the definition of

defective?

What % of the Output is

presently defective?

Goal Statement

Process Owner Project Sponsor

Process’ Customer Key Stakeholders

Project Leader Start Date

Team Members Planned End Date

Project Coach Actual End Date

20



Example of initial Project Charter

Name of Project Improve the Timeliness of Home Deliveries for Mac Donalds Singapore

Name of Process Home Delivery Process

Problem Statement From Jan to March 2011, we received 300 complaints from customers that their

orders failed to arrive on time (30 mins from Order to Delivery).


defective ?

More than 30 mins from

Order to Delivery



To be measured

Goal Statement Pending baseline measurement

Process Owner Mr Donalds Project Sponsor Mrs Mac

Process’ Customer People who order meals

over the phone

Key Stakeholders Mr ABC, Mrs CDS. Mr XYZ

Project Leader Mr White Belt Start Date 12 Apr 2011

Team Members Mr Team Member 1 and

Ms Team Member 2

Planned End Date 15 June 2011

Project Coach Mr Black Belt Actual End Date

21



Initial Project Charter

Name of Project Fill this

Name of Process Fill this

Problem Statement Fill this


defective?

Fill this What % of the Output is


To be determined in

Measure Phase

Goal Statement To be determined in Measure Phase

Process Owner Fill this Project Sponsor Fill this

Process’ Customer Fill this Key Stakeholders Fill this

Project Leader Fill this Start Date Fill this

Team Members Fill this Planned End Date Fill this

Project Coach Fill this Actual End Date Fill this

22



Exercise 3 – Do your Initial Project Charter

Name of Project

Name of Process

Problem Statement


defective ?



Goal Statement

Process Owner Project Sponsor

Process’ Customer Key Stakeholders

Project Leader Start Date

Team Members Planned End Date

Project Coach Actual End Date

23



Step 4 – Translate VOC to CTQ


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process



Improve

10.


12. Before /

AfterComparison


Gains14. Celebrate

24



What is VOC and What is CTQ?

Voice of Customer Critical to Quality

Voice of the customer (VOC) is a term to

describe the in-depth process of

capturing a customer's expectations,

needs, wants, preferences and aversions

The output of a VOC exercise are these

“raw” customer sound bites that captures

their expectations, needs, wants,

preferences and aversions.

A metric that reflects what the process

customer wants and that can be

measured internally

1.A key concept of Six Sigma is to identifywhat is “Critical to Quality” to thecustomer as a metric (CTQ)2.The CTQ is always a Y (output) metric3.The CTQ must be measurable4.Quality is defined by the customer andnot by the process expert

25



Two Kinds of Data that you must be able to

Distinguish

A type of data is discrete if there are only a

finite number of values possible or if there is

a space on the number line between each 2

possible values.

a.Space on the Number Line between 2

values

• Count of Anything e.g., 1 Apple, 2

Apples, 3 Apples. There is no such

thing as 1.5 Apples

b.Proportions & Percentages – derived from

Count Data

• Proportion - Number of Fails / Total• % - Number of Fails / Total x 100

c.Finite Number of Possible Values

• Pass or Fail

• Strongly Disagree, Disagree, Agree,

Strongly Agree

26



Two Kinds of Data that you must be able to

Distinguish

A type of data is continuous if it can take

any value along a number line.

In order to capture continuous data, a

measurement system has to be used.

The usefulness of the data depends on the

quality of the measurement system

Some common examples:

a.Elapsed Time – 30 minutes, 30.1 minutes,

30.11 minutes, 30.111 minutes. This can goon forever.

b.Height – 1.8 meters, 1.85 meters, 1.857

meters.

c.Temperature – 30 degrees C, 30.6

degrees C, 30.68 degrees C

d.Etc

Use the half test. Half of any

continuous value is always

meaningful (Half of $10 = $5,

Half of $5 = $2.50 and so on.

Half of 2 persons = 1 person,

Half of 1 person is ½ person (no

meaningful, hence count is not

continuous. Count is discrete)

27



Examples of Data Types

Type How Obtained Examples

Continuous

(or “variables”)

Measuring instrument or

a calculation

Elapse cycle time,

weight, length, speed

Discrete:

Percentage or proportion

Count occurrences and

non-occurrences

Proportion of : defective

items, late applications

Discrete:

Count

Count occurrences in an

area of opportunity

Number of : errors,

complaints, accidents

Discrete:

Attribute

Observation Type of : application,

product, customer

Discrete:

Ordinal

Observation or ranking Customer rating

28



From VOC to CTQ

VOC Needs &

Want

CTQ Type of CTQ Specification Operational

Definition

I get really

annoyed when I

come to 3000

XTRA and I find

the value of thisXYZ data is wrong

Accurat

e Data

% Accuracy

of XYZ data

in the

product

Discrete* Not

Applicable

Data is accurate if it

matches the source’s

value on the same

day of population

It took IT Helpdesk

almost 2 weeks to

get back to me on

my email request

for assistance andresolve my

problem

Fast

Service

Cycle Time

from Service

Request to

Resolution

of Problemis less than

or equals to

4 hours

Continuous 4 hours or

less

Time start = when IT

Helpdesk receives

the email (not read,

but received by the

email system)Time end = when the

customer sends an

email to say the

issue has been

resolved

29Only Continuous CTQs need specification



What are specifications?

• For Continuous CTQs, you have to set specifications to determine what is good and what is bad.

• Example train service:• CTQ: Difference between planned arrival time and actual arrival time in minutes• Specification: Every actual vs. planned arrival difference of more than 10 minutes is a defect

(“I’m not on time for the meeting”). • Example bank service:

• CTQ: Time waiting in line before being served• Specification: Waiting time of more than 7 minutes is a defect (“Must be able to do a bank

transaction plus having something to eat in my lunch break”).



Step 5. Measure Baseline


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process



Improve

10.Improvement

Ideation11. Implement

12. Before /After

Comparison


Gains14. Celebrate

31



Why measure the Baseline?

• The baseline measurement tells us how is the

process is performing (before the improvement

action) vis-à-vis the customer expectations

• It gives us a reference line from which we can laterclaim whether any improvement have taken place

• This is obvious but worth stating – if you do not

have a baseline, it is impossible to claim that a

process has improved. Improved always has this

connotation of improved from what ?

