TVET PROGRAM TITLE :-MISM Level IV

MODULE TITLE: Applying problem solving

Techniques and Tools
MODULE CODE: 4 M04 0615
NOMINAL DURATION: 90 Hours

PB Y GASHAW A
 LEARNING OUTCOMES

LO1:Identify and select theme/problem

LO2:Grasp current Status and Set Goal
LO3: Establish Activity Plan
LO4: Analyze causes of a problem
LO5:Examine Countermeasures and their
Implementation
LO6 :Assess Effectiveness of the solution
LO7: Standardize and sustain operation
 LO.1 Identify and select theme/problem

1.1 THE CONCEPT OF QC STORY/PDCA CYCLE

 QC Circles were organized in Japan as a way of
getting operators to participate in quality control
activities.
 In order to be efficient and effective in their
problem-solving activities, members follow the Plan-
Do-Check-Act (PDCA) cycle, in which they plan for
improvement, implement what is planned, check and
analyze what has been implemented, and act based
on the results of the checks.
 QC Story/problem solving / Procedure

1. Theme Selection
 At the first stage, members select a theme from
among the problems in the workplace—a
theme concerning problems for which they
think solutions would be most beneficial.
 This is to provide clear vision on the objectives
for the activity. Members ask themselves,
―What kinds of problems do we have and how
do we improve them?
 2. Grasping Status and Goal Setting:

 After a theme is selected, members try to

understand the current situation of the problem.
 They list all of the possible problems related to the
process, use data to validate that the ―problems‖
are indeed problems, select the priority problem,
and again use data to define the extent of this
problem.
 The main objective of these steps is to gather
information and grasp the status of the problem so
that members can establish a detailed set of goals.
 3. Establishment of Activity Plan

 Based on the data acquired in the second stage,

the members establish an activity plan,
according to the 5W1H concept.
 In this concept, five W questions and one H
question are addressed.
 The members decide the issues to be tackled
(what), the rationale for tackling them (why),
the detailed time scheduling of the program
(when), and the place and resource allocation
(where, and who and how).
 4. Cause Analysis

 The main objective of this stage is to confirm which measures can be taken for
what kinds of problems.
 After a theme is selected, the causes and effects of problems are to be
identified.
 This is the most important stage of the process, as it identifies the root causes
of the problems and shows what needs to be changed.
 In problem-solving processes, it is very important that results are examined in
line with causes, thus identifying the cause–effect relationship.
 Members consider all possible causes of the problem and see if there is any
correlation among them.
 Then they use data to verify the causes, narrow these down to root causes,
and finally select the most critical root cause.
 They then consider all possible solutions to eliminate the most critical root
cause, select the best solution, and establish a detailed plan on how to
implement it.
 5. Their examination of countermeasures and their Implementation

 After causes are identified, countermeasures are examined,

evaluated, and selected.
 This stage aims both to correct the root causes and to
establish the most effective measures to prevent the
reoccurrence of the problems.
 All the people concerned on the issue are gathered to
discuss it, considering factors such as effectiveness, cost,
condition of restrictions, and impacts on the other factors.
 Members then implement countermeasures in daily
operations, according to the plan, and monitor the results.
 6. Assessment of Effectiveness

 Then an assessment is carried out to see whether the

impediments have been overcome or to what extent the initial
objectives have been met.
 It is carried out together with evaluation for further
improvement of the work.
 The Circle identifies the tangible and intangible results, verifies
those using data, and compares them with the initial goal.
 Tangible results are results targeted through changes in
processes, whereas intangible results are those in areas such
as improvement in employee learning skills and education.
 If the results do not meet the goal, then the Circle needs to
return to previous stages and reexamine the processes.
 7. Standardization and sustain operation

