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Investigating Root Cause … with Experimentation

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I was involved in a workshop recently where the second half of it was investigating a problem on a manufacturing production line. To make a long story short, the process of profiling a product generated unusable portions (ends) of the product which had to be cut off and thrown away. The scrap rate of 10% was adding up to be in the tens of thousands of dollars per year on this line alone in material, labor and disposition costs.

Using the A3, 7-step process, the team brainstormed potential causes for this problem of generating unusable parts of the product. These were direct causes and not necessarily root causes at this point. Based on experience and available data, the team was able to reduce the list to a few causes.

At this point, the team went to the actual production line (aka Gemba) and conducted a few simple experiments using the refined list of causes (factors). The team observed, and took measurements with video clips, which were evaluated later in the meeting room. It wasn’t long before the direct cause of the problem was determined and, by using the 5-why process, the root cause was reached. The team simply followed the funnel diagram below.

Funnel

Based on the root cause (equipment alignment issue), the team brainstormed ideas for a solution. A temporary solution was implemented to reduces the defects significantly while a permanent solution was being planned.

The takeaway from this improvement initiative is the importance of conducting root cause analysis using experiments right where the problem is occurring as opposed to doing so in a conference room. For management, it is important to allow time for experimentation on the production line and to let the team, including production workers, be creative in troubleshooting the issues and generating solutions.

Mustafa Shraim

Lean & PDCA (Part 1)

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sqps_14036693Lean initiatives can be implemented in a series of Plan-Do-Check-Act (PDCA) cycles. In addition to the value stream map metrics, is important to keep a set of metrics to measure progress so that lean and quality objectives are tracked after each cycle. Here is an example of a PDCA outline:

Plan

    • Draw current value stream (VS) map in terms of processes (or activities) OR use future map from previous cycle
    • Calculate times for current VS map
    • Analyze current VS map for waste (delays, additional inspections, extra motions, transport, search time, etc)
    • Make a list of relevant, comparable metrics (Cost of non-conformance, delays, search times, inspection times, quality levels, delivery times, customer feedback)
    • List opportunities for removing such waste by reducing, re-organizing, realigning, training
    • Select easiest opportunities to implement with highest impact first
    • Draw future map based on selected opportunities

Do

    • Prepare action plan for selected opportunities
    • Implement plan by assigning tasks / due dates (no delays)
    • After implementation, let the system run and stabilize
    • Collect data again for measuring progress

Check

    • Analyze data and compare against the “before” set of metrics listed under the Plan phase
    • Provide visuals (charts / figures) to show progress / improvement

Act

    • Update future value stream (this will become the new “current” value stream)
    • List of things you’ve learned from this cycle? Implement in other areas and document for availability and easy access.
    • Goals achieved? If yes, What’s next on the opportunities list? If no, What’s the next goal?
    • Go the next cycle of PDCA

I’ll use an example in Part II.

Lean QMS – Value-Stream & Support

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In any organization, there are two sqps_14036693types of processes:

    1. Value Stream
    2. Support

Value Stream processes , along which product or service is being created, involve activities the customer is willing to pay for (or directly goes into the service of the customer) . Generally, such processes convert input into useful output for the customer and should not generate waste. On the other hand, support processes are those that keep the organization in business, efficient, and quality conscious. As the name may suggest, they support the value stream processes.

For example, a business that provides calibration services is likely to have many processes. Here is a list of some of them (a long with type of process):

    • Quoting (Support)
    • Scheduling (Support)
    • Performing calibration service (Value Stream)
    • Generating calibration certificates   (Value Stream)
    • Staff Qualification (Support)

In lean quality management systems, it is best to document such processes separately. This way, value stream maps can be used in analyzing and improving value streams. One of the objective here would be to speed up the flow and reduce lead time for customers. On the other hand, flow diagrams or flowcharts may be utilized to improve the support processes from loop holes, unnecessary redundancies, and other problems.

The Waste Series: Waiting

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time_runningWaiting can take many forms in different organizations – and can add up quickly – making it a significant form of waste. In its simplest form, one production station could be idle and waiting to receive parts from an upstream operation. Other forms may be related to support  and information flow processes and are just as important to study. Consider the following examples:

  • Production is waiting on maintenance to fix a piece of equipment
  • Maintenance is waiting for a critical part
  • Shipping dock operator is waiting for paperwork to be completed before shipment can leave
  • Operator can’t access portal to generate advance shipping notice (ASN) with customer
  • Team is waiting for the CEO before they can start a meeting
  • Electric forklift truck is in charging station and not available to move material
  • Buyer is waiting for signatures to approve a new supplier or subcontractor

Understanding and eliminating this form of waste can have a big impact on reducing the lead time and creating more capacity. For support processes, freeing up people’s time can be helpful in utilizing skills on important issues. Ultimately this will lead to improved customer satisfaction and increased profitability.

The Waste Series: Overproduction

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What does “overproduction” mean? dreamstime_5669182

In Wikipedia it refers to the “excess of supply over demand of products being offered to the market.” In other words, producing more (product) than what the customer  wants or needs.

Questions:
– What if a company is producing based on forecasts?
– What about service-based organizations? is there such a thing as “overproduction”?

To answer the first question, we need to evaluate the impact of overproduction. While overproduction keeps equipment and employees busy (to satisfy utilization metrics) on one hand, it generates other types of waste such as:

  • Inventory – If it’s not going to the customer, it has to sit somewhere!
  • Transport – There is more transport activities if the product has to be stored and retrieved
  • Correction – If a defect is detected, more product must be investigated and corrected to ensure conformance.

So even if it’s based on forecasts, it is still generating other types of waste with  no firm orders from the customer!

What about internal customers (like producing components for the next process, etc)? Same answer. Check against the list above.

The second question can be answered by first defining modes of overproduction:

  • Generating more information than needed (we’re all familiar with this!): Sending emails to everyone unnecessarily, generating reports no one needs, unnecessary data collection, etc. – all of this results in tying up people’s time in wasteful activities, including meetings, to discuss them. Remember the question that we need to answer,  Is there any value to the client or improvement to the process from doing this?
  • Building potential value streams or capacities no one will use: If management puts in place facilities for potential services that stay idle for any reason, this may result in waste of resources (human resources, maintenance, etc)

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