SCORE Productivity Training

Addis Ababa, Ethiopia

- Sustaining Competitive and Responsible Enterprises

Recap of learnings from Day 1

 Workplace cooperation: ESS, Daily Meetings, Visual

Information Sharing
 Implementing 5S
 Key performance indicators for your enterprise

2
 Productivity Training
Quality Management

- Sustaining Competitive and Responsible Enterprises

Day 2: Agenda
Time Day 2

8.30 – 9:00 Welcome – Setting the context

Session 1: Quality at your enterprise – Introduction to quality
9:00 – 10:30
principles
10:30 -11:00 Tea / coffee break

11:00 – 12:30 Session 2: Tools for diagnosing quality problems

12:30 -13:30 Lunch

13:30 – 15:00 Session 3: Tools to visualise quality problems

15:00 – 15:30 Tea / coffee break

Session 4: Analysing root causes of the quality problems; daily

15:30 – 17:00
problem solving and taking action

4
Day 2
Session 1

QUALITY AT YOUR ENTERPRISE –

INTRODUCTION TO QUALITY
PRINCIPLES
5
Session objectives

At the end of the session, you will be able to:

1. Describe why quality is important
2. Explain pillars of quality management
3. Understand customer requirements and expectations
4. Understand quality culture
5. Understand quality goals and indicators

6
Brainstorm

1. What is your enterprise’s product / service?

2. How do you define that the quality of your

product / service is 100% acceptable to your
customers?

3. Is there any aspect of ‘quality’ you would like to

improve?
Workshop Exercise 1
7
Definition of Quality

 ISO defines quality as the

o totality of features and characteristics of a product or service that
o bears its ability to satisfy the needs of the company, the market and
the customer
o on a consistent basis.

 This definition implies that you:

o conform to requirements
o prevent defects
o know what your customers need
o apply a systems approach and specifications
o check/measure your system periodically
8
Product vs. customer-based view
 Product-based view
o Quantity or characteristics of certain product features matters (e.g.
higher tech = higher quality)
o “Experts decide what quality is”

 Customer-based view
o Quality is what customers want and
what will satisfy them
o Product performance, price,
durability, luxury, service,
convenience

 What dimensions of quality are of value to your customers? 9

Manufacturing vs. service quality

 Manufacturing quality focuses more on tangible product

features
o Conformance, performance, reliability, features

 Service quality focuses on intangible products that must be

experienced
o Quality often defined by perceptional factors like courtesy,
friendliness, promptness, waiting time, consistency

10
Quality concerns need to be addressed at all
stages

 Product design
o Are your products designed to meet customer needs at the lowest
costs?
o Are they designed in a way that will make it easy to achieve consistent
quality?
 Process design
o Are your processes designed to ensure that quality is respected at
every step during the production cycle?
 Process control
o Does your process control ensure that a product is produced that
meets quality specifications?

11
Why is quality important?

 Separates your business from competitors (“Unique selling

point”)
 Keeps customers satisfied
 Drives your business towards excellence

…but isn’t quality expensive?

12
 Tangible Costs

Disregarding quality is costly

Intangible costs
Delays caused by
defective Reduction in
products. worker morale
Loss of sales
Reduced
Loss of good will
customer
confidence
Labour costs
Scrap
materials Discount sale of
defective
products
Repairs and
salvage
Warranty /
Additional
Replacement
material
costs
handling

13
Why Autonomous Quality?

THE COST OF DETECTING AND CORRECTING A DEFECT After a client’s complaint

At final quality control

On the assembly line

At the next station

Where it is generated
What the gurus say

 “In most companies the costs of poor quality run at 20 to 40

percent…In other words, about 20 to 40 percent of the
companies’ efforts are spent in redoing things that went
wrong because of poor quality.”
J. Juran, Quality Guru

 “Quality is free. A company that established a quality

program will realize savings that more than pay off the cost of
the quality programme.”
P. Crosby, Quality Guru
 Quality objectives
(Session 4)

The 5 pillars of quality management

1. 2. 3. 4. 5.
CUSTOM QUALIT QUALIT QUALITY CONTINUO
ER Y Y CONTROL US
FOCUS CULTU IMPROVEME
GOALS
NT
RE Defect
In-/external Quality policy prevention
customer Root cause
Quality Quality Inspection
orientation analysis
mindset objectives Data
Problem-solving
Workplace Quality collection
Quality circles
cooperation indicators

16
Customer focus:
Who are your customers?

 External customers:
o suppliers
o consumers

 Current customers – future customers?