 Finally after effective methods are identified, they are

standardized and made a permanent part of daily operations.
 Based on the standardization, members train the people
concerned.
 new training manuals are created and disseminated among
the people concerned, and evaluation is carried out from time
to time, aimed at ensuring that the process is maintained
appropriately.
 The last step in this stage is for the Circle to determine the
next problem to tackle, which may be chosen from the list
generated in the beginning of the first QC Story.
 1.2 STATISTICAL TOOLS AND TECHNIQUES

 QC Circles need a well-defined process for collecting

facts and data that help them to understand
situations in real time and develop countermeasures
(implemented through the following PDCA
management cycle or the QC Story) to address
problems and prevent them from recurring.
 QC tools and QCC techniques, weapons to help QC
Circles make decisions that allow them to properly
follow the QC Story, are not only powerful but also
imperative.
 Data Collecting and Analysis

What is data?
 The most critical matter for QC Circles is to
understand facts and data.
 Without correct data collecting and analysis, it is
impossible to solve problems in the workshop.
 Points concerning the treatment of data are
described hereinafter.
 Data is information about a certain event or matter
expressed objectively and through both numerical
values (numerical data) and language (verbal data).
 Cont ….
Numerical data has measurement values and discrete values.
1. Measurement values: fixed data such as length, weight,
and profit
2. Discrete values: Variable data such as the number of
defects
Verbal data has logical expression words and emotional
expression words.
1. Logical expression words: Communicated objectively
(instrumental words for reporting.
2. Emotional expression words: needing translation into
logical expression words.
 How is data collected?

How to collect data

Step 1: Clarify the objectives of collecting data.
Step 2: Clarify the items to be understood within
the problem.
Step 3: Determine the method of stratification.
Step 4: Make a check sheet.
Step 5: Gather facts from the data using QC
tools.
 Seven QC tools

 The seven QC tools are used to collect, summarize, and

analyze data (quantitative and qualitative).
 The seven tools are usually considered to be:
Stratification
 The objective of stratification is to grasp a problem or to
analyze its causes by looking at possible and understandable
factors or items.
 Collected data of a single population is divided by time,
workforce, machinery, working methods, raw materials, and
so on into a number of stratums (or layers) to find some
latent characteristics among the data be they the same or
similar.
 Typical Categories of Stratification

Time: year, month, week, day, hour, night, afternoon,

morning, period,
Workforce: division, section, dayshift, nightshift, group,
age, experience,
Machinery: line, equipment, machine number, model,
structure, jigs, dies, etc.
Working method: working procedure, manual, speed, etc.
Raw material: place of origin, supplier, lot, charge, etc.
Product: country, unit, order, manufacturer, service
provider, etc.
Environment: temperature, humidity, weather, etc.
 Pareto Diagram

A Pareto diagram is a form of bar chart with the items

arranged in descending order so that you can identify the
highest contributing factors to a problem.
Pareto diagram shows which defective items should be
tackled first.
This type of diagram was given its name by Dr. Joseph M.
Juran because of its likeness to the 19th century work of
Vilfrido Pareto on uneven economic distribution work
postulating that 80 percent of the wealth of a nation is
owned by 20 percent of its population.
 Cause and Effect Diagrams (Ishikawa Diagrams)

 This diagram composed of lines and symbols is designed

to represent the relationship between effects and their
causes.
 It is sometimes called an Ishikawa diagram, after Dr.
Kaoru Ishikawa who is considered the father of QC
Circles.
 Others call it a fishbone diagram due to its resemblance
to a fish skeleton.
 It is a very effective tool for analyzing the causes of a
problem, even household problems like high
consumption of electricity.
Cont …
Cont …
 4. Graphs

 A graph is a tool used to present an area of interest in visual form.

