Defi Use: A logical and structured approach for problem solving. Adopted by Lean organizations around the world and developed as part of the ‘Toyota Production System. a3 thinking Is bullt around the POCA philosophy. Used in problem solving, planning and decision making. Used as @ storytelling method to communicate improvement projects, Benefits: Provides a structured and consistent approach to process improvernent, Davelops and maintains a culture for continuous improvement, Promotes collaboration, knowledge sharing and innovation. A3 Seven Stages Mod. 1. Background — denty the business reason fr |e hee ee deicang IoSeniea oc cppodinity 2 entstuaionDocinent ie cere, 3. Tonget- Define the dented future tte 4. Analysis — Dig into the problem and understand why Wes happening 5. Countermeasures — Brainstorm and evaluate posible countermeasures based on the conducted analysis. 6: uegkeyentatin ean Develop swore plato ; Picrorie oun. eS filly - hue te inplerited pen arcane soiecermitolaukores LPoben Satan Pan aren Hint: + The name A3 is derived from the m=z794en — f2cuuee | 4. Rare international A3 paper size. No special software is needed to use the A3 approach. You lust need an A3 sheet, apencil ‘and an eraser as you will need to erase and rewrite many times. Make sure you use visuals ‘and graphs in the A3 report as they are more effective than text In communicating ideas, uk www.citoolkiAffinity Diagram Defi * A grouping method for classifying items together into meaningful catagories. + Also called KJ Analysis & Affinity Map. When itis used? + During brainstorming sessions, + During problem-solving sessions. + Can be used to organize the voice of the customer. + Can be used at any stage in research and in verbatim analysis. Benefits: ‘Helps organize ideas and information to see how they are connected. * Helps Identifies the characteristics that distinguish each category. ‘Helps bringing out the best ideas and leads to better results (team-based), How to construct an affinity diagram? COLLECT Ooo * with your team, present the topic cor define the problem clearly. * Give your team sticky-notes then ask them to write one idea or response per sticky-note, * Collect the sticky notes and stick them randomly on the wall. + Locd the participants to group the ideas and labal the categories. Hints when constructing the + Eliminate duplicate items and the items that are not worth keeping. + Add arrows between items and groups to show relationships + In case an interview is to be conducted and information is to be provided verbally, make sure to record the actual spoken words. www.citoolkit.com 5 fiagram: GROUP LABEL oo a) Ol ode a a ae oo Oo ‘a a= mo, 4 ao Be a ‘Three Basic Steps There should be no discussion or evaluation of ideas of any kind until the final affinty diagram is complete =] EE es & sn ae =| Charge Cbsteces Planing Inplamrtaion* A graphical representation for the frequency of numeric deta values. + Also referred to es a Boxand- Whisker Plot as it displays the data in a box-and-whiskers format. Uses: + To explore and present the data in an easy and understandable manner, + When comparing central tendency and variation between multiple data sets. Applications: * Box plots are widely used in statistics, process improvement, scientific research, economics, and in social and human sciences. Structu * Abox plot is made up of a box and two whiskers. + The data is plotted in such away that the bottom 25% and the top 25% of the data points are represented by the two whiskers, whereas the middle 50% of the data points ore represented by the box. ay ” —— e t—+~—__ | Minimum value Lowerquartle Median Upper auarile utter Example of how to compare between multiple date sets: 2S 3s _#_#p _#2._§ Box plots are ideal to A represent moderate to - large amount of data. The size of the box plot * ‘A’ appears to have higher median and higher °2” vary significantly if variability than ‘ ‘the data size is small www.citoolkit.coma WE! Clee LL + A tool that allows to establish and present the cause-and-effect in an easy and understandable format. + Also called as Ishikawa diagram and cause-and-effect diagram Uses: + Brainstorm all possible causes that may contribute to an effect. + Capture, categorize and organize people's knowledge of a process, + In product and process design to prevent future problams and risks. ‘The 6 Ms approach: + One of the common approaches that can be used to categorize and label the branchas of the Fishbone diagram. + These categories typically include Man, Method, Machine, Material, Environment, and Measurement. Three main steps 1. Clearly define the effect which may be desirable or undesirable, 2. Identity the cause categories using the 6 Ms or any other approach, 2. Use brainstorming to log all possible causes under the appropriate categories. ‘+ start with the main causes and then the secondary causes and so on, Tips: The main idea behind the fichbone diagram is to brainstorm all possible causes that may contribute to an effect, so be aware of adding causes which are actually solutions. A cause-and-effect matrix can then be used to prioritize the causes of the problem, www.citoolkit.com couse Cetegory Sub cause ea Potential Z cause Batic Structure Combining the fishbone with the 5 whys allows to identify the hierarchy of causes including the possible root causes. Manufacturing [Administration and Services Typical fishbone diagrams for manutacturing and ‘non-manufacturing processesThe 5S phas + AJapanese management approach | * SORT —Refers to the practice of going through for organizing and mal all the items in the workplace and keeping only disciplined and produ vhhat is needed. sustain Sect workplace. + SET IN ORDER — The practice of arranging the + Represents five simple practices required items (where, how, how much). ss i that starts with the letter “S". + SHINE — Aims of creating a clean workplace * Considered a prerequisite for without rubbish, dirt or dust. driving other Lean techniques such | * STANDARDIZE~ Aims to ensure the consistency as TPM, Flow end Kaizen. of implementing the first three 5S practices. Benefits: + SUSTAIN — Aims to ensure everyone knows the 1 Gaakless wacuetsiaaloalangtie benefits and be involved in the 5S program. things. How to implement 5S in an area? ‘+ Minimizes mistakes and enhances | + Evaluate the current situation and take ‘before! photos. safety. * Brainstorm to identify improvement ideas, + Promotes workplace ownership, * Develop and implement a plan to improve the area. BEFORE AFTER pride and motivation. + Audit the area end take the ‘after’ photos. + Improves the image of the business | » Share and publish the results. iM and builds customer confidence. + _Implement a control plan to sustain the improvement. www.citoolkit.comFs Definition: * One of the common techniques for problem-solving and root cause analysis. * Introduced and made popular by Toyota as part of their Toyota Production System. Uses: + Used in everyday business situations to identify the possible causes underlying a specific problem, + Widely used within Lean and. Six Sigma frameworks. Benefits: + Allows finding the roct cause of a problem quickly. + Encourages deep thinking. + Helps engaging operators process. in the How to Use the 5 Whys? 1 with your team, write a clear and specific problem statement, 2. Ask “Why the problem occurs?”, Write the answer down below the problem. 