8 steps pdca

Methodology Steps Objective Main activities potential tools and Techniques Key Deliverable

- Validate/ identify business opportunity (should

support BU/Dept target and KPI)

- Develop project team

- Define baseline & set target

- Validate/verify project registration

- To understand the process flow and IPO (Input,

Process, Output) indicator(s)

-Find all possible causes of the improvement

opportunity and narrow down the problem

- To analyze the findings (data & fact)

- Identify and validate the most influential factors

of challenges from all root causes of the

improvement opportunity

- Conduct testing on defined hipothesis in-relation

with evaluation step of main factors / support

- Collect data and analyse

- Identify and validate data

- Drawn up priority scale by graphical or diagram

- Data analysis

- Identify potential root causes

- Validate root causes

- Prioritize the root causes

- To easily plan the actions, use 5W (What, Why,

Who, When, Where) +2H (How, How much) and

put Measurement of Effectiveness indicators to

measure effectiveness of improvement plan

(solution) to address root cause

- Generate solution plans

- Determine measurement of effectiveness

- Appoint PIC of each solution plans

- Determine due date of action item

- Calculate solution cost

- Solution plan

- PIC of each solution activities

- Improvement cost

8 Steps PDCA for Improvement

- Find the improvement opportunity or theme to be

taken on

- Analyze the data to identify the improvement

opportunities

- Team commitment

- Baseline dan target

- Potential benefit

- Project Plan

- Identify Input, Process, Output indicator(s)

- Using Brainstorming technique to find the causes

- Classified the factor drivers

- Define hypotheses of the root causes

- Process flow

- Input, Process, Output indicator(s)

- Possible drivers

Step 1Theme Identification

I Raisin g funds fo r

projects, a cquisit ion ,

WC a nd re- fin

1Raise fun ding for projects, acqu isition,

working capital and r e-financing. (5%)$M 75.71% 28 530 700 25 0

L MA $ M 97.02% 45 6.7 573 .1 590.7 643.7

FCF $M 57.86% 24 8.9 293 .5 507.3 358.139

Pulp (t ) 94.84% 1,825 ,470 1,925,2 81 2,030,00 0 2 ,020,000

Paper ( t) 104.65 % 347 ,539 366,2 84 350,00 0 400,000

Pulp $/t 101.47 % 199 197 199.9 19 1

Pap er $/t 485 pls he lp 415.2 TPL to calculate

Pulp% 100.00 % Overall 78% 80% Over all 80%

80%. Still

re le va nt for 2 006

KPI?

Pap er% 100.00 % Overall 92% 90% Over all 90%

90%. Still

re le va nt for 2 006

KPI?

Pulp $/t 99.78% 440 464 465475. Still relevant

for KPI 2006?

Pap er $/t 100.13 % 750 761 760 73 0

MHW P+% 101.09 % 91% 93% 92% 95%

ACC P+% 101.02 % 97% 99% 98% 98%

I. Impr ove org anisation

quality by creating

Reten tio n rate o f key person nel

( manage rs and ab ove) for A* , A, & B to be % 97.98% 97% 97% >99% >99%

8

Successors ar e identified a nd read y f or 30 % of sup erintende nts and ab ove

po sition by the end o f Q4 (In donesia).

( 10%)

% 100.00% Not Available 30%30% id entified &

rea dy30%

9

Utiliza tion of Kerinci as lear ning grou nd for oth er ope ration by Q4 b y h avin g 20 China

em ployees that h ave acquired needed

skills in targe tted are as. (10% )

#o f China em ployees

Not Available FL/ TA to advise 20 2 0

200 6 Bu dg et2 005 Approx

Im prove over all on-time delive ry to pulp

an d paper customer s. (5% )

Benchma rk Aca cia 's pr ice and qua lity to

tha t of Aracruz/Eucalytus.(10 %)

Unit 2 004 Actu al

Org anizat ion al

L earn ing

( 40%)

7

II Developmen t of

technical, ma nagerial,

and leade rship

capabilities

In ternal Bus iness

Proce ss

( 20%)

I. Continuous

improve ment of quality6

Achieve tar getted pu lp P+ g rade qu ality

fo r MHW and Acacia (10% )

Cus tom er

( 20%)

I. Impr ove image with

customer s, society &

employees b y b etter

environm ental and

social perfo rmance.

