Six Sigma Fast Track Course

six sigma, sản xuất

SIX SIGMA FAST TRACK COURSE MAY 2008

Six Sigma Explained

Six Sigma is the popular name of a management system that uses data and systematic

approaches to continually improve the quality of business processes and consistently achieve

performance excellence Simply stated, Six Sigma is a way for you to do things better,

faster, and for less cost

The term "Six Sigma" was originally coined by General Electric and literally refers to a

statistical condition is which a process achieves a failure rate of less than 6 standard

deviations (the symbol for standard deviation is the Greek litter sigma), or 3.4 parts per

million In this regard, achieving Six Sigma performance ideally means reducing undesirable

issues to a rate of less than 3.4 per million transactions In reality however, few business

processes require true six sigma error levels and the term "Six Sigma" has adopted a more

general definition of "continually working toward making business processes as efficient as possible."

Although Six Sigma is a relatively modern term, it borrows heavily from earlier management

philosophies such as Business Process Management, Total Quality Management, and others If

you have any experience with these techniques, you will probably find much of Six Sigma

familiar

The Five Major Areas Of Six Sigma

When Six Sigma is taught, it is generally broken down into five groups of related topics

Since we are moving quickly, rather than covering each of the five areas in depth we will instead provide a brief overview of each area and spend one page highlighting their purpose and components Let's begin by introducing each topic area:

Analytical Tools

Analytical tools are a collection of charts and graphs that help people understand and

communicate data Some of these charts will be familiar to you while others, such as a

control chart, will probably be new These tools are used when data must be organized,

displayed, or communicated to others in the Six Sigma process

DMAIC Problem Solving Process

DMAIC is a formal problem solving methodology for correcting an undesirable process

outcome performance and ensuring that corrective measures maintain acceptable

performance When an organization encounters a problem, or when a business process is not meeting its performance targets, the DMAIC process can be utilized to systematically reduce

or eliminate the problem

Leadership / Strategic Planning

General leadership and strategic planning topics are often discussed as part of traditional Six Sigma training These include areas such as team dynamics, managing improvement teams, and establishing clear linkages between Six Sigma efforts and organizational objectives

How We Will Discuss Six Sigma In This Course

Now that you have a general idea of the topics provided in a Six Sigma course, we'll spend

the remainder of this course two ways First, we must quickly cover some simple concepts

and terminology that are used in Six Sigma You need to learn some of the basics or it will

be difficult to understand DMAIC Once that is finished we will dive right into practical Six Sigma by walking, step-by-step, through the DMAIC problem solving process

DMAIC is a good tool for teaching Six Sigma As you learn each step in the DMAIC process,

you will see how many of the analytical and decision tools are applied, and you will view an example DMAIC "story" to see exactly what the outcome of the structured problem solving process looks like Once you have a basic familiarity of the tools, techniques, and a

"structured process," you will have the minimum skills you need to begin applying DMAIC,

Process Management, or any other Six Sigma concept Working through this process will also demystify Six Sigma and show you why it works so well

Now, before we jump into DMAIC, let's take a look at each of five Six Sigma topic areas

along with an index of links to each of their specific tools, techniques, and concepts

What Are The Analytical Tools?

Below you will find a very brief overview of the major concepts introduced in the full

Electronic Training Solution (ets) Analytical Tools course We will encounter many of these

tools and techniques as they are applied throughout his course You are encouraged to skim the list below and see if any of these concepts are unfamiliar to you If so, please take a moment to click on the item and read a short description of it

Analytical Tools Are A Common Language For Data (Excerpted from the ets Analytical Tools

course)

Analytical Tools are a common language of charts and graphs that are used to

communicate information throughout your organization Each chart and graph conveys different information, but the purpose of each is to help you and others better

understand data

During the course, you were introduced to some general concepts Click on any of these topics to return to the appropriate page in the course:

• The Need For Source Blocks

• Populations and Samples

• Attribute Data vs Variables Data

You also learned the purpose, application, and construction methods for the following

analytical tools Click on any of these topics to return to the appropriate page in the course:

•

• Checksheets or Electronic Spreadsheets

A Checksheet is a tool used to collect data

• Cause and Effect Diagrams

A Cause and Effect Diagram is an analytical tool used to determine qualitative relationships between a problem and the reasons or factors that are possibly causing it

• Scatter Diagrams

The Scatter Diagram is an analytical tool that determines whether or not

a relationship exists between two linked or paired data sets

What are Source Blocks?