3. Ask Why again for the generated answer and write the answer devin. 4. Keep asking Why until the team identify the oot cause of the problem. 5. Discuss and agree on the corrective actions that will permanently solve the problem, Tips: Ensure your problem is relevant and solving it will make a difference. You may find that you need to ask Why more cr ess times depending cn the situation, Remember that each Why answer is a hypothesis that can be validated. Keep in mind that people do not fail, processes do. www.citoolkit.com wie 1) as 7 weve ii © we 1 Wt ) wie 1 identify the hierarchy of causes including the possible root causes. Postible Uusetulwhen having more than one festor ‘that contributes tothe problem‘+ A graphical tool that illustrates the flow of a business process and the relationships between its activities. Use: + To understand and communicate the sequence of activities in 2 process. + To identity and analyze problem areas to continuously improve processes. + To document how to do s particular job, + To provide a ew of how a process should be. Benefit + Provides clarity to a process that appears disordered or complicated. + Helps revealing areas of inefficiency. + Helps communicating any changes on the process. + Helps explaining the process to new employees and subcontractors. Flowchart Types ‘Activity Flowchart Swimlane Flowchart Opportunity Flowchart Displays the sequence of Displays the activities Provides a waytte analyze | ‘the activities that make up to accomplish a process and study processes by focuses on what happens. focuses on what & who). that add no value. Deskion Li va -inva) ©) J saree nat How to Construct a Flowchart? ws 1. With your teem, deserbe the process and your goal. 2. Determine the type of flowchart, the level of cetall, (Sth)}—> Nate EXAMPLE and the appropriate scope and boundaries ~a 2. Identiy all major process activities and decisions. 4, Draft the flowchart using the standard set of shapes. Soo Package 5. Testitto ensure it represents the process accurately. a 6. Publish and distribute the completed final version 7. Identity the areas that hinder the process or add femp < REDE 5 Revo litle or no valua for further p improvement. www.citool comDefi A decision-making technique that can be used to analyze the pros and cons of any decision, It looks at the forces thet are either driving or blocking movement toward agodl. Uses: Analyze the pros and cons of any organizational decision when decision making isn’t going well. To explain the reasons behind the taken decision. Benefits: By analyzing both the helping end the hindering forces, decision makers and change agents can make more intelligent business decisions in @ team-oriented manner. How to construct a force field diagram? + Gather the team. involve experts where appropriate. + Describe the decision that needs to be made. + Write the decision in a box at the top middle of a paper or white board. + Draw a line from the box down the middle of the paper. + List all possible helping forces left to the line. + st all possible hindering forces right to the line, + Allocate a numerical score to each force indicating its significance (e.g., from 1 to 5). + Add up the scores of both lists to find out which force wins. Actions should be taken where forces are overwhelming. Questions to help identify the forces involved: + What are the benefits? + What are the costs? + What is the best or worst thing that could? + How easy or difficult will it be to implement? How long it will take? www.citoolkit.com DECISION — = ==> | @ =) = Fach force or argument could be shown This technique is widely used in the fields of organizational change, business process ‘management, and social and cultural sciences.Four Field Matrix Definition: * An effective model for planning, organizing ‘and making decisions. ‘+ A two-dimensional chart that consists of four equal-sized quadrants, each describes different aspects of information, Benefits: + Helps you organize your ideas or information ina logical manner that makes sense. How to construct: + Think about and decide what you really want, + Determine the type of matrix appropriate for your situation, * Determine the two most important characteristics to place on the X and Y axes. © Draw the matrix and identify the four quadrants. + Sort your ideas and information in the appropriate quadrants of the matrix. Applica + To prioritize work and personal activities based on the Eisenhower method — importance urgency matrix. + To evaluate the strategic position of an organization ~ SWOT matrix. + To classify stakeholders according to the power thay hold and how likely they are to be interested in a project — power interest matrix + To salact the projects that will have the greatest impact with the least amount of money, time or effort — project prioritization motrin. + To select the methodology for problem solving and process improvement = project methodology matrix. Weaknesses Strengths Opportunities SWOT Matrix: aro Do Soon Push Back Avoid Eisenhower Matrix Complex problems can be broken down into easier to handle groups by considering the two most important characteristics (represented on the x and Y axes) www.citoolki comGap Analysis De * Gap analysis compares two different states of something, the current state and the desired state. When itis used: jon: + To identify the areas where a business performing quality standards or expectations below ‘customer * To address the unsatisfactory performance of a process, + When comparing an existing process to a process that is performed elsewhere. Benefits: * Brings understanding tothe problems faced in order to select the actions of greatest impact. Useful tools and mod. * Gap analysis tools are what will convert the theory into action items to close the gep. Verious tools and mode's can be applied to identi + SWOT analysis arget_ Condition ‘What shoule be the gas: haposning * Fishbone analysis © Bottleneck analysis + PC analysis GAP * McKinsey 7S mode! Typical steps for conducting a gap analysis: Current + Select a specific problem area, Condition * Understand the current situation and know ‘What is currently: reepenng where you are standing * Identify the desired outcome you want to bein. + Identify the gap between the two states. Analyze the causes and agree on the steps you need to take to close the gap. the gap analysis process. www.citoolkit.com It is common to use