32



Measure the Baseline Performance

1. Define what is a defective

2. Determine the time period to obtain one data point of measurement (1 shift, 1 day, week, 1 month? 1 day isrecommended)

3. Determine how many time periods you can reasonablycollect

4. Obtain the # of output per Time Period

5. Separate the output into Defective and Non Defective

6. Compute the % Defective

7. Plot the % Defective in a Time Series Plot

33



Example 1 – Discrete Y example

1. Define what is a defective - Incomplete Data Entries. Data Entries are complete

only if all five fields are populated.

2. Determine the time period to obtain one data point of measurement (1 shift, 1

day, week, 1 month? 1 day is recommended) – Every Working Day

3. Determine how many time periods you can reasonably collect – 10 working days

4. Collect Data at Job Level – See next slide

5. Obtain the # of output per Time Period - see table below

6. Separate the output into Defective and Non Defective – see table below

7. Compute the % Defective – see table below

7. Plot the % Defective in a Time Series Plot – See slide after the next slide

34

Day 1 2 3 4 5 6 7 8 9 10Total

# of Output 10 15 12 20 5 10 11 15 12 10 120

# of Defective 2 3 1 0 1 2 1 0 1 4 15

% Defective 20% 20% 8% 0% 20% 20% 9% 0% 8% 40% 13%



Instructions on Data Collection (Discrete)

Use Pivot Table Function in EXCEL to obtain this kind of consolidated data

Date Job Number Field 1 Value Field 2 Value Field 4 Value Field 5 Value Completed Entry?

1-Jan-11 2011185 ABC Company $1,235,000.00 Latin America Not Listed Yes

1-Jan-11 2011186 CDF Company USA Listed No

1-Jan-11 2011187 ZZZ Company $230,000,012.00 Asia Listed Yes

1-Jan-11 2011188 JJ Corp $7,845,341.00 EMEA Listed Yes

Count of Completed Entry? Completed Entry?

Date No Yes Grand Total % Defective

1-Jan-11 1 5 6 0.1666667

2-Jan-11 1 6 7 0.1428571

3-Jan-11 1 2 3 0.3333333

Grand Total 3 13 16

Use the % Defective column and the Date column to plot the Time Series

Collect data at Job Level like so

* Note – this is just a small example using very few data points. In your project,

you would be collecting much more data over many days 35



Baseline Performance Time Series Plot (so the baseline

is 13% defective or 87% Pass)

36

On average, 13% (the P-Bar) of the data is incomplete on any

given day. You can expect between 0% and 40% of the data to

be incomplete each day.



Example 2 – Continuous Y example

1. Define what is a defective – More than 30 mins elapsed from the Order to

Delivery

2. Determine the time period to obtain one data point of measurement (1 shift, 1

day, week, 1 month? 1 day is recommended) – Every Working Day

3. Determine how many time periods you can reasonably collect – 10 working days

4. Collect Data at Job Level – See next slide

5. Obtain the # of output per Time Period - see table below

6. Separate the output into Defective and Non Defective – see table below

7. Compute the % Defective – see table below

7. Plot the % Defective in a Time Series Plot – See slide following next

# of Output 30 20 22 32 44 30 23 22 15 30 268

# of Defective 4 1 2 5 3 4 2 5 2 5 33% Defective 13% 5% 9% 16% 7% 13% 9% 23% 13% 17% 12%

P-Bar 12% 12% 12% 12% 12% 12% 12% 12% 12% 12%

37



Instruction on Data Collection (Continuous)

Date Date Time Start Date Time End Cycle Time (Mins) Pass or Fail?

1-Jan-11 1/1/2011 13:45 1/1/2011 15:10 85 Fail

1-Jan-11 1/1/2011 13:50 1/1/2011 14:15 25 Pass

2-Jan-11 1/2/2011 9:45 1/2/2011 11:11 86 Fail

Collect data at Job Level like so

Use Pivot Table Function in EXCEL to obtain this kind of consolidated data

Count of Pass or Fail? Pass or Fail?

Date Fail Pass Grand Total % Fail

1/1/2011 1 1 2 50%

1/2/2011 2 2 100%

Grand Total 3 1 4

Use the % Defective column and the Date column to plot the Time Series

* Note – this is just a small example using very few data points. In your project,

you would be collecting much more data over many days 38



Baseline Performance Time Series Plot (so the baseline

is 12% defective or 88% Pass)

13%

5%

9%

16%

7%

13%

9%

23%

13%

17%

12% 12% 12% 12% 12% 12% 12% 12% 12% 12%

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 9 10

% Defect

P-Bar

39

On average, 12% (the P-Bar) of the deliveries are not timely on

any given day. You can expect between 5% and 23% of the

deliveries to be not on time each day.



What is the technical name of this time series plot of %

defective?

• It is called a P Chart.

• It plots the proportion of nonconforming units.

• For example, use to examine whether wait times are

less than 5 minutes, flights depart on time, bicycletires are flat, printed logos are smudged, and so on.

• Please note (many people get this wrong) – the P-

bar or average proportion is not the sum of the

individual proportions / sample size. It is the sum of

all defectives / total output.

40



How to set the Goal?

1. The how many X improvement method

• Suppose your % defective 10%

• Therefore % Non Defective is 90%

• If you want to improve this by 2X, then you take 10% /2 = 5%

• Hence, the goal will be to improve from 10% defective

to 5% defective or from 90% Non Defective to 95%

Non Defective2. Ask your sponsor what the goal should be, given the

baseline

3. Ask the customer41



6. Set the Goal

CTQ Baseline Goal Method used to determine

goal

% Accuracy of XYZ

data in the product

90% 95% 2X improvement

Cycle Time from

Service Request to

Resolution of

Problem is less than

or equals to 4 hours

88% 99% Internal Target from the

Process Owner

42



7. Update the Project Charter

Name of Project Improve the Timeliness of Home Deliveries for Mac Donalds Singapore

Name of Process Home Delivery Process

Problem Statement From Jan to March 2011, we received 300 complaints from customers that their

orders failed to arrive on time (30 mins from Order to Delivery).


defective ?

More than 30 mins from

Order to Delivery



25% of Orders failed to

be delivered within 30mins

Goal Statement Improve the % of Orders to be Delivered by 30 mins from 75% to 99% by June

2011

Process Owner Mr Donalds Project Sponsor Mrs Mac

Process’ Customer People who order meals

over the phone

Key Stakeholders Mr ABC, Mrs CDS. Mr XYZ

Project Leader Mr White Belt Start Date 12 Apr 2011

Team Members Mr Team Member 1 and

Ms Team Member 2

Planned End Date 15 June 2011

Project Coach Mr Black Belt Actual End Date

43



Step 8. Process Analysis (CTQ is Cycle Time)


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process



Improve

10.Improvement

Ideation

11. Implement12. Before /

After

Comparison


Gains14. Celebrate

44



What is Process Analysis?

