plan-do-study-adjust: a deep dive

Plan‐Do‐Study‐Adjust (PDSA):A Deep Dive

WebinarDecember 3, 2013

© 2013 The Karen Martin Group, Inc.

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Coach / Facilitator / Consultant / Trainer: Lead Lean transformations & develop people across all industries.

Teacher: University of California, San Diego

Author & Speaker:Karen Martin, President

The Karen Martin Group, Inc.www.ksmartin.com

3

2013 Shingo Prize winner!

© 2013 The Karen Martin Group, Inc. 4

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First,a little history…


Two Great Minds

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W. Edwards Deming (1900‐1993)

Walter Shewart(1891‐1967)


Develophypothesis

Conduct experiment

Measure results

RefineStandardize Stabilize


Detailed Steps

1. Define and break down the problem.

2. Grasp the current condition.

3. Set a target condition.

4. Conduct root cause & gap analysis.

5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

7. Refine and finalize countermeasure(s).

8. Implement countermeasure(s).

StudyEvaluate Results

9. Measure process performance.

10. Refine, standardize, & stabilize the process.

11. Monitor process performance.

12. Reflect & share learning.

Adjust

Do

Clarifying the PDSA Cycle

PlanDevelop

Hypothesis

Conduct Experiment

Refine Standardize Stabilize

Phase

Continuous Improvement

New Problem

50‐80% of the total time

Study

Adjust


1. Define and break down the problem (PLAN)

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• What’s the problem?

• What is NOT the problem?

• What are the variables?

• What should we focus on first?


2. Grasp the Current Condition (PLAN)

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3. Set a Target Condition (PLAN)What SHOULD it look like? How SHOULD it perform?

How does it need to perform? How do you want it to perform?

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4. Conduct root cause & gap analysis (PLAN)

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CauseCause--andand--Effect DiagramEffect Diagram

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule5 Why’s

Why? Why? Why? Why? Why?

P a r e t o Cha r t Cr e di t Appl i c a t i on De l a y s

2 9 0 9

6 2 7 5 6 1

2 4 2 1 8 0

2 4 9 3

4 1 %

7 7 %8 6 %

1 0 0 %9 7 %9 4 %

0

500

1000

1500

2000

2500

3000

3500

N o S i g n a t u r e I n s u f f i c i e n t

B a n k I n f o

N o p r i o r

a d d r e s s

C u r r e n t

C u s t o me r

N o C r e d i t

H i s t o r y

O t h e r

Re a son f or D e l a y

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Check Sheets Quantify Occurrences

|Equipment failure

|||||||||||||Changing customer requirements w/ no adjustment to expected delivery

||||||||||Order entry error

|||Staffing/absenteeism

|||||Quality issue requiring rework

|||||||Material shortage

Tally Reason

|Equipment failure

|||||||||||||Changing customer requirements w/ no adjustment to expected delivery

||||||||||Order entry error

|||Staffing/absenteeism

|||||Quality issue requiring rework

|||||||Material shortage

Tally Reason


5. Identify potential countermeasures (DO)

• The clearer you are about the problem, current state, and root cause, the more obvious the countermeasures become.

• Brainstorming may or may not work.

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6. Develop & test countermeasure(s) (DO)

• Test “live” if possible.• Testing may be merely getting feedback from non‐ core team members.

• Use rapid iterative cycles (mini‐PDSA cycles).

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7. Refine & finalize countermeasure(s) (DO)

• Document the new standard work.– Process maps (occasionally, value stream maps will do the trick)

– Flow charts– Check lists– Concise, visual work instructions– Etc.

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8. Implement countermeasure(s) (DO)

• Training! Training! Training!– Include why & WIIFM– Hands on, when possible– If there’s a gap between implementation and people engaging with the new process, you must retrain.

• DO NOT MERELY COMMUNICATE BY EMAIL.

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9. Measure process performance (STUDY)

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• OBSERVE, TALK, LISTEN• Measure performance against target condition.• What obstacles to success remain?

– How can you remove them?


10. Refine, standardize & stabilize the process (ADJUST)

• Retrain if the process is adjusted.