performance indicators when comparing two states at any point duringHistogram De * A graphical representation for the frequency of continuous date values. Uses: + To explore and present the data in an easy and understandable manner. © To determine the underlying Probability distribution of a data set ora sample. Benefits: ‘+ Identify whether you can apply certain statistical tests to perform potential improvement opportunities. + Identify whether variability is within specification limits, whether the process is capable, and whether there isa shift in the process over time. + Verify whether an improvement has been achieved. Allows to + Minimum and maximum values. + The central tendency. ‘+ The amount of spread in the data. + The shape of the distribution, The presence of gaps, outliars or unusual data points. Example: The result in this example can be summarized as follows: Frequency ually and quickly assess: “The distribution looks symmetric around the ‘mean (5.46 cm) and oppears to fit the Normal distribution” Basic Structure center) % Spread Outliers Histograms are ideal to represent moderate ta large amount of data. in practice, a sample size of / at least 30 data values would be sufficient, The bars should be adjacent with no gaps between them to indicate the continuity of the data. Datavalues sso => ea www.citoolkit.com‘How-How Diagram De * A simple method thet is used to generate multiple ideas to solve a particular problem. + It works by repeatedly asking: ‘how can this problem be solved?" until you can no longer breek the answers any further. ion: When is it used? * In problem solving when seeking a practical solution to solve a problem. Benefi * Provides an effective structure for organizing possible Ideas and solution options all in one place. + Supports the non-linear way in which we tend to think, The agram: Multiple answers can be given for a vie single question. The result can be represented in 8 hierarcl The diagram can either be drawn from al tree format. Lh let to ight oF from the center gong i opm Drawing the diagram: ue + Clearly state the problem then Energy Reduction ”N write it on a post-it card. Example GERET * Place the problem card on the AN conten | left side of a whiteboard or wall Se a * Ask ‘how can this be solved?’. rea mong cntrepoteg * Lethe participants write as many [Emus > ede answers as possible. cage en noes + Stick the answers to the right of the problem. hart ape Keep asking ‘How’ until the ideas are specific & satisfactory. Prioritize and determine the key ideas to be implemented, www.citoolkit.comImportance Urgency Matrix ion: + A2-dimensional chart, + An effective method for organizing priorities. + All tasks are evaluated in terms of importance and urgency. When itis used? + To prioritize work activities. * To prioritize personal activities. * When the team Is unable to manage the work effectively. Four quadrants: + Quadrant 1 > Important and urgent. + Quadrant 2 > important but not urgent. + quagrant 3 > Not important but urgent. + Quadrant 43 Nor important nor urgent. How to pi Quadrant 1 + Leave some time in your schedule for the unexpected activities. + Avoid procrastination and be proactive. Quadrant 2 * You should spend most of your time here, Quadrant 3 + Push back, delegate and learn how to say NO. + Arrange regular meetings to avoid interruptions. Quadrant 4 + Limit the time you spend in this quadrant. @ your activities? Important Not important How to use the importance urgency matrix? Begin by your personal or job-related activity list. * Draw the importance-urgency matrix on a paper (or on 2 flip chart if you are working with a team). + Sortall the activities in the appropriate quadrant. + Manage and focus whet’s on the first two quadrants, and pushback or ignore what's on the last two quadrants. www.citoolkit.com Urgent [. Not urgent. Also called Eisenhower's Urgent Important Principle & Covey’s Time Management GridImprovement Roadmap De jon: * An approach that is used to guide | * through the implementation of a long-term continuous improvement | * journey. Application: + To summarize a strategic plan ina | « comprehensive and _ integrated manner(on one sheet of paper). | + + In organizational development and change management projects. Benefits: + Provides an insight toward continuous improvement. * Illustrates the best possible routes to reach the destination. + Ensures everybody is forward towards the same goal. Four m: moving | sections Improvement categories — the dimensions in which you want to set your improvement goals. Current condi jens — indicates the starting point of the journey for each category [you should understand the current condition in order to improve). Milestones and targets — what you need to do in each improvement category and when, Performance metrics — allows to monitor performance and assess progress against baseline plans. Action plans: + After setting your goals and creating the improvement roadmap, an action plan per improvement category or per goal shall be created, Action plans help breaking down big goals into smaller and workable activities. www.citoolkit.com There are many ways to create improvement roadmaps, some af them are long and complicated, Improvement roadmaps. should be, however, simple to creat= and easy to follow, ids —Kano Analysis De * A method used to identify and categorize customer needs. + These categories are considered to analyze potential opportunities for improvement. ion: Benefits: + Helps categorizing the different features of a product or service. * Shows how customer needs are constantly changing as time goeson. ‘Types of features: * Must be features. * Performance features. * Delight features. * Indifferent features. * Reverse features. — Kano categories and examples: + The must be features — The basic features a5 a defect-free product & determined by the customer. If they are not present » ‘timely and. responsive or insufficient, customers will be dissatisfied. + The performance features (satisfiers) — The better the performance, the more customers are satisfied. Amount of defects & Companies often use these features to prioritize Il} the speed of answering their improvement initiatives. aphone in a call center, + The delight features — The fulfillment of these features will lead to high customer satisfaction. They are often unexpected, unspoken, and provided >» to customers for no additional money. customer service. Getting 9 free mouse when purchasing a new laptop. How to conduct a Kano analysis: * Define the purpose of the Kano exercise. * Brainstorm all possible features. * Classify the features into the Kano categories, * Think of ways to Improve customer satisfaction. + Agree on the actions to be taken to improve the current situation. Kano Diagram www.citoolkit.comMind Mapping Definition: * Visually organizing Ideas, thoughts and information around a single topic or problem. Use * To sort