Many times analytical tools, such as charts and graphs, are reused or included in

presentations, marketing packages etc Providing a source block ensures that even if your tool

is taken out of context, a reader can clearly determine the timeliness of your data and contact the author if questions arise

By requiring clear documentation of authors and dates, source blocks help maintain

accountability for analysis tools and encourage you to produce accurate work They also

prevent others from misinterpreting your data or using outdated information

The Typical Source Block

Source block formatting is the same for all data analysis tools You should know what

information goes into a source block and the standard way they are constructed

Each source block looks like a small table and should contain, at a minimum, the following information:

When: This is the date when the data was collected, not when the tool was created or

revised This value may be an exact date, a quarter, or even an event If you are unsure about what to put here, ask yourself what information that a reader would require to find the exact information you used in creating your chart

Where: This is the physical source of the data The "Where" entry should provide enough

guidance so that any employee could locate the exact data used for this particular tool Make sure to specify exact locations, such as file paths or document numbers, if they are available

Who: The "Who" entry lists all employees that created the tool It is provided as a

reference so that coworkers may identify the authors of the tool in case they have questions, corrections, or additions

Figures 1 and 2 show example source blocks Note the level of detail provided in each section

of the source block and the variation of the two styles Locating data in a small company is dramatically different compared to a multinational conglomerate Make sure you provide

enough information for your organization

Data Source Information

When: First Quarter, 2003 YTD Where: Doc #11354-1 Human Resource Funding, P

19-27

Who: K Abrahams x3386, C Fenwick x1914

Figure 1: A Typical Source Block from a Large Organization

Data Source Information

When: October 3, 2003 Where: Accountant Report (From J Peterson) Who: Karen in Human Resources

Figure 2: A Typical Source Block from a Small Organization

Source blocks should be attached to every data management tool you produce In fact, it is a good practice to attach the source block prior to completing the tool to ensure your chart will

be accurately represented if someone pulls your chart off the printer or your desk while you are at lunch

Source blocks may be placed in any convenient location on your tool, but generally they are kept in the lower right hand corner for consistency

Sample vs Population

What is the difference between a Sample and a Population?

You can collect information from ALL of the relevant things (every employee) or you can sample a smaller sub-group of relevant things and use their results to represent the entire

group (20% of the employees)

When you collect data from everything in your relevant data set, this is called a "population"

of data Populations are denoted by a capital "N." For example, if you have 450 employees and you asked each one of them which flavor of ice cream they prefer, you have conducted a population analysis where N = 450 Gathering population data is also called performing a

"census" of your data

When you collect data from a representative portion of your entire relevant data set, this is called a "sample" of data Samples are denoted by a lowercase "n." If you instead only asked

100 of your 450 employees which ice cream flavor they prefer, you would have conducted a sample analysis where n = 100 Gathering population data is also called performing a

"sample" of your data

What makes data "relevant?"

If you are performing a study of employee satisfaction in your organization, your population would include every single employee This makes sense, since every employee has a relevant stake in the company's overall satisfaction

Consider, however, an employee satisfaction study of only your Human Resources

department In this case, only HR employees' data would be relevant You may have 450 total employees, but if only 30 of them work in HR, then your population size for the relevant data set is only 30

When determining whether or not you are performing population or sample analysis, you must first decide who your relevant population is In the first case, the entire organization is relevant In the second case, only the HR employees are relevant

Why should I discriminate between "n" and "N?"

