MINDANAO ASSOCIATION FOR QUALITY, Inc.

A Productivity Improvement Circles Association of the Phils. (PICAP) Northern Mindanao Chapter

Quality Circle STORY

MAQ Center for Quality and Productivity

Conducted by:

Quality Circles Story Handbook

Productivity Improvement Circles Association of the Philippines (PICAP)

2001 Edition Adapted by: MAQ Inc. January 2002

OBJECTIVES

To introduce the steps of problem-solving adopted by MAQ, Inc.

To learn the basic tools and concepts of problem solving via the QC Story

To be able to solve actual problems in the workplace

EIGHT STEPS IN QC STORY

STEP 1: Problem Identification STEP 2: Grasp Present Situation STEP 3: Analyze and determine Root Causes STEP 4: Solution Formulation STEP 5: Implementation Plan STEP 6: Evaluate Results STEP 7: Standardize Actions Taken STEP 8: Self-Evaluation and Future Planning

Step 1: Problem Identification

Objective To provide focus by systematically weighing the identified problems
Output A Priority Problem

Problem Identification

Not causal nor disguised solution

Controllability Impact to members Alignment to Companys objective Data-based selection

Whats a Problem ?
PROBLEM = OBJECT + DEFECT

* Deviation
- something has gone wrong

* Threat
- might cause future trouble

* Opportunity for Improvement

- challenging the existing system

What is a problem ?
A problem is a deviation or an inbalance between what SHOULD be and what ACTUALLY is happening.
Some unanticipated change Events Through Time What should be happening if all were going well What actually is happening

Types of Problem Which Circle Can Deal With

Quality Improvement Work Simplification Waste Reduction Safety Energy Conservation Production Targets

Problems That Members Are Not Asked To Solve

Incentives Personnel Policies Problems outside their control Wage and Salaries

Problem Definition

Put half the effort in looking for the real

problem. Gather data to reach the real problem A problem well-defined is a half-solved problem. Be specific, not vague.

Classification of controllability of the problem

A problem can be

Controllable
Uncontrollable or

Interface

Controllable by the Circles

The process is fully owned by the circle members themselves

The boundaries of the process are within the circles responsibility Circle members are the one performing the activities within the process

Classify problem according to its significance

Significant
Simple concern

* Problems with obvious or ready solution

* The extent of the problem is relatively small against its target performance * 5S - related issues

How to Construct a Prioritization Matrix

1. List of identified problems
2. Brainstorm on appropriate criteria

3. Put value for each criteria

4. Prepare the matrix 5. Rank them

Sample Problem Prioritization Matrix

List of Problems
A B C D
Total Pts.

Criteria

Legend: Criteria A - Cost B - Controllability C - Availability of Data D - Seriousness/Urgency

Rating Scales
Low - 1 Medium - 2 High - 3

Ranking

Step 2: Grasp Present Situation

Objective To clearly specify the magnitude of the problem Output Final Problem Statement and Objective Statement

Understanding the Present Situation

Review the current system and standard Agree on the scope of the problem Validate extent of the problem Finalize problem statement (What, When, Where and Extent of the Problem)

Finalize Problem Statement

Effective Problem Statement

Summarizes the project /problem Indicates complete information about the project Contains the following

What Where When Extent

Sample of Problem Statement

Insufficient water supply in Brgy. Lumbia Cagayan de Oro City Downtime at CRT Engine Circuit test process contributes to low efficiency of the assembly line from March to June 2009 High rejection rate of SSS Salary Loan applications in Sector 1 from January to March 2009 averaging 47.3 %.

Problem Statement
Excess Hydrogen Gas produced from Methanol Cracking Plant during Hydrogenation (H1) Plant Shutdown equivalent to 310 m3/Hr

Problem Statement
Gas Coolers lead tubes downtime from April December 2008 resulted to an average of 7.4 hours per month.

Objectives Setting
After establishing the problem decide how much improvement is attainable and manageable by the circle.

Three ways to set objective

Management direction
Maker/User benchmark Industry/Job standard

Why set project objectives

Circle sees clarity of goals. Members unified by common goal. Circle stays focused. Unnecessary activities are set aside. Targets draw competitive spirit among members. Objectives provide measure of a projects growth and success.

A Circle Project Objectives Has

Qualitative Part

What action will circle do?

+
Quantitative Part

Measurable, observable By how much? By when? By whom? Where?

Objective Setting
Use
S M - SPECIFIC - MEASURABLE

A
C T

- ATTAINABLE
- CHALLENGING - TIME-BOUND

Objective Setting
Set this as objective!
Total Improvement Possible

Easily attainable w/o much effort

Attainable with challenge

Sample of Different Objective Statements

Eliminate delay in Line B

Significantly reduce breakdown occurrence from an average of 90 to 20 per month

To bring down rework in body painting section from 30% to 5% by December 2010

Step 3: Analyze and Determine Root Causes

Objective Output

To identify the root causes of the problem True causes of the problem

How to Make Fishbone Diagram

Step 1: State the problem in precise term
Delay in Retrieving Documents from the Archives

The problem is the effect and is written in the box to the right. The possible cause for the problem are written in the area to the left.

