Welcome to Flipkart - Lean

Yellow Belt Workshop

Objective of the Program

To Inculcate the culture of Continual Improvement by

enhancing the Problem solving skills of the People

Continual Improvement Culture – Problem Solving Skills

How they are connected?

Continuous Improvement
Continuous improvement is a constant endeavor to reach better state

Improved state

Problem!
Current state
Improved state

Problem!
Current state
Improved state

Current state Problem!

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Why Continuous improvement? Business Point of view

COMPETENT & EMPOWERED

ROBUST PROCESSES
PEOPLE

VISIONARY & KNOWLEDGABLE LEADERSHIP

-4-
Why Continuous improvement? Customer Point of view
Supplier Customer

Quality
Defect free
Delivery Demands
Service Cycle time
Price
Cost

Gaps exists in the demands & service

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Lean Six Sigma Certifications @ Flipkart
Certifying Success Criteria
• Should complete 7 Days of training
• Must complete 1 project in 12 weeks post training
• Project Selection & Completion approved by Sponsor
• Pass Assessment Test – Min 75%
• Project should yield Savings min INR 6.0 Lacs Annualized
• Mentor a Yellow Belt Project
•
•
Should complete 10 Days of training
Must complete 1 project in 20 weeks post training
• Project Selection & Completion approved by Sponsor
• Pass Assessment Test – Min 80%
• Project should yield Savings min INR 10.0 Lacs Annualized
• Mentor 2 Yellow Belt or 1 Green Belt

• Should complete 3 Days of training

• Must complete 1 project in 6 weeks post training
• Pass Assessment Test - – Min 70%

LSS Black Belt

Certification

LSS Green Belt

Certification
Lean Yellow Belt
Certification -6-
Lean Yellow Belt Certification Road Map

Lean
Sponsor
Sign-off
Yellow
Belt

Complete Project
Pass Assessment & Sponsor Sign-off
Test
Identify Project
Structured &
Focused way of
Solving Process
Attend 3 days Problems
Workshop

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Problem Solving Skills

1. Identifying/Understanding the Problem – Unified and Calibrated Understanding

- Development of Critical Eye to Identify the Problems in the Process

2. Solving the Problem – Systematic & Standardized Approach

- Structured Problem Solving approach capability building
Introduction to Lean Concept
What is Lean?

“Reduce the time taken from Order to Cash

by Eliminating waste in the process”
Origin of Lean

Kiichiro Toyoda,Taiichi
Ohno and others refine James Womack, Daniel
current manufacturing Jones and Daniel Roos
Sakichi Toyoda invents Toyota Motor Company techniques and reveal Toyota’s lean
loom that automatically was created from the management philosophies and TPS to
profits made by the philosophies into the the world with The
stops when a thread Machine that Changed
breaks (Jidoka) Toyoda Automatic Loom Toyota Production
Works System (TPS) the World

Define
Measure
Analyze
Improve
Control
Henry Ford
William Edwards Deming Bill Smith introduces
revolutionizes auto Walter Shewhart “Six Sigma” James Womack and
industry with assembly teaches Japanese
develops principles of methodology at Daniel Jones follow up
engineers, managers &
line production statistical quality scholars on SPC, concepts Motorola to reduce with Lean Thinking
techniques and control & control of quality and managerial defects & improve describing the (5)
standardized work charts techniques profitability principles of Lean

1902 1919 1924 1937 1950 1986 1990 1996 Present

Essentials of Lean

Think of the organization as a “Water Hose”

Current Situation :Obstacles (NVAs)
• Water moving slowly
50 litres/min • A larger diameter pipe required
• Lots of water in the pipe
(Work in progress)

Remove the obstacles in the hose

(i.e. Lean the flow of water)
Improved Situation :
60 litres/min • Water moving at a faster speed
• A smaller diameter pipe required
• Less water in the pipe
(Work in progress)
Focal point in process for Obstacle free flow

Customer Obstacles of the

Process VA Activities
Need
Essential NVA
Activities
Activities
NVA
Business Activities
Pure Waste /
NVA
Work

Process
NVA should be eliminated, improved and automated (in that order)

15
Three forms of Inefficiencies (NVA)
1. Mura – Inconsistencies
2. Muri – Physical Strain / Over bourdon 3 Wise Man
3. Muda - Waste

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What is Value?