• Process Analysis involves the use of Process Maps to

understand what are the root causes of failure and

use this understanding to improve the process

• Process Maps are used to create a commonunderstanding of any of the following:

– HOW WE THINK IT IS Map: What you or the team

or management think the process is

– AS IS Map: What the process really is

– TO BE Map: What the process could be

– SHOULD BE Map: What the process should be45



Two Schools of Thought about Process Analysis

Map the As-Is ProcessFind out what needs to be

changed / Improved onMap the To-Be Process Implement the Changes

Map the Should Be

Process

(Ignore the As-Is)

Gather the

Requirements

Map the As-Is Process Create a Transition Plan

from As-Is to Should Be

and implement

Clean Slate Approach

Analyze the As-Is Approach

46



Which approach is better?

Clean Slate Approach Analyze the As-Is Approach

Innovation Better for Innovation

Better for Out of the Box

Thinking

Suffers from in-the-box thinking

Less likely to result in real

innovation

Ease of Change Harder Easier

Speed of Change Harder Easier

Use when The As-Is process is

completely useless and

needs to be completely

overhauled OR

transformational change isneeded

The As-Is process more or less

correct. Just needs step wise

improvement.

47



Process Mapping

• Every Process Map should contain the following

information:

– The triggering event that starts the process (Oval Symbol) – Steps which transform the job from one state to another

state or Process Steps (Rectangle Symbol)

– Decision points where the job is channeled to different

routes within the process (Rectangle Symbol) – The end state where the job exits the process (Oval

Symbol)

48



Process Mapping (Basic)

Start

Process Step

Decision

Process Step

Process Step

End End

Write the Triggering Event here –

e.g., Customer applies for Credit

Card

Process Steps – use a Verb Noun

format e.g., Check Creditworthiness

Process Steps – use aVerb Noun format e.g.,

Issue Card

Decision – State the

Question e.g., Credit

Worthy?

Write the End Event

here – e.g., Customer

receives Credit Card

Process Steps – DO

NOT write an essay in

the box ! Keep it Simple.

Noun Verb. That’s it.

Yes

No

If …..

If …..

Decision symbol can be

Yes / No type OR it can be

IF type

49



Thinking Process for Process Analysis differs if you are

trying to improve Cycle Time vs. Not Cycle Time

Cycle Time Not Cycle Time

1. Value Stream Map the Process

AND identify the Process Wastes

2. Look for the bottleneck and

remove the bottleneck

3. Look for wastes within theprocess and remove them

4. Look for manual steps and try to

automate them

1. Map the Process

2. Do an FMEA on the Process

3. Collect a sample of the defectives and

for every defect, identify which process

step caused it’s failure AND whichFailure Mode

4. Use Pareto Charts to visualize the data

5. Brainstorm preventive and detective

controls

6. Implement controls

50



What to do if you want to reduce cycle time?

1. Value Stream Map the Process AND

identify the Process Wastes

2. Look for the bottleneck and remove thebottleneck

3. Look for wastes within the process and

remove them4. Look for manual steps and try to

automate them51



Value Stream Map* the Process

Start

Processing Time =

FTE =

Automated? =

WIP(in tray) =

Decision

End End

Process StepYou can add more information about the

process in the Process Step. Typical Info

are Processing Time and Number of Full

Time Equivalent (Staffing)

Processing Time =

FTE =

Automated? =

WIP(in tray) =

Process Step

Processing Time =

FTE =

Automated? =

WIP(in tray) =

Process Step

Document also the End to End

Cycle Time. Note there is adifference between Cycle Time

& Processing Time.

Processing Time is the time

taken to complete processing

one job without wait time,

interruptions etc.

End to End Cycle Time or

Cycle Time is the time it start

for one job to move from start

to end of a process.

Total Cycle Time – Total

Processing Time = Total

Wasted Time

Indicate the Arrival Volumes e.g., Vol per day = 30 (Demand)

Indicate the flow

time (if possible)

Indicate if the

flow is manual or

automated

Indicate the Operating Hours of this process e.g.,

8 am to 10 pm (Available Time)

52

*this is just a

process map with

more process

related info



Example of a Simple Value Stream Map

Card Application

Processing Time = 2 mins

FTE = 1

Automated? = Semi

WIP (in-tray) = 50

Approved?

End End

Credit Check & Evaluate

Processing Time = 1 minFTE = 1

Automated? = Semi

WIP (in-tray) = 0

Service Activation

Processing Time = 1 min

FTE = 1

Automated? = Semi

WIP (in-tray) = 0

Send Rejection Letter

Step 1 – Draw the Process Flow

Step 2 – Key in the Value StreamMetrics.

Step 3 – Compute the Takt Time

300 Credit Card Applications

Operating Hours = 8 hours

Takt Time = (8 x 60) min / 300 =

1.6 mins

Yes

NoStep 4 – Find out which step is the

Bottleneck

Find the step which

Processing Time / # of FTE is

higher than Takt Time

That step will be the bottleneck

and it will likely have Work-in-Progress stuck at the start of the

Process

Why is that? See the next few

slides.

53



From a Cycle Time Perspective, the ideal is

Continuous Flow Application

Form

Application

Form

Application

Form

Evaluate & Recommend

PT = 10 minutes

Approval

PT = 10 minutes

Service Activation

PT = 10 minutes

10 mins

10 mins

Print Credit Card

PT = 10 minutes

10 mins

10 mins

10 mins

10 mins

Every TenMinutes

One Job

Arrives

Into the

Value Stream

E.g.,

Inter Arrival Time = 10 mins

Every TenMinutes

One Job

leaves

the

Value Stream

From Start to End, this Value Stream will always take no more than 40 minutes

54



How to achieve Continuous Flow in Transactional

Processes?

• This is an idealized scenario. No real process actually works like this.However, in order to understand continuous flow, try to understand this.

• Imagine if every 10 mins one job arrives.

• Imagine that the 1st step takes 10 mins to process the incoming job.

• That means, as the 1

st

job is exiting the 1

st

step, the 2

nd

job is arriving intothe 1st step at exactly the same time. Hence, there is no wait time for the

2nd job.

• Now the 1st job would have entered into the 2nd Step and that would also

take 10 mins to complete the processing AND SO ON.

• Hence, if you have such an idealized process, there will be no bottleneckand consequently, you can get continuous flow.

55



Why thrive towards Continuous Flow?

1. More Speed – because in a Continuous Flow, no

Work-In-Progress is ever kept Waiting.

