Root Cause Analysis- Corrective Action WORKSHOP ISM NY/NJ Forum Mt. Pocono, PA November 2, 2013

1. Root Cause Analysis- Corrective Action WORKSHOP ISM NY/NJ Forum Mt. Pocono, PA November 2, 2013 Michael T. Walsh, CPIM, QI, LSSMBB, Lean Sensei QSG-Lean Sigma Associates, LLC

2. OBJECTIVE To bring back at least one great idea for immediate implementation!

3. Strategy The original Greek verb Stratego, means, “to plan the destruction of one’s enemies through the effective use of resources” A real an effective strategic focus helps the organization to obtain “Customer Success” ; not just beat the competition.

4. Strategic Leadership “Leadership is not a magnetic personality. That can just as well be demagoguery. It is not ‘making friends and influencing people’. That is flattery. Leadership is the lifting of a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a person’s personality beyond its normal limitations.” Peter Drucker

5. Leadership A Strategic Leader? You Make the Call!

6. Leadership • Influencing people to voluntary pursue organizational goals

7. Leadership Styles • Directive Leadership • Providing guidance to employees about what should be done and how to do it, schedule work, and maintaining standards of performance

8. Leadership Styles Supportive Leadership Showing concern for the well-being and needs of employees, being friendly and approachable, and treating workers as equals

9. Leadership Styles • Participative Leadership • Consulting with employees and seriously considering their ideas when making decisions

10. Leadership Styles • Achievement –Oriented Leadership • Encouraging employees to perform at their highest level by setting challenging goals, emphasizing excellence, and demonstrating confidence in employee abilities.

11. Transactional and Charismatic Leadership • Transactional Leadership • Focuses on interpersonal interactions between managers and employees • Charismatic Leadership • Transforms employees to pursue organizational goals over self-interest

12. Leadership • Leadership must be present at all levels of the organization. It depends on a million little things done with obsession, consistency, and care, but those million little things add up to nothing if the trust, vision, and basic belief are not there. Peters and Austin: A Passion for Excellence

13. Leadership Characteristics • Need for achievement • Need for power • Cognitive ability • Interpersonal skills • Self-confidence • Ethics

14. Leaders • Innovate • Develop • Inspire • Long-term view • Ask what and why • Originate • Challenge the status quo • Do the right things Bennis: On Becoming a Leader

15. Leadership Exercise • Name a leader…..any leader. • Why did you pick them? • What are the traits of a good leader?

16. Teams and Teambuilding

17. Team • A group of individuals with complimentary skills who work together to achieve common goals

18. Teamwork • Work that gets done more efficiently by a group than by individuals

19. Types of Teams • Problem-solving team • Self-managed teams • Functional teams • Cross-functional teams • Task force • Special-purpose team • Committee Virtual team

20. Evolution of Teams • Forming • Defining purpose, setting goals, establishing ground rules • Storming • Struggles and conflicts • Norming • Calm and productivity • Performing • Peak performance

21. Advantages of Teams • Higher-quality decisions • Increased commitment to solutions and changes • Less stress and destructive internal competition • Improved flexibility and responsiveness

22. Disadvantages of Teams • Inefficiency • Groupthink • Less individual motivation • Structural disruption • Excessive workload

23. Why Do Teams Fail? - A team for the sake of a team/ work group - Lack of direction or purpose - Too much conflict - Wrong mix - Lack of respect for management or goal

24. Causes of Team Conflict • Competition for scarce resources • Task responsibilities • Poor communication • Differences in attitudes and personalities • Power struggles over authority • Divergent goals of team members

25. Solutions to Team Conflict • Forced resolution from the leader • Ignore conflict • Negotiate compromise • Remind members of goals • Disband

26. FIND the ROOT CAUSE

27. REACTIVE MODE • Backorders or Supply Issues • Rejects, Rework, Changes • Complaints, Returns, Etc. • Employee Issues • Internal Conflicts or Indecision • Projects Late and/or Over Budget • In Short - Up to your ?%#! in Fire fighting

