ps 130 rev d problem solving

Operating AdvantageProblem Solving

Linking Operating Levers to Performance Improvements

Learning Objectives

At the end of this session you will be able to

• Select the proper problem solving tool for the situation encountered

• Describe various problem solving tool approaches

• Construct a robust and usable issue tree to aid in problem identification and prioritization

Agenda

Root Cause and Structured Problem Solving Approach

1. Describe the importance of root cause problem solving

2. Describe situational requirements for tool selection

3. 5 Why root cause analysis

4. Logic Tree Development

5. Conclusion

6. Appendix: 7 Step Problem Solving Approach

Typical Reaction is to Treat Symptoms

• Short-term focus on “getting production out”

• Inconsistent of role modeling from top management

• Inconsistent performance management culture and discipline

• Cultural issues – fire fighters gain a “hero” status and are repeatedly asked to fix fires rather than find root cause

Initial finding

• The overload fuse has blown

• Replace the fuse and start machine

Typical response

• Gap

Typical reasons for treating symptoms Situation

• Machine has stopped working

Severe Implications of Fire Fighting

Just treating the symptom will make the problem worse. The issue quickly recurs because the root cause is not fixed

Supervisors and workers spend most of their time on fire fighting rather than focusing on performance dialogs and root-cause problem solving

Constant fire fighting leads to low productivity and weaker business performance over time Constant fire

fighting leads to low employee morale as employees lose faith

Agenda






5. Conclusion


Common Problem Solving Techniques

Most workplace problems can be solved by using simple methods The key lies in discipline and speedy implementation

50

100

Common issues in daily operations

Relatively complex process, quality, operational problems

Complex design, process, engineering, or quality issues

7-step structured problem solving

7 new QC tools• Six-Sigma tools• DOE: Design of

experiments• Taguchi method

5-whys root- cause analysis

Complex business problems

• Hypothesis tree• Issue tree

25

75

Many common problems solved by utilizing basic techniques

Focus ofthis training

Percent of problems

Root-cause Problem Solving in Real Time

When to use When not to use Examples

5-why root-cause analysis

• On the floor for real-time problem solving on most common issues

• To understand root causes of chronic issues, repeat issues, frequent issues

• To eliminate fire-fighting routines• Teach basic problem-solving methodology to front line

and operations leadership

• For complex problems, design problems, or major engineering problems

• To solve equipment downtime issues

• To fix minor line stoppages

• Chronic quality issues

7-step structured problem solving

• Problems are moderately complex and cannot be solved quickly on the floor

• Teach problem-solving methodology to continuous improvement support staff, engineering staff, and front-line leadership

• For day-to-day real-time problem solving

• Complex design or engineering issues

• Major quality issues• Major equipment

downtime issues

QC tools

• Mainly in solving complex quality issues• When problem may not be apparent to eye or

easy to detect

• For real-time day-to-day problem solving

• For business problem solving

• Major scrap or rework issues on floor

Six-SigmaDOE: Design of Experiments;Taguchi method

• Complex process engineering issues• Complex design problems or engineering problems• During product and process design

• Designing new component

• Designing new machining process

• For real-time day-to-day problem solving

Hypothesis tree Issue tree

• To solve complex business issues• To prioritize key issues at hand when problem

is complex• When data overload exists

• Beginning at diagnostics• Beginning of

engagements

• For day-to-day operating issues• For real-time problem solving

Agenda






5. Conclusion


Identification of Front Line Root CausesAsk why until you get to the bottom of the

problem

1. Why has the machine stopped?

The overload fuse has blown

2. Why did the overload fuse blow?

There was not enough oil on the shaft

3. Why wasn’t there enough oil?

The oil pump doesn’t pump enough oil because shaft was worn

No preventive maintenance or weekly cleaning performed

5. Why is the strainer blocked?

Because the oil strainer is blocked with metal swarf

4. Why doesn’t the oil pump work properly?

• Fixing the root cause may take more time in the short term, but the investment will pay off quickly as the problem never recurs

• Instituting a root-cause problem solving culture leads to higher OEE, higher productivity, and a highly motivated workforce

5 Whys is Effective if Focus is Maintained

Focus

• The parts are out of spec

• Wrong tool has been used

• Standard tool has burnt out

• Oil temperature is too high

• Temperature standard is

not

controlled

Haze

Right approach Wrong approach

Why?Why? • The parts are out of spec

• Right tool not available

• We do not have a second one

• According to management, return on investment is too low to purchase another one

• Due to global competition, the product market price is too low

Why?Why?

