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PDCA Problem Solving

PDCA Problem Solving training presentation

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PDCA Problem Solving

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  1. PDCA PROBLEM SOLVING Innovate, Iterate, Improve © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Acquire knowledge of key concepts and principles in PDCA problem solving. Understand team dynamics and define roles within the PDCA problem-solving team. Familiarize yourself with the step-by-step PDCA problem-solving process and the use of analytical tools. Master process management and discover key strategies for successful PDCA problem-solving. 2 © Operational Excellence Consulting

  3. CONTENTS ANALYTICAL TOOLS IN PDCA KEY CONCEPTS & PRINCIPLES 01 04 PROBLEM SOLVING TEAMS & ROLES 02 05 PROCESS MANAGEMENT PDCA PROBLEM-SOLVING PROCESS PRACTICAL TIPS FOR SUCCESS 03 06 3 © Operational Excellence Consulting

  4. THE BLIND MEN AND THE ELEPHANT It’s a spear! It’s a fan! It’s a wall! It’s a rope! It’s a snake! It’s a tree! Problems are often perceived differently by different people. by different people. Problems are often perceived differently 4 Image: Mythgyaan © Operational Excellence Consulting

  5. COMMON PITFALLS IN PROBLEM SOLVING Neglecting a systematic process to prioritize, analyze, and review data/information Rushing through or skipping problem-solving steps Ineffective team participation (lack of cross- functional expertise) Overly ambitious scope (attempting to address everything) Unclear or vague problem description Lack of familiarity with problem- solving methods and tools among team members (lack of technical skills) Succumbing to management impatience/ pressure, leading to inadequate analysis Failure to implement permanent corrective actions Superficial problem analysis without drilling down Permanent corrective actions failing to address root causes 5 © Operational Excellence Consulting

  6. WHAT IS A PROBLEM? A problem is a deviation from a standard, i.e., a difference between what should be happening and what is actually happening. Standard – what should be happening Gap = Problem Current situation – what is actually happening 6 © Operational Excellence Consulting

  7. PROBLEM SOLVING FUNNEL Big vague concern Breakdown Grasp the situation § Actual vs. standard § Actual vs. ideal Go See Point of cause § Time and place where events cause abnormality 5 Why Analysis Why? Root cause Countermeasures 7 Source: Adapted from Dennis © Operational Excellence Consulting

  8. BENEFITS OF PROBLEM SOLVING Increased market share Faster delivery time Increased efficiency Lower costs Improved customer satisfaction Improved culture of innovation Improved employee morale Increased profitability 8 © Operational Excellence Consulting

  9. PDCA CONCEPT PDCA stands for Plan-Do-Check-Act, a four-step problem-solving methodology ● The PDCA Cycle It follows a continuous cycle of improvement ● Emphasizes iterative refinement for better outcomes ● 9 © Operational Excellence Consulting

  10. WHAT IS PDCA PROBLEM SOLVING? Adopted as a fundamental methodology for continuous improvement Applicable across diverse organizational contexts ● ● A versatile and efficient problem- solving approach ● Widely embraced in various industries ● Suitable for teams and individuals alike ● Used to address quality control, process improvement, and safety concerns ● 10 © Operational Excellence Consulting

  11. WHY USE PDCA? Flexibility and Adaptability Structured Approach Team Collaboration Allows adjustments based on real-time feedback. Systematic cycle of Plan, Do, Check, and Act. Encourages cross-functional collaboration. Continuous Improvement Based on Facts Prevention of Recurrence Iterative process for refining strategies over time. Emphasis on factual information over assumptions. Evaluates results and standardizes successful processes. 11 © Operational Excellence Consulting

  12. ALIGNING PDCA CYCLE WITH THE PROBLEM-SOLVING PROCESS 1 Select the Theme 2 Plan the Schedule 3 Grasp the Present Situation PLAN 4 Establish the Target 5 Analyze the Cause & Identify Corrective Action 6 Implement Corrective Action DO Evaluate the Result CHECK 7 8 ACT Standardize & Follow-up 12 © Operational Excellence Consulting

