Pareto Analysis: Around the turn of the 20th century, Italian economist Vilfredo Pareto made a couple of observations that led him to develop a principle that continues to be a powerful problem-solving tool today. He observed that around 20% of the Italian population owned approximately 80% of Italy’s wealth. He later observed that about 20% of the pea pods in his garden produced roughly 80% of his pea crop each year. This correlation led Pareto to postulate that, in most things, a small number of causes are responsible for a large percentage of the effect. In the late 1930’s, quality guru Dr. Joseph M. Juran recognized this principle as the Vital Few and Trivial Many Rule, which was later generalized into Pareto’s Principle or the 80/20 Rule.

Pareto analysis allows management by data instead of emotion; and as with most things, data-based decision-making will yield the highest return on investment. The first step is to categorize the problems by type or defect code. Next, generate a simple histogram, which ranks the defects in descending order of magnitude. Then, using the data set in the histogram, graphically portray the data set in a simple bar chart format. Finally, add a trend line showing the accumulated relationship of the defects to the whole, to visually identify what defects make up roughly 80% of the total dollars. The attached Figure illustrates what a Pareto Diagram might look like in a typical metal fabrication process. The strategy behind Pareto Analysis is to identify the areas with the highest improvement potential while minimizing the number of improvement initiatives. What this means in simple terms is getting the biggest bang (improvement) for the buck (effort).

ParetoAnalysis

Referring again to the Figure, the improvement team would easily determine that their efforts should be focused on eliminating the two defects labeled “Scratches” & “Paint”. Once improvement has been attained on these “80/20” areas, the reporting cycle is run again. The “new 80/20” problem areas are identified, and the team now focuses on eliminating these. The beauty of this system is that, with each iteration, the order of magnitude continuously declines so that the next 80% of the dollars represent a much lower amount of waste dollars, which is the essence of continuous improvement.

 

5 Whys: This technique can be used very effectively during cause & effect analysis to drive to true root cause. Anyone with small children has first-hand experience with this problem-solving tool, although in the business environment root cause should not end at “Because I said so!” Although the word “Why?” may be your three-year-old’s favorite word, it could also teach you a valuable problem-solving technique. By repeatedly asking the question “Why?” (five is a good rule of thumb), you can peel away the layers of symptoms which can lead to the true root cause of a problem.

The biggest mistake that most organizations make in problem solving is to try to fix a symptom instead of the root cause. Only addressing a symptom will result in the root cause manifesting in the form of another symptom, and the problem will continue. Although this technique is called the “5 Whys,” it may be necessary to ask the question fewer or more times than five to drive to root cause in some instances.
An example of using the 5 Whys is presented in the attached Figure. Now if we really wanted to solve this problem permanently, we could implement an oil level sensor Poka-yoke that would alert the operator and/or shut down the machine before a critical level was reached. Hopefully it is becoming clear how these tools can all work together to provide a solution!

FiveWhys

Brainstorming: Brainstorming is a Phase I problem solving tool that is used to generate as many ideas as possible related to a given problem, with an emphasis on sheer quantity of ideas. Creative thinking should be encouraged during brainstorming, with no judgment or evaluation of ideas taking place during this activity. The goal is to identify as many potential causes of a problem as possible, even if some of these causes seem to be so off the wall that they couldn’t possibly apply. While the “crazy” ideas may not be feasible, they often foster a creative environment which stimulates valid ideas that otherwise may not have been considered.

BrainstormingThis environment should encourage critical thinking of a problem or process to gain a comprehensive perspective of causes, solutions, and potential consequences. The brainstorming team should include not only members intimately involved with the process, but also representatives from internal customers on either end of the subject process. This team activity is best done on a white board or flip chart, requiring one person to fill the role of scribe and document all of the ideas that are generated by the team. There are a number of rules that should be followed to facilitate a successful brainstorming session, as shown in the adjacent Figure.

Cause & Effect Diagram: A cause & effect diagram is a Phase II problem solving tool with the purpose of analyzing relationships between a problem and its causes. The cause & effect diagram is also known as a fishbone diagram (for obvious reasons), or an Ishikawa diagram, named after its inventor Dr. Kaoru Ishikawa. During this activity, all the ideas generated during the brainstorming session are evaluated and categorized as they relate to the subject problem. At this point many of the ideas generated during brainstorming may be eliminated, while new ones may be added. The category names can be changed to fit the problem, but common categories are Methods, Machines, Environment, People, and Materials.

 

 

Customer Benchmark Survey: You might be wondering why the customer benchmark survey has to do with quality tools, to which I would argue that a quality system can only be effective after both measuring and understanding your customers’ needs, wants, and expectations. The KISS Principle (Keep It Simple Steve) most certainly applies to surveys; when designing the survey it is of paramount importance to base the questions on actionable strategies and make it a quick, painless process for your customers. With today’s technology, a Web-based survey can be completed by a customer in 3 minutes without having to leave their desk, and is the preferable medium for ease of use, demographic data capturing, and automated scoring/reporting.