out the new ideas when brainstorming. + To sort out complex situations. * To consolidate information from different sources. ‘+ To support interviewing and studying. + To creatively generate and organize alternatives for making decisions. Where + Meetings and planning sessions. + Brainstorming sessions. © Workshops and lecturas. + Anindividual effort. is used? Helps understanding the structure of any concept. Helps to see how information pieces of fit together. Makes it easier to classify, summarize and recall. Offers new insights into new possibilities and creative solutions, Provides focus and clarity as only few words and phrases need to be written down. How to construct and use? Present the topic or problem to be explored. Draw a circle in the middle of a paper then write in it the topic or problem. Draw lines out from the main points. Brainstorm and add information to the main points by creating more branches. Show associations by connecting the related items. Provide the opportunity to add to the mind map later on ‘as you come across new information. circle to initiate the Basic Structure son Topie ~ sie JL, Se Often drawn by hand, Howevar, there are many applications that allow the creation of mind maps. A good practice is to use colors and ade images, Icons, symbels & shapes,Observation definition: * A data collection method used to gether specific information about a process or a situation, Use: + Verify an existing problem and understand the actual situation. + Measure actual performance ageinst set targets. ‘+ Measure customer satisfaction and perception of quality. * Acquire best practice and benchmark information, Benefits: + Accelerates problem solving. ‘+ Aligns leadership with the shop floor. * Allows to listen from the process performers. ‘+ Encourages learning and Cl. Types of observati 4. Silent observation: Useful when collecting raw data and takes only a couple of miautas to one hour. 2. Interactive observation: The observer is required to visit the actual place in order to sea the actual process, understand it, ask questions, and learn. 3. Extended observation: The observation period takes much longer time to ‘thoroughly understand the process. Gemba definition: + Gemba refers to the real place where value Is created and where clients are served within the value stream. +A Gemba walk is going to the actual place and observing how the work 1s performed. + It aims to get closer to the work and to identify potential improvement areas. www. Tg Cee Pein life of (DLO) Geese bit Process Process map Observer Pureore Remarks Tovar ume Observation activities can also be applied in the customer service environments to truly understand the viewpoint of customers.Paired Comparison Defi * A technique for evaluating a small range of options by comparing them against each other Uses: + To select the alternative that will be the most affective * To choose the most compelling problem to solve. Examples: + Selecting the concept design for a new product before marketing, + Deciding which skis, qualifications and experience are essential when hiring people for a new role, + Deciding how or where to spend your coming summer holidays. ‘When to use? Paired Comparison Matrix + When alternatives are completely oifferent. + When comparing different subjective options. + Where there is little objective data to base our decision on, How to construct and use? * Identify the alternatives to be evaluated. + Identify the evaluation criterion (e.g., the ‘most important or the easiest). eck + Ust all alternatives on the left hand column and on the top row of the matrix. + In each blank cell, compare the option in the row with the option in the column, then write in the call the option that bettar meets the criterion. * Count the number of times each option has been chosen. * Rank the options based on their count. * Consider the options with the highest ranking. “The matric will ensure that each comparison is made only once eee Se ‘The highestranking alternative Jc not necaccary the best, which provides an opportunity for further thoughts and discussion, www.citoolkit.comPareto Analysis Definition: The Pareto princip! + Aprincple that helpsto focus onthe | + The Pareto principle states that roughly 80% ofthe results come from a4, rmostimportant matters. 20% of the efforts. ke + It describes a phenomencn that a small number of high values contribute more to the total than a high number of low values. Use + Inprocess improvement projects to focus on the causes that contribute most to a particular problem. + Inproject management when prioritizing projects to focus on the significant projects that will bring value tte the customer and the business Benefits: + Halps visualizing the data to quickly know where to focus the efforts. + Measure the impact of an improvement by comparing before and after. + Inthe field of continuous improvement, it states that roughly 80% of the problems or effects comes from 20% of the causes, ‘+ The Parato principle has been found to be true in many situations: 20% of the population awns 80% of the nation’s wealth, — 20% of a company’s cients are responsible for 20% of its revenue. 20% ~ 2094 of the causes account for 8096 ofthe effectin a fishbone diagram. Causes, Pareto chart: + special type of bar chart that plots the frequencies of categorical data ie ‘+ The horizontal axis represents the categories, +The vertical axis represents the frequencies of the categorical data +The bars are arranged in order of frequency from [eft to right so that the “vital few” categories can bbe clearly addressed on the laft. + You may have a cumulative frequency curve above the bars to simplify interpreting the results, Foc A DBPDCA Cycle Definition: * A fourstep model that provides a simple end structured way for problem solving and continuous improvement. + Represents the logical way of thinking we tend to follow when solving problems, Uses: * Widely recognized as the basis of continually improving the quality of processes, products, and services. Benefits: + Encourages the methodical way of problem solving. * Helps closing the gap between planning and doing, + Increases process knowledge from solving problems and finding solutions. Four phases: and gather and summarizing key learnings. 