DMAIC - Analyze

Tim Woods

"Transportation, Inventory, Motion, Waiting, Over Production, Over Processing, Defects, Skill"

Taiichi Ohno's Seven Types of Waste +1

1. Defects 2. Delays (waiting) 3. Excess Inventory 4. Overproduction 5. Over-processing 6. Extra Motion 7. Transportation 8. Unused Creativity

Ishikawa

A cause-and-effect diagram, Fishbone Diagram

Cause & Effect Diagram

A decomposition technique that helps trace an undesirable effect back to its root cause. Diagram that maps out a list of factors that are thought to affect a problem or a desired outcome. Technology, Policies, Procedures, People, Effect Ishikawa (fishbone, Cause and effect) Structured (category) brainstorm of causes to an effect Negative approach: Effect = a failure (problem) PoorPositive approach: Effect = a success (solution) Three Steps 1. Develop and state the effect 2. Brainstorm causes/contributors to fill out fishbones (categories) 3. Categorise and prioritise ideas Three Rules 1. Use People, Machine, Material, Method, Measurement, andEnvironment—or more relevant—categories 2. Identify causes/contributors as:Control,Noise,Experiment 3. Assess likelihood of causation/contribution as:Improbable,Possible, Likely, Very Likely, Certain

Pull

A system in which nothing is produced by the supplier until the customer signals a need. Pull system advantages Increases speed to your customer Reduces work in progress and inventories(without creating shortages) Improves quality Decreases floor/storage space

Waste is

Any activity that takes time, resources, and space, but does not address the customers' requirements. Anything other than the minimum amount of time, material, equipment, information, space, and workers' time that are absolutely essential to add value to the product or service. All waste is non-value added and therefore should be eliminated.

DOE

Design of experiments efficiently determine the effects of two or more factors at two or three levels each on a process or output measure; identifies the most important input factor that influences the output OR interactions between factors (basically you test all combinations of factors and measure the outcomes, then compare between the outcomes to see which combination of factors produces the most desirable outcome) A statistical method for identifying which factors may influence specific variables of a product or process under development or in production. A quality technique that helps identify which variables have the most influence on the overall outcome of a process An approach that relies on statistical scenarios to determine what variables within a project will result in the best outcome. E.g., assess impact of agricultural techniques Seed variety: A or B Fertilizer: C, D, or E Irrigation/rain: early, on time, or late

Value Assessment

Determine what is valuable to the customers

Waste: Over-processing

Doing things the customer does not want or ask for

Waste: Overproduction

Doing work before it is required or more than is required

Dot Voting

Each person gets x votes Only 1 vote per item Count votes for each item

Tool: Brainstorming

Goal: to come up with many creative ideas quickly Three simple steps • Define topic to be brainstormed • Everyone quickly suggests as many ideas as possible on the proposed topic • Team members write on Post-is and place on flip chart or scribe writes down the ideas Three Rules 1. No criticism, no comments, no judgments! There is no such thing as a bad (or a good) idea! (This is really hard to do!) 2. Write the idea down just as it was said 3. Discuss, clarify, filter, prioritize, vote on ideas later

Waste: Excess Inventory

Having more space, items, or information than needed

Waste: Defects

Inspecting, scrapping, redoing, or correcting something

Fishbone Diagram

Ishikawa Diagram / Cause-and-effect An analysis tool that represents the possible causes of a problem as a graphical outline

Push system disadvantages

Large work stacks and work queues Long lead-times, even for simple processes Complex tracking systems Hides manpower problems Inflexible to new issues, needs, technology, and services

Thumbs Up Quick Feedback/Vote

Meaningofthumbs Thumb up = good or yes Thumb out = neutral or maybe • Thumb down = bad or no

Waste: Transportation

Moving things or information from one place to another

Waste: Unused Creativity (bonus #8)

Not using people's skills and ideas to the fullest

Waste: Extra Motion

Personal movement that does not add value

Analyze - Relevant tools

Process mapping, graphical techniques, operational definitions, sampling, multi-vari studies, hypothesis testing, correlation and regression analysis, ANOVA, DOE and change management tools.

5 Whys

Root Cause Analysis A technique in which you repeatedly ask the question "Why?" to help peel away the layers of symptoms that can lead to the root cause of a problem

Analyze - Deliverables

Statistical analysis of the significance of the X variables with respect to Y. Can be obtained from a combination of inference tests, regression analy- ses, analyses of variance (ANOVA) and design of experiments (DOE). • A cause and effect diagram outlining the relation- ship between X and Y. • The root cause of the problem. • An outline of areas for the improvement to address. • An understanding of the underlying process distri- bution.

Flow

The steady, uninterrupted, progressive achievement of tasks along the value stream with no stoppages, waste, or backflows; continuous flow allows rapid movement through value stream, less inventory, quicker problem solving

Cycle Time

The time required to complete one cycle of one process step; the time between the completion of the last good product and completion of the next good product If Cycle Time for every step in a complete process can be reduced to equal Takt Time, product or services can be provided in single-piece flow

Why Analyze Data?