 There are various types of graphs, and the most common are bar graphs, line
graphs, and pie charts.
Ten merits of graphs
1. Numbers can be visualized.
2. Readers get to sense the whole picture.
3. They require few words.
4. They are interesting to look at.
5. Contents can easily be understood.
6. They are objective.
7. They are easy to make.
8. Comparisons are easy to display.
9. They are a universal form of language.
10. They enhance the image of the contents.
 a. Bar graph

 Bar graphs are used to show trends (e.g., of a product

or service).
 They make use of bars whose lengths represent the size
of the factors under consideration.
 The bars may be positioned vertically or horizontally.
 b. Line graph

 Line graphs are used to show actual situations

at given points in time.
 They may also be used to predict future trends.
They may be broken lines or straight lines.
 c. Pie chart

 A pie chart is used to denote relative portions

of a situation; each slice of pie represents a
percentage of the whole.
 5. Check sheets

 Check sheet are forms used to collect data in

an organized manner.
 They are used to validate problems or causes
or to check progress during implementation of
solutions.
 Check sheets can come in different shapes and
sizes, and Circle members must be able to
design them to suit their needs.
 6. Histograms

 Processes’ outputs naturally vary from one to

another.
 A product may be said to be uniform, but
actually no two units are exactly the same.
Using precision instruments, these differences
will be detected.
 For example, if we examine the weight of a
bottle specified as 50g _ 1g, we may be
surprised to find that the bottles vary in weight.
 7. Scatter Diagrams

 A scatter diagram examines the relationship

between paired data.
 This tool is usually used by the QC Circle when
it wants to establish the relationship between
cause and effect, the relationship between
one cause and another or a relationship
between one cause and two causes.
 LO 2: Grasp current Status and Set Goal (Fact analysis)

2.1. METHODS TO GRASP THE CURRENT

STATUS OF THE PROBLEM
In fact analysis you clarify the impact of the
problem (the difference between the current
status and the target status) and use
stratification to identify variability.
Quantify the current status
Problem-solving starts with accurate fact analysis
to determine how bad the current status is.
 Identify the problem

Key points
– All of the QC circle members discussed the
problem thoroughly, to get to the essence and to
identify what is essentially amiss. Use a process
flow chart, the 4Ms, and other means to look at
the problem in its broader context.
– Get a systematic understanding of the problem
with cause and-effect diagrams, affinity diagrams,
and other tools that enable you to see the whole
picture.
 Narrow down the facts of the problem

Key points
– Get the facts based on the three actualities (the actual
reality of the actual situation at the actual site).
– Personally conduct an on-site examination of the part,
tool, or equipment that seems to be causing the
problem so that you can make an objective statement
of the problem. Investigate and confirm to get all of
the facts that you need.
– You need to do more than just look. You need to
conduct a close, hands-on examination of the problem.
 Facts should be expressed quantitatively

Key points
– Have the QC circle members discuss how to
quantify the facts, including using sample surveys,
doing experiments and tests, and completing
questionnaires.
• All of the circle members think about how the
relevant data can be expressed numerically.
 Collect data and prepare graphs

• Work quantitatively and objectively

Key points
– Collect the necessary data in sufficient quantity, knowing
clearly what is to be measured so that it is easy to stratify
the data.
– Remember that data are most current immediately upon
collection and start getting stale immediately.
– Do not collect just the convenient data. Be sure to get
everything you need, including the data that make your job
harder by forcing you to get at the underlying causes.
– It is imperative that the QC circle use objective
 Identify variability

Identify variability by using the results of the stratification.

Select problems whose solution will make a major
contribution to better results.
Key points
– Continue to stratify until variance is identified.
– If you cannot get enough examples, one effective way to find
differences is to compare good products and defective products.
– Do not concentrate only on mean values to identify problems.
Also pay attention to variability.
– Select high-impact problems.
 2. SET THE TARGET

 A target is critical, because it serves as a

yardstick against which to measure the results
of the corrective action in specific terms and
makes your activities more challenging and
more rewarding.
 LO 3: Establish Activity Plan

1. PROBLEM CONFIRMATION
QC circle practitioners have long realized that "no activity is possible
without a plan, no examination is possible without activity, and no
growth is possible without examination.
" The action plan is an important growth tool. It may not be possible to
devise a perfect action plan from the very beginning, but you will be able
to make better action plans as you become more experienced.
Based on the data acquired in the second stage, the members establish
an activity plan, according to the 5W1H concept. In this concept, five W
questions and one H question are addressed. The members decide the
issues to be tackled (what), the rationale for tackling them (why), the
detailed time scheduling of the program (when), and the place and
resource allocation (where, and who and how).
 How to establish an activity plan