2. Consistency – Cycle Time from Order to Delivery is

kept consistent and predictable because there is noexcess WIP in the Value Stream to cause Lead Time

to fluctuate or grow excessively

3. Less Cost – There is no waste of Transportation and

Excess Inventory hence the organization does notincur cost associated with the management of them

56



But your process is not idealized. Not every step has the same

processing time. How can we achieve continuous flow?

Processing Time = 16 mins

FTE =2

Every 6 mins,

one job arrived

Question – will this process step become a bottleneck? Answer – So long as Processing Time / # of FTE is less than the inter arrival

time of jobs, it will not become a bottleneck

16 / 2 = 8 mins > 6 Mins

Hence, it will become a bottleneck

Question – How can we improve this process so that it ceases to be a

bottleneck?

a.Reduce the Processing Time to 12 mins or Less

b.Increase the # of FTE by 1 (16/3 = 5.3 mins)

c.Increase the interarrival time of jobs (generally out of your control) 57



Note on FTE

• FTE stands for Full Time Equivalent

• It represents how many staff are manning the

process on a full time basis

• It is not the same as number of employee• Say you employ 10 staff in your team. The team

handles three processes. Your staff divide their time

equally between these three processes during the

available time.

• Hence, the FTE per process is NOT 10 but 10/3 =

3.333.

58



How do I know what is the interarrival time of jobs for

my process?

• In reality, no transactional process has a constant inter arrivaltime of jobs (i.e., every X mins, one job arrives)

• However, let’s say for one day, your process has to complete

processing X jobs (let’s call this it’s Demand)

• And let’s say, your process operates for Y mins a day (let’s call

this available time)

• Then, you can say that practically, every Y / X mins, one job

arrives.

• This Y / X or Avail Time / Demand is called the Takt Time.

• In order words, if you know the Takt Time of your process, you

can identify the bottleneck of your process.

59



Note on Available Time

• Available Time has nothing to do with the staffing

level of the process

• It refers to the time the process is available for

processing of jobs• Hence, let’s say we have two Mac Donalds. They are

both opened 24 hours. The 1st Mac Donalds has 10

staff, and the 2nd has 20. Their available time is the

same – 24 hours. Staffing has nothing to do with it.

60



Let’s use an example that looks complicated like your own

production process to convince you that this works

P/T = 25 mins

FTE = 2

P/T = 15 minsFTE = 0.5

P/T = 5 mins

FTE = 0.25

P/T = 2 mins

FTE = 0.5

P/T = 5 mins

FTE = 0.5

P/T = 2 mins

FTE = 0.5

P/T = 45 mins

FTE = 3

Start End End

50%

50%

So which step will be the bottleneck? 61



Step 1 – Compute the Takt Time

Daily Demand = 60 Avail Time = 10 hrs

Takt Time = 10 x 60 / 60 =

10 mins

P/T = 25 mins

FTE = 2

TT = 10

PT/FTE =

P/T = 15 minsFTE = 3

TT = 10

PT/FTE =

P/T = 5 mins

FTE = 1

TT = 10

PT/FTE =

P/T = 2 mins

FTE = 0.5

TT = ?

PT/FTE =

P/T = 6 mins

FTE = 0.5

TT = 10

PT/FTE =

P/T = 2 mins

FTE = 0.5TT = ?

PT/FTE =

P/T = 45 mins

FTE = 3TT = ?

PT/FTE =

Start End End

50%

50%

62



Step 2 – Look at the points where the flow is separated and

compute the Takt Time for each new stream

Daily Demand = 60 / 2 = 30 Avail Time = 10 hrs

Takt Time = 10 x 60 /30 =

600 / 30 = 20 mins

P/T = 25 mins

FTE = 2

TT = 10

PT/FTE =


TT = 10

PT/FTE =

P/T = 5 mins

FTE = 1

TT = 10

PT/FTE =

P/T = 2 mins

FTE = 0.5

TT = 20

PT/FTE =

P/T = 6 mins

FTE = 0.5

TT = 10

PT/FTE =

P/T = 2 mins

FTE = 0.5TT = 20

PT/FTE =

P/T = 45 mins

FTE = 3TT = 20

PT/FTE =

Start End End

50%

50%

63



Step 3 – Compute the PT/FTE for every step

P/T = 25 mins

FTE = 2

TT = 10

PT/FTE = 12.5


TT = 10

PT/FTE = 5

P/T = 5 mins

FTE = 1

TT = 10

PT/FTE = 5

P/T = 2 mins

FTE = 0.5

TT = 20

PT/FTE = 4

P/T = 6 mins

FTE = 0.5

TT = 10

PT/FTE =12

P/T = 2 mins

FTE = 0.5TT = 20

PT/FTE =4

P/T = 45 mins

FTE = 3TT = 20

PT/FTE = 15

Start End End

50%

50%

64



The 1st process step where the PT/FTE is greater than the Takt Time will be the bottleneck. All

subsequently steps where PT/FTE is greater than the Takt Time will in turn become bottlenecks

when the bottleneck higher up in the flow becomes unclogged.

P/T = 25 mins

FTE = 2

TT = 10

PT/FTE = 12.5


TT = 10

PT/FTE = 5

P/T = 5 mins

FTE = 1

TT = 10

PT/FTE = 5

P/T = 2 mins

FTE = 0.5

TT = 20

PT/FTE = 4

P/T = 6 mins

FTE = 0.5

TT = 12

PT/FTE =10

P/T = 2 mins

FTE = 0.5TT = 20

PT/FTE =4

P/T = 45 mins

FTE = 3TT = 20

PT/FTE = 15

Start End End

50%

50%

65



A simple and quick way to improve this process is to take staff from those steps that are have too

much FTE (those in Green) and assign them to the bottlenecks

P/T = 25 mins

FTE = 2

TT = 10

PT/FTE = 12.5


TT = 10

PT/FTE = 5

P/T = 5 mins

FTE = 1

TT = 10

PT/FTE = 5

P/T = 2 mins

FTE = 0.5

TT = 20

PT/FTE = 4

P/T = 6 mins

FTE = 0.5

TT = 12

PT/FTE =10

P/T = 2 mins

FTE = 0.5TT = 20

PT/FTE =4

P/T = 45 mins

FTE = 3TT = 20

PT/FTE = 15

Start End End

50%

50%

66



Generic Ways to remove a bottleneck?

• Reducing Processing Time to synchronize with TaktTime

– Simplification

– Automation – Line Balancing

• Increase FTE

– Optimize the Staff allocation by identifyingprocess steps that are over staffed and assigning

those excess staff to bottlenecks

• Reduce the Demand (normally not possible)67



What is Line Balancing?