Because in the case of a population analysis, "N," you have 100% of the relevant data This means that, assuming no one made any mistakes in your data collection, you have almost complete certainty that your data accurately reflects your relevant population

When you perform a sample analysis, "n," the accuracy of your results is dependent on how representative the sample ("n") relevant characteristics are to the population ("N") In other words, how well the sample resembles the population

Logically, if you only ask 5 people out of 5,000 you will have much less accurate data than if you ask 500 out of 5,000

Types of Data

Attribute Data vs Variables Data

Before we look at control charts in depth, it is important to establish an understanding of the difference between the two types of data that control charts display This is important

because the two major categories of control charts only work with their appropriate type of data Make sure you completely understand this section before proceeding

Attribute Data

Attribute data is any form of data that can be counted as individual events or items

Attribute data points will always be a whole number or count of some type of data that can only exist in two states A good way to remember this is to think of a light switch A switch is either on or off, it is never partially on or partially off If you checked a light switch at noon every day for a month, you could count how many times the switch was on This would be a set of attribute data

Some examples of attribute data sets are shown below

•

• Number of repeat offenders (Did they repeat? If so, then count them.)

• Quantity of defective units (Were the units acceptable? If not, then count them.)

• Project days on time (Is the project on time today? If not, then count it.)

• Sick children (Is the child sick? If so, count him/her.)

• Employee performance issues (Is there an issue? If so, record an issue event.)

Variables Data

Variables data is any form of data that is measured in more than two states In other words,

anytime your data value can be represented in more than a "count it or don't count it"

fashion, you are dealing with variables data

Consider the following examples of variables data The examples provided are similar to the attribute data examples above, but these have been modified to clearly illustrate the

difference in the two types of data

•

• Severity of repeat offense: 1 to 10 (How bad was it?)

• Total cost of defective unit replacement (What is the dollar amount?)

• How far behind is the project? (How many days is it behind?)

• How high is the child's temperature? (What is the thermometer measurement?)

• How urgent is the issue: 1 to 5 (How urgent is it?)

Other more typical variable data sets include:

•

• Time (days, months, weeks, hours, etc.)

• Cost (dollars, cents, etc.)

• Height, weight, length, etc

Checksheets

What is a Checksheet?

A checksheet is a form used to collect data A good checksheet is easy to understand and helps by structuring collected data into groups Although data can be counted in many ways, checksheets specifically show all of the categories that you are counting in addition to how many "checks" each category received

For example, consider a team that is asked to increase daily application processing speed They decide to begin their task by analyzing how many applications are processed each day Some people would suggest Monday is the most productive day, since the staff is rested and ready to come back to work This seems logical, but on the other hand, some workers may have spent the weekend traveling and arrived at work tired and unproductive The actual answer cannot be determined by speculation alone

In this instance, a checksheet could be used to record applications processed on each day By tallying the results, the team would get a fact-based view of daily productivity See Figure 1 below

Figure 1: An Example Checksheet

Each vertical line in the checksheet represents one application A diagonal line is used to signify a count of five This notation is used since most checksheets are completed by hand, and groups of five are easy to count In today's work, checksheets are often created using electronic spreadsheets (i.e Microsoft Excel®)

Key Point

ets FasTrack

Summary 2 of 8: The tool used to collect data is called –

Answer: Check Sheet

Bar Charts

What is a Bar Chart?

A bar chart is a "summary" graph used to compare the amount of an item with other items from the same group

You have undoubtedly encountered these charts throughout your life They are used to show comparisons between values By visually representing data with bars it is easier to recognize small differences in quantities Data items from the same sample group are listed along the X axis and their respective values are represented by a bar's height on the Y-axis The numbers

on the Y-axis are called the “scale.” The scale should contain the complete range of values that are represented See Figure 1 for an example

Figure 1: A Bar Chart

Figure 1 shows a bar chart depicting customer complaints for a given week Each axis is

clearly marked, the chart is titled, and a good indicator shows which direction indicates

improvement in the data set lower complaints is, of course, better

Notice that each data point value is printed over the X-axis bars This is desirable information when reviewing a chart, but due to size limitations you may not always be able to include numerical values

Bar chart data can be grouped by color or pattern When presenting multiple sets of data on a single chart, use different colored bars for each data set

There are many good graphing packages available for creating charts All of the examples and templates provided in this course use the Microsoft Office XP® suite of products

Line Graphs

What is a Line Graph?

