PDCA Problem Solving Technique & Tools by Operational Excellence Consulting

© Operational Excellence Consulting. All rights reserved.
PDCA
Problem Solving
Technique & Tools

© Operational Excellence Consulting. All rights reserved. 2
Objectives
1. Understand the principles and key concepts of
problem solving
2. Learn how to apply the PDCA approach and
basic quality tools to problem solving
3. Learn how to prepare an A3 storyboard
4. Understand the roles of problem solving team
5. Define the critical success factors for effective
problem solving
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Outline
1. Introduction to Problem Solving
2. Concept of Problem Solving Teams
3. Overview of Process Management
4. PDCA Approach to Problem Solving
5. Basic Problem Solving Tools
6. Project Reporting Using A3 Storyboard
7. 10 Common Mistakes
8. Critical Success Factors

Methods to Increase Productivity
How to Increase
Productivity?
Quantitative
Approach
More People
More Machines
Work Longer
Qualitative
Approach
Work Harder
Eliminate Waste
& Simplify
Focus of
Problem
Solving

Inefficient Processes Create Waste
Waste
Improve processes
by eliminating
waste!
Input
(Man, Machines,
Materials)
Transformation
Process
(Method)
Output
(Products,
Services)

Waste in processes adds cost, without
delivering customers what they want
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving product from
one place to another
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or a
machine/tool
Waste
Defects
Scrap, reworking, retesting
and re-inspection

The Blind Men and an Elephant
Problems are often perceived differently
by different people.
It is a
snake!
It is a
wall!
It is a
branch!

Kaizen versus Problem Solving
• Problem solving
 Centers on the fundamental notion of “gap” or
“deviation” from standard (e.g. cost, quality, delivery)
• Kaizen
 Focuses on achieving a new standard or level of
performance
Standard – what should
be happening
Current situation – what
is actually happening
Gap = Problem

What Problem Solving IS NOT
• A kaizen event where people are taken away
from their “real jobs” for 3-5 days at a time
• An exercise to place blame on a person or
department
• A project only for the Subject Matter Experts or
“high-fliers”
• Another one of those “extra curricula activities”

Impact of Problem Solving
ProblemSolving
(ProcessImprovement)
Time
Original Zone of
Control
New Zone of
Control
Performance
Sporadic Departure
from Standard
Holding the Gain - Control

Problem Solving Philosophy
Problem solving involves identifying and
eliminating all activities that are waste.
Current
State
Future
State
Solve
Problems
Expose
Problems “True North”
Value Added Time = Lead Time
Full of Waste,
Variation, and
Constraints

“The problems that
exist in the world
cannot be solved by
the level of thinking
that created them.”
Albert Einstein

Concept of Problem Solving Teams
• A Problem Solving Team is a group of
employees performing similar or related tasks,
who get together on a regular basis, to discuss a
topic or theme affecting their work or workplace.

Topics Discussed by Problem Solving
Teams
• Productivity
• Quality
• Cost
• Delivery
• Housekeeping
• Safety
• Service

Problem solving structure parallels the formal
organizational structure

Problem Solving - Organizational Roles 2
Role Description
Problem Solving
Facilitator
Is a manager or executive who motivates, helps,
trains and guides Problem Solving leaders and
members.
Problem Solving
Team Leader
Guides and leads the Problem Solving team.
Problem Solving
Team Member
Is a member who together with colleagues form
the Problem Solving team.

Process Management

The PDCA Approach to Problem Solving
• A systematic
approach to problem
solving
• Provides the
framework for a team
to carry out
improvement
• Used together with the
common QC tools
Plan
DoCheck
Act

The 8 Steps of PDCA Problem Solving
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
PLAN
ACT
CHECK
DO
1
2
3
4
5
6
7
8

Step 1: Select the Theme
• A theme is an area of focus which is aligned to
your organization’s strategic objectives.
• Examples of themes: Customer Satisfaction,
Productivity, Quality, Cost, On-time delivery,
Safety, Morale, etc.
• Review existing KPIs to look for poorly
performing processes, e.g. high rejects or scrap,
poor on-time delivery, high customer complaints,
etc.

Step 2: Plan the Schedule
• Assess the complexity of the project and plan
the schedule using a Gantt Chart.
 Break down the schedule to include all the 8 steps of
problem solving, and assign team members’
responsibilities (e.g. who does what and by when)
 Estimate the time required for each of the step
• Discuss with the process owner to determine
urgency of the project, deadline and resources.
• Balance the need to carry out day-to-day work
and executing the problem solving project.