1. Plot the

processing time for

every process step

Each Process Step

is separated into its

Work Elements.

E.g., UpdateRecords = Boot Up

System (WE1) +

Key in the Record

(WE2) + Save the

Record (WE3)

2. Draw the line thatrepresents the Takt

Time

3. Identify the

Bottleneck Step

4. If possible shift Work

Elements from oneprocess step to another

so that the entire line is

“balanced”

68



Thinking about Waste

• A simple way of thinking about improving cycle time – finding and eliminating waste. So the task is two

fold:

– We must know how to find waste – We must know how to reduce or eliminate waste

• What is Waste?

–Anything other than the absolute minimum of

material, machines, and manpower required

to add value to the product.

– Everything that is not value-added is waste

69



Value and Non Value Added Activities

Value Added ActivitiesNecessary but Non

Value AddedNon Value Added

Whether an activity is value adding depends on how the customer sees it

Activities core to the

product or service thatthe customer wants

What is it?

Typically, over 80%

Activities that do not add

value from customer’sperspective but is

required by the business

Activities that do not add

value from customer’sperspective and is not

willing to pay for

How to see

it?

Is the Product or Service

Transformed by this activity?

Does it add a feature, function or

form to the product or service thatthe customer is willing to pay for?

Does this activity:

1. Reduce Financial Risk?

2. Comply with some

regulation?

3. Comply with some internal

control?

4. Does anything bad happen if

we remove this step?

1. Does this activity create a

known type of waste?

2. Is the customer willing to pay

for it?

3. Is it rework or correctiveaction?

Action Mode Increase the Quality of this Step

Try to separate this activity from the

main flow so that the customer is

not impact by the time it consumes

Reduce and ultimately eliminate it

70



How much Waste in Process?

In Box

Application

Form

Application

Form

Application

Form

Application

Form

Out Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait for Collection =

60 minsTransport to Mail Room =

20 mins

Application for

Credit Card =

10 minsSorting and Wait in

Mail Room = 180 mins

Transport =

20 mins

Wait in In Box =

60 mins

Credit Check

10 mins

Out Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in Out Box =60 mins

Transport =20 mins

Sorting and Wait in


Transport =

20 mins

In Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in In Box =

60 mins

Approval =

2 mins

Out Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in Out Box =

60 minsTransport =

20 mins

Sorting and Wait in

Mail Room = 180 mins Transport =

20 mins

In Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in In Box =

60 mins

Card Activation

= 3 minsPrint Card =

10 mins

Out Box

Application

Form

ApplicationForm

ApplicationForm

Application

Form

Wait in Out Box =

60 mins

Transport =

20 mins

Sorting and Wait in


Batch Mailing

To Customer = 30 mins

Two Days Later Customer Gets Card

Spoilage =

5%

71



Which Activity is Value added?

In Box

Application

Form

Application

Form

Application

Form

Application

Form

Out Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait for Collection =

60 minsTransport to Mail Room =

20 mins

Application for

Credit Card =

10 minsSorting and Wait in


Transport =

20 mins

Wait in In Box =

60 mins

Credit Check

10 mins

Out Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in Out Box =60 mins

Transport =20 mins

Sorting and Wait in


Transport =

20 mins

In Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in In Box =

60 mins

Approval =

2 mins

Out Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in Out Box =

60 minsTransport =

20 mins

Sorting and Wait in

Mail Room = 180 mins Transport =

20 mins

In Box

Application

Form

Application

Form

Application

Form

Application

Form

Wait in In Box =

60 mins

Card Activation

= 3 minsPrint Card =

10 mins

Out Box

Application

Form

ApplicationForm

ApplicationForm

Application

Form

Wait in Out Box =

60 mins

Transport =

20 mins

Sorting and Wait in


Batch Mailing

To Customer = 30 mins

Two Days Later Customer Gets Card

Spoilage =

5%

72



% Value Added Time

• Total Time = 4225 Minutes*

• Value Adding Time = 23 Minutes

• % Value Adding = 0.5%

• Waste = 99.5%One Business’ Reaction

“When we stepped back and evaluated our processes to

determine what steps created customer value, we were

shocked to discover that almost 99% of our work adds novalue for customers. In fact we were so demoralized by this

finding that we consider adjusting this criteria”

VP of a Bank

*Actually it is more because we have not even counted the time lost after the work day has ended

73



Production Wastes

7 Types of Waste + 2

Defects

Service Examples

Errors and ReworkWork not meeting Requirements

Missing Info

WaitingJob waiting in In-Box, Out-Box

Equipment Downtime

Waiting for Info, Approval etc

Over ProcessingUnnecessary Steps

Multiple Handoffs

Unnecessary MotionWalking

Searching for Files

Inventory Excessive Backlog / WIP

Unnecessary Transportation Routing around the office

Over ProductionThis does not really happen in Service

Environments

Manufacturing Examples

Scrap, Defects

Equipment Downtime

Waiting due to Batch Processing

Processing Step that adds any feature that the

customer does not value

Walking to get parts

Excessive Raw Material, WIP and Finished

Goods that has not been sold yet

Routing around the Factory

Producing more than what is require to meetdemand

Abilities Not using a staff to his or her full potential Not using a staff to his or her full potential

Customer’s Time Queues, Asked to redo a task due to rework Delays due to Stock-out

74



Value Added Analysis

• Value-added steps:

– Customers are

willing to pay

for it

– It physically

changes theproduct

– It’s done right

the first time

• Non-value-added

steps:

– Not essential to

produce output

– Does not add

value to the

output

LeaveYes No

PlaceOriginal

GlassDirty?

Yes

No

Clean

Yes

No

SelectSize

SelectOrientation

SelectNumber

Paper? FindPaper

NoOpenBox

Knife? FindKnife

No

Find

Help

Yes NoPaper Loaded?

Take Original

NoBox

Open?

Yes

Copier

in Use?

Wait?

Yes Yes

Value-Added Non-Value-Added

Steps that would not be needed

if everything worked right the

first time move horizontally

across the right side.

Steps that are essential

even when everything works correctly move

down the left side.

Think of how to remove all these

non value adding steps

75



Step 9. Process Analysis (CTQ is Quality)


Process


Charter


5. MeasureBaseline


Project Charter

Analyze8. Process


9. ProcessAnalysis (CTQ isnot Cycle Time)

Improve10.