 Internal customers:
o Whoever relies on your work within your organization
o Supporting your colleagues as if they were customers is key in
achieving business-wide high quality

17
The Next Process Is the Customer
Operation
Information flow Information flow

I am a I am a
My Suppliers My Customers
Customer Supplier

Material- or Service-flow Material- or Service-flow

 Every operation has customers and suppliers!

 Who are my internal customers ?

 How do my customers use my output ?

Internal Customer – 3 DON’Ts
Stop to fix the problems

Don't MAKE

Don't SEND
Don't ACCEPT

YOUR INTERNAL FINAL

WORKPLACE CUSTOMER CUSTOMER
What the gurus say

 “The consumer is the most important part of the production

line. Quality should be aimed at the needs of the consumer,
present and future.”
Edwards Deming, Quality Guru

 "The single most important thing to remember about any

enterprise is that there are no results inside its walls. The
result of a business is a satisfied customer.“
Peter Drucker, Management Guru

20
What does your customer want?

 Be a customer
o Think of what you want/expect when you are a customer

 Communicate with customers:

o talk to them
o suggestion boxes
o surveys
o focus group discussions
o listening to complaints and other customer-initiated feedback
 Observe customer behaviour
 Visit customer locations
21
What do customers generally expect

 Criteria customer look at:

o Price
o Reliable product quality
o Design capability
o Response time
o Punctual delivery
o Flexibility
 And increasingly:
o Compliance with social and environmental codes of conduct

22
Identifying customers expectations
1. Who is your customer?
2. What is important to your customer?
3. Who could be your customer but is not?

Workshop Exercise 2

23
Enhancing your products

 What can you do to increase customer satisfaction?

o Anticipate your customers’ needs/expectations
o Expanding your product range

 What new features, additional components would attract

more customers?
o Consider ways to increase the value of your product beyond
specifications

24
Gap between what your customers
expect and what your business offers
1. Fill out the table below. Add other category that are
important to your customers.
(1=very unsatisfactory, 2=fairly satisfactory, 3= satisfactory, 4= very good, R A T I N G  
5= excellent) 1 2 3 4 5
 
1 Price          
2 Reliable product quality          
3 Response time (from order to delivery)          
4 Punctual delivery          
5 Flexibility (coping with small orders or changes in orders)          

6 Innovative design capability          

7            

2. Based on the individual rating, rank the gaps in customer

expectation (price, reliable product quality, etc.) that
your enterprise must address to stay in business.
25
Workshop Exercise 3
Quality control vs. quality assurance
QC is the detection of
defects trough testing
o Responsibility lies with the
QC department
o Difficult and costly
o Reverses efforts to improve
quality
QA is the prevention of
defects through quality
management systems
o Everyone at all levels are
responsible for quality
o Quality is a concern at
every stage of the design,
manufacturing and selling
process.
o Reduces overall costs
o Requires a “get it right first
time” attitude
26
What is a QA culture - What can you do to
create and maintain a quality assurance culture?
 An organizational culture where quality is
o constantly considered
o in all aspects of production through an
o integrated systems approach of tools, techniques and training.

 A workplace environment where quality is everyone’s

responsibility:
o everyone understands why they need to produce quality work
o teamwork and joint problem-solving are used
o workers and managers are committed to getting it right the first time
o clear instructions/procedures are provided

27
 Deming’s 14 points
1. Create and communicate to all employees a statement of the aims and purposes of the company

2. Adapt to the new philosophy of the day; industries and economics are always changing

3. Build quality into a product throughout production  

4. End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on
established loyalty and trust

5. Work to constantly improve quality and productivity 

6. Institute on-the-job training

7. Teach and institute leadership to improve all job functions.

8. Drive out fear; create trust 

9. Strive to reduce intradepartmental conflicts

10. Eliminate exhortations for the work force; instead, focus on the system and morale

11. (a) Eliminate work standard quotas for production. Substitute leadership methods for improvement. (b) Eliminate
management by objectives. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them