4. Act - implement the solution in full scale, standardize Into the organization's system. — Note: Multiple iterations of the PDCA cycle could ke necessary to solve the problem permanently and reach the ultimate future state. PDSA cycle is @ modified OPDCA Is another version a™ version where's’ stands tor Mp Wy where ‘0° stands for AO Study, as Checking doesn’t Observe toemphasize the IA Cp really imply studying and 4S D need to observe before D analyzing the data. creating any plan. www.PEST Analysis Definition: +A strategic and structured tool for evaluating the external environment of an organization. + PEST stands for Political, Economic, Social, and Technological. When itis used? + During strategic analysis and market research. + When entering a new country, region or market, + In project management to increase awareness of the opportunities and threats a project may have. Benefits: * Provides an understanding of the wider business environment. Helps to spot future opportunities and threats, * Reveals the direction of change. Four Perspectives: + Political factors ~ focuses on government policies and regulations that may cause instability and uncertainty. + Economic factors — analyzes how the economy affects the profitability of a business, * Social factors — considers the social and cultural characteristics in which the organization is operating. + Technological factors — looks et the technological characteristics which is becoming more important in the modern business environment. PESTLE Analy: An alternative of PEST adding environmental ‘and legal factors to the four perspectives: + Legal factor — looks at the laws that will affect the way in which a business produces and delivers its products and services, + Environmental factors — looks at the potential impacts of climate and climate change on how the business produces and delivers its products and services. www. PEST analysis often linked with SWOT analysis, and bath tools Complement each other and are often ured together e © cin eons eo 8 oe °@Prioritization Matrix Definition: + Adecision-making method that allows to select the most appropriate alternative after evaluating multiple conflicting criteria. Use: * Used in project management to select the potential projects that need to be initiated, * Used in problems solving and process Improvement to select the problem that needs to be resolved and the solution that needs to be implemented. Other applications: + System and software selection, * Material and supplier selection, + Equipment and machine selection, + Personnel selection, Benet * Helps make more informed and justifiable decisions. + Helps reduce options to the most effective and least costly. + Helps make use of time and resources to focus on the important matters. + Allows the teams to agree on priorities & move toward the action collectively. I D a Evaluation criteria: + Developing alist of evaluation criteria is the first. Template _—_—_crteris step before prioritizing the alternatives. Example al * Evaluation criteria represent standards by which the alternatives can be measured and compared. + Consider weighting the criteria accarding to their importance (optional). Faclitate the prioritization session by allowing The outcome ‘each teammembertorankthe alternatives of the analysis against each criterion from best to worst. ‘could be 5 | Aiter averaging the teom's response, calculate presented the final weighted scores, and sortthe tems by using a bar their ranks Chat. ‘Aernatves, www.citoolkiProcess Mapping ~ Definition: + Process mapping isa ropcesentation of the process. + They are simple ways of making sense of graphical what happens or must_-happen ina process, Use: + Provides a mechanism for analyzing and studying processe: Benefits: + Brings clarity to complex processes in order to simplify and optimize them. + By understanding and controlling the Inputs, itis possible to make processes more capable, thus more predictable. + Provides inputs to other continuous improvament tools such 2s cause and effect analysis and FMEA. + Serves as a mean to communicate and document business processes, Three Perspective: What you think What the What the process the process is. process really’. should be. “eee 4 040) 130 1 2 3 4 5 6 7 8 Process maps are used to map existing processes as well as to design new processes. Type Production processes, involve the flow of materials in the production field. They include activities ike machining, assembly and packaging, 00 vesirg n 2 0 ang cumire Weiang ‘Transactional processes, involve the flow of information, humans, objects, tools and money in the service field as well as in the ‘transactional environment of the production field. ferent Techniques: Simple drawing maps. SIPOC maps. Flowcharts. Opportunity maps. Flow process charts. Process charts Value stream maps. Flow diagrams, Input variables are often classified into the following categories: 2 5 Noise factors which are uncentralable, Standera Tacios. Design factors, the controlleble Factors {that cn be adjusted ard controlled ‘The ‘never thought of before facorsNene har Definition: ‘Common Categories and Symbi + Assymbolic representation that + Operation — Produce, aud, change, or process something. ©) jeer atten ve many illustrates the sequence of operation, | + Inspection ~ Checking of items for quality and/or quantity. [_] _Leenpractkoners. inspection, storage & transportation | + storage ~The storing of items until later time. v activities within @ process. : Transport Movement of tems or people between areas, > OMe exo and sed onthe stuaton + Delay —The temporary waiting of something or somebody. Uses: Teac reps _Emterresuts Wait report + To analyze ectivities that make up a see ‘station samples intospreadsheet tobe prrted ‘The typical approach is Procear to determi whith spe a es Vale and whch do ck. ~@-= Ee * To track performance measures such ‘the improvement will be as cycle times, error rates, nd Process Chart: peopused ns 2re Gere distance traveled. + Presents the activities and the See relatad information in the form - apes of a table pean + Provides accurate description ofthe | * Allows providing further ‘rarer © 600 process ss itis often drawn up as information ebout each process ai the procass i happening. stop (e.g., time and distance) + Helps identifying waste, long delays | * Helps estimating key metrics ft renee and other non-value-added activites. | (e.g.,% VA activities & VA time). vara be prins www.citoolkiibaneaeaiel Mccouras Definition: * Metrics which are used to measure and understand the operational id. process + These metr 5 should be able to reveal the inefficiencies in a process. even smallest Benefit * Enables operations to understand their true process yield in order to set reelistic improvement targets. Common process yield measure: + First Time Vield (FTY). * Final Yield (FY). + Throughput Yield (TPY), or First Pass Yield (FPY). + Rolled Throughput Yield (RTY). First Time Yield & Final Yield Both measures are obtained by dividing the good product units by the number of total units enterad the process. First Time Yield is measured at any given Process step while Final Yield Is measured at the end of the process. Reworked units are often included in both measures (do nat reflect actual defect rates). Throughput Vield & Rolled Throughput Yield Throughput Yield is the probability that a product will pass through a given process step. defect-ree, Rolled Throughput Yield is the probability of passing all performance standards through the entire