A line graph is a "trend" graph that displays outputs or outcomes sequenced by time (or by occurrence)

Line graphs visually represent data so that change in the data set may be determined over a given range The structure of this chart is similar to the bar chart, but here we use points plotted on the X-axis rather than bars The X-axis indicates a division of time and usually places the oldest data on the left hand side As in the bar chart, the Y-axis represents the value of each data point on the X-axis Once the points are plotted, they are connected by straight lines

Figure 1 shows an example of a typical line graph

Figure 1: A Line Graph

A line graph is an excellent tool for highlighting trends and can be used to track more than one set of data at a time If you have multiple sets of data to display, use different color lines and symbols for each set

Note: A line graph is also referred to as a "run chart"

Pie Charts

What is a Pie Chart?

A pie chart is a "summary' graph that shows or highlights data items' relationships to their whole data group

They key word to remember when thinking about pie charts is "composition." Pie charts take

a value or data set and show you the sub-values that compose the overall value

For example, consider your monthly expenses You have a typical monthly cost that

represents the total of every bill you must pay This total monthly cost is composed of smaller total costs: the power bill, the mortgage, the credit card payment A pie chart could be used

in this case to not only display your total monthly cost, but also give readers an

understanding of the expenses that compose your total cost, and their relative size to the overall total

Figure 1 shows an example of a typical pie chart

Figure 1: A Pie Chart

Notice that the chart above shows a total value, $2 Million, and all of the smaller values that compose the large total Each colored section represents an amount of the total value The larger colored sections are of larger value, while the smaller colored sections compose less of the total Typically, the largest "slice" of the chart will begin at 12:00 and the remaining slices will work their way around the graph clockwise

As you might have figured out, pie charts receive their name from their resemblance to slices

of pie

Pareto Charts

What Is A Pareto Chart?

A Pareto Chart is a "summary" Analysis Tool that is used to rank data groups These charts are a combination of a bar chart and a line graph, in which the bar chart shows the quantity

of your data and the line graph shows the cumulative percentage This may sound

complicated at first, but it actually makes a lot of sense when you see it applied Consider the example shown in Figure 1 below

Figure 1: A Pareto Chart

Each bar on the Pareto Chart represents a quantity For example, here we see that 65 "Wrong Size" defects are shown by the blue bar The left Y-axis labeled "Number Of Defects" is used

to measure the bars

The line on the pareto chart represents the cumulative total percentage of each bar For

example, the first point on the line graph occurs in the upper right hand corner of the blue bar This point corresponds to the right Y-axis labeled "Cumulative Percentage" and is about 57% This means that the 65 "Wrong Size" defects comprise 57% of the total number of defects

Look at Figure 2 and confirm that the first two problems, "Wrong Size" and "Wrong Color," comprise over 75% of all defects

Figure 2: Determining Cumulative Percentage Of Bars

Notice that each bar has a corresponding point on the line graph located directly above it To

be technically correct, this line graph point should be above the right-most edge of the bar, however, many graphing programs place this point directly above the bar

In practice, Pareto Charts should be ordered from largest bar to smallest, but they are not required to be drawn this way In some cases, the last bar is labeled "other" and is used as a

"catch-all" for data that occurs significantly less than in the other bars

Cause And Effect Diagrams

What Is A Cause And Effect Diagram?

A Cause and Effect Diagram is an analytical tool used to determine qualitive relationships between a problem and the reasons that are possibly causing it These diagrams help to find the most likely causes of problems or situations

We will refer to all of these contributing issues as “causes” and the problem itself as the

“effect.” Look at the example cause and effect diagram in Figure 1 below

Figure 1: A Cause And Effect Diagram

The large blue box on the right-hand side of the diagram is the "effect box." The effect box lists the overall problem that is to be broken down into potential causes In this case, the problem is "Customer orders are arriving late."

The four smaller blue boxes located on the top and the bottom of the chart are "group boxes." Group boxes represent logical groups of potential causes: people issues, method or process issues, equipment \ materials issues and environmental issues Whenever a potential cause is added to the chart, the cause is attached to its appropriate group

The lines with arrows and text that attach below the group boxes are "potential causes." Each potential cause is repeatedly broken down into its another cause until they cannot be broken down further For example, look at the methods group box Below it is a series of potential causes See Figure 2 below (which is a sub-set of figure one)

Figure 2: A Group Box And Potential Causes Figure 2 is interpreted like this:

performing the cause and effect analysis

Scatter Diagrams

What Is A Scatter Diagram?

