Layered Process

Audits (LPA) and The

Paper Theater
Blending CQI-8 (2nd Edition) &
Kamishibai

Rich Budzinski – BQS, LLC

01/24/2017
“It is easy to dodge our responsibilities,
but we cannot dodge the consequences of
dodging our responsibilities”
Sir Josiah Stamp
 Approach for CI & Process Control

Process Failure Modes & Effects Analysis

SEV OCC DET RPN

APQP / Control Plan

Layered Process Process FMEA

Audits Risk
Mitigation

SPC/Cpk MSA / Gage R&R

Visual Method Sheets

CQI-20 & CQI-21

 LPA does not exist in a vacuum
My view of some constituents for Process Control;
• Standards; give us direction (True North)
• Quality Tools; Basis for improvement are the
tools used to Reduce Variation
• Accountability and integrity are key…Trust but
Verify
• Effective Problem Solving; gets us back on track
LPA / CQI-8 Definition and Purpose
• Layered Process Audit; Management tool
used to verify that work is performed in
accordance with established standards…

• Not an Audit Per Se; A Verification of

Process Control, rather than an audit

• Objective: Ensure the organization’s most

Important Controls are in place and Standard
Process is being followed on “Critical
Processes”
LPA / CQI-8 Definition and Purpose
• Intended Messaging: Importance of
Standards…Follow the Process

• Expected Outcomes: Improved Results for

Important Metrics by way of Variation Reduction
(e.g. reduction in Cost of Quality)

• Additional Benefits: Facilitate ongoing, Two-

Way Communication between management and
process users
Focus on the Most Important Controls
So… How do we know what is important? Most
organizations have a Graded System for Product and
Process Characteristics…often required or defined by
its Customers. Examples could be;
Products:
• Critical Parts / Key Components / Noble Parts
• Key Design Features
Process / Service:
• Critical Processes / Key Work Processes (Baldrige)
• Key Process Features
• Critical To Quality (Enhanced Measurement & Records)
• Significant to Quality (Enhanced Measurement)
 Improvements to KPI
LPA of important processes should result in improvements
to Important Results
Company-wide or ”National” Top-level KPI
• Cost of Quality (CQI-22)
• Customer Satisfaction (e.g. Net Promoter Score) Measure Here
• Company-wide Injury & Illness Metric

“Local” improvements could include:

• Injuries / Near-miss
• Scrap
• Rework
• Supplier Failures Act Here
• On-Time to Lead Time
• Overall Equipment Effectiveness (OEE)
 Layered Process Audit Schedule
Instill Process Discipline…Perform Audits On-Time!

• Tier 1 Mfg / Process Core Group – Daily

• Tier 2 Mfg / Process Core Group Management – Weekly
• Tier 3 Top Management – Weekly Monthly (Top Management
often travels to important customers and suppliers…Weekly is not realistic…suggest
Monthly verifications, but multiple areas [3-4] at each visit. Target 10-15 minutes per
area)

Questions are taken from Control Plan, FMEA, Visual Work or

EHS; may incorporate inspections, processes, machines, safety
issues, etc.
General Question Example:
- Is there a report for first piece inspection? (Quality)
- Are welding screens in place? (EHS)
- Are calibrations current? (Quality)
Layered Process Audits (LPA)
Layered Process Audit is a method of ensuring
quality through shared accountability

ª Tier 1 audits to ensure processes are being carried

out correctly and safely.

ª Tier 2 audits to provide another perspective

comparative to Tier 1 audits.

ª Tier 3 audits to provide top management perspective

for comparison, show commitment, and to allow
management to make quick adjustments.
2nd Edition of CQI-8 adds 4 “Shalls”
• The Planning Team Shall review and adopt Customer-
Specific Requirements for the Layered Process Audits.
• The organization’s top manager within the facility Shall
always take part.
• The Planning Team Shall ensure buy-in from all
stakeholders of the Layered Process Audits
• At a minimum, buy-in Shall come from:
– The LPA Process Owner
– Management of each applicable document
– Planning Team members
– Top Management (including the top manager in the facility)
– Corporate Management
CQI-8 LPA Scope
• LPA may be applied to verify any Approved, Defined
Process within an organization
• No reason LPAs cannot be used effectively on
Transactional Processes as well as Manufacturing
Processes
CQI-8 LPA Approach
• Binary decision…yes/no LPA questions
• Direct observation of process (Gemba)
• 10-15 minutes target times per visit
• Focus on process, not product features
• ”No” answer triggers the Corrective Action Process
A “No” Answer…Yikes! More Problems!
• All Organizations have Limited Resources and Infinite
Problems - you have a mountain of issues
• Overhead is Not What You Need…Its What You Can
Afford - resources will always be tight
• All Processes Decay, and Never in a Beneficial Way –
things will always get worse unless you act
• There are Two Types of Problems…Those You Solve and
Those You Manage – people always require managing
• So Countermeasure….Remember, Everything
is a Continuum – follow the rules, but slide the
scale in your favor
Example of Risk Assessment and Mitigation