Check Sheet: An easily created, simple tool that can be adapted for a wide variety of purposes, the check sheet is a process-specific prepared form for collecting and analyzing data. Check sheets are typically kept at the applicable process or machine, and contains information on process data collected, validation of activities completed, and/or tracks patterns or trends.XBarRChart

Control Charts: Control charts are a graphical representation of the current state of a process, and should be implemented at the operator level to maximize effectiveness. A control chart’s true function is to provide real-time feedback to control and improve a process, which means that the data displayed on the charts must help front-line operators make better process decisions.

Scatter diagram: A diagram that graphs pairs of numerical data against one variable on each axis that is used for analyzing relationships and trends between two variables. If the variables are correlated, the points will fall along a trend line or curve, and the higher the correlation, the tighter the data points around the trend line.

Stratification: This tool is not widely used or understood, and is generally used in conjunction with other techniques. Stratification separates data gathered from a variety of sources so that patterns can be seen, and is particularly useful when data from a variety of sources or categories have been lumped together and the meaning of the data can be impossible to see. This technique separates the data so that patterns can be seen. When using this technique, a couple of rules need to be followed:

  1. The strata must be mutually exclusive (every element in the population must be assigned to only one stratum) and
  2. The strata should also be collectively exhaustive (no population element can be excluded).

 

Poka-Yoke: Poka-yoke is the Japanese word for mistake-proofing, (for us ancients, the pre-politically correct term was idiot-proofing), and is not a new concept; some variation of this method has existed for as long as people have been producing products. Mistake-proofing, error-proofing, fool-proofing; whatever label that is attached to it, poka-yoke is any method that eliminates the possibility of doing something incorrectly.

PokaYokePoka-yoke is, in essence, designing out the error; or more specifically, the human error.
Common poka-yoke solutions include checklists, dowel and locating pins, fixtures, error & alarm detectors, limit or touch switches, etc. An example of an offset tooling poka-yoke solution is presented in the attached figure, which makes it impossible for an operator to physically place the product incorrectly on a machine for processing. A properly designed poka-yoke will catch the errors before manufacturing defective product virtually 100% of the time.

The three rules of poka-yoke are: 1) Don’t wait for the perfect poka-yoke, do it now! 2) If your poka-yoke idea has better than a 50% chance to succeed, do it! and 3) Do it now, improve it later!

 

Process Flowcharting: Process flowcharting is the use of a diagram, or picture, to represent the major elements of a process in sequential order that is used to determine how the process is really operating. Process flowcharting, also called a process flow diagram or simply a flowchart, will define boundaries and constraints and is the first step in measuring the cFlowcharturrent process. Before a process can be improved, it must be understood, and process flowcharting is the right tool for the job. The first step in many process improvement projects is to flowchart the process as it currently exists, which may not have any resemblance to company standard operating procedures (SOP). The realization that their SOPs do not reflect how the operation is really running is generally an “Ah-Ha!” moment for the company. Although turning a process into a picture may sound very simple, it is an incredibly powerful tool to see what is really happening in a process.

A flowchart should be used when a team needs to: 1) Understand how a whole process works, 2) Identify the critical points, bottlenecks, or problem areas in a process, 3) See how the different steps in the process are related, or 4) Identify the “ideal” flow of a process. Developing a process flowchart is quite simple, and consists of gathering a group of people in a room that are involved in the process, arming them with a stack of Post-it® Notes, and holding a brainstorming session on how the process currently works. When the process flowchart is finalized, it should be formatted in a flowcharting software such as Microsoft® Visio and become part of the documentation system. After a flowcharting session, the people actually doing the job are always amazed at the difference between how they perceive the process and what is really going on. A common result is a spaghetti diagram that highlights excessive travel, motion and redundancy. A picture truly is worth a thousand words.

 

Every year I get together with a group of my good friends, Bobby, Dudley, Doug and Woody, all fellow Harley-Davidson enthusiasts, and take an epic ride to “parts unknown”. As we were sitting around the campfire one night during this year’s trip, I mentioned that I was writing a new series of articles on quality and was struggling with what to include out of the wild-hogsvast number of quality tools available. Doug, who has his own handyman show as his day job, said “Steve, it is all about having the right tools in your toolbox for the job at hand.”

As is normally the case, my friend Doug had just condensed a complex problem down to a simple solution; develop a Quality Toolbox with only the most powerful tools that should be a day-to-day part of any quality professional’s arsenal. I have classified this toolbox into four categories: Process Analysis Tools, Data Collection & Analysis Tools, Problem-Solving Tools and Quality Planning Tools. While this toolbox is certainly not all-inclusive, the set of tools contained in this chapter will provide a blueprint that any organization can use to develop, implement, and maintain a world-class quality system that supports a continuous improvement culture.