Why?Why?

Why?Why?

Why?Why?

Why?Why?

Why?Why?

Why?Why?

Example A3 Problem Solving Report

Problem Solving Report Explanation (1/2)

Location of problem

Technical cause of problem

Analysis of problem status and root causes

Detailed description and analysis of the current state of the problem

Problem Solving Report Explanation (2/2)

Periodic tracking of performance metric to ensure problem resolution is working

Detailed implementation schedule

Real-Time Root Cause Issues

Problem solving in real time to understand the root cause

Group leader issues 5-whys root-cause problem solvingreport

If the problem is complex,then root-cause problemsolving to be done incross-functional teams

Develop and implement counter measures

Follow up to ensure thatroot cause is fixed

CheckPlan

DoAct

Problem on front line (quality, equipment downtime, etc.)

1 2 3

4 5 6

Timeline for Root-Cause Problem Solving

Raise major issues Identify root causeImplement countermeasures

Monitor performance

Day 0 Day 0-1 Day 0-3 Day 1-30

What • Escalate major issues• Generate root-cause

problem solving report

• Team problem solving• Complete problem solving

report

• Quickly implement permanent counter-measures to prevent recurrence

• Ensure that permanent and systematic counter-measures are working

When • Constraint machine down more than 8 hours

• Scrapped more than 5% of production run

• End of shift – or –

• Following day of occurrence

• Following day of occurrence

• Following 1-2 months

Who • Production team leader to initiate root-cause problem solving report

• CI engineer to prioritize and facilitate problem solving

• Cross-functional team work critical to identify and fix system issues

• CI engineer to follow up to ensure completion

• CI engineer to follow up to ensure completion

Why • Raise awareness to initiate quick response

• Understand root cause • Implement permanent countermeasures

• Ensure sustainability

How

• Complete as many steps in root-cause problem solving report as possible

• Hand report to CI engineersor maintenance

• Complete root-cause analysis report

• P-D-C-A • P-D-C-A

Where • On the machine and on shift • Problem-solving meetings • Machines/areas that had issues

• Machines/areas that had issues

Agenda






5. Conclusion


Logic Trees

• Seven phases of problem solving

• Issue tree• Issue map• Hypothesis-driven tree• Creative problem solving

Related areasPitfalls

• Issue Tree may take more time, but ensures all issues covered

• Must understand hypothesis problem solving

Strengths/weaknesses

• Best used to structure analysis and define analysis

• Efficient communication and planning tools

• Issue might not be MECE (Mutually Exclusive Collectively Exhaustive) as required by logic tree

• Not useful for generating new ideas

Best used for

• Analytic Problem Solving

• Decisions on Problem Solving Tools

• Analysis Groundwork

• Large and Small Scope Problems

Logic trees are helpful to structure a problem. Depending on your familiarity with the issue and the degree of specificity of the problem, you are able to choose the most suitable type of logic tree

Description:

Linking Problems and Issues

Sub-issue

Sub-issue

Sub-issue

Sub-issue

Sub-issue

Sub-issue

Issue/ hypothesis 1

Issue/ hypothesis 2

Issue/ hypothesis 3

Problem statement

Why use logic trees?

1.

2.

3.

4.

To break a problem into component parts so that– Problem-solving work can be divided into

intellectually manageable pieces– Priorities can be allocated to individuals

To maintain the integrity of the problem-solving approach– Solving the parts will really solve the

problem– The parts are mutually exclusive and

collectively exhaustive (for example, no overlaps, no gaps)

To build a common understanding within the team of the problem- solving framework

To help focus the use of organizing frameworks and theories

Systematically Structuring a Problem

MutuallyMutuallyExclusiveExclusive

CollectivelyCollectivelyExhaustiveExhaustive

MutuallyMutuallyExclusiveExclusive

CollectivelyCollectivelyExhaustiveExhaustive

First Level

Second Level

ProblemStatementWorksheet

Basic question to be resolved

Relevant

Basic question to be resolved

1.Perspective/ context

3.Decision makers

2.Criteria for success

5.Constraints within solution space

6.Scope of solution space

4.Other key study stakeholders

Con

sist

ent

Con

sist

ent

Advantages and Limits of Logic Trees

The logic tree can ...