Step 3: Grasp the Present Situation
• Start out by collecting as much data/information
as possible and making it visual in any way
possible.
• Some useful tools for analyzing the problem are
(see the next section on how to apply the tools):
 Process mapping or flow charting
 Graphs
 Trend or Run charts
 Pareto diagrams
 Cause and effect diagrams

Step 5: Analyze the Cause & Determine
Corrective Action
Symptoms
 Result or outcome of the
problem
 What you see as a problem
(Obvious)
Causes
 “The Roots” – system below
the surface, bringing about
the problem (Not Obvious)
Symptoms
Causes
The Problem
 Gap from goal or standard
Problem
Infection
Fever
Achy, weak, tired

Where Are the Tools Used?
Phase Problem Solving Steps Applicable Tools
Plan 1. Select the Theme Brainstorming / Matrix Diagram / Selection Criteria / Team
Consensus
2. Plan the Schedule Gantt Chart
3. Grasp the Present Situation Data Collection / Flowcharting / Pie Chart / Check Sheet /
Pareto Diagram / Bar Chart / Histogram
4. Set the Target Pareto Analysis / Conduct Experiments / Check Past Trends
5. Analyze the Cause & Identify
Corrective Action
Brainstorming / Cause & Effect Diagram / 5 Whys / Tree
Diagram / Control Chart / Scatter Diagram / Alternative
Solutions
Do 6. Implement Corrective Action Arrow Diagram / Process Flowchart / Pictures / Diagrams
Check 7. Evaluate the Result Collect New Data / Check Sheet / Pareto Comparison / Bar
Chart Comparison / Radar Chart / Target Variance
Act 8. Standardize & Follow Up In the standardization plan, document the new procedures.
Display in notice board or website or conduct briefings.
Show the follow-up actions to be taken.

“As much as 95% of
quality related
problems in the
factory can be solved
with seven
fundamental
quantitative tools.”
Dr. Kaoru Ishikawa

Problem Solving Tools
• Seven basic tools
 Stratification
 Check Sheet
 Control chart (Run chart)
 Pareto Chart
 Cause & Effect Diagram
 Histogram
 Scatter Diagram

Example: Use of Pareto Chart to compare
‘Before’ and ‘After’ a process improvement
Restaurant Complaints
Before After
33% Reduction
in Wait Time

Cause & Effect Diagram (Manufacturing)
EffectCauses
cause
Machines
Measurements Materials
Methods
Mother Nature
Manpower
(Environment)
Problem
Statement

How to Construct a Cause & Effect Diagram
1. Develop and agree on a problem statement (effect)
2. Brainstorm a list of possible causes; remove symptoms
and solutions related to the stated effect
3. Identify major categories of causes (e.g. Man,
Machines, Material, Method, Measurement,
Environment)
4. Place each cause in a category (same cause can occur
in several category)
5. Ask “Why does this happen?” for each cause
6. Design data collection strategy to verify and prioritize
main causes

10 Common Mistakes 1
1. Project is not aligned to organization’s
objectives
2. Not agreeing on the goal or outcome
3. Trying to “boil the ocean”
4. Not utilizing the power of the Gemba
5. Not measuring the performance metric

Critical Success Factors 1
1. Ensure buy-in by project champion and team
members
2. Select a project that is not too difficult to
execute and can be completed in less than a
year
3. Keep stakeholders informed of the project
status
4. Manage stakeholders’ expectations

Copyrights of all the pictures used in this presentation are held by their respective owners.

About
Operational Excellence
Consulting

About Operational Excellence
Consulting
• Operational Excellence Consulting is a management training and
consulting firm that assists organizations in improving business
performance and effectiveness.
• One of our unique strengths is going beyond a tools-focused
approach to seamlessly integrate people, processes, technology
and continuous improvement initiatives to suit the specific needs
and situations of our clients.
• We provide corporate learning programs and management advisory
services to assist our clients to achieve breakthrough in business
performance and effectiveness. Our aim is to support our clients in
designing, managing and executing lasting beneficial change.

To download this presentation,
please visit us at:
www.oeconsulting.com.sg
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PDCA Problem Solving Technique & Tools by Operational Excellence Consulting

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PDCA Problem Solving Technique & Tools by Operational Excellence Consulting