Improvement

Ideation

11. Implement12. Before /

After

Comparison


Gains14. Celebrate

76



What to do if the CTQ is Quality

1. Map the Process2. Do an FMEA on the Process

3. Collect a sample of the defectives and for every

defect, identify which process step caused it’s failure

AND which Failure Mode

4. Use Pareto Charts to visualize the data

5. Brainstorm preventive and detective controls

6. Implement controls

77

Decision symbol can be



Step 1 – Map the Process

Start

Process Step

Decision

Process Step

Process Step

End End

Write the Triggering Event here –

e.g., Customer applies for CreditCard

Process Steps – use a Verb Noun

format e.g., Check Creditworthiness

Process Steps – use a

Verb Noun format e.g.,

Issue Card

Decision – State the

Question e.g., Credit

Worthy?

Write the End Event

here – e.g., Customer

receives Credit Card

Process Steps – DO

NOT write an essay in

the box ! Keep it Simple.Noun Verb. That’s it.

Yes

No

If …..

If …..

Yes / No type OR it can be

IF type

78



Step 2 – Conduct an FMEA on the Process?

• A failure modes and effects analysis (FMEA), is a procedure in operationsmanagement for analysis of potential failure modes within a process for

classification by the severity and likelihood of the failures.

• A successful FMEA activity helps a team to identify potential failure modes

based on past experience, enabling the team to design those failures out

of the process.• Failure modes are any errors or defects in a process especially those that

affect the customer, and can be potential or actual.

• Effects analysis refers to studying the consequences of those failures.

79



Template of an FMEA

Process

Step

Potential Failure

Mode

Potential Failure

Effects

S

E

V

Potential Causes

O

C

C

Current Controls

D

E

T

R

P

N

Actions

Recommended

Res-

ponsi-

bility

Actions Taken

FMEA How to Conduct



Process

Step

Potential Failure

Mode

Potential Failure

Effects

S

E

V

Potential Causes

O

C

C

Current Controls

D

E

T

R

P

N

Actions

Recommended

Res-

ponsi-

bility

Actions Taken

FMEA – How to Conduct

List each process step

Identify potential failure modes for each process step

Identify potential effects of each failure and rate its

severity

Identify potential causes of the effects

and rate their likelihood of occurrence

Rate - in consideration of given design or process

controls - the likelihood of detection of each failure

mode

Multiply the three numbers to determine the risk of

each failure mode (RPN = Risk Priority Number )

Identify ways to reduce or eliminate risk associated with high RPNs

Ratings



Ratings

Severity Rating Meaning

1 No effect

2 Very minor (only noticed by discriminating customers)

3 Minor (affects very little of the system, noticed by average customer)

4/5/6 Moderate (most customers are annoyed)

7/8 High (causes a loss of primary function; customers are dissatisfied)

9/10Very high and hazardous (product becomes inoperative; customers angered; the failure may result unsafe operation and

possible injury)

Occurrence Rating Meaning

1 No effect

2/3 Low (relatively few failures)

4/5/6 Moderate (occasional failures)

7/8 High (repeated failures)

9/10 Very high (failure is almost inevitable

Detection Rating Meaning

1 Almost certain

2 High

3 Moderate

4/5/6 Moderate - most customers are annoyed

7/8 Low

9/10 Very remote to absolute uncertainty



Example of an FMEA

Process Step PotentialFailure Mode

PotentialFailure

Effects

SEV PotentialCauses

OCC CurrentControls

DET RPN Actions Recommend

Application for

Credit Card

Applicant did

not supply

identification

number

Unable to

perform

Credit

Check

2 Customer

Oversight

2 None 1 4 Bring the application process online. Create an

automated check to prevent application

submissions that do not contain a valid national

identification number

Assignment of

Credit Limit

Assigned a

higher CreditLimit than is

allowed

based on the

customer's

income group

Risk that

customer may not

be able

pay up on

loan

amount

9 Operator

ManualError

3 None 5 135 Bring the application process online. Create an

automated credit limit assignment algorithmbased on the verified income info of the client

Send Credit

Card via Mail

to Client

Credit Card

posted to the

Wrong

Address

Someone

else may

try to use

the Card

9 Wrong

Address

was

keyed into

our system

1 None 9 81 Install a process such that the card cannot be

used unless activated by the client with an

identity check process

Credit Card

lost in the

Mail

Someone

else may

try to use

the Card

9 Delivery

agent's

process

failure

1 None 9 81 Install a process such that the card cannot be

used unless activated by the client with an

identity check process

Step 3 - Collect a sample of the defectives and for every



Step 3 Collect a sample of the defectives and for every

defect, identify which process step caused it’s failure AND

which Failure Mode

84

This type of exercise makes the assumption that the team is able to

assign the correct failure mode for every defective. This is not always

the case and in the event the team is not sure, it is much better not

to use guesswork.

Job

Identifier

Why is it

defective?

Which Failure Mode Which Process

Step?

1232 Inaccurate Data

Value

Supplier supplied the

wrong data

1

3798 Missing Data Value Analyst failed to key in the

data

4

4589 Missing Data Value Analyst does not have all

info to populate the value

5

9876 Inaccurate Data

Value

Data accurate in the

database but failed to flow

to product

3



Step 4 – Use Pareto Charts to visualize the data

• A Pareto chart is a type of

chart that contains

both bars and a line graph,

• The left vertical axis is

the frequency of occurrence.

• The right vertical axis is the

cumulative percentage of the

total number of occurrences.

• In this example, in order to

lower the amt of late arriving

by 80%, it is sufficient to

solve just the first 3 issues.