Value:
• The thing that customer is willing to pay for
• Addresses specific need(s) of the customer at specific time
and a specific price
• Is always defined by customer and not by us

Waste / Non value add activities:

• Anything that adds Cost to the product without adding Value
17
3 Types Of Activities in Lean
 Value-Added activities:
– Customers are willing to pay for it
– It physically changes the product
– Done right the first time
 Non value-Add activities:
– Not essential to produce output
– Do not add value to the output
– Simply increases the cost

Examples: Example:
• Enter information • Verification
• Run the program • Waiting time
• Generate report • Sorting
• Formatting
 Essential non value add
activities:
– Can not be eliminated
with the current condition
Examples:
• Login to system
• Open the files

NVA should be eliminated, improved and automated (in that order)

TYPES of Muda / NVA (7+1)
T Transport Waste
I Inventory Waste
M Motion Waste
W Waiting Waste
O Overproduction Waste
O Over-processing Waste
D Defects Waste
S Resource Waste
TYPES of Muda / NVA (7+1)
T Transport Waste • Moving product / Information from one place to another

I Inventory Waste • Storing Products more than required

M Motion Waste • Physical / mental motion that doesn’t add value

W Waiting Waste • Employees waiting for another process / Information

O Overproduction Waste • Producing more than what next process want and when it wants

O Over-processing Waste • Adding excess into the product/Service than what is valued by the
customer

D Defects Waste • Not meeting customer acceptable limit

S Resource Waste • Not using employees full intellectual contribution

Resolving the Problem
What is Structured Problem Solving?
A Systematic defined way of resolving the problems,
which quantifies quantum of Improvement made in the
Process and focus to address the Systemic Root
Causes

M – Methodology
M – Metric
T – Tools

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Projects Execution @ Flipkart - Lean Yellow Belt
Define Explore Improve Sustain
Tools – Process
Capture what Customer Observation Tools
Wants • VSM / 8 Waste • Kaizen
Analysis - 5S
• Push/Pull flow - Standardization
• Level Loading - Kanban
Define the Metric & • Poka-Yoka
Explore the causes • Analogy/Abstraction
Baseline (Before)
thinking

Find the Systemic Root Develop Solutions

Tools
• Voc – CTQ Drill cause
Tools
Down • Control Plan
• Project charter Prioritize Solutions • Control Chart
Tools – Cause Mapping
• C&E Analysis
• Pareto Analysis Develop Controls
• Why-Why Analysis Implement Solutions &
Measure Improvement
(After)
Calculate Project Benefit

Prepare Story Board

Define Phase

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 Define Phase

Purpose ▪ VOC – Voice of the Customer

• Defining the Problem in a form of Measurable Entity connected to
Customer Requirement
• It also sets the Expectations of the Improvement Project
• Well defined problem is Half resolved

▪ VOC – CTQ/KPI
Define Drill Down
▪ Project Charter

▪ Project Charter
▪ Metric (CTQ) Baseline
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What can be Customer requirements - VoC in your work areas ?

• On time delivery
• Less Defects %
• Higher productivity
• Lower operations cost
• % First Time Right production
• Speed of answer < 24 sec
• Less % Invoices with errors
• Reduced inventory
• Reduced cycle time

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VoC – Customer Types
There are two types of Customers:
External:
• Individuals or organizations outside of the business Who will pay for the products and
services

Internal:
• Departmental colleagues internal to the organization who use products or services or
outputs from the internal process as their inputs to eventually satisfy external customers.
For Example: HR, IMG, FMG, etc.