To understand what's really going on • What are the real problems & opportunities? • What are the real root causes that need to be addressed?

Process characteristics: For entire process

Total touch labour hours and total span/lead time (sum of cycle times) Rolled throughput yield (each % successful multiplied together) Value added time summary Cost of the process (total touch time x hourly rate x monthly volume) Total travel distance

Process characteristics: for each step

Touch time and cycle time % successful or other quality measure Value designation: value added, required NVA, waste Average backlog or work in process Batch size and setup time

Waste: Delays

Waiting for someone or something to proceed

Takt Time

is German for the musical concept of time, measure, rhythm • The interval at which product or service needs to be provided to meet customer demand - the foundation for flow Tak time = available hours (per day) divided by quantity required (per day). The Goal: Your Value Stream processes produce products or services at Takt Time (to perfectly meet customer demand)

Affinity Diagram:

organise brainstorming ideas by similarity. A group creativity technique that allows large numbers of ideas to be classified into groups for review and analysis.

Other Types of Analyses

research reading or experts for best practise; data analysis, financial (eg, especially the costs of mistakes or failing to improve) All of the above analyses can help identify problems, such as waste (which includes required NVA)

Perfection

the complete elimination of waste, through radical and incremental change, so that all activities along a value stream create value; never achieved because always room for improvement, changes in environment (new tech, new tools, new expectations); lack of attention = deterioration + complexity

Lead time

the total time required for a process as seen from the viewpoint of the product or service the sum of all the step Cycle Times plus the delays that are part of the process; long lead times result from process flow variability (fast, slow, more, less); process complexity; queue time and inventory (results in backlog)

Touch Time

when people are actively doing the work

Root Cause Analysis

• Direct Cause: the last thing that was done• Root Cause: the real cause that you need to address • Don't stop at Employee Error; ask "Why" again • Look for systemic, underlying causes • To get from Direct Cause to Root Cause... Ask Why Five Times An analytical technique used to determine the basic underlying reason that causes a variance or a defect or a risk. A root cause may underlie more than one variance or defect or risk.

• Pure Non-Value Added;Waste (NVA)

• Has no redeeming value; serves no valuable purpose • Things to eliminate

Analyze - Questions to be answered

• How reliable is the concluded data? • How did you identify potential causes? What tool did you use to collect certain data? • Which factors turned out to be root causes or con- tribute most to the problem? How many significant (vital few) variables influence the process? What are they? What sources of variation have you identified? • How did you verify these root causes or vital few factors? How did you analyze the data? Show your charts or graphs. • How do you know you've gotten at root causes and not just symptoms? • Which factors will you investigate further? How did you choose them? What graphs or statistics sup- port your choice? • Does your identification of root causes affect the makeup of the team? Does it affect the business case? If so, how? • Did you find any quick hit improvements? • What progress has been made on the process capability chart (projections and timing)? • What interim actions have you taken to contain defects until a final solution can be developed and implemented? Has the team completed a failure mode and effects analysis? • What are your improvement plans and next steps to get there, including timing, responsibility and expected results? • What was the basis for your improvement quantifi- cation calculations?

3 Ms

• Muda - Waste (7 type sof waste) • Mura - Unevenness: Changes in volume (monthly, quarterly, seasonal changes in demand), mix (changes in what is processed) leading to inefficiencies • Muri - Overburden:Excessive workload imposed on people or equipment, leading to stress, mistakes, poor morale

Muda

• Muda - Waste (7 types of waste)

Mura

• Mura - Unevenness: Changes in volume (monthly, quarterly, seasonal changes in demand), mix (changes in what is processed) leading to inefficiencies

Muri

• Muri - Overburden:Excessive workload imposed on people or equipment, leading to stress, mistakes, poor morale

• Required Non-Value Added (RNVA)

• Not value added to customer, but must be done• Required by thinking, current regulations, system capability limitations, risk management, commandments, monuments

Analyze - Goal or Purpose

• To narrow the focus of the project by gathering information on the current situation. • To uncover potential sources of variation through an understanding of the relationship between the X and Y variables. • To reduce the number of process variables to be acted on in the improvement phase. • To identify and manage high risk inputs.

Forced Association Brainstorming

• To stretch people's thinking• "How would _______ answer this?" (Abraham Lincoln, Ghandi)• "How is this related to ______?" (sailing, shepherding, etc)• "What ideas does this picture bring to mind?"

Value Added (VA)

• Transforms something• Adds value for the customer (Yeah, I would pay for that) • Done right the first time

Round Robin Brainstorming

• Write down question/topic• In turn, team members give ideas • May pass and get back in• Record in exact words (as always)• Continue (go around) until everyone passes • Review for clarity and combine duplicates