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Problem Solving & Visualization Tools
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PROBLEM SOLVING& VISUALIZATION TOOLS © Operational Excellence Consulting. All rights reserved.
NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg CONTENTS 1. Brainstorming 13. Histogram 2. Gantt Chart 14. Scatter Diagram 3. Stratification 15. Affinity Diagram 4. Check Sheet 16. Control Chart 5. Bar Chart 17. Relations Diagram 6. Waterfall Chart 18. Tree Diagram 7. Line Graphs 19. Matrix Diagram 8. Pie Chart 20. Matrix Data Analysis Chart 9. Radar Chart 21. Arrow Diagram 10. Pareto Chart 22. Process Decision Program Chart (PDPC) 11. 5 Whys 23. 5W2H 12. Cause and Effect Diagram 24. Is / Is Not 2 © Operational Excellence Consulting
“ seven fundamental quantitative tools.” As much as 95% of quality related problems in the factory can be solved with DR. KAORU ISHUKAWA 3 © Operational Excellence Consulting
BRAINSTORMING Purpose: Stimulating creative idea generation ● When to use: When seeking fresh insights To compile a comprehensive list of options ● ● When facing complex, multi-faceted problems involving many individuals ● To foster team cohesion and creative synergy ● 4 © Operational Excellence Consulting © Operational Excellence Consulting. All rights reserved.
BRAINSTORMING RULES Defer judgement Encourage wild ideas Stay focused on the topic Build on the ideas of others Be visual One conversation at a time Go for quantity 5 © Operational Excellence Consulting
EXAMPLE: GANTT CHART FOR A PROBLEM SOLVING PROJECT ILLUSTRATIVE 7 14 Aug 21 Aug 28 Aug 4 11 Sep 18 Sep 25 Sep 1 8 15 Oct 22 Oct 29 Oct Aug Sep Oct Oct Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify CA Implement Corrective Action Evaluate the Result Standardize & Follow Up Planned Actual 6 © Operational Excellence Consulting
STRATIFICATION CONSIDERATIONS Factors for Stratification Factor Examples of categories People Work methods, familiarity, age, gender Machinery Equipment, old vs. new, type, fixtures Materials and parts Processes, material quality, class, maker Operating conditions Temperature, humidity, speed, methods Time Month, weekday, hour, before vs. after repair Product Quality, old vs. new, lot Measurement, inspection Test device, gauge, sampler, inspector 7 © Operational Excellence Consulting
EXAMPLE 1: SOCIAL STRATIFICATION ILLUSTRATIVE High Income Middle Income Low Income 8 © Operational Excellence Consulting
EXAMPLE: DEFECT TRACKING ILLUSTRATIVE Check Sheet Defect Tracking Check Sheet (9/3 to 13/3) Mon 9/3 Tue 10/3 Wed 11/3 Thu 12/3 Fri 13/3 Defective Item Total Mold Cracked 5 3 6 3 4 21 Fibers 2 0 5 1 0 8 Grit 4 2 3 5 0 14 Pinholes 1 5 0 2 1 9 Cracks 0 1 1 0 0 2 Other 1 3 0 0 3 7 Total 13 14 15 11 8 61 9 © Operational Excellence Consulting
EXAMPLE 1: COMPARISON OF ANNUAL SALES PERFORMANCE ILLUSTRATIVE Bar Graph Sales Performance 250 200 150 Target Actual 100 50 0 FY 2021 FY 2022 FY2023 10 © Operational Excellence Consulting
EXAMPLE: ANALYSIS OF MANUFACTURING COST COMPONENTS ILLUSTRATIVE Waterfall Diagram Components of Total Manufacturing Cost ($) 120K 50K 100K 200K 870K 400K Utilities & Maintenance Depreciation Total Labor Materials Factory Overhead 11 © Operational Excellence Consulting
LINE GRAPH: PURPOSES Trend Identification Correlation Analysis Data Continuity Display trends and patterns over time. Illustrate continuous data points. Show relationships between variables. 12 © Operational Excellence Consulting
EXAMPLE 2: IMPLEMENTING & MONITORING CORRECTIVE ACTIONS ILLUSTRATIVE Line Graph 10 Finish grinder Spindle bearing tightened! 9 Rough grinder 8 Target 7 Coolant replaced! Defect % 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 13 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley
EXAMPLE 2: COMPARISON OF MARKET SHARE ILLUSTRATIVE Pie Chart Browser Market Share Worldwide 8% 3% Chrome Safari UC Browser Firefox Opera IE Others 3% 5% 7% 60% 14% 14 Source: StatCounter, July 2018 © Operational Excellence Consulting