Top Issues
High

Corrective and
Failure Mode / Preventive Action
Casual Analysis
Identification

Screening Medium

Corrective &
Nonconformance Preventive Action
Low Resolution Implementation
Containment Execution

Correction

Effectiveness
Review
Re-Open

CLOSE

STOP
Detection of Track & Trend Monitoring for
Nonconformances (Kaizen / Quality Day / Nike Systemic
Projects) Improvements
Example of Nonconformance Screening

Issue Screening (Quality

Engineer)

Initiate FMEA, Control

Plan, and LPA Update Initial Risk Ranking
as Required

Entry to Quality Review

Board Risk Log. Assign Error Category
Escalation as Required.
Example of Quality Performance / Risk Review

QE Updates Running
COQ / PPM Issues Log

Provide Summary
Information to Annual Weekly Area Team
(Q4) Management Share (PPM & COQ)
Review

Quarterly Management Weekly - Quality Review

Review (LPA, COQ, Board Risk Evaluation
PPM, QMS) (Product / Process &
QMS Issues)

Monthly Functional
Review (COQ, PPM,
QMS, LPA Summary)
Examples from CQI-8 Appendix E
Sample Checklist
Feed & Temp Example LPA from CQI-8
Verify furnace temp is 140-1500 and belt speed at 2.5 fpm.

Rational; Improper setting could lead to brittle material and

early failure. There had been a warranty issue until LPA in
2004

6/29 Joe. Zone three (furnace) was found to be at

1350 (vs 140-1500). Operator returned to 1450. I
checked product test data – all was fine. No further
action needed.
 Retainer Example LPA from CQI-8
Is the operator using dispenser to apply grease to the
gasket prior to installation in Retainer?
Rational: Absence or excessive grease could result in mis-
located gasket, leak test failure and field failures.
Reaction Plan: Instruct Operator and refer to job
instruction. Notify Supervisor

6/28 Joe. Mary was not aware of need to use

dispenser and dispenser was dry. We filled
dispenser and Mary began using. Detail will be
added to job instruction.
Kamishibai – Paper Theater
 Plant Kamishibai Board 1
Safety Quality Production Visual Factory
Audit Card Audit Card Audit Card Audit Card

Daily Audit Card Audit Card Audit Card Audit Card

Audit Card Audit Card Audit Card Audit Card

Audit Card Audit Card Audit Card Audit Card

Audit Card

Weekly Audit Card Audit Card Audit Card Audit Card

Audit Card Audit Card Audit Card Audit Card

Audit Card Audit Card Audit Card Audit Card

Monthly Audit Card Audit Card Audit Card Audit Card

Audit Card Audit Card Audit Card Audit Card

Problem/Countermeasure
Problem Statement Root Cause Countermeasure Responsibility Target Date to Implement

1 The Michigan Manufacturing Technology Center (The Center)

 Example Kamishibai Card Rack2

2The Michigan Manufacturing Technology Center (The Center)

www.mmtc.org or email [email protected]
Example Kamishibai Cards3

3The Michigan Manufacturing Technology Center (The Center)

www.mmtc.org or email [email protected]
Continuum from CQI-8 to Kamishibai
with a CQI-8 Compliant Card System

CQI-8 Kamishibai

Pushing the Envelop toward Kamishibai

(Use Cards with both “General” and Specific Questions)
An LPA “General” Card uses Yes/No
questions for a quick visual check
LPA Questions are posted for a quick
visual check
LPA “General” Questions are taken from
a random sample
“General” Question T-Cards are inserted into slots
on a display board by day & by shift
1ST Shift 2nd Shift

This allows for a quick and easy visual check

CQI-8 / LPA Card Rack
Monthly Rack
Specific (CQI-8 Compliant) Card Layout
Mfg Cell
Machine number, used when Card Number
selecting card from stack

Operation Number 20 XXX XXX -B2 Card Rev

Machine number, description, and At Machine M123 Op 20 (Saw, Mill, Straighten) is

operation for auditor reference there evidence that :

Audit Questions

Important to measurement (GR&R) & process accuracy Rational

Shows which control plan the
questions reference
Card Selection Process for Specific Questions

• Auditor approaches an
operator and asks what
machine they are running
• Auditor selects a card from
stack based on that machine
number (cards are sorted by
machine number)
• Auditor then returns to
operator and asks the
questions on card
For LPA W/Card Specific to a Part / Machine
1. Auditor approaches operator and asks what machine he/she is
currently running.
2. Auditor goes to rack and finds card for that machine.
3. Auditor asks operator the questions on the card.
4. If audit card passes, it is logged on the audit log.
5. Failures are logged and correction / containment immediately
performed.
6. Card is put in the rack with either the green side facing out
(pass) or the red side facing out (fail) for a quick visual check of
cells performance.
7. Logs are collected for evaluation and Corrective Actions. Entry
made to Screening Board “Risk Analysis” by QE &
recommendation to QRB (Med-Hi) determines next step.
Tier 1 Log Sheet W/ Multiple Picks
Tier 2 & Tier 3 Logs
Interpret Data
Interpret Data Layered
Ask Audit Questions
Process
Audits
LPA questions are generated using the Control Plan