12. Remove barriers that rob people of pride of workmanship

13. Educate with self-improvement programmes

14. Include everyone in the company to accomplish the transformation

28
QA Responsibilities for managers and workers

 Managers needs to develop and distribute:

o policies and procedures on quality
o quality objectives
o job descriptions with clear quality indicators

 Workers need to:

o comply with policies and procedures
o actively participate in the QA culture
o prevent future problems from occurring

 Both managers and workers need to develop a culture of

good communication and commitment to quality

29
Deming’s 14 points
1. What can you do to create and maintain a quality
assurance culture in your company?

Workshop Exercise 4
30
Setting quality objectives and KPIs
Quality Objectives Target indicators
Rejects as % of total production
Reworks as % of total production
Monthly on-time delivery as % of all deliveries
Number of clients
Improving quality
Customer satisfaction
Average weekly idle-machines time

Lead indicator Average defect rate per month as % of total production

31
Setting quality objectives and KPIs

Quality Objective Key performance indicator

Improve on time product Decrease in number of late deliveries per month and
delivery rate per customer

Promote a quality Percent increase in employees level of involvement

assurance culture in joint problem solving approaches to quality

Reduce product defects Percent reduction in defect rate per month

Reduce reworks Percent reduction in reworks per month

32
Quality objectives and indicators
1. What quality objectives and indicators are
important to you enterprises

Workshop Exercise 5
33
Day 2
Session 2

TOOLS FOR DIAGNOSING

QUALITY PROBLEMS

34
Session objectives

At the end of the session, you will have:

1. Understand the elements of quality control
2. Understand specifications and importance of standards &
SOPs
3. Use check sheets for measuring quality defects

35
Quality Control

 Objective is to identify defects, take corrective action and

ultimately reduce the production of defective products

 Steps in Quality Control

Identify Collect Classify Corrective Incident

defect defect data Defect Action Resolved

36
What is a defect?

 Variation from specifications, allowed minimums or

tolerances.
 Typical defects come from problems with:
o raw materials
o machinery/equipment/tools
o purchasing (mistakes/delays)
o work conditions (lighting, messy/dirty environment)
o knowledge or skill level (due to lack of information or training)

37
 Identify Confirm Classify Corrective Incident
defect Defect Defect Action Resolved

Identify defects

 Self-examination:
o Workers compare work against a template at workstation
o Requires space to examine the results
o Avoids that defects are passed on to the next operator
o Benefits include lower reject/defect rates
 Sampling:
o Random unit of work selected and examined
o Faults are recorded and analyzed at end of day
o Ensures operations meet quality levels
o Test whether self-examination system is working

38
 What are standards?
Improvement
Cycle

Performanc
Standards

Time

The best, safest and easiest way, to achieve and maintain a defined
improvement level. 39
 Why are standards required?
 Preservation of know – how
 Guide-lines that enable performance measurement
 Assure quality, cost, delivery and safety
 Show relationship between cause and effect
 Management becomes possible(maintenance and improvement)
 Basis for training
 Basis for audit or diagnosis
 Recurrence prevention and control of variability (Mura)

Remember: “The standard used today is the best known way of doing the job, but can
always be improved”

40
SOP – example: Job Instruction Sheet

1. Key points for Quality, Safety, Skill.

2. Basic tool for education (new member training.)

41
 SOP - examples
Example of a short training topic SOP: Control/maintenance of a compressed air unit

Air supply Manometer Task of maintenance (in sequence):

1 4
1 close Compressed air supply!
2 empty water trap, ease pressure
(observe manometers)
off
MAX
3 3 Oil (Tellus C10) level MIN/MAX
MIN
Oil fill to MAX.
on

2 1
Water trap open Compressed air supply
4 examine Operating pressure
How to create standards
 Who should create standards?
o Shop-floor (Gemba) standards must be created by operators along
with the supervisor
 Identify and standardize the ‘current best known way’ of
doing things (should be safest, easiest and fastest)
 The standards establishes the current best practice
o Ensure that everyone follows the standard to eliminate
inconsistency / variation (Mura)
 Always be on the lookout for improving the current standards
and update the standards after each improvement activity