Step 2: Determine the major grouping. 4 Ms is the favorite

Method Manpower
Delay in Retrieving Documents from the Archives

Material

Machine

Step 3: Brainstorm for Possible Causes

Method
Improper labeling Displaced files
No location guide/master-list

Manpower

No budget Not planned No facilities for archives user Delay in Retrieving Documents from the Archives No monitoring of files No Custodian

Disarranged file Mixed/assorted files Inconvenient means of storage Inconvenient storage No location guide Mixed up of Block-piling of files boxes//supplies No storage

Limited space Not properly designed

No proper ventilation

Wrong designed/
location

Material

Machine

Identify Probable Causes

Nominate probable causes of the problem Preferably use cause-and-effect diagram Sub-causes should reach to at least 5th why level Relationship between causes and effects must be clearly understood

Analysis of Root Causes

Activities

Identify probable causes Validate most probable causes Identify controllability of verified causes Identify true causes

Identify Controllability of the verified MPC

Classify each MPC if it is within control, beyond control or interface

Review boundaries of the process using input-process-output approach Identify concern group or individual for uncontrollable MPC

Root Cause Validation

Root Cause Verification Method InCharge Findings Controllability Conclusion
True Cause/ Not True Cause

Step 4: Solution Formulation

Objective To eliminate the true or real causes of the problem
Output Solution and Implementation Plan

Finding Solutions
Good Ideas Creativity

Ingenuity
Flexibility of thought Critical Mind

Solution Formulation
PROBLEM

Most Probable Causes Formulate Solutions

Objectives

Select best solution alternatives

Selection of Best Alternatives

Characteristics of the solutions

Solvability, feasibility and controllability

Approach Activity Planning Anticipate potential problems that may occur

Generate Alternative Solutions

Give members enough time to look for possible solutions Allow members to source for other solutions outside the company if necessary Seek experts advice

Identify recommendations for uncontrollable root causes

Evaluate and Select Best Alternative Solutions

Weigh the advantages and disadvantages Measure effectiveness of alternative solutions Best alternative solution must significantly reduce the root-causes

Identify Details of the Solutions

Discuss the required process of implementation All resources needed for effective implementation must be identified

Solution Formulation
True Causes Solutions Advantage Disadvantage

Controlla- Circles Decision bility

Draw an Action Plan

Identify all the activities to be performed

Preferably, use the Gantt Chart Time frame of the project completion must conform to the objective

Implementation Plan
Activity
MONTH/WEEK

INCHARGE

Anticipate Potential Problems

Identify factors that may hinder implementation Always consider the needs of the person in-charge Draw preventive and contingency plan Use Potential Problem Analysis table

Potential Analysis Table

Solution
Potential Problem Most likely cause Countermeasures In-charge

Seek Approval from Management

Management Presentation is an effective way for seeking approval Prepare for written and oral management presentation Management must be given an ample time to review the project

Step 5: Solution Implementation

Objective: To perform the activities according to plan
Output: Measurements

Activities for Implementation Stage

Start the implementation Monitor progress of implementation

Identify concerns
Initiate corrective actions

Start The Implementation

Acquire all the resources needed to implement proposed solutions Inform all concern that will be affected

Agree on the methods of monitoring and tools to use for measuring results Perform all activities in the action plan religiously

Step 6: Evaluation of Results

Objective To validate effectiveness of the proposed solutions
Output Effective solutions

Evaluation of Results

Summarize and compare data from the set target Compare results against the target as direct consequence of the solutions

Identify benefits of the project (tangible and intangible)

Summarize the difficulties and learning the circle had experienced Form conclusions

Form Conclusions

Clearly show the deviation of actual results from the target Identify other things the circle will attain from implementing the solutions

Evaluation of Results
Use Pareto Diagram to show conditions before and after the project.

Before
Defectives / Mo.
400 350 300 250 200 150 100 50 100 50

Defectives / Mo. 100%

After

Improvement
100%

50

200

0 D others

D others

Step 7: Standardization
Objective To ensure efficient integration of the new procedure in the companys SOPs.
Output New Standard Procedure, and Targets

Standardization Activities

Extent - Identify areas where the solutions can be applied Documentation

Disseminate the new SOP

Follow through for proper implementation of the new system to ensure non-recurrence of the problem and consistency of results

Step 8: Self-Evaluation and Future Planning

Objective To ensure circles existence and enhancement of ability to solve problems using QC story with the QC Tools and Techniques.
Output New project to tackle and the circles development plan

Self-Evaluation Activities

Continuing commitment to circle work

Assess circles skills in applying the QC tools and techniques Identify things that went well and not in the process of problem solving

Develop a Plan to Improve the Circle

Address all the weaknesses of the circle

Find ways to build on things that went well Identify the training that the circle needs

Identify Next Project to Tackle

The circle may chose to tackle the next in the priority list, or
Nominate new problems apart from what have been identified

End of Presentation