The Scatter Diagram is an Analytical Tool that determines whether or not a relationship exists between two (2) linked (or paired) data sets If a relationship is found, scatter diagrams also provide information about the type of relationship that these sets share Figure 1 shows a typical Scatter Diagram

Figure 1: A Scatter Diagram

Scatter Diagrams contain two sets of data The two sets shown in the example above are

"Speed Of Impact" and "Automobile Repair Cost." Notice that one set of data is listed along the X-axis and the other is listed on the Y-axis

The information that is plotted along the X-axis is called the independent variable This

variable represents the "input" condition into the situation that we are testing for a

For example, if you look directly over the 22 mph "Speed Of Impact" tick mark, you will

notice a red dot near the "3" mark on the Y-axis This means that for 22 mph speeds, at least one Automobile Repair Cost was $3,000 Figure 2 shows how the dots establish a relationship between the two sets of data

Figure 2: Reading The Scatter Diagram

Remember that Scatter Diagrams are tests to determine and communicate relationships, if they exist In Figure 1 above, the creator of the diagram is testing a theory that a relationship exists between the speed of a car's impact and the subsequent cost to repair that vehicle Does this seem logical to you?

Histograms provide lots of information about data, much more than any analytical tool

discussed so far Histograms are also more complex than the previous tools, but once you understand the need for histograms, their structure becomes logical and fairly easy to follow

Take a moment to look at the Histogram shown in Figure 1 Try to familiarize yourself with the format of the chart, but don't worry about actually understanding it yet the best way to understand a histogram is to see an example of why they are important You will see such an example in the next section

Figure 1: A Histogram

Histograms are actually a special type of bar chart The X-axis breaks your data set into

categories called "bins." The Y-axis, much like other charts, shows the value of each bar's height

Unlike other charts you have seen, the X-axis labels here are boundaries The first bin on the left begins at 7 and ends at a value of 2.7

The height of each bar tells the reader how many values in a data set are within a certain range For example, according to Figure 1, there are 19 values in the data set between a value of 4.7 and a value of 6.7

Finally, note that the bars in the Histogram form a sort of "pyramid" or "bell" curve shape Much like the scatter diagram, the shape of your plotted data also provides information for these charts

Now that you have a basic familiarity of what a histogram looks like, the next section will explain why histograms are so valuable and how to read them

Control Charts

What Is A Control Chart?

A Control Chart is a data Analysis Tool that helps you to monitor the stability of a process output Whenever you are tracking information that produces continuing data and you seek stability for your process, a Control Chart provides you with an effective method of

determining where to investigate process outputs for special causes that can affect process stability

Much like a Histogram, a Control Chart provides a different view of data that can reveal

hidden aspects of the data set In this case, a Control Chart is a specialized form of a line graph that provides extensive information about how consistent the data is around an

average output

The Control Chart is used only to monitor the "stability" of a process and should never

be used to determine whether or not process outputs are "good" or "bad"

Control Charts are used often in manufacturing where many sub-processes are needed to produce a product such as a car, television set, lamp, etc Control Charts are used by front-line supervisors and staff to monitor the consistency of their outputs Since their outputs are critical inputs for the next sub-process, they need to know on-going (and real-time) whether

or not their process remains stable and in control Consistent outputs (around an average value) are critical to ensure the success of an individual process

Control Charts simply tell you whether or not your process is "in control and, more

importantly, they tell you when to take action on a process output – a process output that signals a new special cause has entered your process By utilizing Control Charts you could better monitor outputs of your process and be able to differentiate between outputs that are a result of normal (built in) random variation in your process and the outputs that are a result

of an abnormal factor (or special cause) that you need to investigate Consider this example:

Figure 1: A Control Chart For Home Temperature

Figure 1 shows a control chart that measures the output of a Service Planning process The 13th and 22nd outputs were outside the Upper Control Limit (UCL) and each point should cause the supervisor to investigate circumstances that caused that output Those

circumstances most probably involved abnormal factors that need to be addressed Those abnormal factors (or special causes) were not designed into the process and need to be

identified and remembered, if appropriate

Summary 4 of 8: If you wanted to show trend data and display process outputs or outcomes sequenced

by time or by occurrence, what graph would you use?