4

II. Price stability throug h

global positioning 5

Fin ancia l

( 20%)

II. Sustainable and

improving cash flow

gener ation

2

Achieve tar getted LM A and net fr ee cash

flow. ( 10%)

FCF here is st ill

III. Continuou s

improve ment of vo lu me

and cost

3

Achieve tar getted pu lp production vo lu me

with tar getted d eliver ed cash cost,

ach ieve targette d paper produ ctio n

volum e with targett ed delivered ca sh cost.

( 5%)

20 05 Budg et

% (2005

Appr ox vs 2005

Tar get)

Quad ran tCrit ical Succe ss

Fa ctors No. KPI

Invoiced pr ice

(MHW + ACC)

Invoiced Invoiced Invoiced

Invoiced price

(MH W + A C C)

I nvoice d price

( MH W + A CC )

Dep artme nt:

Pro jec t T yp e: T as k F orc e / SGA

Pro jec t Rela te d: Q/C/D/S/M

Pro jec t Start Date:

( to be f ill ed by B CI Dept. )

Ap p rov als / Co ns en ts: Na me Sig n

Te am Me mbe r 1

Te am Me mbe r 2

Te am Me mbe r 3

Te am Me mbe r 4

Te am Me mbe r 5

FO RM BC I - 0 04

R eg . N o:

In i ti a t iv e:

Bu si n es s U ni t :

Pro j ec t T it l e:

D ate:

CONTIN UOU S IMPROVE MENT - P ROJEC T REGISTR ATION

Wh at is th e c urre nt pe rform an ce m et ri c as b as el i ne (e . g: C os t, V ol u me, Le ad t i me , Ma teri al us ag e, etc)? S tate th e p eri od .

Pro j ec t D es cri p ti o n ( I mp rov eme nt S ta tem en t) : S ta te the im pro ve men t th at yo u w a nt to ac hi e ve w i th th is p ro je ct .

Ho w do es th i s p roj ec t re la te to yo u r b u si ne ss u ni t ob j ec ti v e or b al an ce d sc ore ca rd?

Co mp l et i on Da te:

Pro je ct L ea de r

S ig n

CI Spon so r / B.U. He ad

Pro j ec t L ea de r:

Ho w mu ch d o y ou pro po se th at yo u c an s av e i n U S $ by s uc ce ss ful l y ex ecu t i ng th i s pro j ec t? P l ea se p ro vi de th e s up po rt in g e qu at i on / fo rmu l a an d

cal c ul at i o ns . C ho o se th e typ e of sa vi n g w i th reg ard to bo t tom l i ne : D i rec t S a vi ng / I nd i rec t S av in g / I ntan g ib l e

Pro j ec t O b je ct i ve s: W h at is y ou r pro po se d i mp rov em en t targ e t ? (e .g : % co st red uc t io n, % pro d uc t io n v ol um e, % le ad ti me red uc ti o n, % ma te ri al s u sag e

red uc t io n, etc ).

Wh at ex te rna l s up p ort or t rai n in g w i l l th e tea m ne ed ?

Ho w mu ch i s th e ex pe ns e (b ud ge t ) re qu ire d ? ( if ap p li ca bl e )

Ack no wl ed ge d by

(F i nan ce & Acco un ti ng De pa rtme nt)

N am e

CI Ch amp io n / De pu ty

CI Coo rdi na to r

Step 2Analyze Opportunity

Drivers

MAN MACHINE

ENVIRONEMENTMATERIALMETHOD

MONEY

PROBLEM

FORM BCI - 002

Project Name:

Project Leader:

Initiatives:

Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 E E. E. Wk20 Wk21 Wk22 Wk23 Wk24

Step 1

Step 2

Step 3

Step 4

D Step 5

C Step 6

Step 7

Step 8

Remarks

CONTINUOUS IMPROVEMENT - PROJECT PLAN

A

P

Time Based (Daily, Weekly or Monthly)8 Steps

CLO2 Process Flow

ClO2 Plant 1. ClO2 Quantity

2. ClO2 Quality

1. Man2. Machine

3. Material4. Method5. Environment

Input Process Output

Chlorate Electrolyzer

Chlorate Ch ille r

Chlo rat e Coo ler

Ch lorate Fi lter

HCL Unit

ClO2 Generator

ClO2 Absorber

AC Power

TransformerRectifier

Chi ller Unit

ClO2 Storage

HCl

Stor age

Strong C l2

Purified

Salt


Chlorate Ch ille r

Chlo rat e Coo ler

Ch lorate Fi lter

HCL Unit

ClO2 Generator

ClO2 Absorber

AC Power


Chi ller Unit

ClO2 Storage

HCl

Stor age

Strong C l2

Purified

Salt

Decomposeoccurred here !