29
What is a CTQ/KPI?
• CTQ stands for ‘Critical to Quality’
• The output of the process is called CTQ
• CTQ’s could be derived from Customer requirements,
Risks, Economics and Regulations ?
Some Examples of CTQ
• Delivery by 5th of every month
• Ensure 99.97% accuracy in Billing statements
• Ensure minimum Productivity of 150 units/ day
• Reduce inventory to 25 days of sales
• Reduce line rejection to 450 ppm

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VOC -> CTQ Translation Matrix
VOICE OF CUSTOMER KEY CUSTOMER ISSUE

Customer deliverables are not

delivered on time Delays in deliveries

CRITICAL TO QUALITY CRITICAL CUSTOMER REQUIREMENT

% On time Delivery Deliveries to be made as per

committed dates
VOC -> CTQ/KPI Translation Matrix

VOICE OF CUSTOMER KEY CUSTOMER ISSUE

I am getting my Bills at different times In Consistency in monthly Billing

of the month

CRITICAL TO QUALITY CRITICAL CUSTOMER REQUIREMENT

% of bills delivered on 2nd Monday of Bills to be received on same

every month day every month
Project Charter
A Project charter is a written document and works as an agreement
between Sponsor and the team about what is expected from the
project

WHY?
• Clarifies what is expected of the team.
• Keeps the team focused.
• Keeps the team aligned with organizational priorities.
• Transfers the project from the Sponsor(s) to the project team.

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 Project Charter
Project Leader Project lead name Project Mentor Deepak- South , Jafar-West , Devender - North

1
Team Member Members Supporting the project Project Sponsor Zonal Head Name

Business Case 2 Project In scope Project Excludes 5

One of the key Objective Of City Logistics Business is to constantly enhance the 1. FE in hub Time.
operating capability of asset and thereby making an impact on operating cost of the 2. Load Arrival Time
asset. Blended productivity is one of the key input Element which impact Operating 3. Sorter / TL Productivity
cost. Hence enhancing Blended productivity from its design level will help us 4. Process : Day start & Day end
reducing operating Cost. 5. FE Travel Time / Travel Route

Problem Statement : 3 Phase

6
Planned Start
Date
Planned End Actual
Date Start Date
Actual
End Date
Blended Design productivity for month of Feb’18 is XXXX_ and actual productivity in
Define
Jan’18 is XXXX. which is Lower than the Average National productivity. This is
significantly impacting of Operating cost ( CPS ) Explore
Goal Statement: 4
Improve
TO Improve Blended Productivity from Existing Design Level XXXX to YYYY i.e. by 20
%. Sustain
Productivity – Improve Efficiency Quality – Defect Reduction Cost – Operating Cost Reduction Speed- Time to Deliver
7
Impact On
Safety - Improve Operating safety Moral – Employee Satisfaction Other Internal Metric
Project Charter
Element 1 – Resource Details

•Project (Lead of the Improvement •Project

(Lean Specialist)
•Leader project) •Mentor

•Team (Members Supporting •Project (Respective Operations

•Members the project) • Sponsor Head)

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Project Charter
Element 2 – Business Case
A Business Case:
The Business Case is a justification for spending the resources to do the project and lists all the benefits that will accrue to the business
from doing the project.

― Explains “…Why should we do the project?”

― Provides inputs for listing the benefits like

❖ Reduction of Rework cost

❖ Increase in Customer Satisfaction
❖ Decrease in costs
❖ Reduction in Manpower
❖ Reduction in cycle-time
❖ Increased business opportunities
Example:
Business Case should always start with the CTQ which we want to Improve
Benefit - Reduction in cycle time of loan processing will increase in the number of loans processed which will beat the competitors hence
acquiring more customers leading to increased market share. This will result in higher business revenues for the bank.

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Element 3 - Project Charter - Problem Statement
A well-defined problem statement describes the ‘pain’
– What is wrong or not meeting your customer’s needs?

– When and where do the problems occur?

– How big (Magnitude) is the problem?

– What’s the negative impact or Consequence of the problem?

– Should not contain cause / solution of the problem

Example:
CTQ – Cycle time of Loans processing
Problem statement - From Jan-07 to Apr-07 (When), the cycle time for loan processing has increased (What) from 4
days to 9 days (How Big)

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Element 3 - Problem Statement

Poor Example:
Our customers are angry with us and thus delay paying their bills.

When

Good Example - With data:

In the last 3 months, 12% of our customers are late, by over 45 days in paying

their bills. This represents 20% of our outstanding receivables & negatively

affects our operating cash flow.