Stay tuned… I will be drilling down into this toolbox over the following series of posts.

 

Muda

Muda is a Japanese word for “waste”, and don’t kid yourself into believing that your operation is so lean & mean there can’t be any significant waste going on. Waste comes in many forms; my definition of waste is simply “anything the customer is not willing to pay for’. Of course, hard wastes are easy to identify, scrap, rework, excess inventory, etc., but sometimes it’s the soft wastes that can undermine a business.

MudabuccilliquoteFor example, during a recent best practices assessment I spent a few hours just observing the customer service department of a small manufacturer. This particular client uses their customer service folks to take new customer orders, manage delivery reschedules and handle customer return authorizations/customer complaints. The major observation was that while the people were extremely competent, the tools they had been given were extremely poor. The company had not placed a high value on the computers that customer service was given and when an executive received the latest and greatest, their old equipment was handed down to them. When taking a new order over the phone, the operator would need to access three different screens to complete the transaction while delivery reschedules required about seven. Due to the outdated computers and software, accessing each screen took an average of 12 seconds each time to load; all while the customer was waiting on the phone.

While 12 seconds may not sound like much, a quick upgrade in equipment resulted in the client saving about 1 ½ hour per week for each of their two customer service people. The collateral benefit was the reduced wait time & frustration customers experienced during the busy time of day when customers could not get through and speak with someone live the first time because they were helping other customers.

Muda is everywhere; it is the small victories that add up to big savings!

Tales from the Road

typical scenario for me is to be walking through a manufacturing facility and stopping at a work center manned by a highly-skilled operator. The management escort is quick to say “Stanley here is our department lead, and one of our most experienced drill operators.” When asked to see Stanley’s training records, the manager states “Stanley is our trainer, and all new employees apprentice with him before becoming certified to run a drill.” When asked again to see Stanley’s training records, the manager says “Well, uh… Stanley was grandfathered in since he has been running this drill for 30 years; he certainly doesn’t need to be trained.”

In these cases, management just doesn’t “get it”; highly-skilled, experienced people like Stanley are the greatest asset to any company’s training program, and should be the foundation the program is built around. One of the greatest advantages of training in this situation is to capture the tribal knowledge of the highly-skilled workforce. What I mean by tribal knowledge is the entirety of people like Stanley’s expertise, experience, tricks of the trade, and the idiosyncrasies of the job that have been learned over the last 30 years that are probably not documented anywhere.

Preserving this tribal knowledge and turning it into a training competitive advantage is critical to a company’s long-term survival.

The gemba walk provides company leaders, managers and supervisors a simple, easy means of supporting overall continuous improvement while directly engaging with the folks responsible for the key business processes. The best approach to a gemba walk is to start at the last process and work upstream. Why? This will highlight how well your process is operating from a high level in terms of pull vs. push, bottlenecks, inventory and other production control issues. Depending on the level of personnel participating and/or the circumstances, gemba walks can be daily, weekly or monthly. Another suggestion is to focus on a different aspect (theme) for each gemba walk, one day might focus on 5S in the facility; another may be on WIP inventory, etc. It is important to limit the focus because if you look for everything you will accomplish nothing! Gemba

Ingraining regular gemba walks into the culture will consistently demonstrate to employee’s leadership commitment, alignment and support of the continuous improvement process. There are a couple of keys to a successful gemba walk, such as actively listening attentively, sharing what you learned during the gemba walk with the entire organization, discussing with department leaders conditions observed, and following up / monitoring the process where necessary.

What the Gemba Walk is Not

A gemba walk is not an opportunity to point fingers and find fault in employees while they are being observed. It is not punitive; employees will shut down and not openly engage at the first whiff of this. It is not a time to be the policy police; internal audits or other tools are appropriate for this. Finally, a gemba walk is not the time to solve; it is a time of observation, input and reflection. That does not mean disregarding operator ideas for improvements, but rather to “go and see” what is really happening. Any ideas or complaints should be noted and followed-up with after the walk. Be mindful not to “miss the forest because of the trees”!

Visual Management

I am a big fan of meaningful visual management everywhere possible to keep employees engaged, informed and foster a culture of ownership. You noticed I emphasized “meaningful” when talking about visual management; what I mean by this is avoiding at all costs a “wallpaper strategy” of posting walls of gratuitous charts, graphs, reports etc. simple to impress customers. The gemba walk provides a great opportunity to notice & question posted measures & charts and asking:

  • What is this chart telling me?
  • Who is responsible for updating them?
  • Do the employees look at the charts? How often?
  • What value do the charts have for employees?
  • Do customers ever look at the charts? Do suppliers?
  • Do you think the charts have an overall effect on operations?

The key to any process improvement is to question everything; not just accept the status quo. Whether you Manage By Walking Around, Gemba Walks, or some other method of going to where the work is done, the key is to get out of your office and “go and see”.