Bleaching

CLO2 Process Flow


2. ClO2 Quality

1. Man2. Machine




2. ClO2 Quality

1. Man2. Machine




Chlorate Ch ille r

Chlo rat e Coo ler

Ch lorate Fi lter

HCL Unit

ClO2 Generator

ClO2 Absorber

AC Power


Chi ller Unit

ClO2 Storage

HCl

Stor age

Strong C l2

Purified

Salt


Chlorate Ch ille r

Chlo rat e Coo ler

Ch lorate Fi lter

HCL Unit

ClO2 Generator

ClO2 Absorber

AC Power


Chi ller Unit

ClO2 Storage

HCl

Stor age

Strong C l2

Purified

Salt



Chlorate Ch ille r

Chlo rat e Coo ler

Ch lorate Fi lter

HCL Unit

ClO2 Generator

ClO2 Absorber

AC Power


Chi ller Unit

ClO2 Storage

HCl

Stor age

Strong C l2

Purified

Salt


Chlorate Ch ille r

Chlo rat e Coo ler

Ch lorate Fi lter

HCL Unit

ClO2 Generator

ClO2 Absorber

AC Power


Chi ller Unit

ClO2 Storage

HCl

Stor age

Strong C l2

Purified

Salt


Bleaching

Step 3Identify Root Causes

Salt formation in

compartment, decomposition will more

frequently occur

Salt formation in

compartment, decomposition will more

frequently occur

Histogram Liquor Quality

0

3

6

9

12

15

18

21

24

43.4 -

46.5

46.5 -

49.6

49.6 -

52.7

52.7 -

55.8

55.4 -

58.5

58.4 -

61.5

61.4 -

64.5

64.4 -

67.5

67.4 -

70.5

70.4 -

73.6

Fre

ku

en

si


0

3

6

9

12

15

18

21

24

43.4 -

46.5

46.5 -

49.6

49.6 -

52.7

52.7 -

55.8

55.4 -

58.5

58.4 -

61.5

61.4 -

64.5

64.4 -

67.5

67.4 -

70.5

70.4 -

73.6

Fre

ku

en

si

Correlation Chart of ClO2 Strength to

Decomposition

0

4

8

12

16

20

0 20 40 60 80 100

ClO2 Strength

De

co

mp

os

tio

n

Step 4Develop Improvement

Initiatives

What Why How MoE Who When Where How much

Factors CausesSolution / Improvement

Plan

Measurement of

EffectivenessPIC Due Date Location Cost

Method (Bad

Liquor Quality)Steam bundle at Compartment

Replace steam bundle with new material

Quantity leaking steam tube

Budi H Feb, 2006 Gen 1, 2

Machine

Man

Material

Environtment

P

- to prevent recurrent/repeated problem and to

increase current standard

- Identify and develop replication &

standardization opportunities

- Integrate and manage solutions in daily work

process

- Process Control systems

- Process map and documentation

- Standard and procedure

- Training for new processes (if necessary)

-Identify next plan of improvement. (There are two

ways to determine next improvement : continue

the same theme/topic with higher target or change

to other topics/theme based on problem analysis)

- Identify next steps & plans for remaining

opportunities

- Next improvement opportunities (to ensure

PDCA wheel is continuously rolling)

- Project closure

- Visualize the implementation aactivities by

showing before -after condition (can be illustrated

with pictures, graph, diagram, data, etc.)

- Explain the effectiveness of actions.

- Implement the solution action

- Provide the before-after condition (photo taking,

graph, etc)

- Implementation milestone

- Before-after illustration

-To check improvement result and activity working

result :