  13. CONCEPT OF PROBLEM SOLVING TEAMS A Problem Solving Team is a group of employees performing similar or related tasks, who get together on a regular basis, to discuss a topic or theme affecting their work or workplace. 13 © Operational Excellence Consulting

  14. PHILOSOPHY OF PROBLEM SOLVING TEAM People take interest and pride in their work ● Shared decision-making process ● Development of individual capabilities ● Creating a cordial atmosphere in the workplace ● Benefits both management and staff ● 14 14 © Operational Excellence Consulting © Operational Excellence Consulting. All rights reserved.

  15. THE PROBLEM-SOLVING STRUCTURE PARALLELS THE FORMAL ORGANIZATIONAL STRUCTURE Steering Committee CEO Secretariat Division Managers Department Managers Facilitators Supervisors Leaders Frontliners Members Structure of a Company Structure of Problem Solving Activities 15 © Operational Excellence Consulting

  16. PROBLEM SOLVING – ORGANIZATIONAL ROLES Role Description Steering Committee Oversees the entire Problem Solving development within a company such as setting the corporate theme and appointing key personnel. Secretariat (PMO) As a Project Management Office, maintains Problem Solving records, organizes promotional activities, registers new teams and keeps track of progress of teams. Team Manager Is a head of a division/department and is responsible and accountable for the promotion of activities of Problem Solving Teams in the department including assigning resources, providing moral support and encouragement. 16 © Operational Excellence Consulting

  17. “ systems and processes… rather than the employee.” 85% of the reasons for failure to meet customer expectations are related to deficiencies in W. EDWARDS DEMING 17 © Operational Excellence Consulting

  18. THE 8-STEPS OF PDCA PROBLEM SOLVING 1 Standardize & Follow Up 8 Select the Theme 2 Evaluate the Result Plan the Schedule PDCA Problem Solving Process: PDCA PROBLEM SOLVING PROCESS 7 A systematic approach for continuous improvement, involving planning a change, executing it, checking the results, and acting to make necessary adjustments. 3 Implement Corrective Action Grasp the Present Situation 6 Analyze the Cause & Identify Corrective Action Establish the Target 4 5 18 © Operational Excellence Consulting

  19. STEP 1: SELECT THE THEME PURPOSE: Clearly define the problem or opportunity for focused resolution. 19 © Operational Excellence Consulting

  20. EXAMPLE: IDENTIFYING THE SPECIFIC PROBLEM OR THEME ILLUSTRATIVE 1. Corporate Goals 2023 Not meeting goal for 2023! § Increase global market share Overall Scrap % § Improve quality and service 3.2 § Increase corporate profits 3 2.7 2.6 2.3% Goal 2 2. Manufacturing Goals 2023 § Reduce cost by 5% § Reduce scrap by 15% 1 § Improve productivity by 7% § Improve HSE index by 10% 2021 2022 2023 (YTD) 20 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

  21. EXAMPLE: SELECTING PROJECTS ILLUSTRATIVE Illustration of Matrix Data Analysis Chart for Problem Prioritization: Evaluating 5 Problems Against 3 Selection Criteria. Criterion 1: Relevance Criterion 2: Impact Criterion 3: Feasibility Problem Total Score High scrap rate 4 3 5 12 High defect rate 3 5 2 10 Long machine setup time 5 2 4 11 Low staff morale 2 4 3 9 High absenteeism rate 1 1 5 7 In this example, based on the total scores, “High scrap rate” has the highest score and would be selected for further analysis. 21 © Operational Excellence Consulting

  22. STEP 1: PRACTICAL TIPS Encourage Diverse Participation Focus on Clear and Specific Statements Prioritize Based on Consensus Use Matrix Diagram Effectively Ensure diverse participation from different team members for a well-rounded set of project themes. Encourage clear and specific statements for project themes, avoiding vagueness. Use the Matrix Diagram effectively for systematic theme ranking, employing clear criteria and a rating scale. Prioritize themes based on consensus, ensuring collective agreement on the most crucial problems or opportunities. 22 © Operational Excellence Consulting

