Improve – I Intro - Getting to Tangible Action

1. Improve – I Intro - Getting to Tangible Action John Conway – PRO-DAIRY

2. Day 2 *What was Learned/Gained from Actions Taken over Week? (20) *Improve - I: Improving intro - Getting to Tangible Action (10) *Improve - II: Problem Diagnosis -- Measure & Analyze (40) *Improve - III: Explore, Create, Judge & Decide (40) *Improve - IV: Getting from Idea to Implementation (40) *Improve - V: Pitfalls -- Finding the Time to Implement (30) *Improve - VI: Overview of "Change Campaign" (Change, Conflict, Communication) (30) *Is it Working? Measured Impacts (Control) (20) *Next Steps – SWOT Analysis Challenge & Course Evaluation (15)

3. Problem Solving Cycle Define Compelling Vision of Business Translated through Goals and into Systems of Interest define Determine interactions among systems and “where to look” Control Determine measures and performance standards – “Is it working”? DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma We’re Going Here (at all levels) Strategic  Operations  Systems  Processes Measure Determine appropriate measures, apply and compare with benchmarks Improve Combine alternative generation, decision making and tactical planning Analyze Determine root cause(s) of sub optimal performance or accept current performance

4. “Improving” infers “Change”, and change has its tough side… C = DxVxF>R Change occurs when Dissatisfaction with the status quo timesVision of something better times the energy to take the First step is greater than the Resistance. Borrowed from Dr. Ken Sanderson, DVM

5. Improve - II Problem Diagnosis Measure, Analyze, get to the Root Cause

6. Problem Solving Cycle Define Control DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma Measure Improve Analyze  You are here

7. Improve Profitability (indexed to standardized milk price) Fix our “who does what” and responsibility problem by 12/07 Increase Corn Silage Dry Matter Fed by 10%, Measured March 15, 2008 Your SMART Goals infer that something is either: Unmet – compared to where you think you could be Unset – never thought of it as something to shoot for or Conflicting – two or more items at odds with one another

8. Improve Profitability (indexed to standardized milk price) Fix our “who does what” and responsibility problem by 12/07 Increase Corn Silage Dry Matter Fed by 10%, Measured March 15, 2008 • So re-stating a goal in terms of a problem makes it easier • to work with: • Everyone does a little of everything and consequently no-one stays on top of performance We technically have plenty of corn acres, but never seem to have enough to bridge from January to January Now you have something you can diagnose…

9. The last word in problem diagnosis: Why? (and sometimes “so”)

10. Insufficient root cause analysis (problem diagnosis) can leave you frustrated! Is there likely a deeper “why” to these often heard statements? What kinds of data would you mine to get to the root cause(s): “This farm business is just not cutting it anymore for the needs of my family.” “Cows are not milking like they were a year ago.” “Two thirds of our grass hay crop tests over 64% NDF.” “Darn! We’re down 3 pounds per cow this morning.”

11. Why? Why? Forage quality way down Days in Milk are way up so… so… Why? Why? Overall DMI is down, production follows Fresh Cow problems Repro problems Short on heifers (sold a few for $) Why? Why? Why? so… Grain feeding pushed a bit to maintain cash flow Grain stealing in dry period (retain “owned” stall in winter) Poor Conception Poor Heats so… (poor implantation) so… so… (delayed estrus) so… Diet “unbalancers” prone to high MUNs and/or acidosis Higher levels of clinical/subclinical ketosis so… (sore feets, weak heats) “Cows are not milking like they were a year ago.”

12. Why? Interest seems to fade with time Why? Why? It’s human nature No one is “watching” Why? Why? Why? Don’t feel responsible Just is Never occurred that we’d need to Why? Don’t feel connected to outcomes Why? Not part of planning process (strategic and operational) “Employees Drift from Task Protocols Over Time”

13. So more often than not, starting with the problem and moving your way through analysis towards the root cause helps determine how complex the situation is (define) and what measures will help tell you what really is wrong!

14. One more wrinkle… the root Cause may be only the first of the 3 C’s of thoroughly analyzing a problem. • The 3 C’s of problem analysis: •  Causes of the problem? • Competency to deal with it? • Climate exists to promote changes? •  Causes demand quality information.  Competency promotes the analysis team approach • Climate gets back to the change equation, business’ vision and involvement of all stakeholders

15. Using a SMART Goal from either your farm or one you created for the Case Farm:  re-state it as a problem  work it down towards the root cause  list what measures you need to be certain you have indeed nailed the root cause

19. Improve – III Explore, Create, Judge & Decide

20. Problem Solving Cycle Define Control DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma Measure Improve  You are here Analyze

21. What to do and how to decide… Brainstorming and evaluating best possible solutions Do you know what time of day you are most alert? That’s the time to work on these tough questions… working ideas out on paper will save time if you mull this over a long period… discuss ideas with someone you trust and respect to make sure you didn’t miss something!