Answer: Line Graph

Summary 6 of 8:If you wanted to summarize and rank data groups, what graph would you use?

Answer: Pareto Chart

Decision Making Tools Overview

What Are The Decision-Making Tools?

Below you will find a very brief overview of the major concepts introduced in the full

ets Decision-Making Tools course We will encounter many of these tools and

techniques as they are applied throughout this course You are encouraged to skim the list below and see if any of these concepts are unfamiliar to you If so, please take

a moment to click on the item and read a short description of it

Decision-Making Tools Produce Decisions Based On Consensus, Fact (Excerpted from

the ets Decision Making Tools course)

Decision-making tools are a series of techniques used to organize thoughts and determine outcomes The consensus and data-based approach to the decision

making tools shown in this course help teams stay focused on logical solutions

and back outcomes that are most likely to succeed

Remember that these tools are all required skills in formal problem solving, DMAIC, six sigma and process management methods In those courses, you will learn how to apply these tools in a logical sequence to achieve dramatic results

The following list provides a quick reference listing of each topic that you covered in the course, along with a reminder of their general application and role Take a

moment to ensure that you remember the general purpose of each tool, paying

special attention to the bold-faced text

The Problem Statement

What Is A Problem Statement?

A problem statement is the first step in many decision-making processes A brief discussion

on the problem statement is included so that you will have an understanding of the

specialized connotation of "problem" often used in formalized decision making processes

A problem statement is a concise, specific statement of a problem that is to be solved –

particularly in the context of formal decision-making, process management, or improvement programs (six sigma)

A good problem statement specifies precisely the problem to be addressed It has been said,

"a problem well stated, is a problem half solved." Clear definition of the problem help focus the team and move them in the right direction from the beginning Taking time to correctly state the problem can also give a "second look" before moving on to the more time

consuming processes of data collection and analysis It is easy, especially when working on a project over many days, to drift from the original specific problem Having a single clear statement greatly reduces this effect

Action Plans

What Is An Action Plan?

An action plan is a technique that contains the "Who, What, When and How" of a course of action (countermeasure) In the context of management, action plans are often used for

improvement or project tracking When well constructed, an action plan serves as the overall blueprint of how your process resources are allocated, and how each member of your team will

be involved in the process

Let's briefly look at how the Action Plan shows Who, What, When, and How, using Figure 1 for

an example

Figure 1: An Action Plan

Figure 1 shows a typical Action Plan format Since this course is designed to support

improvement, the action plan presented here is for a process improvement countermeasure For the sake of clarity, a "countermeasure" is an action taken to correct a problem in a process or behavior

The root cause, practical method, and countermeasure lines all refer to information from a

process improvement team There is a logical relationship between these three fields The root cause is the problem that the countermeasure is attempting to resolve The practical method is the way in which the countermeasure will be implemented Each practical method is usually composed of a series of tasks that must be completed, or continued, to ensure that the method succeeds These tasks are the items highlighted on an action plan

The "Owners" line lists the people who are responsible for this particular Countermeasure and Method These will typically be the people held accountable for this plan and its timely execution

In some cases, an "Owners" column may appear on the chart, listing a specific owner's name for each task

Below all of the previous information is where the actual tasks are listed Each task is

represented by a row with boxes used to denote the planned time (empty) and actual time

(filled) for each task Like the x-Axis of a chart, the bars pass through vertical columns that denote some segmentations of time: days, weeks, months, etc Time progresses from left to right, such that boxes on the left denote a time prior to boxes farther to the right

For example look at the bar to the right of Task Two in Figure 1 The solid box represents

completed work toward the task; the empty box represents scheduled work By using the right and left edges of these boxes you can tell that Task Two, "Generate new questions," began in early February, is about 1/4 completed, and is scheduled to finish in late March

When an action plan is completed, it clearly shows all the information about an improvement process: its owners, its purpose, and its status These plans serve as a record of team efforts and a standardized way to report progress and timeliness

These types of charts, which use boxes or lines to denote tasks, are also referred to as Gantt Charts

Barriers and Aids Analysis

What is a Barriers and Aids Analysis?