process defect-free, Both measures provide a better insight of defect and rework rates. ‘Accurate reflection of the process performance. www.citoolkit.com FralVeld core i Throughou ies cumustve + A good practice isto use a process map as a guide in the process yield evaluation “© 100 Inputs 89 Outputs “wr In the above example, RTY = 0.94 * 091 * 0.92 = 78.756Project Charter Definition: + Aone-page document that summarizes the fundamental information of a project before it begins. Used to ensure that the project: + Is business focused. + Iswell scoped, + Isexecuted in a timely manner. + Have the necessary resources. + Have the nace:sary support. Benefits: + Establishes a shared understanding of the project scope and objectives. + Enables ell stakeholders to review the project and commit it. + Acts as a contract between the key stakeholders and the project team. + Communicates the objectives to those outside the project team. + Serves as a reference for future projects. Key elements: Other element: Problem and goal statements. A project team that includes a dedicated project leader and team mambers directed by a project sponsor. ‘A project scope which defines what is Involved in the project and what is not. Voice of the customer (VOC). Project metrics (primary, financial, or bath). The time required to complete the project. Signing the project charter by key stakeholders. Key stakeholders. Project implementation methodology. Cost and benefit analysis, Fisk assessment of the planned activities. Project deliverables at every stage. Project milestones. The required resources including funding. ‘A communication plan summary. Although project charters are short and briet, they often referto more detailed documents. Goal Statement Example: “Reduce oil losses of the manual refilling process of the forming ‘machines in line #4 to less than 196 per drum by the 20th of October” PROJECT CHARTER PROBLE! Goat: vor: PROIECTTEAM: METRICS: SCOPE: MILESTONES:Project Closure Definition: * All projects are designed for a specific period of time. * A project closure provides a formal way of closing projects. + An important part of the overall project life-cycle. Use: ‘+ It is used to bring the project to its final state. Benefits: * Validate project goals have been accomplished. + Ensures controls are in place and sufficient to sustsin the benefits achieved. + Release the team from the project. + Formally hands off the project to the process owner. Key elements: A brief description of the project. Project deliverables and results. Actual vs. estimated date of completion. Benefits obtained: + Financial benefits (hard savings, net gains, ROI, eto). + Soft savings. Improvement in performance: + Initial vs final defect levels. + DPMO cr other key metrics. Controls in place to sustain the benefits: + Audit checklists, visual controls, standard work, SPC charts, preventive maintenance, etc. Best practices and lessons learnt. Problers and shortcomings developed during implementation, Ongoing work and next steps, Signatures from key stakeholders to confirm the completion of the project. www.citoolki |Description: Get the digital signatures of the key ‘stakeholders or print out a copy of the projact closure and get their physical signatures. PROJECT CLOSURE Benefits: ey metres: Controls) Deliverables: Shortfall:Pugh Matrix De * A scoring method used to compare and select the best solution from a set of alternative proposals. + Aform of prioritization matrix. + Altomatives are compared against a standard. The standard can be: + The current solution that is already exist (the baseline), + Agoal or benchmark to reach in the near future. Benefi + It does not require a great amount of quantitative date. alternative versus another can be made more objective. When itis use * Often used when making design decisions during the product development cycle (based on VOC). + When designing or redesigning processes to achieve faster and more efficient performance (VOC). ‘+ When deciding which investment to take. + When deciding which vendor to select. + When deciding which improvement project to initiate (VOC). How to construct and use? * Identify the alternatives and the relevant criteria, 2 + Select the baseline solution, goal or benchmark. 2 * Draw a table, then place the criteria in the lefthand 3 column and the alternatives in the top row. * Indicate how the baseline solution is compared with Soe each alternative (place a plus, minus or zero): — + ‘+’ means better that baseline, “~" means Further colutions can then be worse than baseline and ‘0' means the same. developed by mixing the * Notice the strongest solutions, the one with the positive aspects of a number most pluses and the fewest minuses. of solutions. www.citoolkit.comRACI Matrix Definition: Use: A tool that shows how stakeholders are assigned to different project and process activities. RACI stands for Responsible, Accountable, Consulted and Informed. Describes the participation of the various roles in completing the required activities and deliverables. Benefits: Provides a clear view of what is expected from each stakeholder. Helps Identifying who should be approached at any given situation, Raveals issues such as too many responsible persons and not enough communication. The four major participation types: + Responsible ~ anyone who actively participate to ‘accomplish a particular activity. + Accountable — the one viho delegates the work to those responsible and has final aporoving authority. + Consulted — anyone who can provide valuable information end guidence to complete the work. + Informed — anyone who should be notified of a decision or result when the work is completed. How to create a RACI matrix? + Explain the purpose for creating the RACI matrix. + Identify the stakeholders who nead to be invalved and the main activities that need to be performed, + Use a flipchart or whiteboard to construct a two- dimensional matrix. + Enter the activities in the left column and the rales oF persons in the top row of the matrix. + For each activity, identify the Responsible, Accountable, Consulted and informed. Responsible The assigned resources or stakeholders can be listed as roles, groups or individuals. 