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