• In our case, we will use this

to highlight, the most

common failure modes in the

process85



Step 4.1 – How to do Pareto Analysis in EXCEL

86

Defective Job

Number Failure Mode Number

374 12

444 10

197 12

454 12

206 12

171 12

138 5

326 5

303 12

172 5

364 5

366 6

217 12

421 12

225 12

452 14

262 16

363 5

406 5

1. For every defective job,

assign the Failure Mode

that caused that defective

to occur

Count of Failure Mode Number

Failure Mode Number Total

1 6

2 11

3 10

4 60

5 32

6 30

7 9

8 10

9 12

10 11

11 8

12 37

13 9

14 7

15 6

16 11

17 7

18 9

19 1020 6

Grand Total 301

2. Use Pivot Table function in EXCEL to

create this summary table



Step 4.1 – How to draw a Pareto Chart in EXCEL

87

Count of Failure Mode Number

Failure Mode Number Total

4 60

12 37

5 32

6 30

9 12

2 11

16 11

10 113 10

8 10

19 10

18 9

7 9

13 9

11 8

17 7

14 7

1 620 6

15 6

Grand Total 301

3. Sort the Table into

Descending order of

Freq Count

Failure Mode Number Total % of Total Cummulate %

4 60 19.93% 19.93%

12 37 12.29% 32.23%

5 32 10.63% 42.86%

6 30 9.97% 52.82%

9 12 3.99% 56.81%

2 11 3.65% 60.47%

16 11 3.65% 64.12%

10 11 3.65% 67.77%

3 10 3.32% 71.10%8 10 3.32% 74.42%

19 10 3.32% 77.74%

18 9 2.99% 80.73%

7 9 2.99% 83.72%

13 9 2.99% 86.71%

11 8 2.66% 89.37%

17 7 2.33% 91.69%

14 7 2.33% 94.02%

1 6 1.99% 96.01%

20 6 1.99% 98.01%15 6 1.99% 100.00%

Grand Total 301 100.00%

4. Compute the % Total and

Cumulative %



Pareto Analysis in EXCEL

88

Failure Mode Number Total % of Total Cummulate %4 60 19.93% 19.93%

12 37 12.29% 32.23%

5 32 10.63% 42.86%

6 30 9.97% 52.82%

9 12 3.99% 56.81%

2 11 3.65% 60.47%

16 11 3.65% 64.12%10 11 3.65% 67.77%

3 10 3.32% 71.10%

8 10 3.32% 74.42%

19 10 3.32% 77.74%

18 9 2.99% 80.73%

7 9 2.99% 83.72%

13 9 2.99% 86.71%11 8 2.66% 89.37%

17 7 2.33% 91.69%

14 7 2.33% 94.02%

1 6 1.99% 96.01%

20 6 1.99% 98.01%

15 6 1.99% 100.00%

If we can

prevent these

4 failure

modes, 53%

of the

defectives will

go away

If we can

prevent these

12 failure

modes, 80%

of the

defectives will

go away

The main point of Pareto Analysis is

understand how to prioritize our

energy. It is obvious here that we

should start with Failure Modes 4, 12, 5

and 6 and improve those first as they

offer the biggest “bang for the buck”



5. Brainstorm preventive and detective controls

• The best strategy when dealing with Failure Modes isto prevent them from happening all together. That is

called Preventive Control.

• If Preventive Control is not possible, the second beststrategy is to detect them when they occur so that

the defectives can be removed from the production

line so that they do not go to the customer. That is

called Detective Control.

89

Examples of Preventive Controls from Everyday life



Failure Mode – Client forgets

to take the dispensed cash

from the ATM

Preventive Control – you

cannot take your card back

unless you take the cash first

Examples from everyday life:

Failure Mode – Gas is left

running without a flame

Preventive Control - if theflame does not burn, the

gas is switched of

automatically

Failure Mode – Person

forgets to turn off the tap

Preventive Control – the

Sink will not overrun due to

the presence of the hole

near the top of the Sink

http://upload.wikimedia.org/wikipedia/commons/6/67/Gasherd.jpg

http://de.wikipedia.org/wiki/Bild:Bankomat_050421.jpg



OPTIONAL TOPIC –

ORGANIZE YOURROOT CAUSES

91



92

Cause-and-Effect Diagram

High Number of

“Major Errors”

High # of misspelled words

High # of wrong names,

numbers and facts

Reporters &

editors do not

review grammar

Copy editors busy

tracking down facts

Reporters & editors do

not use spellchecker

Reporters unaware of

correct grammar Reporters have

poor typing skills

Results of accuracy checks unclear

Hard to detect errors

Accuracy checks not done

Narrowly defined

problem formshead of the fish;

causes listed on

the diagram

should potentially

contribute to this

problem.

One “spine” leads

into head(problem statement).

Contributing causes

are arranged on

smaller and smaller

“bones.” Potential causes at

lower level would

contribute to cause

at next level up.

Arrows indicate

the direction of potential cause-

and-effect.

Causes grouped by

relationship to each

other.

High # of grammar errors



93

The “Might Cause” Check

– Helps to confirm the items listed are potential causes – Helps to check relationships between items

<smallest bone>

<next largest bone>

<next largest bone>

<main bone>

<head (problem statement)>

might cause

which might cause

which might cause

which might cause



94

Might Cause Example

<smallest bone>

<next largest bone>

<next largest bone>

<main bone>

<head (problem statement)>

might cause

which might cause

which might cause

which might cause

Thinking it’s copy editor’s job to catch errors

Reporters and edi tors to n ot us e spel lchecker

High number of misspelled w ords

High number of Major Errors

Step 10 & 11 Improvement Ideation &



Step 10 & 11 – Improvement Ideation &

Implementation

Define 1. IdentifyVOC

2. IdentifyProcess


Charter


5. MeasureBaseline

6. Set theGoal

7. Update theProjectCharter

Analyze8. Process

Analysis (CTQ is Cycle Time)

9. ProcessAnalysis (CTQ

is Quality)

Improve10.

Improvement

Ideation

11.Implement

12. Before /After

Comparison


Gains14. Celebrate

95



Creativity TechniquesThinking out of the box

Creativity techniques force us out of our usual ways of looking at things.

´Normal´ Thinking

Starting with the problem,

what ideas do we have to

solve it?

Thinking out of the box

Starting with something that has

nothing to do with the problem

what ideas do we have to solve it?



BrainstormingSequence:

1. Title the brainstorming

2. Set time (20´)

3. Conduct brainstorming involving allteam members

4. Clarify questions and summarize ideas

Brainstorming rules:

– Visualize the ideas (use of flip chart,post-it notes, etc.)

– Don’t critique others’ points

– It’s allowed to build on the ideas of others

– Facilitate



Brainwriting 6-3-5The name Brainwriting 6-3-5 comes from the process of having 6 people write 3 ideas in 5 minutes.

Each person has a blank 6-3-5 worksheet.

Sequence

1. Write the problem statement at the top of the worksheet.

2. Write 3 ideas on the top row of the worksheet in 5 minutes.

3. After 5 minutes (or when everyone has finished writing) pass the worksheet to the

person on your right.

4. Add three more ideas.

5. Continue until the worksheet is completed. There will now be a total of 108 ideas on the

6 worksheets.

Problem Statement: How to...

Idea 1 Idea 2 Idea 3

12

3

4

5

6



Pictures as Idea TriggersStart with this creativity technique after the most obvious ideas were explored,

e.g. by brainstorming or brainwriting 6-3-5.