• … facilitate problem-structuring• … provide focus and transparency• … facilitate teamwork

(communication, work in parallel)

It cannot …

• … replace thinking or creativity• … replace detailed analysis

Three Common Types of Logic Trees

Reasons

Type of tree DescriptionElements of branches Typical application

Why Hypothesis-driven tree

• Hypothesizes a solution and develops a necessary and sufficient rationale to validate or disprove it

• Reasons • Typically used when the problem area is relatively familiar and it is possible to make sound assumptions

?

Yes

No

Issue map• Phrases key issues so

that they can be answered with yes or no; sequences them in a logical order showing the dependent action

• Questions • Suitable when the problem is well understood and can be structured logically and within a defined period of time

Issue tree• Starts with the problem

definition and divides it into components

• Actions, assertions, criteria, questions, topics

• Suitable for a comprehensive approach; used for a new problem when relatively little is known about it

What

How

Selection of Logic Tree

Degree of familiarity

Specificity of the problems

Hyp

?

?

?Yes

No

Yes

NoYes

No

Industry and problem familiar

Industry familiar

Industry and/or problem unfamiliar

Issue Hypothesis-driven

Issue map

Issue Tree Example

ProblemHow Can I Have more money at the end of the month without incurring any debt?

Take 3 Minutes to Brainstorm with your Neighbor

Issue Tree Example

How can I have more money at the end of the month without incurring a debt?

Increase income

Reduce expenses

Receive a windfall

Receive more $ from work

Pay less for same amount of items

Buy less

Receive more $ from investments

Legally

Illegally

Work more hours

Make more per hour

Buy lower quality items

Shop around for specials

• Food• Clothing• Utensils• Entertainment• Travel• Other

Inherit

Win lottery

Higher job level

Better paid industry

Overtime

Additional job

. . .

How? How?

Hypothesis-driven Tree – Structure

To validate a hypothesis To disprove a hypothesis

Hypothesis

Argument

Argument

Argument As a group, arguments

are sufficient

Hypothesis

Argument

Argument

Argument

On its own, every

precondition is necessary for the hypothesis

Source: McKinsey

Identification of Basic Hypothesis

Hypothesis

Argument

Argument(subordinate hypothesis)

Argument

Argument

Argument

Argument

Argument

Basic hypothesis

Can be proved immediately

Concrete analyses to prove ordisprove that the initialhypotheses can be identified

or

Issue Tree and Issue Map Differences

Source: McKinsey

Issue trees Issue maps

• Completeness

• Many individual approaches

• Deductive logic

• Problem orientation

• Focusing

• Overall perspective

• Creativity

• Action orientation

A lot of work, not much thought

A lot of thought, not much work

Issue Map Example

Can com-petitiveness be achieved within currentstructures?

Is product line com-petitive in the market?

No

Are there any synergy effects with other product groups that together would generate apositive result?

Yes Can a new productgeneration be developedeconomically?

Yes

No

No

No

Yes

Yes

Yes

No

Is it worth it to remove structuralWeaknesses on our own?

Are there any attractive options for cooperation or acquisition that will remove structuralweaknesses?

Yes

No

Options for action

Efficiency improvementprogram

Development of anew product generation

Facelift for currentproduct line

Restructuring program

Development of cooperation/acquisition strategy

Temporary acceptanceof losses

Profit-maximizing exit

Agenda






5. Conclusion


Key Takeaways

• The degree of complexity and difficulty will determine the most effective problem solving method

• Many problems can be solved quickly by utilizing the 5 Why’s and Root Cause analysis

• Logic trees can be a powerful tool to organize ideas and develop problem solutions

Agenda






5. Conclusion


Quality Tools and Statistics Reference Guide: TEC-406-708

7-step Problem-solving Approach

7-step problem-solving method focuses on root-cause problem analysis and long-term, permanent solutions, with the goal of total elimination of the problem for complex issues

Standardize Defineproblem

and set goal

Analyzeproblem

Generate potential solutions

Select and plan solution

Implement solution

Evaluate solution

PlanDo

Check

Act

1

2

3

4

5

6

7What

Plan

Do

Check

Action

WhyAnalysis of problem

HowPlanning solutions

Confirmation of results

Standardization

1 4

Implementation

Definition of problem

5

6

7

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Step 1 – Identify Problem and Set Goal

Description BenefitsAction

A) Develop a problem statement

• Describe the problem in measurable terms

• Clarifies the problem• Evaluates the

seriousness• Makes visible• Identifies major causes• Identifies relationships

among causes

• Quantify the problem

• Be specific about the subject of the problem using your own experience of it. Do not use someone else's description

• Assures accurate and factual understanding of the problem

• Qualify the problem

B) Develop a goal statement• Describe the level or

standard that should be achieved and by when

• Prioritizes work• Permits selection of

solutions

• Set targets for “satisfactory” solution

Problem Identification Worksheet Example

Basic question to be resolved:

Perspective/context? Stakeholders and processes?