0000 ® O® e000 ACTIVITIESRAID Log Definition: * A project management tool used to store several project information in one place. Uses: © A central repository for all_risks, assumptions, Issues & dependencies. + Drives to take the necessary actions to ensure successful implementation of the project. Benefits: + Keeps your project organized and on track, + Makes the information easier to store and retrieve. * Useful document in regular project meetings and for audit purposes. + Gives confidence that the project is under control and being monitored. RAID stands for Risks: + A Riskis something that will have a negative impact ‘onthe project if it happens. + Can lead to quality, delay or cost problems, + Refers to the combined likelihood that the event will occur and tha impact en the project ifit occurs + Risks are often ranked by their Risk Priority Numbers (RPNs). + A plan should then be developed to mitigate risks vith high RON, Assumptions: + Those factors that are taken for granted but cannot be guaranteed and may impact the result of the project. Issues: + Incidents that cause the project to become out of alignment (risks that have already occurred), Dependencies: + Those activities that need to start or be completed for the project to proceed successfully www. ks, Assumptions, Issues and Dependenci RAID Log ener ace. ect rrty meee epible Rt em Gail ‘enmetion | von soe | oe | gh RAID Dashboard goed practice ir to create the log at the beginning of the project. then regularly update it as needed ‘through regular project meetings.Scatter Diagram De ion: A way of showing whether two varlables are correlated or related toeach other. When itis used? When analyzing and communicating the correlation between pairs of variables. Before conducting statistical techniques to support or reject hypotheses about the data. advanced Benefits: + Enables to identify the most ignificant factors affecting. the process, Useful to verify that any change in the input variable will influence the output variable. Real work and + When a line manager wants to check the relationship between equipment downtime & its cost of maintenance. examples: a0 aputana put varies + When a call center manager wants to check the relations! between the number of people working on a shift and the average answer time. * When you want to check the relationship between driving speed and fuel consumption. Several types of correlation: Note that the width of the scattered pattern eX we he Te ee: on 2 x [Mek tereneonsin x De® wo Ky xx me * * “Ty Be careful before eeu ateee canis Palicomcaie Nqiicartim ‘onercegae [ig nae joanccscmel cnedae’ ckcclwe” saimar |e Srnansowng ewe” eweserne " teneen "” | TE mint be ati ‘any pattem. other variable also other variable variables, ee ms qeeane ecioame, ‘the relationship. www.citoolkit.comSIPOC Analysis Definition: A simple tool that provides a high- level view of the important elements of a business process. SIPOC is an acronym that stands for Suppliers, Inputs, Process, Outputs and Customers. When itis used: When investigating a procass to identify its important elements. During the define phase of DMAIC, During the planning phase of Kaizen events. When designing new processes. Benefits: Helps define the scope of work for a project. Helps understand the relationships between inputs and outputs, SIPOC elements: ‘Suppliers —any person or company that supplies inputs. Inputs — the materials, energy, information, an¢ financial and other rasources which are needed ta exacute the process. Process~ the collection of activities that together transform inputs into outputs that is of value to the customer. s Customer— the person or company that receives the outputs of the process. How to create? Begin with the process by listing the key highest-level steps. Identify the outputs of the process. Identify customers who will receive outputs. Identify the inputs required for the process to function properiy. Identify the suppliers of the process inputs. Ensure the completeness of the recorded information, rn ‘Outputs the tangible products and/or servicas that result from the process. SIPOC analysis 1s a team effort, and the team should include people with enough knowledge of the process. Engojest sea cccton Secioion pit esinana bene Subritan—Imglemered Ceparmens ides mpromment eines sppreason implamene anor ree erp EXAMPLE Submit and Implement an Ide ProcessStakeholder Analysis ia Defi +The process of identifying and analyzing the stakeholders that are likely to affect or be affected by a project or other organizational activity. Applications: + Project management. + Conflict resolution. + Organizational transformation and change management. Examples of project stakeholders: + Process owner + Peaple who work on the process. + Customers of the process output. + Suppliers of the process. + Senior executives, + Finance end procurement managers. ‘+ Managers whose resources and schedules will be affectec by the project. Power-interest matrix: + Itis one of the most widely used tools for analyzing stakeholders. “+ Classifies stakeholders into four groups according to the power they hold and whether they are interested in the project or not, + Other characteristics of stakeholders can bbe analyzed like awareness and attitude. How to conduct a stakeholder analysis: + Explain the purpose of the analysis ‘+ Brainstorm the individuals and groups who may have a stake in the project or change. ‘+ Sort them by their power and interest then plot them on the power-interest matrix. + Identify the gaps between the current and the desired Involvement levels, + Greate @ communication plan to manage ‘ongoing communication with stakeholders. Note: The analysis needs to be made regularly since stakeholders move around the matrix periodically. POWER www.citoolkit.com Pecaet Key players, crowd a a Defenders TE za bw INTEREST Te example so [IRESECT engage Aaa CO Zakaria Procurement | Sem 5 & sere Technicians Operators Low INTEREST HinSWOT Analysis Definition: Four Categories: +a structured planning tool for + strengths —The internal postive characteristics = — reviewing and essessing the position | thet put the business ot a competitive advantage. | tpe|| weatmesses and heatth ofan orgarization + Weaknesses--The intemal defidencies whichmay | Strengits|| Mealess * SWOT simply stands for Strengths, decrease the overall performance. \ 7 Weaknesses, Opportunities, and * Opportunities — The external factors and events Threats. that the business could exploit to its advantage. SURSNIS EEE + “Threats -The unfavorable external factors and ‘events that may interrupt the business from achieving its goals. Results of a SWOT exercise are often presented in the form of a ‘+ Before developing or updating strategic plans. ‘+ In project management during the Hints: four-field matrix. Prioritization process of projects. + Itis normal for any business to have STRENGTHS WEAKNESS ‘* When evaluating multiple strategic weaknesses and potential threats. ‘Strong financial, Inaaity to mest alternatives. * Attempts should be made to convert ‘position —_— — a Benefits: astra ine aoe td ety ress ah into opportunities : E . * Helps understanding where a + SWOT analysis can be used in personal OPPORTU zee company stands within the industry. development. It can help you better oe Sneic re * Helps planning more successful understand many things about yourself Oe ee fF mh sino strategies. and your external environment. “etisirg pacaece www.Time Value Map De * A graphical representation of the value-added and non-value-added ein a process. + One of the many Lean tools that will