Magnitude Consequence
What

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Element 4 – Goal Statement
A well-defined Goal statement:

– Should specify the clear Target level to achieve

– Should have a Timeline associated with it

– Should not contain solution to the problem

Example:
To reduce the Defect rate from x% to y% by xxxx timeline

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Element 5 – In scope / Out scope

• Project Scope / Boundaries

✓ Describe focus on specific:
▪ Customers ▪ Locations
▪ Markets ▪ Processes
▪ Products

Sample Project Scope / Boundaries :

• Reduce Rework:
✓ Within Scope: Within Technology.
✓ Out of Scope: Operations & S & N

40
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Element 6
• Project Milestones / Schedule
✓ Describe target dates for each phase of Define/Explore/Improve/Sustain cycle
✓ Deadlines can be fixed for project identification & closer
✓ Define and measure can be done within one month
✓ Analyze may take about a month. Remaining time goes in Improve and control.

Planned Start Planned End Actual Start Actual End

Date Date Date Date
Define
Explore
Improve
Sustain

41
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Element 7 - Benefits

•IMPACT ON

Productivity – Improve Efficiency

Quality – Defect Reduction
Cost – Operating Cost Reduction
Delivery – Reduce Time
Safety - Improve Operating safety
Moral – Employee Satisfaction
Other Internal Metric

42
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Baseline Performance
Name of the metric : (Mention your project Metric)

Period of Data : (Period for which the data collected to arrive Avg)

Current Performance : (Avg Performance)

Specification Limit : (Target Limits)

Trend Graph :

(Trend Graphs/Bar Graphs)

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Explore Phase

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 Explore Phase
▪Base lined Metric (Critical to Quality)

Purpose
• This is to Understand the Current State of the process
• Exploring the Underlying Causes & Sources of Variations
• Identifying the Systemic Root Cause causing the Problem
▪ Process Observation
▪ Cause Mapping
Explore ▪ Root causes

▪ Systemic Root Causes

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 Causes Exploring Methods
CTQ
• Time • Quality
• Productivity • Cost
• Customer Experience

Process Observation Method Cause Mapping

Identify the Potential Causes
Understand the Current flow of the
affecting the Metric using C&E
Process using VSM
Tool

Understand the time details of each

Graphical Display of Major cause
activity and classify each activity what
categories using Pareto Graph
is Value add / Non Value Add

Find the Systemic Root cause for

Analyse the NVA in 8 wastes form &
Major Cause using Why-Why
Identify the Systemic Root cause
Analysis
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Introduction to Basic of Statistics

47
What is Statistics?

Statistics is the science of collecting, organizing,

analyzing, interpreting, and presenting data.

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Data Types

Types of Data

Attribute Numerical
(qualitative) (quantitative)

Discrete Continuous
Nominal Data Ordinal Data X=2 X = 85.5
(No of siblings) (your mark % )

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Identify the data types from Large RVP data
Shipment value rvp_ageing_
Order_id return_reason rvp_origin_DC No_of_items Seller Rating (*)
(Rs.) days
OD110666712670665000 MISSING_ITEM 3199 ekl_Luhari_03Large 1 4 60
OD111057002457068000 DEFECTIVE_PRODUCT 10599 ekl_Luhari_03Large 1 5 22
OD110666712670665000 DEFECTIVE_PRODUCT 3199 fkl_ggn_ptl_01large 1 3 68
OD110428581180240000 DEFECTIVE_PRODUCT 26999 fkl_hyd_kpr_01large 1 1 96
OD110291539726465000 MISSHIPMENT 25499 fkl_hyd_kpr_01large 1 1 91
OD110714229591487000 CUSTOMER_REMORSE 3499 ekl_Luhari_03Large 3 2 60

Continuous Order ID Nominal

Quantitative
Return Reason Nominal
Discrete
Shipment Value Continuous
Data
DC Nominal
Ordinal
No. of items Discrete
Qualitative
Seller Rating Ordinal
Nominal
Ageing Days Continuous

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Data Types

• Number of items delivered in a day

• Volume of the container
• Product rating
• Intensity of sound
• Phone color
• Jersey number of a sports person
• Test results Pass/Fail
• Money

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Common measures of Central Tendency & Dispersion

Statistic Formula Excel Formula Pro Con

n
1
 xi
Familiar and uses all
Influenced by extreme
Mean =AVERAGE(Data) the sample
n values.
i =1 information.
Robust when Ignores extremes and
Middle value in
Median =MEDIAN(Data) extreme data values can be affected by gaps
sorted array
exist. in data values.