43
Quality Standards: Characteristics

SIMPLE

VISUAL CLEAR UNIQUE

ACCESSIBLE

© Kaizen
Institute

44
Auto-Control : Level 1

OPERATOR APPLIES • She decides if the product is correct

STANDARDS • She ensures respect of the process

• She separates the bad products according
to standards
• She sends good products to the next step
according to standards
Auto-Control : Level 2

• She stops the production when he finds

OPERATOR APPLIES
a defect, according to standards
STANDARDS
• She analyses the defect according
to standards
• She restarts production according to
good standards
Product Specification

 Exact statement of the particular needs to be satisfied, or

essential characteristics that a customer requires (in a good,
material, method, process, service, system, or work) and
which a vendor must deliver – Business Dictionary
 Specifications are set by the customers
 Usually precise, measurable and with specification limits

47
Customer Specification in apparel industry

 Usually detailed by the customers in the product specification

sheet with clear drawing, dimensions and details such as
o Fabric type
o Print placement
o Label placement
o Label instructions
o Accessories instructions
o Washing instructions
o Etc.

Do you know your customer specifications?

48
 Creating standards
1. Discuss with your colleagues:
o What standards exist at your workplace?

2. Make a list of standards that don’t currently exist

that can be useful at your workplace.
3. Make a list of product specifications that don’t
currently exist that can be useful at your workplace.

Workshop Exercise 6

49
 Identfy Collect Classify Corrective Incident
defect Defect Defect Action Resolved
data

Measure defect

 Use appropriate means to evaluate deviation from standards

and specifications
o visual inspection
o measuring equipment
o Questionnaires (services)

 Ensure that:
o The right measurement tools are used
o Appropriate measuring procedures are used
o Measurements are documented

50
Collecting defect data

 You cannot manage what you don’t measure!

 Need to have credible data on how, when and why defects
are occurring
 Need to continually gather and use data to see how you are
doing, what you can improve
 The information collected is then used to take corrective
action to minimize or eliminate the problem from reoccurring
 Using measurement tools requires employees to be involved

51
Types of Data

 All data can normally be categorized into two types –

o Attribute data – usually describes or classifies the product (good/bad,
red/green, long/short etc.) and can be counted

o Variable data – relies on measurement (height, weight, distance,

pressure, temperature etc.)

52
Attribute and Variable data examples

 Number of people in the room who are over 6 feet tall

 Average height of the people in this room
 Number of defective products produced this hour
 Average sleeve length of the products produced this hour
 % of customer rejections from overall deliveries this month
 Boiler pressure reading

53
Check Sheets for Quality Control

 Simple check sheet to identify type of quality problems at

each work station; per shift, per machine, per operator
 Record occurrences of defects and identify the priority
defects
Date/ Nov 3 Nov 4 Nov 5 Nov 6 Total
Damaged items
Skip Stitch //// //// //// / //// /// 23
Missing Label /// //// //// //// //// //// 27
Stain //// //// //// //// //// //// // //// //// //// 56
//// ////

Wrong Button //// //// //// // //// //// //// //// //// 42

Misplaced Label //// //// //// /// //// //// 27

Hem Stitching not Straight // //// //// //// / 17
Others //// /// //// // // 17
Total 44 42 62 61 209 54
Fault record sheets

 Fault record sheets to monitor problems/areas for

improvement
o Workers fill in when they experience problems
o Identifies specific problems with machines, materials etc.
o Moves away from blaming the worker to solving the problems
Fault Record Sheet
Section/department: Procedure:

Worker name: Date:

Operation/ Fault/ Corrective Estimated time

Activity Discrepancy action to perform
suggested activity

55
Design a quality check sheet
1. Group together to design a quality check sheet for
one of your products
2. Which of your products could benefit from such an
quality check?

Workshop exercise 7

56
 Identify Collect Classify Corrective Incident
defect defect Defect Action Resolved
data

Classify defects

 Put a label on the defect depending on its nature

 For example
Class Level Description of defect
Are classified as any defects that prevent usability or performance of
A Critical
the products.
Are classified as any defect that renders the product unacceptable;
B Major affecting the appearance, durability, functionality and usability. One
major defect will cause the product to be rejected.