Barriers and Aids Analysis is a technique that is used to identify elements that hinder

(barriers) or help (aids) a proposed course of action (countermeasure) Barriers and Aids Analysis helps a team to decide whether or not a countermeasure would be an effective solution to a problem or opportunity, and to identify any potential problems before going too far with a project In fact, this process is frequently done before starting an action plan to verify the feasibility of proposed countermeasures

In simple terms, Barriers and Aids Analysis is a structured method of determining the "Pros" and "Cons" of doing something

Figure 1 shows how Barriers and Aids Analysis breaks down the barriers and aids to your countermeasure and rates them on a standardized scale of importance Remember that standardization and effective communication are important when providing information to decision makers!

Figure 1: A Barrier and Aids Analysis

The general course of action is listed on the "countermeasure" line

The specific course of action, or "Practical Method," line gives a description of how this

countermeasure is specifically proposed to be implemented Note that for every

countermeasure, many practical methods may exist!

The "Forces Pushing Against - Barriers" column lists all of the barriers that could hinder the implementation of the countermeasure To the left of this column is the "Impact" column, where each barrier is rated as a High, Medium, or Low barrier to success

The "Forces Pushing For - Aids" column lists all of the aids that can be used to overcome, or balance, the barriers listed It is not necessary, however, to have an aid for every barrier The

"Impact" column to the left of the "Aids" column rates the impact of each aid on the barrier it affects

When this analysis is completed, a team will have identified the most important barriers that could prevent them from succeeding in implementation of a countermeasure If a barrier rated as High or Medium impact is not countered or balanced by an appropriate aid, a specific action plan may be needed, or the planned countermeasure may need to be reconsidered

Brainstorming

What is Brainstorming?

Brainstorming is a structured session in which a group rapidly generates ideas This is a

technique that produces a large amount of ideas in a short amount of time It is essentially a process in which a group of people follow a systematic procedure of generating creative ideas / solutions to a given problem

Although many people have used an unstructured form of this technique, there are guidelines that should be followed to increase its effectiveness

The Need For Simple Systematic Processes- "A Tale Of Two Buildings"

While reading about many of the techniques presented in decision making literature, you may find yourself considering how seemingly "simple" some of these processes are While many of these may seem intuitive, it is important to remember that they are the building blocks of more advanced procedures Following a structured, standardized process in the "little things" can have a profound effect on larger outcomes Consider the following example:

Two groups of workers are asked to construct a small building using bricks

The first group, realizing that stacking one brick on top of another is a simple task, begin to build their wall Each worker places the mortar between the brink and stacks another one

on top

The second group recognizes the need for consistency, even in a simple task They

measure their mortar, establish a standard method of placing the bricks, and then begin to build

When both groups had finished, they both had completely different results! Group one's bricks were arranged differently on each wall, and one wall was three inches higher due to excess mortar Group two's walls were of uniform shape and height

Remember this as you progress through your training: Complex processes are almost always composed of many simple processes Small errors in simple processes add up and produce big problems For this reason, make sure you master the language and procedure of even the simplest processes

Consensus

What is Consensus?

Consensus, in the context of this course, is a group decision-making process that takes each member's ideas and opinions into account and results in a decision that everyone in the group can support It is an effective method for decision making because it involves each member's participation and results in an outcome that every participant had a stake in determining

Consensus improves decision quality, equalizes power, causes examination of alternatives, increases commitment to implement the decision and promotes unity among the team

members

The goals of consensus are to:

•

• Eliminate a "we-they" feeling

• Focus on the problem, not on personalities, position, or points of view

• Reach a "win-win" decision

• Develop team ownership of the decision

Achieving consensus should be the goal of your team in any decision-making

process

When consensus has been achieved, the concerns of each individual in the team have been addressed and every team member feels that he or she has participated in the decision-

making and that the decision that has been made is one that everyone can support, if

not 100% agree with

Cost-Benefit Analysis

What is a Cost-Benefit Analysis?