 Brainstorming is based on opinion, so the ideas

classified as problems must be confirmed with
data.
 The need to speak with facts rather than
opinions has to be stressed because we all have
opinions and very often they are all different.
 This makes it very difficult for the Circle to
arrive at a decision and may lead to frustration.
 Check sheets and other forms are used for easy
collection, summarization, and analysis of data.
 2. DEFINE THE EXTENT OF THE PROBLEMS

Select a high priority problem

 If data is not readily available, the QC Circle can
use a matrix diagram to arrive at a high priority
problem. Confirm the problem.
 Once the problem has been selected and
confirmed, the Circle states it from the
customer’s point of view like was done in the
restaurant example: “Wrong order was served.”
 Define the extent of the problem
 The extent of the problem must be defined in quantifiable
terms (e.g., from January to March 2002, 30 percent of the
orders were not processed correctly).
 This is a very important step because it establishes the
baseline data and it will be used later as a reference in
measuring improvement generated by the Circle.
 A mere statement to the effect that there was reduction in
incorrect orders served is insufficient; the reduction has to be
backed up by data. Therefore, if historical data is not
available, the QC Circle must collect data as the process is
being done (e.g., by tallying how many orders are correctly
served and how many are not).
 3. SET THE ACTIVITY SCHEDULE

 An action plan is crucial if you are to conduct your

activities on your own and to conduct a good
examination.
Draw up the action schedule
– Schedule completion dates for each of the problem-
solving steps in the action plan.
– Incorporate items carried over from previous activities
into the action plan.
– The date each step is completed should be filled in on
the schedule alongside the scheduled completion date.
 Assign responsibilities

Assigning responsibilities is an important part of energizing your

QC circle activities.
Try to assign the right person to the right job, so that each
person's strengths are utilized to best effect and everyone has a
chance to grow without being overwhelmed by the task at hand.
– Determine the responsibilities in the action steps.
– Assign the QC circle management responsibilities (e.g., theme leader
and recording secretary).
– Let people take the initiative and volunteer for responsibilities.
– Look at each person's character strengths and skills. Have people take
responsibility for the things they are best suited for.
– Experience means growth, and it is important that activities be
organized and conducted so as to help everyone grow.
 LO 4: Analyze causes of a problem
• 1. CAUSE ANALYSIS OF THE PROBLEM USING 4M1E
Cause analysis means seeking the causes for the variability
identified in fact analysis.
 One common approach is to formulate a hypothesis, narrow the
factors down, verify them with facts, and slowly work your way
down to the underlying causes.
The main objective of this stage is to confirm which measures can
be taken for what kinds of problems.
 After a theme is selected, the causes and effects of problems are to
be identified.
 This is the most important stage of the process, as it identifies the
root causes of the problems and shows what needs to be changed.
 Cont …
 In problem-solving processes, it is very important that
results are examined in line with causes, thus identifying
the cause–effect relationship.
 Members consider all possible causes of the problem and
see if there is any correlation among them.
 Then they use data to verify the causes, narrow these
down to root causes, and finally select the most critical
root cause.
 They then consider all possible solutions to eliminate the
most critical root cause, select the best solution, and
establish a detailed plan on how to implement it.
 How to precede cause analysis?