  23. EXAMPLE: GRASPING THE PRESENT SITUATION ILLUSTRATIVE Breakdown of Machine Shop Scrap Rates Scrap by Department $K Rough Grinding Final Grinding 700K Process: Milling Turning Drilling 6 Scrap % 1.5 0.9 0.7 3.7 8.7 5 4 Scrap $ 40K 27K 23K 150K 460K 3 200K 2 ✕ ✕ Δ ¢ ¢ Status * 86K 1 Machine shop Welding shop Assembly shop ✕ >2% *Legend: ¢ 0-1% Δ 1-2% 23 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

  24. EXAMPLES OF PROBLEM STATEMENTS Customers in the Northern region are dissatisfied with the ordering service. Errors have increased by 23% during the last 3 months. The unexpected downtime in our manufacturing line has led to a 15% decrease in production output. Recurring outages, reaching a 25% occurrence in recent instances, negatively impact customer satisfaction. Since the rationalization of the patient registration services, complaints of long waiting times have increased by 35%. 24 © Operational Excellence Consulting

  25. EXAMPLE: ESTABLISHING THE TARGET ILLUSTRATIVE Grinding Machine Scrap % 8.7 Gap from target 8 By December 2024: 7 6 § Reduce scrap in rough grinding from 3.7% to less than 2%. 5 4 3.7 3 § Reduce scrap in final grinding from 8.7% to less than 2%. 2.0 2 1 Final grind Rough grind Target level 25 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

  26. RELATIONSHIP OF PROBLEMS, SYMPTOMS AND CAUSES PROBLEM (Don’t feel well) SYMPTOMS (Aches and fever) AS A RESULT OF THE PROBLEM ANALYSIS LEADS TO ROOT CAUSES (Infection) 26 © Operational Excellence Consulting

  27. EXAMPLE: IDENTIFYING ROOT CAUSES USING THE CAUSE & EFFECT DIAGRAM Pareto by Defect Type ILLUSTRATIVE % 80 72% Machine Man 70 Spindle Contamination Main problem! 60 Clamp & locator Grinding wheel setup 50 Grinding wheel Manual offsets Undersized Shaft defect 40 Grinding conditions Dimensions 30 20% Coolant concentration Hardness 20 6% 2% Wheel dressing Surface finish 10 Method Material Grinder burn Others Scratches & dents Undersized shaft 27 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

  28. STEP 7: EVALUATE THE RESULT ILLUSTRATIVE Reducing Scrap at Machining Shop Performance Evaluation with Radar Chart Team A Follow PDCA Process Evaluate team members’ performance using a Radar Chart, highlighting achievements and Team Self- Evaluation. ● 10 8 6 Use of 4 Report Writing Analytical Tools 2 0 Include this in the Project Summary of the Project Report. ● Communication Teamwork 28 28 © Operational Excellence Consulting

  29. EXAMPLE: IMPLEMENTING AND MONITORING CORRECTIVE ACTIONS ILLUSTRATIVE Defect % 10 Finish grinder Spindle bearing tightened! 9 Rough grinder 8 Target 7 Coolant replaced! 6 5 4 3 Target level 2 1 0 02-Nov 03-Nov 04-Nov 05-Nov 06-Nov 07-Nov 08-Nov 09-Nov 10-Nov 11-Nov 12-Nov 13-Nov Dates of action items and results confirmation 29 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

  30. PROPER APPLICATION OF THE PDCA CYCLE Correct Application is Crucial Emphasize the importance of correct PDCA cycle application. ● If desired results are not achieved or proposed solutions are not accepted, encourage revisiting earlier steps for project revision and review. ● 30 30 © Operational Excellence Consulting