Cost-benefit analysis is a numerical method of evaluating potential practical methods for implementation Consider the following situation:

An organization's cafeteria has a problem Their donut sales have dropped for the third consecutive month, and donuts are a high profit item used to cover the operating costs of the small cafeteria

After performing a cause and effect analysis and a countermeasures matrix, the cafeteria staff determined that customers are dissatisfied with the freshness of the donuts (they are made days in advance) The staff unanimously agreed that their first countermeasure should be to create fresher donuts! After some brainstorming, the following practical

methods were suggested:

•

• Hire a full time baker to make donuts all day long

• Modify the storage system to increase shelf life of the product

• Modify the recipe to help prolong freshness

Each of these suggestions would probably increase donut freshness, but which one should they choose?

When identifying practical methods for implementation, organizations can use cost-benefit analysis to find the one that provides the most benefit with the least cost By selecting the practical method with the highest cost / benefit ratio, a team is ensures the highest

probability of success

Take a look at Figure 1 for an example of a cost-benefit analysis based on the previous

example:

Figure 1: A Cost-Benefit Analysis?

As you can see, the worksheet lists the practical method at the top and then provides

columns underneath The left hand column contains "Costs," with their approximate values Likewise, the right hand column contains "Benefits" with values These values are estimates and do not require exact numbers in most cases

The total cost and benefit is computed by adding up each individual value A ratio of benefits

to cost is then calculated, with larger ratio value being more cost effective choices than

smaller ratio values

Countermeasures Matrix

What is a Countermeasures Matrix?

A countermeasures matrix is a technique applied to select the most actionable solutions to a problem, and provide a clear communication of the solution determination process In more simple terms, this technique is used to "weed out" less feasible solutions and help establish a short list of best possible solutions The countermeasures matrix also establishes the

relevance of a solution to the root cause of a problem and its practical solution methods

The countermeasures matrix consists of a table that lists each countermeasure and provides sections for ranking them according to a series of criteria Figure 1 provides an example of a typical countermeasures matrix format

Figure 1: A Countermeasures Matrix

The purpose of each column in Figure 1 is described below:

The "Problem Statement" column lists the problem you are attempting to solve

The "Root Causes" column lists the sources of the problem, which can be generated and

verified using a cause and effect diagram

The "Countermeasures" column should lists potential solutions for each root cause Each root cause should have at least one countermeasure listed

The "Practical Method" column specifies the exact method with which a countermeasure could

be implemented Each practical method is usually composed of a series of tasks that must be completed, or continued regularly to ensure that the method succeeds

The "Effectiveness" column represents the effect of each countermeasure on the root cause it

is meant to solve Each countermeasure must be rated from 1 to 5, with a rating of 1 showing

no effect on the root cause and a rating of 5 showing an extreme effect on the root cause This rating is determined by a group or team based on consensus opinion

The "Feasibility" column measures how feasible it would be to implement a particular

countermeasure Ratings are again on a scale of 1 to 5, with 1 being an idea that is unfeasible and 5 an idea that is extremely feasible This rating is determined by a group or team based

on consensus opinion

The "Overall" column is the product of the "Effectiveness" and "Feasibility" scores for each countermeasure, and will result in a number between 1 and 25 The higher the score, the more likely the countermeasure is to succeed

The final column, "Take Action," is used to denote which countermeasures and practical

methods that a team feels are worth pursuing further

The actual process of multivoting occurs in three steps, during which the group performs a structured vote on an established list of options By the end of the third phase, the list of options has been narrowed down to the options that the group feels are the best

In many ways, multivoting is a numerical method for obtaining consensus Whereas in

consensus each person provides an opinion on a topic, multivoting allows each person to support a choice (or choices) by casting a vote The group outcome choices in multivoting are determined by the number of total votes

Figure 1 shows an example of the outcome from a multivoting process

Figure 1: Multivoting Worksheet

Pairwise Ranking

What is Pairwise Ranking?

Pairwise Ranking is a structured decision making technique that ranks a small list of items (usually up to five) in a prioritized order This technique also assists in achieving a consensus

on the highest-ranking item

Figure 1 shows how pairwise ranking works In the following example, a corporation must select a site for a future research and development facility The company has locations across