28. CHANGE IN MANAGEMENT ATTITUDE • Face it • Find it • Fix it

29. Confirm the Problem or Test Result Contain the Problem Until Resolved Get the Facts (What? Where? When?) Assign Responsible Individual(s) Define the Problem Record

30. Organize the Causes Groupings & Relationships Process Flow Chart Cause & Effect Diagram Tree Diagram Time Line Scientific Method! QUALITY TOOLBOX

31. Past Experience Possible and Implausible Causes Embarrassing Causes New Causes BRAINSTORMING

32. PROCESS OVERVIEW

33. GAINING PROCESS KNOWLEDGE • Documentation • Validation • Installation Qualification • Operational Qualification • Performance Qualification • Run History

34. The Scientific Method HypothesisFormulation Observation Knowledge! Testing Prediction

35. MEASUREMENT VARIATION SOURCES

36. WHY 5? • 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 root cause of a problem. • Very often the ostensible reason for a problem will lead you to another question. • Although this technique is called "5 Why’s," you may find that you will need to ask the question fewer or more times than five before you find the issue related to a problem.

37. BENEFITS OF THE 5 WHYS • Help identify the root cause of a problem. • Determine the relationship between different root causes of a problem. • One of the simplest tools; easy to complete without statistical analysis.

38. 5 Whys Example 1 Problem Statement: You are on your way home from work and your car stops in the middle of the road. 1. Why did your car stop? - Because it ran out of gas.

39. 5 Whys Example 1 Problem Statement: You are on your way home from work and your car stops in the middle of the road. 2. Why did it run out of gas? - Because I didn't buy any gas on my way to work.

40. 5 Whys Example 1 Problem Statement: You are on your way home from work and your car stops in the middle of the road. 3. Why didn't you buy any gas this morning? - Because I didn't have any money.

41. 5 Whys Example 1 Problem Statement: You are on your way home from work and your car stops in the middle of the road. 4. Why didn't you have any money? - Because I lost it all last night in a poker game.

42. 5 Whys Example 1 Problem Statement: You are on your way home from work and your car stops in the middle of the road. 5. Why did you lose your money in last night's poker game? - Because I'm not very good at "bluffing" when I don't have a good hand. (Time to give up Poker)

43. 5 TIMES WHY? METHOD

44. NOT When it Points to Someone Else NOT When it Points to Another Dept. NOT When it Points to Another Facility Knowing When To STOP • Only When the Root Cause is Found

45. Root Cause Analysis POTENTIAL CAUSES FILTERS Probable Causes Suspected Causes Assignable Cause Why? Why? WHY? Is/Is Not Analysis Any Changes? Any Differences? Verify Differences Verify Impact Root Cause

46. 5 Whys Example 2 Problem Statement: Customers are unhappy because they are being shipped products that don't meet their specifications. 1. Why are customers being shipped bad products? Because manufacturing built the products to a specification that is different from what the customer and the sales person agreed to.

47. 5 Whys Example 2 Problem Statement: Customers are unhappy because they are being shipped products that don't meet their specifications. 2. Why did manufacturing build the products to a different specification than that of sales? Because the sales person expedites work on the shop floor by calling the head of manufacturing directly to begin work. An error happened when the specifications were being communicated or written down.

48. 5 Whys Example 2 Problem Statement: Customers are unhappy because they are being shipped products that don't meet their specifications. 3. Why does the sales person call the head of manufacturing directly to start work instead of following the procedure established in the company? Because the "start work" form requires the sales director's approval before work can begin and slows the manufacturing process (or stops it when the director is out of the office).

49. 5 Whys Example 2 Problem Statement: Customers are unhappy because they are being shipped products that don't meet their specifications. 4. Why does the form contain an approval for the sales director? Because the sales director needs to be continually updated on sales for discussions with the CEO.

50. Exercise • You have recorded a specific problem within your company. • Ask Why the problem happens and write the answer down below the problem. • If the answer you just provided doesn't identify the root cause of the problem that you wrote down in step 1, ask Why again and write that answer down. • Loop back to step 3 until the team is in agreement that the problem's root cause is identified. • Again, this may take fewer or more times than 5 Whys.