EXAMPLE: COMPARING 5S PERFORMANCE ILLUSTRATIVE Radar Chart Sort 35 30 25 20 15 Sustain Set In Order 10 5 Area A Area B 0 Standardize Shine 15 © Operational Excellence Consulting
RADAR CHART: PROCEDURES Avoid Overlapping Axes: Ensure clarity by preventing axis overlap. 1. Normalize Data: Normalize values if scales differ significantly. 2. Limit Categories: A moderate number of categories for readability. 3. Use Consistent Colors: Maintain a consistent color scheme. 4. Highlight Key Areas: Emphasize critical data points for focus. 5. Provide Explanations: Include annotations to explain unusual patterns. 6. 16 © Operational Excellence Consulting
“ causes.” For many phenomena, 80% of consequences stem from 20% of the JOSEPH M. JURAN 17 © Operational Excellence Consulting
PARETO’S PRINCIPLE (80/20 RULE) Examples: Effort Result 80% of your net income comes from 20% of your customers ● 20% 80% 80% of your sales are generated by 20% of your products ● 80% 20% 80% of your emotions are created by 20% of your thoughts ● Important Not Important 80% of your work results from 20% of your effort ● 18 © Operational Excellence Consulting
EXAMPLE 1: PIZZA DEFECTS ILLUSTRATIVE Pareto Chart of Pizza Defects 35 120% 30 100% 25 Cumulative Percent 80% Occurrences 20 60% 15 40% 10 20% 5 - 0% Forgot Breadstic ks 7 90% 6% Driver Had No Change 4 93% 3% Wrong Toppings Pizza Cold Pizza Late Wrong Crust Tastes Bad Wrong Price Driver Rude Smashed in Box 3 96% 3% All other Quantity Cum % % of Total 29 25% 25% 25 46% 21% 22 64% 19% 13 75% 11% 10 84% 8% 2 1 2 97% 2% 98% 1% 100% 2% 19 © Operational Excellence Consulting
EXAMPLE 2: COMPARING ‘BEFORE’ AND ‘AFTER’ RESULTS ILLUSTRATIVE Pareto Chart 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 20 © Operational Excellence Consulting
5 WHYS: WHEN TO USE Immediate Problem Resolution Post-Incident Analysis Process Improvement Projects When addressing immediate issues to prevent recurrence. After incidents or failures for in-depth analysis. In continuous improvement projects to enhance processes systematically. 21 © Operational Excellence Consulting
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 22 © Operational Excellence Consulting
“ symptoms rather than eliminate underlying causes.” When we fail to grasp the systemic source of problems, we are left to ‘push on’ PETER SENGE The Fifth Discipline 23 © Operational Excellence Consulting
CAUSE & EFFECT DIAGRAM (MANUFACTURING) CAUSES EFFECT Machines Manpower Methods Cause Sub-cause Problem Statement Environment Measurements Materials 24 © Operational Excellence Consulting
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
EXAMPLE: HISTOGRAM OF TURNAROUND TIMES ILLUSTRATIVE Histogram of Pharmacy Drug Dispensing Turnaround Times 60 50 40 Frequency 30 20 10 0 0 - 10 11 - 20 21 - 30 31 - 40 41 - 50 51 - 60 61 - 70 71 - 80 81 - 90 91 - 100 Turnaround Time (mins) 26 © Operational Excellence Consulting
SCATTER DIAGRAM: PRACTICAL TIPS Clearly label and define the axes to convey meaningful relationships Add trendlines to highlight patterns or relationships in the data ● ● Include descriptive titles for clarity on the purpose of the scatter plot Ensure the scaling of axes accurately represents the data range ● ● Use distinct symbols or colors for multiple data sets to avoid confusion ● Provide explanations for any outliers or unusual data points on the scatter plot ● 27 © Operational Excellence Consulting
EXAMPLE: AFFINITY DIAGRAM OF LATE ORDERS 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 28 © Operational Excellence Consulting
CONTROL CHART SELECTION TYPE OF DATA Variable Data Attribute Data Count Classification Defectives Defects Different (or same) subgroup size Different (or same) subgroup size Equal subgroup size Equal subgroup size Subgroup size >9 Subgroup size of 1 Subgroup size 2-9 p-Chart u-Chart np-Chart c-Chart Xbar & S ImR Xbar & R Normal distribution/ Central Limit Theorem Poisson distribution Binomial distribution 29 © Operational Excellence Consulting