Sequence:

1. Put the problem statement on view.

2. Show a picture unrelated to the problem

• e.g. a painting, a poster, an advertisement3. Write down participants´ associations to this picture

• elements, attributes, emotions,

4. Use those associations as triggers to find potential problem solutions.

Variation:

Use a lexicon instead of a picture: Open the lexicon on any page, choose

spontaneously a word and brainstrom associations to this word. Use the

associations as triggers to find ideas related to your problem.



AnalogiesSequence:

1. Find an agreed problem definition in terms of • 'How to make X'. 'How to prevent Y', 'How to speed up Z‘

2. Generate a list of items (people, situations, objects, processes, actions, places,

etc.) that is 'like' it in some way

• e.g. analogies to 'making X‘: having a baby, making a pudding, a robot car factory,

...etc.

3. Pick one of these analogies that seems interesting (preferably where the

problem and analogy are from different domains)

• e.g. a biological analogy for a mechanical problem.

4. Describe the analogue

• how it works, what it does, what effects it has, how it is used

• size, position, etc.5. Use this description to suggest ideas relevant to your problem

• Does the analogue have features you can use directly? Do the differences suggest

other ways of looking at your problem?

Morphological Chart



p g

The morphological chart is based on an analysis approach: the problem is divided into

smaller units. For each subproblem potential subsolutions are developed, which are

combined to create an entirely new solution.

Sequence:

1. List the attributes of the problem.

2. Below each attribute, brainstorm as many alternates as you can think of

3. When completed, make many random runs through the alternates, picking up

a different one from each column and assembling the combinations intoentirely new forms of your original subject.

Example: Developing a new pen

Shape / Cylinder Material Cap Ink Source

Faceted Metal Attached Cap No Cartridge

Square Glass No Cap Permanent

Beaded Wood Retracts Paper Cartridge

Sculptured Paper Cleaning Cap Cartridge made of ink

Grouping the Ideas – Affinity Diagram



After collecting lots of ideas with the help of creativity techniques, you should group them

for a better overview.

How to develop an Affinity Diagram

(compare VOC)

1. Transfer data onto cards or post-it

notes

2. Group the cards to find the “affinity”

3. Label the groups of cards

4. Optional : group the clusters

5. Draw the diagram

6. Combine ideas into solutions

To avoid long discussions, try the following:

Grouping the ideas the participants are not

allowed to talk to each other.

Once a

monthevery 14

days

exe-

cutivesshop

floor adminis-

tration

field

service

news-

paper E-mail

Intranet

MediaFrequency

people involved

Managementemployees

monthly

Example: Improve communication process



103

A Solution Selection Matrix

– Shows relationship of problem statement, root causes and proposed solutions

– Evaluates which solution(s) to implement by rating the effectiveness of thesolution and the ease of implementing (feasibility) the selected tasks

Problem Root

Causes

Solutions(What)

Specific

Tasks(How) X X =

SCALE: 1-None 2-Somewhat 3-Moderate 4-Very 5-Extreme



Step 12 – Before & After Comparison


2. IdentifyProcess


Charter


5. MeasureBaseline

6. Set theGoal


Analyze8. Process



is Quality)

Improve10.

Improvement

Ideation

11.Implement

12. Before /After

Comparison


Gains14. Celebrate

104

d



How to do it?

• Go to the lesson in 5. Measure the Baseline

• The steps are exactly the same

• Continue to collect data after the improvements

have been implemented• Monitor to observe if there is any change in the %

Defective

105

f & f i



Before & After Comparison

106

56%

45%

23%25%

33%

26%28%

14%

23%

40%38%

19%

23%

38%

60%

33%

39%

27%

10%

7%6%

4%

10%

11%

8%5% 5% 5%

9% 9%

0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

% Defective

Average

Important thing to understand – the average has to shift. If the average

does not shift in a convincing way, it the process has not improved

Before

After

S 13 Pl C l h G i



Step 13 – Plan to Control the Gains


2. IdentifyProcess


Charter


5. MeasureBaseline

6. Set theGoal


Analyze8. Process



is Quality)

Improve10.

Improvement

Ideation

11.Implement

12. Before /After

Comparison


Gains14. Celebrate

107

S d di i C P i i l



108

Standardization Core Principle

– Nothing happens on a reliable, sustained basis

unless we build a system to cause it to happen on

a reliable, sustained basis.

• Standardization is what allows high quality to happen on a reliable, sustained

basis.

St d di ti



109

Standardization

– Making sure that important elements of a process

are performed consistently in the best possible

way

– Changes are made only when data shows that a

new alternative is better

– Documentation is up to date and used

– What images come to mind when you think of process standardization?

B fit f St d di ti



110

Benefits of Standardization

• Standardization helps us compete more successfullyin the marketplace by providing:

– Increased reliability

– Reduced costs – Improved employee performance

– Increased safety

– Processes that remain in control – Continuous improvement

– Flexible practices that allow for quick response to

customer needs

St d di ti “St d d P ti ”



111

Standardization = “Standard Practices”

• A standard practice is… – a definition of a work method wherein all variables of the

method have been specified in detail

– a written agreement between the worker and thecompany regarding how the job will be done.

– a controlled document that can have different names

depending on your business

– Procedure, Work Instruction, Standard OperatingPractice, etc.

– In TR, we call them Method of Work or MOW

U f St d d P ti



112

Uses for Standard Practices

1. To reduce variation among individuals or groups

(and so make process output more predictable)

2. Provide “know-why” for operators and managers

now on the job

3. Provide a basis for training new people

4. Provide a trail for tracing problems

5. Provide a means to capture and retain knowledge

6. Give direction in the case of unusual conditions

Do this D ti th St d d P ti / MOW



113

Do this - Documenting the Standard Practice / MOW

– Update detailed process maps with improvementactions

– Determine which process step(s), if any, require anadditional written work instruction to ensure

standardization – Define the written work at the level that makessense for your situation

– Use your business’s approved format to document

the standard practice. Typical formats include: – unique document name/number

– process name, scope and purpose

– responsibility and description of process steps

– revision number/date

– document approver

Step 14 Celebrate



Step 14 – Celebrate


2. IdentifyProcess


Charter


5. MeasureBaseline

6. Set theGoal


Analyze8. Process



is Quality)

Improve10.

Improvement

Ideation

11.Implement

12. Before /After

Comparison


Gains14. Celebrate

114

How to Celebrate



How to Celebrate

1. Get the Team together2. Buy a lot of Beer

3. Buy some pizza etc

4. If possible, get drunk

Note – Responsible adults do not drink & drive

115



END OF TRAINING

White Belt Training 2

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