2. Issues
It is not easy to deal with
“real world” problems
People tend to “resist
changes”
Managers tend to jump to
solutions pressed by the
need of obtain results,
thinking that the analysis “is
a waste of time”
These solutions (usually
called “low hanging fruits”)
do not address the root
causes of the problem
Therefore, the problem
appears again and again . . .
Rene Alvarez, 2010
3. So . . . we need a methodology
Intuitively, most people
know how to solve
problems, but are unable
to, because they have no
method of focusing their
intuition.
Without a means to focus,
people will do the opposite
of what they really believe
and will play a lot of games
with numbers and words.
Eli Goldratt. It’s not luck.
Rene Alvarez, 2010
4. How do we use to deal with problems?
Causes and effects are not ‘close in time
and space’
Where to apply changes to get significant
improvements is usually non obvious to
most participants in the system
Our non systemic ways of thinking are so
damaging specifically because they
consistently lead us to focus on low-
leverage changes: we focus on
symptoms where the stress is greatest.
We frequently repair the symptoms not the
problem Senge, P. M., (1990) The fifth discipline: the art
and practice of the learning organization.
Such efforts only make matters better in
the short run, at best, and worse in the
long run
Rene Alvarez, 2010
5. Why do we resist to change?
Disagreement on the problem
Disagreement on the direction of
the solution
Disagreement as to whether the
solution will result in the desired
effects
“Yes, but . . .” the solution has
negative outcomes (side effects)
It’s not exactly clear how to
implement the solution
Raising doubts about the
collaboration of others (un-
verbalized fear)
Theory of Constraints, Eli Goldratt
Theory of Constraints, Eli Goldratt
Rene Alvarez, 2010
7. The solution: To use a methodology
Whether it is in medicine or
engineering, continuous
improvement processes
should be conducted
following a logical
methodology that allows
the team to achieve its
goals, without spending
time in futile discussions
Rene Alvarez, 2010
8. The strategy: break the layers of resistance !!
1. Achieve an
agreement on the
problem
2. Achieve an
agreement on the
direction of the
solution
3. Design the detailed
solution based on
those agreements
Rene Alvarez, 2010
9. To solve the problem . . .
We need to define the
problem
We need to achieve “an
agreement on the problem”
We need to eliminate the
root causes of the problem
'Okay, Houston, we've had a problem here.‘
'Okay, Houston, we've had a problem here.‘
John Swigert, Jr. US’s Apollo 13 Moon flight
John Swigert, Jr. US’s Apollo 13 Moon flight
Rene Alvarez, 2010
10. What are the root causes of the problem?
We need to find
them using a
“logic
methodology”
Rene Alvarez, 2010
12. The Good news !!
After a collective
process of building
the cause-effect
diagram, we have
broken the first layer
of resistance to the
change . . .
We have an
agreement on the
problem !
Rene Alvarez, 2010
13. Improving stages
1. Achieve an agreement on
the “Direction of the
solution” to remove the
root causes
2. Design the “detailed
solution”
3. Evaluate the alternatives
4. Probe the effectiveness of
the solution
5. Implement the solution
Rene Alvarez, 2010
14. Solution
Once the team has
identified the root
causes of a problem,
it is necessary to
eliminate them
through developing
a “solution”
Rene Alvarez, 2010
15. The direction of the solution
The direction of the solution is
the “Strategic guideline for the
detailed solution”
Teams must concentrate on
the desired future state
Teams must avoid going into
details in this phase (“Yes, but
. . . ” will be welcome in later
steps, not now)
Rene Alvarez, 2010
16. Types of changes
New written procedures
Additional training for the
staff
New equipments and
technology
Changes in the
responsibilities
Staff empowerment
Rene Alvarez, 2010
17. Successful brain storm
Judging is not permitting
Far-out ideas are
encouraged
The emphasis is on quantity
of ideas
Participants should expand
and elaborate other ideas to
produce new ideas by
association
There are not “silly ideas”
Make contributions in turn
Do not provide explanations
on your ideas
“Yes but . . . ”are not
allowed
Rene Alvarez, 2010
18. Agreement
We have broken the
second layer of
resistance to the
change !
Now we have an
agreement on the
direction of the
solution !
Rene Alvarez, 2010
19. Now . . .
Having an
agreement on the
direction of the
solution, we can
design a detailed
solution for the
problem
Rene Alvarez, 2010
20. Change design
The goal is to obtain a
new “well designed
process”
The new process must
reduce waste and add
value from the
customer’s perspective
We need to understand
the current process first
through a process map
exercise
Rene Alvarez, 2010
21. Three different approaches
Break down old Future
assumptions State
New
Technology
Current
State
New Process Model
Rene Alvarez, 2010
22. Breaking down old assumptions
W hy? W hy?
W hy?
W hy?
W hy?
Rene Alvarez, 2010
23. What to analyze?
What are the customer’s needs?
Who does the work?
Where the work is done?
When the work is done?
What resources are needed?
Why do we do this work?
What are the constraints for the
work?
How do we control the process?
What are the “contact points” with
the customer?
Rene Alvarez, 2010
24. New process models
1. Re-localize the work
2. Minimize the hand-offs
3. Reconfigure and reorder steps
4. Create new mixed teams
5. Integrate tasks
6. Eliminate intermediates
7. Reduce the amount of decisions
8. Relocate the decision points
9. Share information to allow staff to see “beyond the walls”
10. Improve process cycle efficiency by eliminating stages that do not add value
from the customer’s point of view
11. Make visible those invisible parts of the process (“Staple to and follow the
customer in his/her journey” to see the whole process through his/her eyes)
12. Focus on those aspects of the process that cause the 80% of the undesirable
effect
13. Standardization
14. Minimize variation
Rene Alvarez, 2010
25. How to evaluate different alternatives
Total cost
Impact in the problem
Cost/Benefit Relationship
Impact in the culture
Time to implement
Risks
Impact in the staff
Impact in the customer
Rene Alvarez, 2010
26. Effectiveness of the solution
Pilot tests
Dry runs
Simulation
Rene Alvarez, 2010
27. Implementation
1. Design a plan
2. Describe the change
3. Describe why the change
is necessary
4. Implement written
procedures
5. Involve in the
implementation process
all those who are
affected by the new
procedure
Rene Alvarez, 2010