Sensitive to extreme
Xmax – Xmin =MAX(Data)-MIN(Data) Easy to calculate
Range data values.

n Most common
 ( xi − x )
2
measure. Uses
Standard i =1 =STDEV(Data) same units as the Non-intuitive meaning.
deviation (s)
n −1 raw data ($ , £, ¥,
etc.).

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 Causes Exploring Methods
CTQ
• Time • Quality
• Productivity • Cost
• Customer Experience

Process Observation Method Cause Mapping

Identify the Potential Causes
Understand the Current flow of the
affecting the Metric using C&E
Process using VSM
Tool

Understand the time details of each

Graphical Display of Major cause
activity and classify each activity what
categories using Pareto Graph
is Value add / Non Value Add

Find the Systemic Root cause for

Analyse the NVA in 8 wastes form &
Major Cause using Why-Why
Identify the Systemic Root cause
Analysis

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3 Important Metrics in Lean
➢ Takt Time

➢ Cycle Time

➢ Lead Time
 55
Pacing the Value Stream - TAKT Time
TAKT Time refers to the rate at which service must be provided in order to match the
rate of customer demand.

▪ TAKT is a German word meaning meter or rhythm.

▪ TAKT Time provides a pace to a process much like a

conductor sets the pace for an orchestra.
 56

Calculating TAKT Time

Available Service
TAKT Time =
Time
Customer Demand

56
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 Cycle Time
Cycle Time (C/T) refers to the amount of time it takes for an operator to complete all
steps of a given process.

▪ Cycle Time should be measured from the start

of a cycle to the start of the next cycle.
▪ Multiple measurements should be taken to
ensure accurate timing.

57
Lead time

Lead time is the time required to serve the customer from the time the service was initiated till
resolution..

Ex : Imagine the Pizza Process, the time it takes from the Order placed to Delivery of the Pizza.

Lead Time

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3 Important Metrics in Lean

The pace at which Cx

requires product

Time required to process a = Available Service time/Cx

single unit from start to finish Demand

= Net Production time/ No. of

units produced

The time between the

initiation and completion of
a process.

= Time from Order to

dispatch
Value Stream Mapping

Value stream mapping is a lean-management method for analysing

the current state and designing a future state for the series of events
that take a product or service from its beginning through to the
customer. At Toyota, it is known as "material and information
flow mapping"
Important VSM Symbols
Icon Indicates no. of
= FTE involved in
represents =
customer or a process
supplier
Wide arrow
indicates
finished goods
=
Indicates pull or services to
= the customer
mechanism

Arrow indicates
Indicates push electronic
= =
mechanism transmission

Indicates kaizen
Indicates inventory = opportunity is
= identified
in process
61
Value Stream mapping
Value stream mapping is a lean-management method for analysing the current state and designing a future state for the
series of events that take a product or service from its beginning through to the customer. At Toyota, it is known as material
and information flow Mapping”
VSM Uses to identify Bottleneck.

• Understand wait time from VSM Ladder. Identify the 3Ms

[Mura / Muri /
• Look for Highest cycle time Process – Cycle Time Analysis Muda –
TIMWOODS
• Looks for Rolled Throughput of Process associated to the
Bottle Necks]
• Identify Improvement opportunity in information flow.
TAKT Time and Cycle Time

64
Cycle Time Analysis- Template

Essential Non Non- Value Cycle

Activity Process Step Customer Value Added Takt Time
Value Added Added Time

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Waste Analysis- Template
Whether found in the
Waste Category Process Step Actual Waste Observed Time IMPACT
process

Transportation (of work unit)

Inventory (of work unit)

Motion of Employees

Waiting (both employees and

work unit)

Overproduction (work unit)

Overprocessing (work unit )

Defect ( work unit )

Intellect ( employees)