List all possible causes of the problem

 The Circle brainstorms on the causes of the
problem.
 A very important question in this step begins
with the word why. Why the orders are
incorrectly served? The Circle members
enumerate their answers to this question until
they have exhausted all possible causes.
 Think of the causes

 Come up with as many factors as you can that could

contribute to causing the variance (nonconformance)
highlighted in fact analysis.
Key points
– Have all QC circle members participate in identifying factors
relevant to the characteristic.
– Have a brainstorming session to come up with factors and
organize them on a cause-and-effect diagram.
– Take another look at the factors on the cause-and-effect
diagram and see if anyone can add more factors. Seeing the
cause-and-effect diagram very often jogs people's
memories and helps them to think of other possible causes.
 2. ROOT CAUSE ANALYSIS

Analyze the diagram

Steps 1 - Analyze the diagram.
 Analysis helps you identify causes that warrant further
investigation. Since Cause-and-Effect Diagrams identify
only possible causes, you may want to use a Pareto
Chart to help your team determine the cause to focus
on first.
 Look at the ―balance‖ of your diagram, checking for
comparable levels of detail for most of the categories.
 A thick cluster of items in one area may indicate a need
for further study.
 Cont …..
 A main category having only a few specific causes may
indicate a need for further identification of causes.
 If several major branches have only a few sub
branches, you may need to combine them under a
single category.
 Look for causes that appear repeatedly. These may
represent root causes.
 Look for what you can measure in each cause so you
can quantify the effects of any changes you make.
 Most importantly, identify and circle the causes that
you can take action on.
 Select root causes

 Step 2: Select root causes

 From the valid causes, the QC Circle selects the root
causes. If there is a direct relationship between the
cause and the problem and this cause is seen
repeatedly in the cause and effect diagram, then it is
a root cause.
 Seek root cause relentlessly and narrow them down
 Narrow the long list of factors down to the critical
cause.
 Use facts, data, past history, and personal opinions to
focus on the most important factors.
 Cont ….
 Draw on management and administrative techniques, as well
as specialist expertise, to narrow down the number of factors.
 EXAMPLE: Let's analyze the diagram we have been
constructing.
 The level of detail is pretty well balanced.
 No causes are repeated.
 Poor Maintenance appears to be a cause for which you could
develop measurements.
 Moreover, Poor Maintenance appears to be a cause that you
can take action on. It is circled in Viewgraph 8 to earmark it
for further investigation.
 Select most critical root cause

Step 3: Select most critical root cause

 Among the root causes, the Circle selects the
one that is most directly related to the
problem.
 Voting can be used to decide which root cause
to work on.
Step 4: List all possible ways to eliminate the most critical root cause

 Again the QC Circle brainstorms to generate ideas

from the members.
 The leader must be able to challenge the members
to be creative, to let go of their preconceptions.
 If a QC Circle hits a mental block—that is, it is not
able to come up with ideas—it leaves the list where
everyone can see it (e.g., on a wall in the
workplace) and add new ideas easily. This helps
provide a longer list for consideration at the next
meeting.
 Step 5: Select a best solution

The suggested solutions must be carefully

evaluated and tested for potential
complications.
The QC Circle can use matrix diagrams to
select the best solution.
 3. SETTING COUNTERMEASURES

Establish a detailed plan

 The next step is for the QC Circle to flesh out
the details on the implementation of the
solution by asking the question ―How? For
each activity, someone is given responsibility
and a timetable.
 The details of the plan are summarized in a
Gantt chart.
 Plan the countermeasures action

Plan the countermeasures action so that the cause

identified in cause analysis does not recur.
– Plan corrective actions for each confirmed cause.
– Do not worry about the practicality of the
countermeasures actions at this point. Come up with a
wide range and large number of suggestions.
– Put the priority on those actions that your circle can
implement on its own authority.
– Narrow down the countermeasures action plans and
focus on the one(s) you want to implement.
– Actively solicit management and staff opinions.
 Points to remember