  31. WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING? Phase Problem Solving Steps Applicable Tools Brainstorming / Matrix Diagram / Selection Criteria / Team Consensus 1. Select the Theme 2. Plan the Schedule Gantt Chart Data Collection / Stratification / Flowcharting / Pie Chart / Check Sheet / Pareto Diagram / Bar Chart / Histogram 3. Grasp the Present Situation PLAN 4. Set the Target Pareto Analysis / Conduct Experiments / Check Past Trends 5. Analyze the Cause & Identify Corrective Action Brainstorming / Cause & Effect Diagram / 5 Whys / Tree Diagram / Control Chart / Scatter Diagram / Alternative Solutions DO 6. Implement Corrective Action Arrow Diagram / Process Flowchart / Pictures / Diagrams Collect New Data / Check Sheet / Pareto Comparison / Bar Chart Comparison / Radar Chart / Target Variance CHECK 7. Evaluate the Result In the standardization plan, document the new procedures. Display on notice board or intranet or conduct briefings. Show the follow-up actions using the PDPC. ACT 8. Standardize & Follow Up 31 © Operational Excellence Consulting

  32. EXAMPLE 2: STRATIFICATION BY MACHINE 40 35 30 Defect Quantity 25 Machine A 20 Machine B 15 Machine C 10 5 0 1 2 3 4 5 6 Month 32 © Operational Excellence Consulting

  33. PARETO CHART: COMPARING ‘BEFORE’ AND ‘AFTER’ ILLUSTRATIVE Errors Made on Faxed Orders 120 110 After: Jul-Dec 2021 Before: Jan-Jun 2021 100 90 80 70 Count 60 50 40 30 20 10 0 Wrong Product Information Unreadable PO and Order Form don’t Match Other Missing Information Wrong Billing Information Error Type 33 © Operational Excellence Consulting

  34. EXAMPLE 1: 5 WHYS ANALYSIS ILLUSTRATIVE 1st Why Symptom: The machine stopped! 2nd Why Causes: 1. The circuit overload tripped 3rd Why 2. The shaft wore down and seized up 4th Why 3. Metal cutting chips penetrated the area 5th Why 4. Chips passed through the lubrication system 5. There was no strainer on the inlet pipe from the tank 34 © Operational Excellence Consulting

  35. EXAMPLE 1: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF BARCODE LABELS” ILLUSTRATIVE MAN MACHINE Smear Improper training Illegible Torn Machine Breakdown Printwheel Dirty Handling HIGH Wrinkled Worn Ribbon SCRAP OF BARCODE LABELS Ineffective adhesive Design of label Improper storage Improper storage Damage Wrong orientation Size of label Poor printing Process changes Process changes MATERIAL METHOD © Operational Excellence Consulting

  36. EXAMPLE OF AFFINITY DIAGRAM ILLUSTRATIVE Orders Consistently Late Last Quarter Equipment Issues External Factors Communications Issues Major Supplier Filed for Bankruptcy Sales & Marketing Manufacturing Equipment Breakdown Fail to alert when price changes may affect volume Inconsistent adherence to maintenance dates Fail to keep production schedule updated Just-in-time inventory system failed Equipment operated outside of specifications Inconsistent adherence to due dates Fail to keep inventory updated Lack of inventory affects 60 orders Fail to check production schedule before promising product Fail to communicate unscheduled equipment down-time Old equipment, due to be replaced, not operating at peak capacity New supplier overloaded with new clients 36 © Operational Excellence Consulting

  37. EXAMPLE 2: RISK BREAKDOWN STRUCTURE ILLUSTRATIVE Vertical Tree Diagram Project Risks Project Management Technical External Organizational Project Dependencies Requirements Subcontractors Estimating Technology Regulatory Resources Planning Complexity Market Funding Controlling Customer Prioritization Communication Weather 37 © Operational Excellence Consulting

  38. OVERVIEW OF PROCESS MANAGEMENT Process management is a systematic approach to achieving organizational goals through effective control and improvement of processes ● It involves understanding, designing, implementing, and continuously optimizing processes ● Essential for enhancing efficiency, quality, and overall performance ● 38 © Operational Excellence Consulting

  39. “ Quality is not an act, it is a habit.” ARISTOTLE 39 © Operational Excellence Consulting

  40. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting

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