Are classified as any defects that do not render the product to be

unacceptable in the area of justifying a customer return. But it
C Minor indicates faulty workmanship and areas requiring improvement.
Usually several (or specified number of) minor defects will result in
the product being rejected.

57
 Identify Collect Classify Corrective Incident
defect defect Defect Action Resolved
data

Corrective action

 Deal with the individual defect

o Rework
o Reissue
o Scrap

 Analyze defect data (Chapter

 Identify root causes of the problem (Chapter
 Solve the problem that causes the defect for good

58
 Identify Collect Classify Corrective Incident
defect defect Defect Action Resolved
data

Incident resolved

“Every problem is a kaizen opportunity in disguise.“

Taiichi Ohno, Former Vice President of Toyota

59
Your quality control process
1. Write down the quality inspection process in a
section of your production floor. Include:
o What is inspected?
o When is it inspected?
o How is it inspected?
2. Is everyone informed and trained on the SOP or
Product Specifications?

Workshop exercise 8

60
 Day 2
Session 3

TOOLS TO VISUALIZE QUALITY

PROBLEMS

61
Session objectives

At the end of the session, you will know:

1. How to use Paretos & Histograms for visualising quality
problems

62
Analyzing quality data

 To determine where problems exist

 Use methods such as:
o reviewing past records (log books, job cards etc.)
o observing production check sheets
o inspecting and troubleshooting
o sampling (select and analyze a representative grouping)
 Use quality tools
 Involve workers to help interpret data

63
Quality tools

Pareto Analysis Scatter Diagram

Histogram

Mean
start
Operation
Time
Range Decision

End
Fishbone Diagram
Control charts Flow chart

64
Pareto Analysis

 Technique that displays the degree of importance for each

element
 Often called the 80-20 Rule
o Most problems are the result of only a few causes e.g. 80% of the
problems caused by 20% of causes
 Helps you to identify and focus on the most important causes

65
Example: Causes of Absenteeism
Causes of Absenteeism (Jan - Mar 09)

40

35

30

25
% of Total

20

15

10

0
Transport Illness Child Care Marital Financial Substance Accidents
Problems Problems Problems Abuse

Cause

66
 Draw a Pareto chart
1. Draw a Pareto chart using your own data or check
sheets used in the previous example.
2. Which problems would you prioritise solving first?
Why?

Workshop exercise 9

67
Toolbox: Histograms
Histograms are bar charts used for process control purposes.

To measure a production process we need to observe several runs and then record what
we observed and compare with our target, standard or specification.

To draw a histogram we draw a grid; show the desired performance, or specifications; and
record the actual performance observed.

Frequenc
y

Product / SKU
Toolbox: Histograms - Example
Example: A building supplies firm makes windows in certain standard sizes. Their customers,
the retailers, require that a 700mm window have a width of 700 ± 2mm in the specification.

The diagram to the right shows the;

• Target width of 700mm
• Upper specification limit of 698mm (USL)
• Lower specification limit of 702mm (LSL)
• Widths of 80 doors made on one day
(Sample)
• Average width of the 80 doors (Mean)
Toolbox: Histograms - Example
Discussion:
• Although none of the windows go above the USL, part of the histogram extends below the LSL
because some of the windows were too narrow.

• Clearly we cannot be sure that the process is capable of satisfying customers with a quality
product.

• The average width of 699mm is not equal to the target of 700mm.

• Even if we moved the whole histogram to the right until the average coincided with the target, it
would still not fit between the two specification lines.

So we can conclude that;

• The process was off target
• There was too much variation

As a result of this kind of information we know we have to improve the product,

which often means improving the process that made it.

Deming used this kind of information to increase process reliability.

 Draw a Histogram
1. Develop a Histogram from your own data. Discuss
implications.
2. Which problems would you prioritise solving first?
Why?

Workshop exercise 10

71
Day 2
Session 4

ANALYSING ROOT CAUSES OF

QUALITY PROBLEMS; DAILY
PROBLEM SOLVING AND TAKING
ACTION 72
Session objectives

At the end of the session, you will:

1. Understand what are root causes
2. Know the tools such as Fishbone diagrams, Brainstorming, 5S
used to identify root causes of quality problems
3. QCC

73
Finding Root Causes- Fishbone diagram

 Cause and effect analysis

 Shows how to find the root cause
 Basic steps:
o write down your specific problem.
o define characteristics of the problem.
o for each main cause, write down contributing factors.
o analyze and define secondary causes.