This ensures that questions are accurate to the process. The questions can be
updated at any time.
Layer Audit Frequencies

324 Total (Audits/Yr/Cell)

324*(7 Cells) = 2268 (PCO Audits/Yr)

Audit Log Data is entered into a spreadsheet and
then analyzed using charts and graphs
 Control Plan Team CI Planning

Weekly Control Plan Team

Review of LPA Board

1. Review Red Facing Cards;

Update Records for 2. Update CP, FMEA, MSA, SPC, VMS if Req'd.
Monthly Functional 3. Update LPA Question if Required.
Reviews 4. Records (Peel Sticker, Copy Cards, etc.)

Determine CI
1. Nike Projects Adjust Card Rack...
2. Quality Day (Shop) 1. Add Duplicate Cards
3. Kaizen 2. Omit Cards
4. Training and Competency 3. Add New Card
5. CapEx

Review Weekly Results

With Entire Team
Example Cost of Quality Reductions

Control Plans
DVP&R
Layered
Process Audits
 One Approach for Process Control

Process Failure Modes & Effects Analysis

SEV OCC DET RPN

APQP / Control Plan

Layered Process Process FMEA

Audits Risk
Mitigation

SPC/Cpk MSA / Gage R&R

Visual Method Sheets

CQI-20 & CQI-21

 Lessons Learned
1. Causal Analysis for minor issues is the “Spiral of Death”
2. Senior Leaders do best with Monthly / 30-45 min. audits
3. Vast majority of Corrective Actions are at the Weekly
Control Plan Team Meeting at the LPA Board prior to tear
down (CP, FMEA, MSA, SPC, LPA adjustments)
4. Low Risk Nonconformance is to a CI Bucket / Kaizen Burst
List and empties every Quarter after Risk Acceptance
Review (Kaizen may be forward scheduled to next Q)
5. Systemically driven actions are from trends at the Monthly
/ Quarterly Reviews and should be leveraged with COQ /
PPM data and Customer feedback.
 Next steps for improvement…
• Incorporate a dynamic system that can weight the current
highest risk processes with increased audit frequency to ensure
proper focus on most important issues.
• Avoid highly technical prompts that can disqualify many Tier 1
& 2 Auditors. Make sure to request proof, but best questions
are yes / no versus “is the proper technique being used” type of
questions.
• Consider Operator feedback when analyzing repeat Audit
failures and adding or revising questions.
• The “spiral of death” for LPA is CAPA for individual issues
that bog down any improvement. CAPA must be on Trends.
“All organizations have limited resources and infinite problems”
Next steps for improvement…
Increase Auditors’ Accountability for carrying out audits.
• Focus on improving consistency of Audits by use of
Standards. Ensure all 3 Auditor Tiers are checking for proof
during Audits (when applicable) before passing… e.g. by use
of 5S Checklist vs. Visual Survey.
Increase Operators’ Accountability
• Keep operators informed on changes in expectations
• Enforce importance of passing audits regularly, and making
changes when failures occur
References Used
Automotive Industry Action Group. (2012). CQI-20, Effective Problem Solving, Version 1. ISBN#: 9-781-
6053425049-0000.
Automotive Industry Action Group. (2012). CQI-21, Effective Problem Solving Leader Guide, Version 1. ISBN#:
978-1-60534-255-9-90000.
Automotive Industry Action Group. (2012). CQI-22, The Cost of Poor Quality Guide, Version 1. ISBN#:
978-160534-256-6-90000.
Chrysler Group, Ford Motor Company, and General Motors Corporation. (2008). Advanced Product Quality
Planning (APQP) and Control Plan, Reference Manual, Second Edition. ISBN#: 978-1-60534-137-8.
Chrysler Group LLC, Ford Motor Company, and General Motors Corporation. (2010). Measurement Systems
Analysis, Reference Manual, Fourth Edition. ISBN#: 978-1-60-534211-5
Chrysler Group LLC, Ford Motor Company, and General Motors Corporation. (2008). Potential Failure Mode
and Effects Analysis (FMEA), Reference Manual, Fourth Edition. ISBN#: 978-1-60534-136-5.
Chrysler Group LLC, Ford Motor Company, and General Motors Corporation. (2009). Production Part Approval
Process (PPAP), Reference Manual, Fourth Edition.
DaimlerChrysler Corporation, Ford Motor Company, and General Motors Corporation. (2005). Statistical
Process Control (SPC), Reference Manual, Second Edition. ISBN#: 978-1-60534-108-8.
1 2 The Michigan Manufacturing Technology Center (The Center) Kamishibai Board