1. Make a table that shows the problems, the corrective actions,

what you are trying to accomplish, how you intend to
accomplish it, and who is going to be responsible for doing it.
2. This is an excellent way to show the linkage between the
problems and the countermeasure actions. It shows clearly
how the countermeasure actions address the problems
identified in the cause analysis stage, thereby highlighting the
cause analysis’s effectiveness.
3. Be sure to indicate what the actions are intended to
accomplish and who is going to do what.
4. Adding information on each of countermeasure actions helps
every one understand what is being done, how, and why.
 LO 5: Examine Countermeasures and their
Implementation
1. ACTIVITIES OF MEDIUM KPT
What KPT?
The KPTs provides an opportunity for members to develop their
creative thinking as they look for better ways to do their work, which is
imperative as customers become more demanding and their needs
become more varied and complex.
As the members study and learn together, their full potential is realized.
They understand their work better; they see their importance in the
company, they enhance their analytical skills, and they learn new
things, not just about their jobs but also about their company: its
vision, mission, and goals; its convention; its partners; its suppliers; and
the requirements of its customers.
 Cont …
 There are various potential benefits brought by team
activities: overall the productivity will be enhanced,
management’s ability to improve will be developed,
and teamwork will be improved through
encouragement by both management and colleagues,
resulting in higher morale on the frontline operation.
 The KPTs activities are essential for the operators but
also for the management; as such activities are
designed to improve the relationship between the
two.
 Characteristics of KPTs

 Based on this definition, which has been

adopted in many countries, the QC
 Circle Headquarters enumerates the following
features of a QC circles:
 a. Small group

 The Circle is normally composed of three to ten volunteers

who come from the same workshop and are under the
same supervisor. Keeping the group small enables the
members to participate actively in Circle activities.
During meetings for instance, each member has a chance
to contribute ideas; whereas, if the group is more than ten,
it may happen that a member is not able to contribute an
idea because of lack of time, for the Circle usually meets for
an hour at most.
If the group is small, the chances are high that members
are able to foster better interpersonal relations and
develop cohesiveness.
 b. Continual control and improvement in the quality of work, products, and service

 KPTs continue to look for opportunities for improvement

from the time they receive their inputs to the time they
deliver their product or service to their customers.
They employ the concept of the Plan-Do-Check-Act
(PDCA) continual improvement. Because the customer is
never satisfied, the Circles never stop looking for better
ways of doing the work.
Once a problem is solved, they move to solve other
problems; thus, they are in a never-ending search for
ways to satisfy the customer.
 c. Autonomous operation

 Circles solve problems in their own

workshops; so, they operate autonomously in
the sense that they are free to choose the
problems to solve, they identify what data to
collect in order to better understand why the
problems exist, and their members analyze
the problems’ causes among themselves
(though they sometimes consult other
departments that affect their work).
 d. Utilization of quality control concepts, tools and techniques

The Circle works with the aid of data

throughout its problem-solving activities.
They show that a problem exists by collecting
data (using a data collection form, like a check
sheet) that they then summarize and analyze
using simple statistical tools and use problem-
solving techniques.
 e. Self-Development

 A KPT contributes not only to the development of a

sound working environment but also to the
enhancement of individuals’ abilities and potentials.
In other words, the activities lead also to self-
development of individuals.
Through the activities, each member can develop
various qualities, such as sound personal relations,
analytical skills, presentation ability, and knowledge
on various QC tools.
 Objectives of KPTs Activities

a. Establishment of a pleasant workplace

 The atmosphere of a workplace has two dimensions:
the psychological and the physical.
 The psychological is usually measured through
organizational climate surveys in which people are
asked about their perceptions of leadership, availability
of information and resources to do their job well,
teamwork, rewards and recognition, and job
satisfaction.
 The physical pertains to orderliness and cleanliness;
access to raw materials, tools and machines; and safety.
 b. Establishment of a state of control

 It is very important that people operate their tasks

according to the specified way. As Ishikawa (1981) avers,
“Well controlled workshops are those that observe agreed
standards, take adequate corrective measures or preventive
measures, remove causes of abnormal or out of control
conditions before problems become readily apparent, and
revise standards if necessary.”
c. Enhancement of morale
 KPT activity is aimed at enhancing the morale of Circle
members. Ishikawa (1981, 29) suggests that “the morale
should be elevated as a natural consequence of taking part
in the activity.”
 d. Establishment of sound human relations