Criteria for success? Scope of solution space?

Barriers to impact?

1

TEMPLATE

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3

5

2

4

Step 2: Analyze Problem

Why

Why

Why

Why

Why Root Cause

Most important step of process – invest time

here!

• Plan your research method• Review preliminary analysis• Find out everything you can about the selected problem

(gather information/data)• Quantify, visualize, and graph the data (analyze), use QC tools• Identify the main root cause(s) of the problem, for example, use

5 Whys

Data collection methods• Observation – Watch what is happening• Interviews – Collect information from people• Surveys – Use a written form of interview• Hands-on – Go experience for yourself• Paper research – Examine relevant documents

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Step 3: Generate Potential Solutions

Cause no. Identified root cause Potential solution

1

2

3

4

5

6

Generate potential solution(s) for each cause

EXAMPLE

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Step 4: Select and Plan Solution

Action plan

No. ActivityResponsible

Date(planned)

Date(complete)

Status

1

2

3

4

5

6

7

8

9

EXAMPLE

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Template to Evaluate and Select Solution

Selection worksheet

Control: the extent to which the group/individual controls the problem and can control the solution

Relevance: the degree to which the solution actually will solve the problem

Resources: the amount of time, money, people, material, etc. required to implement the solution and the extent to which the resources required are actually available

Payback: the approximate expected payback/results from solving the problem (cost vs. payback)

Buy-in: the degree to which the changes involved in implementing the solution will be acceptable to people affected and to any more senior level of management that must approve the solution

Definitions

Little Great

Control 1 2 3 4 5

Relevance 1 2 3 4 5

Resources 5 4 3 2 1

Payback 1 2 3 4 5

Buy-in 1 2 3 4 5

RatingCharacteristic

EXAMPLE

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Step 4b: Plan Solution Implementation

Flow ChartFlow charts are utilized to show logical steps involved in implementing plan

Develop plan

Kick-off meeting

Run trial

Modify

Modify equipment

Review results

Confirm parts

Standardize

What Who Time1 Develop implementation plan2 Hold kick-off meeting3 Start machine modification4 Run trial5 Confirm parts6 Report status7 Modify if necessary8 Standardize

Gantt chart

Gantt chart shows steps to be implemented and timing for the beginning and ending of each activity along with links between critical path items

EXAMPLE

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Step 5: Implement Solutions

Focus on reducing time required to implement and develop ways to streamline

procedures, policies, etc.

1. Divide solution into easily manageable steps that can be monitored

2. Include everyone affected by the solution in the implementation process

3. Keep everyone informed about what is happening, the plan, the goal, and how effectively things are being done

4. Be sure everyone knows what they have to do, and stay in close touch with your manager

5. Do not take anything for granted. CHECK, CHECK, CHECK

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Implement Solution Tracking Format

Action plan

ActivityResponsible

Date(planned)No.

1

2

3

4

5

6

7

8

9

Status

Date(complete)

EXAMPLE

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Step 6: Evaluate the Solution

1. Check timing of actual implementation against plan

2. Evaluate that goals were achieved– Productivity improvement– Cost reduction– Quality improvement– Safety

3. Evaluate if the expected results are occurring and any adverse effects

4. Standardize the new method

5. Establish control devices to ensure continued use of the new standardized method, for example, Standard Work Procedures, auditing

6. Train others in the new standardized method

7. Prepare job site presentation. Communicate what has been learned to others who may have similar problems and who may be able to apply some or all of your experience in solving this particular problem

8. Solve the next problem

EXAMPLE

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Solution Evaluation Example Format

Breakdown lossesMinutes

Actual

Target

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan Feb Mar Apr May Jun Jul

EXAMPLE

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Solution Evaluation Example Format

EXAMPLE

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0

500

1,000

1,500

2,000

JulJunMayApr

Breakdown lossesMinutes

Target

Actual

MarFebJan

ALTERNATE SLIDE WITH THINKCELL FORMAT

Step 7: Standardize and Maintain Control

After solving the problem and improving the process, the Standardized Work and all

process related documentation must be updated to the new

standard

Standards to maintain improved equipment conditions

Monitoring• Workers have to provide data daily• Team leader will calculate daily up-time and weekly Pareto

analysis of downtime losses

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ps 130 rev d problem solving

Documents