help to identify and analyze waste & nor-value-added activities within business processes, ion: Use: * To monitor how much time is wasted starting from the beginning of the process until product or service delivery. Activities can be: + Value added activities + Essential non-value-added activities (unavoidable waste] + Non-value-added activities How to create a time value map? * Plot all process activities as bars proportional to their time values along a horizontal timeline. * Activities that add value to the customer are plotted above the timeline. * Activities that do not add value to the customer are plotted below the timeline. * You may use the traffic light colors to convey the map mere clearly * Calculate the total value-added time, total non-value-added time, and value stream ratio. * Implement projects and systems to eliminate or reduce the non- value-added ectivities & decrease the overall waiting time www.citoolkit.com Adding value to the ‘customer Not edding value to the customer ‘Atime value map can also be represented in this format, where all bars are parallel each other. Value Stream Ratio— A metric thet measures the proportion of value-edded time spent in a process (Total Value-Added Time / Totel time) & E 7ominutesTraffic Light re —— AV * Arating system for evaluating the performance in relation to a goal. + Performance results are indicated using the real traffic light colors (RED, YELLOW and GREEN) Benefits: * Good and poor performance can easily be identified which allows to make appropriate decisions to achieve performance excellence, Applications: * Performance management. + Visual management. + Project management. + Risk management and safety audits. * Quality and compliance audits * Staff performance management. Results are expressed in Performance Management as: ‘A performance that is far below from target. performance that is a bit below from target. ‘Aperformance that is expected or better than expected, Results are expressed in Project Management as: An activity that is incomplete. Partially completed or completed after due date. ‘An activity that has been completed on time or ahead of time. = Other uses: * Communicating production information (e.g., Andon display systems) * Marking inventory levels and indicating the status of materials & products. + Showing how much fat, sugar or salt exist in the food products. + Assessing the skill levels of employees and determining training needs. * Knowing what a team think of a particular idea or suggestion. www.citool com NWValue Stream Mapping (VSM) Defi + A Lean management technique for understanding and analyzing the fiow of a business process + IEshows the flow of both materials and information as they progress through the process. When is it used? + To identify and eliminate waste to make the process as close to lean as possible. Benefits: + Halos understanding the flow of value as perceived by the customer. + Enables to see where waste and problems occur within the process + Provides the opportunity to discuss and plan the needed improvements. + Halps establishing a future state vision, + Helos understanding and improving workplace organization, ae VSM Process VSM symbol + VSM uses a set of symbols to denote the various details + The type of symbols used usually depends on the industry and the type of work. Selectthe Volue Steam raw Current State Mag Draw Future State Map Develop and Implement How to construct and use? Improvements + Clearly explain the purpose for creating the VSM. Identify and agree on the product family Physically walk the flow starting from the customer. + Walk the information flow and collect data. pee) eta ene Cena ae performance of thir end-to-end proce + Draw the current state by mapping foo ql the material and information flows. hog < i hag + Add the value stream timeline. ic uy + Identify non-value-added activities, ce delays and other form of waste. + Develop the future state map. + Plan andimplement actions to achieve the future state. Atypical value stream map for Manufacturing www.citoolkit.comVisual Management Definition: + A business management approach that communicatas important information in a visual and real-time manner. + A system of labels, signs, markings, information displays, and visual guides Use: + Used.to share goals and expectations. ‘+ Used to alert to potentially hazardous lecations and situations. + Used to display the status of the workplace and the processes, + Usedito roport team & Kaizen progress. Benefits: + Improves compliance to health, safety and other regulatory requirements, + Improves werkplace communication and collaboration + Increases the awareness of conditions and waste. error Types of visual control 1. INFORMATION — Visuals to identity, directions, strategy ‘compliance requirements, show and 2. INSTRUCTION “visu to communicate INFORMATION WSTRUCTON SOPs, work-related information, and workplace organization & maintenance activities. 3, STATUS - Visuals to display the status of processes, projects, production, productivity and performance. An effective visual management: + Relates tothe strategy. + Displays customer needs & expectations. + shows identity and directions. + Makes abnormalities apparent, + Communicates standards & instructions, + Displays performance targets & results. + Easyto use and understand. + Owned by p2ople who do the work. + Linksto action. www. Examples of visual controls e = Work-related instructions Safety Visuls Signage Marking Posters and 58 TPM 4 ete sign Lg Zandoniins | el) 3 Floor maning 4 Nacnineicertry 5 Viva insrctions 6 Gauge maning Standard work Example from a production environment LM can also be useful for support functions in the production environment and in the service sector‘Why-Why Diagram Definition: * A problem-solving tool that Is used to identify the root causes of a problem when there are multiple factors to consider. * An extension of the 5 Whys approach. When is it used? * To identify the potential causes of a problem in order to solve It. + To identify the potential causes that may lead to future problems. Benefits: + Provides a clarity about the possible causes of a problem end how to avoid it in future. * Provides useful information for later problem-solving analyses. The diagra + The problem will normally be placed on the left side of the diagram whereas the most specific causes will be placed on the right side. ‘+ Lines can be used to connect related series of causes, * Potential causes can be organized into categories to provide better focus and easier reference. Drawing the diagra + Write a clear and specific problem statement. ‘+ Ask ‘Why the problem occurs! * Write as many causes as possible and group similar causes together. Keep asking Why until you identify the root causes of the problem. + Once you are finished, discuss and agree on the corrective actions that will permanently solve the problem. m Wi MN WL Ws