KPTs provide a place where people can solve problems with active
communication toward the achievement of common objectives. It is
in this respect that a KPT can contribute to develop human relations
among its members and even with management. Members learn
interpersonal skills through their discussion with other members,
acquiring a sense for building up harmonious relationships.
e. Better income
 In the long run, with company income increases through KPT
activities, the income of the members will often increase. But we
should not think of such increases as direct increases. As it will be
stated later in this book, the benefit of the Circles can be measured
not only by tangible impacts but also by intangible impacts.
 f. Improvement in Quality Assurance

 The ultimate goal of KPT activities is to

achieve quality assurance.
 By solving problems in the workplace in a
systematic manner, the Circle can achieve
quality assurance in the workplace, which
consequently leads to improvement in the
quality of life of the individual operator
 LO 6: Assess Effectiveness of the solution

1. TANGIBLE AND INTANGIBLE RESULTS

Then an assessment is carried out to see whether the impediments
have been overcome or to what extent the initial objectives have
been met. It is carried out together with evaluation for further
improvement of the work.
 The Circle identifies the tangible and intangible results, verifies
using data, and compares them with the initial goal.
Tangible results are results targeted through changes in processes,
whereas intangible results are those in areas such as improvement
in employee learning skills and education.
 If the results do not meet the goal, then the Circle needs to return
to previous stages and reexamine the processes.
 Identify tangible and intangible results
 Tangible results are those that can be quantified, like when a
defect rate is reduced by a certain percent.
 Intangible results on the other hand are those that are qualitative,
like when teamwork among the members is improved.
 The Circle must be able to establish at this point that the project
gains also bring them direct personal benefit. Therefore, a very
important question that each QC Circle must answer is “What is in
it for me?” By answering this question, the members realize that
they themselves, in addition to the company, benefit from the
project, which induces personal satisfaction as well as a sense of
achievement.
 This sense of achievement is the most important intangible result
of QC Circle activities.
Compare the target value and the actual value (for tangible effects)

Step one: Compare the target value and the actual

value (for tangible effects)
– See if the target value was met.
– If the target value was not met, go back over the previous
steps to see what went wrong, correct it, and try again.
– The effect should be measured using the same QC
methods and criteria as used in fact analysis.
– The effect should be confirmed for each corrective action.
– If the target has been determined as a first priority, make
sure to see what impact this has had on the whole.
 Step two: Identify other effects

• Identify effects other than the immediate tangible

effects. Convert the effects into monetary values. They
are very specific numerical values that everyone can
understand.
• Step three: Confirm the intangible effects
– What impact has the activity had on human relations in the
workplace, skill levels, teamwork, morale, and the work
environment?
• These intangible effects are easier to understand if you
use multidimensional comparisons with radar charts
and other tools.
 LO 7: Problem Standardize and sustain operation

1. THE CONCEPT OF STANDARD OPERATION PROCEDURE (SOP)

Standard
Standard defines the acceptance criteria for judging the quality
of an activity.
In the Kaizen context Standards refers to rules, procedures and
guidelines for activities carried out in the workplace.
According to TaiichiOhno (the father of TPS)
No standard, There can be No Kaizen
There can be no basis for comparison (before/after).
One cannot objectively tell if there was a difference or change.
No improvement is possible in regards to Time, Quality,
Quantity, Cost, etc.
 Standardization

 Formulation, publication, and implementation

of guidelines, rules, and specifications.
 Is a standard specification, unit, instruction or
something that is understood globally?
 Standardization promotes effective teamwork
by teaching employees similar terminology,
skills and rules of play at the work place
(GEMBA).
 Why Implement Standard Work?