74
Define problem

Production -
Delivery
Below target

75
Define main characteristics

Supplies Staffing (Numbers)

Production -
Delivery
Below target

Transportation Training

76
Define contributing factors

Supplies Staffing (Numbers)

Stock outs High Turnover

Material defects Absenteeism

Production -
Delivery
Below target
Monsoons Lack of skills
t
ge
Vehicle Breakdowns
d
bu
ing
n
rai
t

Training
No

Transportation

77
Alternative example
Resources Procedures

Little flexibility
Overly complex

Inadequate No performance feedback

Wrong distribution No customer input

Product
development
delays

Little delegation
of authority
Cooperation Understaffed
discouraged Little training

Innovation Poor work distribution

discouraged

Organizational Staff
culture

78
Root causes - cause effect diagram
This technique, also known as cause and effect analysis, is design for
group work. It is a useful method of identifying cause and provides a good
reference point for brainstorming.

The usual approach is for the group to agree on a problem of effect. Then
diagram is drawn consisting of a ‘backbone’ and four (sometimes more)
fish bones are shown to identify likely causes.

If basic causes are nor readily identified, the Circle could begin with
people, equipment, method, material.

To help the Diagram get started, causes which can be considered

that cover most situations are;
• Funding
• Method – Processing, procedures
• Machine
• Material – Packaging, Labels
• Marketing
• Measurements - KPI
• People
• Rules and regulations
 Draw a fishbone diagram
1. Use a fishbone diagram to analyze the causes for
one of your major quality problems.

Problem

Workshop Exercise 11

80
Inside Cause Effect Analysis – Brainstorming
technique
Brainstorming
• Fun, interactive way of identifying the causes of the problem.
• Everyone has a turn to “freewheel” their suggestion/idea.
• Take suggestions by working around the room/people so everyone has a turn.

Preparation
• The subject must be defined and scope of session are agreed.
• At least 5 minutes of thinking time before the brainstorming starts.

Golden Rules
• There should be no criticism of any suggestions no matter how silly they seem.
• If someone is unable to contribute 1 st time, pass on to the next person.
• Typically, there will be a lot of suggestions in 1 st 20 minutes
• Keep initial ideas in front of the team until the end of brainstorming session.
Key Notes
• Typically, there will be a lot of suggestions in 1 st 20 minutes, then there will be a lull. Don’t stop
when this lull occurs but keep going, as usually there will then be another burst of ideas.
• Often the second burst provides the most creative ideas.
• When suggestions have dried up, the team should review the suggestions and sort them into
logical groupings. Some suggestions will be found o be duplications and can be eliminated.
• One method of sorting the groupings of suggestions is to use a form of the cause-and-effect
diagram.
The 5 Whys

 The five whys analysis identifies underlying causes to a

challenging issue
 The 5 Whys is a question-asking method used to explore the
cause/effect relationships underlying a particular problem.
Ultimately, the goal of applying the 5 Whys method is to
determine a root cause of a defect or problem.

82
 Example

Circuit
overloaded,
fuse blew

Why did
the Why?
machine
stop?

Brainstorm
other
potential
causes..

83
 Example – Why did the machine stop?
Why? No oil
Why? Oil pump filter
clogged
Oil pump
with metal
Why? not
shavings
working
Insufficient properly
lubrication
Why? Root
Circuit …….. cause
overloaded,
fuse blew

Why did …….. ……..

the
machine
stop? ……..

……..

84
 What are the Five Whys?
Critical to successful implementation of the Toyota Production System is a simple tool
commonly referred to as “Five Whys” approach ... “by repeating why five times, the nature of
the problem as well as its solution becomes clear” Taiichi Ohno.

1. WHY did the machine stop? There was an overload and the fuse blew.

2. WHY was there overload? The bearing was not sufficiently lubricated.

The lubrication pump was not pumping

3. WHY was it not lubricated?
sufficiently.
4. WHY was it not pumping
The shaft of the pump was worn and rattling.
sufficiently?
There was no strainer attached and metal scraps
5. WHY was the shaft worn out?
got in.
85
Why focus on problem solving?