p-, np-, c-, AND u-CHARTS CREATION Sampling Plan: Determine the appropriate sampling plan. 1. Data Collection: Collect sample data at specified intervals. 2. Metric Calculation: Calculate relevant metric (n, np, c, or u). Calculate appropriate centerline. 3. Plotting: Plot the data. 4. Control Limits: After 20+ measurements, calculate control limits. Take action if the chart is out of control. 5. 30 © Operational Excellence Consulting
RELATIONS DIAGRAM: WHEN TO USE Interdisciplinary Collaboration Process Optimization Systems Thinking When adopting a systems thinking approach to problem- solving. When multiple disciplines or teams collaborate on a project. In process improvement projects to map out interactions. 31 © Operational Excellence Consulting
EXAMPLE: RELATIONSHIPS AMONG CAUSES OF LOW CUSTOMER SATISFACTION ILLUSTRATIVE Low Customer Satisfaction 0/3 Poor Materials 1/1 High Pricing 2/1 Low Quality Product 1/3 Ineffective Marketing 1/1 Poor Support 1/4 Faulty Market Surveys 1/1 Bad Design 2/1 Long Hold Times 1/1 Wrong Answers 1/1 Unskilled Employees 4/2 Low Staffing 2/1 Bad Hiring 1/1 HR Management 3/0 Lack of Training 1/1 32 © Operational Excellence Consulting
EXAMPLE 1: 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 33 © Operational Excellence Consulting
EXAMPLE 2: PERFORMING 5 WHYS ANALYSIS ILLUSTRATIVE Horizontal Tree Diagram WHY? KEEP ON ASKING WHY? Late Pack Change Late Order from Supplier WHY? Technical Problem Late Delivery from Supplier MRP Parameter Wrong WHY? Schedule Error WHY? Short Lead Time Order WHY? LATE DELIVERY TO CUSTOMER Production Problem WHY? Printing Problem Documentation Error WHY? Wrong Specification QC Hold WHY? Production Problem Damaged Packs Storage / Handling Problem 34 © Operational Excellence Consulting
EXAMPLE 1: L-SHAPED MATRIX DIAGRAM ILLUSTRATIVE Evaluation of Cameras Criteria Cost Handling Features Compact Size Quality of Shots Camera Model ¢ ¤ ¤ Δ Nikon F4 ¢ ¤ ¤ Δ Nikon F90 ¤ ¢ Δ Δ Nikon FM2 ¤ ¢ Δ Δ Nikon F50 ¢ ¤ ¤ Δ Nikon F-601 Key: ¤ Strong Relationship ¢ Average Relationship Δ Weak Relationship 35 © Operational Excellence Consulting
EXAMPLE 1: CRITICAL PATH METHOD ILLUSTRATIVE Arrow Diagram 40 T=3 wk T=1 wk D F T=3 wk T=3 wk 10 30 50 A E B C T=4 wk T=2 wk 20 36 © Operational Excellence Consulting
EXAMPLE: PDPC FOR VACATION PLANNING ILLUSTRATIVE Can’t agree Start discussing sites early Choose vacation site All sites already full Make basic choices Can’t get time off work Research As vacation approaches, get too busy to leave Choose off-peak date and inform work in advance Choose vacation date PLANNING A VACATION Make arrangements for absence Will choose same date as everyone else - crowds Develop budget All hotels already full Go to site with many hotels to choose from Choose hotel Won’t be able to find quality hotel in site area 37 © Operational Excellence Consulting
5W2H: QUESTIONS TO EXPLORE Description Description § Describe the problem adequately. § What is the defect and gap from “target”? § What part or object is involved? § Does the severity of the problem vary? § If the defect occurs on a part, where is the defect located? Use a location check sheet. § Where was the defect found (geographically)? § What is the geographic distribution of complaints? What? Where? § Define why this is a problem for the Customer or organization. § Translates “how big” into total business impact. Why? § Identify who is associated with the problem. § Which customer(s) are complaining? § Which internal group(s) are complaining? Who? § Identify the time when the problem started and past history (trends). § Do all production shifts experience the same frequencies? § What time of the year does the problem occur? § When did the nonconformance occur? § What was operating time? § What shift? § What season? § In what mode of operation was the problem discovered? § What procedures were being used? § What environmental conditions were present? How? When? How Much? § Quantify the extent and severity of the problem (quantity, percent, cost, DPMO, etc.) 38 © Operational Excellence Consulting
“ Quality is not an act, it is a habit.” ARISTOTLE 39 © Operational Excellence Consulting
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