– To make it possible to identify and eliminate variations in

operators’ work “Variability is the breeding ground of
defects, and high costs.”
– Team member own choices are dramatically reduced,
eliminating the “Do it your own way”.
– Abnormal conditions are clearly defined and tracked.
– To sustain the gains achieved from improvement activities.
– To provide a baseline for future improvement.
• Kaizen will succeed only if you pay regular attention
to Standard Work.
 Standardization

• Reduces Variation
• Enables Flow
• Eliminates Waste
• Fuels Continuous Improvement
 Steps to Standardization

1. Identify and set a standard

2. Ensure everyone in organization understand
& commit to the standard.
3. Confirm the standard is reasonable & fair.
 Continuous improvement

a. Improving every aspect of every activity every day –

forever
b. Think of continuous improvement as a journey rather
than a destination.
c. Continuous Improvement enhances “people supportive
practices”
• Provides new skills to employees, empowering them
to design and improve their own work.
• By standardizing on a new method, it gives people the
ability to reduce variation.
 Continuous Improvement is needed

 Increased competition.
 Customer demands for lower prices.
 Expectations for higher quality.
 Changing technologies.
 Need for improved participation and self-direction.
 Wider base of knowledge.
 Safer, better workplace.
 Zero accidents.
 9 CONTINUOUS IMPROVEMENT PROCESS STEPS

1. Observe current method.

2. Document current method.
3. Identify improvements (steps to eliminate).
4. Implement improvements.
5. Validate quality and productivity of new method.
6. Standardize new method.
7. Document “Before” and “After” conditions.
8. Recognize achievements.
9. Look for next improvement.
 STANDARD OPERATION AND ITS BENEFITS

Standard Operation
 It deals with detailed procedures to perform
an operation efficiently by anyone assigned for
the task.
 An efficient production system which
eliminates wasteful procedures by bringing
together a number of jobs focused on the
movements of workers.
 ’U’ shaped work units.

– Eliminates isolated islands.

– Integrates processes.
– Reduces transport and handling of parts.
– Enhances teamwork.
– Increases visibility
– Enhances cross training
– Improves safety
– Reduces inventory
 Cont ..
In the KAIZEN context standard operation means
creating a consistent way that an operation or a
task is performed so that anyone can perform it.
Standardized processes are intended to:
 Ensure customer satisfaction
 Drive consistent output
 Ensure consistent quality
 Drive consistent cost and time
 BENEFITS OF STANDARD OPERATION

 Ensure Safety
 Stable Quality
 Reduce cost & Increase Productivity
 Visualize what is normal vs. abnormal
 Stabilizes delivery times
 Eliminates Wastes
 Simplifies process
 Create base line for KAIZEN
THREE ELEMENTS OF STANDARD OPERATION PROCEDURE (SOP)

1. Take time
The rate at which the end product or service must be
produced and delivered in order to satisfy a defined
customer demand within a given period of time.
2. Standard in process stock
It is the minimum quantity of parts always on hand for
processing during and between sub-processes.
It allows workers to do their jobs continuously in a set
sequence, repeating the same operation over and over
in the same order.
 3. Operating Procedure
Enter the layout of facilities and pallets in the sheet.
Observe the target operator closely.
1. It is necessary to talk about the Operation Base (OB) and
Starting Point (SP) with the target operator in advance.
2. If the “waiting” is expected during operation, it is also
necessary to decide the point of waiting and the timing
to resume the operation.
OB = the place the operator is located when starting the
operation
SP = the tool showing the timing when the operator start
working.
 Cont ….
3. Enter operator’s movement using numbers and flow lines in line
with the procedure.
4. Record work elements and time measured in numerical order.
5. Enter the quantity of Standard In-Process Stock (*) in the bottom
of the format
6. Enter the items about quality inspection and safety operations in
symbols, if any.
7. Enter the information necessary to help control and make follow
up actions afterwards.
“Standard Operation Sheet” is subject to change after examining the
effects of the corrective measures at the working site discussing
with operators there.
 Principle of Standard Formation

 Enhanced: Standard of Improved situation.

 Acceptability: Acceptable Standard to all
employees.
Practicality: Easy to Implement Standard.
ANY QUESTION ?????

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