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Waste Link to Lean Techniques [Systemic Root Causes]
Type of Waste Systemic Root Causes [Links to Lean Concepts/Techiniques]
Lack of Organized Layout
Transport Waste Lack of Organized Work
Lean Techniques/Concepts
Lack of Streamlined Flow
Imbalance Line Organizing Work Space
Excess Inventory Higher Batch
Lack of Pull Layout System
Lack of Organized Layout
Motion Waste
Lack of Organized Work Skill requirement
Lack of Streamlined Flow
Lack of Standard Work Standard Work
Imbalance Line
Higher Batch Batch Processing
Lack of Organized Layout
Waiting waste
Lack of Organized Work Single Piece
Lack of Streamlined Flow
Overproduction Imbalance Line
Push & Pull System
Over processing Std.work
Lack of Deskilling
Level Loading
Defects
In-effective Training System
Lack of Measurement System
Kanban
Resource waste
Lack of Job Definition

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Push & Pull System

➢ "Push type" means Make to Stock in which the production is not based on
actual demand.
➢ "Pull type" means Make To Order in which the production is based on actual
demand.
➢ In supply chain management, it is important to carry out processes halfway
between push type and pull type or by a combination of push type and pull
type.

“Only make what is pulled from the customer

at the rate of their requirement” - TPS
Batch Process Vs Single Piece Flow

Batch Flow-
Processing of Job done in Batches once the set Batch size is Processed then the
output in moved to the Next step for processing

Single Piece Flow -

Processing of job done in continuous manner as soon as the Job is completed it is
moved to the next step making it one piece flow

69
What are the 5S’s?

70
What is Kanban

• Kanban means many things.

• Literally, Kanban is a Japanese word that means "visual card".
• At Toyota, Kanban is the term used for the visual & physical signaling
system that ties together the whole Lean Production system.
• Kanban as used in Lean Production is over a half century old.
• It is being adopted newly to some disciplines as software.

71
How does Kanban work?

There are many flavors, but the core of Kanban means:

• Visualize the workflow
– Split the work into pieces, write each item on a card and put on the wall.
– Use named columns to illustrate where each item is in the workflow.

• Limit WIP (work in progress) – assign explicit limits to how many items
may be in progress at each workflow state.

• Measure the lead time (average time to complete one item, sometimes
called “cycle time”), optimize the process to make lead time as small and
predictable as possible.

This is a direct implementation of a lean pull scheduling system.

72
Kanban

• The implementation of a kanban system, as well as other lean

manufacturing methods, like 5s, and kaizen, can have
significant benefits for almost any type of work.
• Kanban is faster, more efficient, and saves significant money
over most other production models.
• A kanban system is also far more directly responsive to
customer demand.
• Kanban is a system that visually indicates when production
should start and stop.
73
 Explore Phase –
Exploring the Causes using Cause
Mapping Method
Cause and Effect Analysis

Cause & Effect Analysis

• No statistics involved

• Maps out a process/problem

• Makes improvement easier

• Looks like a “Fish Skeleton”

What is a C&E diagram or C&E Analysis ?
C&E diagram is an analysis tool to provide systematic way of understanding effects and the causes that create
those effect. The design of the diagram looks like the skeleton of a fish hence. Dr. Kaoru Ishikawa, a Japanese
quality control statistician, invented the C&E diagram.

List the problem/issue to be studied in the head of the

fish
The 6 M’s: Methods, Machines, Materials, Manpower,
Measurement, Mother Nature
The 4 P’s: Place, Procedure, People, Policies
The 4 S’s: Surroundings, Suppliers, Systems, Skills

76
C&E diagram or C&E
Analysis
Machine Environment
Causes

Effect

Material Methods People

- 77 -
C&E diagram or C&E Analysis

- 78 -
Pareto
Analysis

• Bar Graph with Cumulative Curve

• Use of the 80/20 rule

• Use of percentages to show importance

• Tool to find Vital Few & Trivial Important

Pareto
Analysis
• The Pareto principle (80/20 Rule) states that 80% of our problem can be
explained by just 20% of the causes.
– We just have to figure out which 20% are the critical ones!
• The Pareto chart makes clear which “vital few” problems (causes) should be
addressed first:
– Manufacturing
• A quality engineer wants to know which defects occur most frequently.