22. Brainstorming 101 Big decisions beg for creative, sturdy solutions. Brainstorming sessions, where ideas can flow without criticism or evaluation, is a powerful way to get there! • Some Tips: • Get the best possible people • Keep it light • Choose a comfortable environment • Review farm’s mission and problem solving process leading up to this point • Rules of engagement: • Appoint a good facilitator • Appoint a diligent recorder • If possible, post ideas live and in a way that all can see them • Absolutely NO EVALUATION of ideas! • Go at it until ideas are exhausted, leaving door open for additional “ahas” people will have over the next few days

23. … Continuing with Problem Root Cause We’ll work in teams of 4 (if possible). Assume you did get to a root cause. Don’t worry if you feel forced to speculate due to insufficient data. Go with this as a “root cause”. Take it to “improve” mode. Brainstorm as many ideas as possible in 5 minutes that will improve this situation and lead towards meeting the SMART goal you started with. You can use the next page as a worksheet

24. Improvement ideas:

25. Weighing Scoring Accepting Alternatives Criteria Criteria for weighing alternatives: Scoring System Does this address the root cause? Will everyone involved accept it ? Will it fit our current system? Does it provide greatest return? Will it enhance my farm’s resources for future generations? Will it adversely affect others outside my farm business?  Other criteria you believe important Often “1 to 5” or “1 to 10” with higher as better May take it a step further and give more or less “weight” to certain alternatives. “Greatest return” may be given a multiplier weight of 1.25 for example. Or you can list alternatives by order of their relative weight and use it visually to break a “tie”. While you have them together, this same group may be equally important in deciding on the process and criteria for choosing among the alternatives. The “decision making process” of weighing alternatives against agreed upon criteria is hugely important and may require considerable fact-finding.

26. The Decision Making Grid…

27.  Alternative Solutions Scoring scale based on personal preference. “Weighting Factor”, when needed Does this address the root cause? Will everyone involved accept it ? Will it fit our current/future systems? Does it provide greatest return?  Ranking/Rating Criteria Will it enhance my farm’s resources for future generations? Will it adversely affect others outside my farm business? Likelihood of success Likelihood of sustaining if we measure success Tally area  Goal:

28.  Alternative Solutions Scoring scale based on personal preference. “Weighting Factor”, when needed Build swivel-up boxes for offenders Rebalance with less forage, safer grain Rebalance with citrus pulp topdress to offenders Rebalance with prime hay to offenders 3x  4x grain feeding Shorten chains on offenders Does this address the root cause? 4 4 5 4 4 4 Will everyone involved accept it ? 3 4 3 4 4 4 Will it fit our current/future systems? 4 2 4 4 4 4 Does it provide greatest return? 5 4 4 3 3 3  Ranking/Rating Criteria Will it enhance my farm’s resources for future generations? 5 5 5 4 4 4 Will it adversely affect others outside my farm business? 5 5 5 5 5 5 5 3 5 3 3 3 Likelihood of success Likelihood of sustaining if we measure success 5 4 5 3 3 3 37 31 37 30 30 30 Tally area  Limit ration “unbalancing” by individual cows (Root cause: bad actors selectively consuming) Goal:

29.  Alternative Solutions Scoring scale based on personal preference. “Weighting Factor”, when needed Build swivel-up boxes for dry cows Build new barn for Dry & Transition Cows* Banish Dry Cows to other barn **Drench them all with propylene glycol for 5 days PF Go to 40 Day Dry Period and use Transition Diet Shorten chains on dry cows Does this address the root cause? 5 4 5 3 4 4 Will everyone involved accept it ? 4 4 4 2 2 4 Will it fit our current/future systems? 4 3 4 2 3 3 Does it provide greatest return? 5 4 ? 1 4 4  Ranking/Rating Criteria Will it enhance my farm’s resources for future generations? 5 4 5 2 4 4 Will it adversely affect others outside my farm business? 5 5 5 3 5 5 5 3 5 1 4 3 Likelihood of success Likelihood of sustaining if we measure success 5 4 5 5 5 5 38 31 ?? 19 31 33 Tally area  *Assume you’ll eventually milk cows in those emptied stalls *”Pump the bad ones too Control grain stealing by far off Dry Cows Goal:

30. …Back to your list of improvement ideas We’ll stay in our teams of 4. Let’s now take all of those great alternatives you came up with and see which of them stand up to the criteria you agree upon to judge them by. Use the “empty” grid, but feel free to amend the criteria written into the left side column.

31.  Alternative Solutions Scoring scale based on personal preference. “Weighting Factor”, when needed Does this address the root cause? Will everyone involved accept it ? Will it fit our current/future systems? Does it provide greatest return?  Ranking/Rating Criteria Will it enhance my farm’s resources for future generations? Will it adversely affect others outside my farm business? Likelihood of success Likelihood of sustaining if we measure success Tally area  Goal:

32.  Alternative Solutions Scoring scale based on personal preference. “Weighting Factor”, when needed Does this address the root cause? Will everyone involved accept it ? Will it fit our current/future systems? Does it provide greatest return?  Ranking/Rating Criteria Will it enhance my farm’s resources for future generations? Will it adversely affect others outside my farm business? Likelihood of success Likelihood of sustaining if we measure success Tally area  Goal:

33. Some tools “the grid may call for …

34. Is it profitable? Partial Budget* Items that add to Net Income Items that Reduce Net Income Added Receipts Reduced Receipts 20 days milk (65 lbs., $12.) = $147.55 Reduced Expenses Added Expenses Feed costs for extra milking days and move to transition diet $140.52 Current feed expense with traditional far off and transition diet - 60 days $90.60 Total (A) $238.15 Total (B) $140.52 Change in Net Income (A - B) +$97.63 *Whole farm budget is the more appropriate tool!