Problems …
… cost money
… block resources
… make stocks pile up
… are stressful

But problems …
… are also hidden treasures!

If no problem is© perceived,

Kaizen no improvement may occur!
Institute

86
Problems are Part of a Daily Routine

• Natural teams should handle problems permanently

• The tasks of a given natural team include solving problems on a daily basis
and taking action to prevent further occurrences
• To reduce time waste, structured problem solving habits are extremely
important

PROBLEM © Kaizen
Institute PROCESS SOLUTION
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Quality control circles (QCC)

 A QCC is a
o small group of workers (6-10 persons) from the same work unit
o meets regularly to identify, select and analyze work-related problems
o puts forward suggested solutions to management for consideration
and decision
o implements the decisions of management

 “An PICC for a specific work / quality area” => Consider

linking QCC to PICC
 How does QCCs relate to workplace cooperation and joint
problem-solving?

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QCC - objectives

 Objective of QCC is to improve and upgrade quality of work

through:
o The problem solving capability of the workers
o Team work
o The cultivation and assimilation of positive values and work ethics
o Involvement and interest in work
o High motivation for work; and
o Awareness of responsibility towards oneself, the group, and the
enterprise

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4 Principles for Effective Problem Solving

Successful attempt at Structured Problem Solving obeys a set of principles

WORKER
GO TO GEMBA
INVOLVEMENT

TALK THROUGH STRUCTURED

DATA PROCESS
EFFECTIVE
PROBLEM
SOLVING

© Kaizen
Institute

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Problem Solving & Data Analysis
TALK THROUGH DATA
• No Problem Solving Tool can succeed unless the
natural team learns to talk through data:
• Collect the data
• Analyse the data
• Doubt the data
• Make decisions issuing from the data
• In order to talk through data, teams need to learn
their way with BASIC QUALITY TOOLS

© Kaizen
Institute

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Principles for Effective Problem Solving
WORKER INVOLVEMENT
• Problem solving should be teamwork
• More experienced employees are usually excellent contributors in structured
problem solving processes
• Try to involve “opinion leaders” in pilot projects or critical tasks

© Kaizen
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Principles for Effective Problem Solving
GO TO GEMBA
• Problems arise at GEMBA!
• Employees work at GEMBA!
• Solutions can be found at GEMBA!

© Kaizen
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Principles for Effective Problem Solving
STRUCTURED PROCESS
• Natural teams should grow the habit of making the necessary stops to
address the given problems

• Teams should adopt the simple, practical Problem Solving approaches

for their business (PDCA is a structured process for problem solving)

© Kaizen
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Plan, Do, Check, Act (PDCA)

 Iterative four-step problem solving process:

Plan

Act Do

Check
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PDCA implemented
Pla
n
  Plan:
o select a project/problem Ac Do
o t
set target
o analyze current situation (using quality tools) Ch
ec
o determine solution/s k
o consider suggestions and decision by the management
o prepare implementation schedule / work plan

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PDCA implemented (2)
Pla
n
 Do:
o implement solutions Ac Do
t
 Check: Ch
o evaluate results and compare with plan ec
k
 Act:
o standardize solutions
o follow-up
o review progress

 Most important aspect is to use teamwork to achieve long-

term results
97
Repeat PDCA to create continuous
improvement
Performance

Plan

Do
Act
Check
“Continuous”
Ps improvement
S O

Time
Benchmarking

 A systematic way to
o assess why some organization perform better than others
o identify best practices
o set targets

 In practice, benchmarking usually encompasses:

o Regularly comparing aspects of performance with best practitioners
o Identifying gaps in performance
o Seeking fresh approaches to improve performance
o Follow through with implementing improvements and
o Follow up by monitoring progress and reviewing the benefits
Benchmarking
Benchmarking is not
 Merely competitor
analysis
 Comparison of
association tables
 A quick fix done once and
for all
 Spying or espionage
Benchmarking is
Undertaken in a collaborative
way
Learning about processes that
underpin superior performance
Periodically repeated over a
long period and
Openness and honesty are vital
for successful benchmarking
Benchmarking process

 An on-going benchmarking process consists of:

o Initiative for benchmarking project
o Selecting the subject of benchmarking
o Selecting benchmarking partners
o Preparing data collection and analysis
o Data collection, site visits and investigation
o Analysis
o Reporting, and
o Action

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How does your enterprise measure
up on quality related practices?
1. How does your enterprise perform with regards to
quality management - using the quality tools and
effective problem solving?
2. How will you improve your enterprise
performance?
Ranking
1  
.  
2  
.  
3  
.  
4  
.  