– Transactional
• A human resources manager wants to know which day of the week the majority of resumes are
received.
• A salesperson wants to review last quarter’s sales figures by product line.
Pareto
Analysis
Freight Billing Errors

100
40
• The Pareto chart bars are divided into causes of
80
freight billing errors.
30
• The vertical axis shows a count of each error type.

Percent
60
Count

20 • The red line is a cumulative percentage.

40 • “Non-core carrier” is the most frequent problem,
10
representing 42.9% of the total errors.
20
• Next-largest contributor: “Missing code”
0 0
Non-core Missing Incorrect Incorrect
Incorrect Freight Others
Defect Carrier Code Destination Codes
Classification
Zip Codes

Count 18 15 4 2 1 2 We should consider focusing our improvement

Percent 42.9 35.7 9.5 4.8 2.4 4.8
Cum % 42.9 78.6 88.1 92.9 95.2 100.0 efforts on ‘non-core carriers’ and ‘missing codes’.
Interpreting a Pareto Chart

Clear Pareto Effect? Any ideas?

No Clear Pareto Effect?

Defects

40 120%
35
100%
30
80%
25
20 60%
15
40%
10
20%
5
0 0%
Factor Factor Factor Factor Factor Factor Factor Factor Factor Other
A B C D E F G H I

Count Cum %
Root Cause Analysis
Root cause analysis is an approach for identifying the underlying causes of why an incident occurred so that the
most effective solutions can be identified and implemented. It's typically used when something goes badly, but can
also be used when something goes well. Root cause analysis is conducted with the help of three basic questions:
What's the problem? Why did it happen? and What can be done to prevent it?

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5 Whys – To find Systemic Root Cause
In the 1960s, Washington DC officials in charge of the Jefferson Memorial feared Jefferson’s statue would be damaged by constantly washing
off bird droppings. Their plan was to encase the status in a thick layer of plastic costing $300K for the encasement and $10K /yr to maintain it.
A GAO auditor came to ask “why”.
?? WHY -WHY Good WHY -WHY
Why encase the statue in Because the constant cleaning of the
Why encase the statue in Because the constant cleaning of the
plastic? statue will quickly deteriorate it
plastic? statue will quickly deteriorate it

Why does it need cleaning Because the birds in here leave

Why does it need cleaning Because the birds in here leave
so often? droppings on it
so often? droppings on it

Why are so many birds in Because they are attracted to all the
Why birds leave droppings Birds Indiscipline (Lack of here? spiders in here
here? Knowledge)

Ask the right Why so many spiders in Because they are after the flies
question here? coming at night from the tidal basin
Solution : Retrain the
Bird & implement
checklist Why are some many flies in Because they attracted to the lights
here ? illuminating the memorial at night

• The auditor bought a $2 solenoid to delay the lights until

Right question takes us to Systemic root
cause & Solution – Question the primary
cause
30minutes after dark. The flies were attracted to other sources
so the spiders and birds left and it was no longer necessary to
encase the statue
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Improve Phase
▪ Identified Root Causes

Purpose ▪ Kaizens
• To Develop self sustainable Solutions to fix the ▪ Poka – Yoka
▪ Abstraction &
Root causes Identified
• To Map the To-Be flow to achieve the Target State
Improve Analogical Thinking
▪ Impact/Effort Matrix

▪ Validated Solutions
▪ Solution Implementation Plan

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How to Generate self sustainable Solutions???

✓Kaizen – Focused Improvement for Better

✓Poka Yoka – Solutions Error Proof in Nature

✓Analogical Thinking - refers to a process of finding the solution for

the complex problem by lifting the solution from other Known
Domains / Areas

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Challenging the Status-Quo – 1st Step in Kaizen Grandma Ham

Their first conflict came about when the wife cut both ends off a ham before she cooked it.

The next time they were together with the mother and grandmother, the husband asked the mother.
A newlywed couple agreed to share household responsibilities.
He then asked the grandmother… I cut both ends because
I never had a pan big
enough!
Why do you cut off
both ends of a ham That’s how you cook
before cooking it? ham.
That’s how my mother
Why? That’s how my mother
taught me to cook and grandmother
ham.
Why dotaught
you cutme to cook.
both
ends of the ham?
Why do you cut both
ends of the ham?