- From set up target

- From dominant problems

- From dominant root cause

- From total performance

- Verify reduction in root cause resulted from

solution

- Identify if additional solutions are necessary to

achieve goal

- Explain the action results

- Verify actual benefit

- Improvement results

- Action impact/result explanation

- Actual benefit verified

Step 5Implement Improvement

Intiatives

Before After

Leaking steam tube bundles

Action Result

Installed new steam bundles

Step 6Check the Result

Decomposition Frequency

0

2

4

6

8

10

12

14

16

Freq. 3 9 15 6 10 6 9 0 0 0 1 2 2 3 0

Jul-05Aug-

05

Sep-

05

Oct-

05

Nov-

05

Dec-

05

Jan-

06

Feb-

06

Mar-

06

Apr -

06

May-

06

Jun-

06Jul-06

Aug-

06

Sep-

06

Implementation Start

Freq

0

10

20

30 N=100

74.5 79.5 8 4.5 8 9.5 94.5 99.5 104.5 109.5 114.5 119.5 124.5

=X = 101

UCL

LCL

Time

CL

Step 7Standardization

Step 8Next Step

UCL

LCL

Time

CL

Improvement Action Standardization Remark

1. Steam bundle at CompartmentSOP: RPL - CM - 056 - PRPreventive maintenance of Steam Bundle

See Appendix A

2.

3.

SOP Co ntin uo us Im pro ve men t Pro jec t (AGRC/BCI-00 2-PR)

Submission D ate :

Projec t Completion Date :

Team M em ber 6 :

Team M em ber 7 :

Team M em ber 8 :

Team M em ber 9 :

Team Member 10 :

Re as on :

CI - C HAMPION

Name :________________ ________________

________________ ________________

Revi ew co mmen t :

BCID

Name _________________ Sign / Date

________________

ITEM SC ORE

1.Res ul ts (4 0 Poi nts) 2 0

3 0

4 0

2. Ac ti vi ty Mgmt 3 0

(50 p oi nts) 5 0

5

1 0

Reward

N ote:

Only those projec ts w hich resul ts can not be calculated (does not have direc t & indirec t net savings), resul ts wi l l be measured based on Improvement agains t the

basel ine.

Project declare completed follow ing this condition :

CI - SPON SOR

Name :

Sign/Date :Sign/Date :

Cal en dar of Even ts estab li sh ed

Reg ul ar re vi ew mee ti ng s take pl ace & mi nute s prod uce d

Total Score

Scoring by CI ChampionC I PR OJECT

Abo ve 2 5% - 50% o f b ase li ne

Ab ove 5 0%

8-ste p PDCA Re po rt & CI Pro je ct Pl an Co mpl eted

Ne t Sav in g (Di rec t & In di rect )

Abo ve US$ 1 Mi ll io n

Abov e 3% - 25 % of bas el in e

CO NTINUO US IMPROVEMENT - PROJ ECT COMPLETION AND SCORING FORM

Team Mem ber 5 :

Business Unit:

Projec t Title:

Team Mem ber 1 :

Projec t Type :

3 . Re vie w M gmt (1 0 Poi nts)

Annu al iz ed Ne t Sav in gs; (Ac tu al re sul t )

Team Mem ber 2 :

Team Mem ber 3 :

COMPULS ORY SUBMIT TED DOCUMENT

PROJE CT COMP LE TION S TATUS

Pro je ct comp le ted o n t ime (wi th in ± 1 mo nth f rom co mpl et io n sc he dul e)

Improv eme nt (% o f b as el in e)

CI Champion and CI Sponsor dec is ions for Motivational Incentive amount paid are final

Projec t Leader:

Abov e US$ 1 0k to US$ 10 0k

Ab ove US$ 1 00 k to US$ 1 ,0 00 k

AIMS M OT IVATIONAL REW ARD SCORING (CI PROJ ECT)

Team Mem ber 4 :

SAP ID G RAD E

SAP ID GR ADE

P roject Registr at ion 8 Steps PDC A Report Other supporting document (SO P, Minutes of Meeting, etc)

SGA TASK FO RCE

Project is achieved the tar get, and the result is sustain on 3-months consecutive

Project is declare "complet ed"

Ver if ied

Need revision


0

3

6

9

12

15

18

21

24

43.4 -

4 6.5

46.5 -

49.6

49.6 -

5 2.7

52.7 -

55.8

55.4 -

5 8.5

58.4 -

61.5

6 1.4 -

64 .5

64 .4 -

67 .5

67.4 -

70.5

70.4 -

73.6

Frekue

nsi


0

3

6

9

12

15

18

21

24

43.4 -

4 6.5

46.5 -

49.6

49.6 -

5 2.7

52.7 -

55.8

55.4 -

5 8.5

58.4 -

61.5

6 1.4 -

64 .5

64 .4 -

67 .5

67.4 -

70.5

70.4 -

73.6

Frekue

nsi

D

C

A