Workshop exercise 12
108
Prioritize action

 Identify the “low-hanging fruits” by asking:

o How likely is it going to be achieved?
o Can you start implementing immediately?
o Can you implement without major investments?
o Are first results visible within 1 month?
 For each improvement, award 0, 1 or 2 stars* per question
 Pick 6-10 improvements from the list you want to make
o Discuss and agree with your whole team
o The stars give you an indication of “quick-wins” improvements

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Performance Improvement Plan

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 Your Performance Improvement Plan
 Transcribe prioritized projects and necessary actions into the
PIP Template

PROJECTS ACTIVITIES / METHOD RESPONSIBLE PROGRESS TIME FRAME

INDICATOR /GOAL
1. Establish •Appoint team members
enterprise •Provide a meeting room
improvement
team
2. 5S and •Organize a big clean-up day
improved •Provide demarcation line
layout in the
Design
Section
3. Improve •Evaluation of 3Ps (Skills
Technical update of the worker)
Skills for Rank •Daily recording & reporting
& File and of individual productivity
Supervisors
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 Assign responsibilities

 Who is going to do it? Consider responsibilities of your EIT

PROJECTS ACTIVITIES / METHOD RESPONSIBLE PROGRESS TIME FRAME

INDICATOR /GOAL
1. Establish •Appoint team members General
enterprise •Provide a meeting room Manager
improvement
team
2. 5S and •Organize a big clean-up day Supervisor A
improved •Provide demarcation line
layout in the Worker B
Design
Section
3. Improve •Evaluation of 3Ps (Skills HRD Manager
Technical update of the worker) Production Mgr
Skills for Rank •Daily recording & reporting
& File and of individual productivity
Supervisors
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 How do you know you have done it?

 Formulate indicators of success – remember to be SMART

PROJECTS ACTIVITIES / METHOD RESPONSIBLE PROGRESS TIME FRAME

INDICATOR /GOAL
1. Establish •Appoint team members General •List of team
enterprise •Provide a meeting room Manager members
improvement •Meeting minutes
team
2. 5S and •Organize a big clean-up day Supervisor A •100% labeled
improved •Provide demarcation line designs
layout in the Worker B •20% reduction of
Design wastage of designs
Section
3. Improve •Evaluation of 3Ps (Skills HRD Manager •Increased
Technical update of the worker) Production Mgr productivity of 5-
Skills for Rank •Daily recording & reporting 10% of
& File and of individual productivity Compression
Supervisors
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 By when are you going to do it?

 Define Start and Finishing Dates

PROJECTS ACTIVITIES / METHOD RESPONSIBLE PROGRESS TIME FRAME

INDICATOR /GOAL
1. Establish •Appoint team members General •List of team Tomorrow &
PICC •Provide a meeting room Manager members on-going
•Meeting minutes

2. 5S and •Organize a big clean-up day Supervisor A •100% labeled 3rd week of
improved •Provide demarcation line designs Sept to
layout in the Worker B •20% reduction of 2nd week of
Design wastage of designs November
Section 2009
3. Improve •Evaluation of 3Ps (Skills HRD Manager •Increased whole month
Technical update of the worker) Production Mgr productivity of 5- of
Skills for Rank •Daily recording & reporting 10% of October 2009
& File and of individual productivity Compression
Supervisors
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Review the work of your PICC

 Have previous improvement projects been implemented?

o What has worked well? What hasn’t? How can you improve
operations of your PICC?
 Review your PICC team list
o Do you have the right people on board for the suggested
improvements?
 Remember:
o PICCs don’t implement all the projects but ensure progress
o You can co-opt additional team members for certain projects

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THANK YOU!

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