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Idea Generation Technique

- 89 -
Kaizen Techniques
KAIZEN
• 5S
• Work Standardization
• Kanban
• Modifying the Layouts

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91
Mistake Proofing—Poka Yoke

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Mistake Proofing (Poka-Yoke)

• A technique for eliminating errors

• Based upon the premise that

- It is good to do something right the first time
- It is even better to make it impossible to do it wrong
the first time.

• Mistake proofing focuses on eliminating the source of errors.

• Its objective is to ensure “ZERO” defects

When Can We Find Mistakes?

• Before they occur

– Prediction / Prevention

• After they occur

– Detection / Correctio

94
Mistake Proofing (Poka-Yoke) Examples

Shutdown Control

Warning Warning
- 95 -
Mistake Proofing Techniques
Technique
Error-Proofing Shut Down - Stops the System Control - Stops the Defect Warning - Alerts Warning
Examples
Prevention Detection Prevention Detection Prevention Detection

Fixed Value Method

(Based on Count & Range)
M
e Contact Method
t (Based on Contact of points,
shape, size, weight etc..)
h
o
d Motion step Method
(Operation sequence control
through usage of sensors)

<<Examples>>
96
Cost Benefit Analysis

Cost Of
Implementation
Benefits

Benefits Cost Of Implementation

◼Quality improvements ◼Equipment and materials
◼Cost reductions/Avoidance ◼Training
◼Documentable cost avoidance ◼Improvement team labor
◼Revenue generation ◼Travel and living expenses
◼FTE reduction
Solutions -Control Impact Matrix
1 2 3 7 10 13
12

High
4 5 6 15 16 17
18
Impact
8 11 19 20

9
14

Low

Easy Difficult
Control Impact
Matrix Ease of Implementation
Solutions Implementation Plan- Effective way of tracking and
Implementing the solutions
Person
Sl. No Causes of the problem Identified Solutions Identified Completion Date Present Status
Responsible
Sustain Phase
▪ Improved Process State
▪ Solutions Plan
Purpose
• To establish proper controls to
sustain the Improved State

▪ Document Updation
Sustain ▪ Control Plan

▪ Controls defined for the process

TOLL
GATE
REVIEW

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Control

• In the physical world, the law of Entropy explains the gradual loss of order in a
system. The same law applies to business processes.
• Unless we add “energy” (in the form of documentation and ongoing process
controls), processes will tend to degrade over time, losing the gains achieved by
design and improvement activities.
• The quality plan is the structure through which we add this “energy” to
business processes.

101
Different Controls
Documentation Detailed SOPS Making sure documentation is up to date
Work Instructions – with screen shorts and used encourages ongoing use of
Improved Flow Chart standardized methods

All changes to be reflected in the documented QMS -ISO

Training Update training manual Training ensures that all process users
Train all users the new process perform key tasks in the same way
Update training records
Periodically retrain
Check the implementation of the new process on a defined Audits helps to identify gaps in
Periodic Audits
frequency implementation
Check if the new process is documented
Check if all users are trained on the new process

Periodic Calibration Document which defines the controls identified

Control Chart Features

Target – ‘arbitrarily’ set

OR
Specification Limit from
the customer

UCL = Upper
UCL = 87.56% Control Limit
Calculated
Mean/Average from
Mean = 82.28% data
LCL = Lower points
LCL – 77.00%
Control Limit

A special control
chart in that it also
shows the activity
for the time period.

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Control Plan

Process Systemic Root Solution Parameter to

Control Method Freq Who measures Reaction plan
Step Cause Implemented Control

Usage of HHD by Process 1. Info Process Owner

Qtrly Process Lead
Employees Verification 2. Do Retraining

Lack Effective Method Hand Held Devices

XXXXXXX of Capturing implemented in the
Product Info Process

Functioning of the Report to Materials

Audit Monthly Process Lead
HHD Team

104
Project Closure

Each project needs to have a clear ending when results are assessed,
lessons learned for the next time, and responsibility for continued
operation and improvement clearly owned by the organization

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