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10. Refine, standardize & stabilize the process (ADJUST) ‐continued

21


11. Monitor process performance (ADJUST)

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• Requires a Process Owner.• Define & monitor 2‐5 key performance indicators.

– How do you define success? – What does success look like?– Note: KPIs are dynamic, not static. Measure what matters NOW.


12. Reflect & share learning (ADJUST)

• Study and discuss process.– What obstacles did the team confront?– How did they overcome them? – What organizational discoveries did they make? – What needs to be adjusted going forward?– What went well?– What could been better?

• Hold “Grand Rounds” or Improvement Briefings.• Physically post story boards and results.• Post on Intranet home page.

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Requirements for Excellence in ANY Endeavor

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Shingo award‐winning The Outstanding Organizationwww.bit.ly/TOObk

Practice vs. Performance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Athletes Businesses

TrainPerform

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Train90%

Train1%

Perform 99%

Perform 10%

Jim Loehr & Tony Schwartz, The Power of Full Engagement


Problem‐solving capabilities developed?

Which target condition do you want to achieve?

OR

Problems solved?


Attaining Mastery

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From The Outstanding Organization, p. 115


Improvement Coaching

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REFLECTIVE DEVELOPMENT DIRECTIVE DEVELOPMENT

From The Outstanding Organization, p. 117


Value Stream Mapping

Strategy Deployment (Hoshin Kanri)

or A3

Daily Improvement, Projects, & Rapid Improvement Events

Building PDSA Capabilities


Annual Hoshin Planning (Strategy Deployment)

• Builds consensus• Creates organizational focus on what matters most


Tying Improvement to Overarching Business Goals

32


Classic Strategy Deployment (Hoshin Kanri)X‐Matrix


1. Increase sales 5%.3. Achieve 10% profit.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct

CDs / AMs

PD Rec

PD Mgmt

BMD SWS

23,500 units sold by 12/31/2013 through al l channels (approx. $700K)

X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3

11 Develop & del iver tra ining to top 50 Dealers X X X X X X Bob Rex/Tim 3 3 3

21 Revised course materia ls by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2

5Education: 1 school dis trict spec'd/underperforming COM dis tributor (25) by 12/31 valued at min $35K each

X X X X X X X X X X X X Howard Michael S 1 3 2 3 3

810 new dea lers on board (net) ($500K per dealer this year)

X X X X X X X X X X X X Howard Mike B 2 3

95 new dis tributors bringing $200K annual rev (& 5 terminated)

X X X X X X X X X X X X Howard Howard 1 1 1 2 3

17 10 projects spec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3

29 20 by year‐end X X X X X X X X X X X X Howard Mark H 2 3 3 3

32 TBD X X X Howard Howard

33 TBD X X X X X X X X X Howard Howard

10Useful reporting and metrics are establ i shed and in place

X X Jim Randal l 3 1 1 1 1 1 1

30 TBD X X X X X Jim Josh 3

31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1

25 TBD Jim Shannon 3 3 1 1 1 1 1

26 System 7.0's in place X X X Jim Randal l 3 2 1 2 1

15100% accurate payrol l ; 100% management sati s faction at Apri l mgmt. meeting

X X X Josh Phyl l is 1 3

20Internet task l i s t i s s impl i fied and streaml ined for PDs then plan i s rol led out to PDs

X X X X Michael M Michael M 2 3 2 3

22Des ign Calculator i s updated success ful ly and rol led out

X X X Neal l Matt D 3 1 1 3 2 2 3

24 Competi tive Analys is complete and distributed for use X X X Neal l Dana 2 3 3 3 3 3 3

1 Des ign changed to solve delam i ssue long‐term X X X X X Susan David R 3 2 3

1230 parts sourced in U.S.; completed plan for managing China ‐sourced parts

X X X X X X Susan Shannon 3 3 2 2

13Warehouse la id out; kanban revised; Syspro implemented

X X X Susan Shannon 3

14 Lay out complete; equipment ins ta l led X X X Susan David R 3 3

X = Planned

2013 Priorities

2013 Goals & Objectives4. Improve morale (metric TBD).2. Achieve 50% gross margin. Created: 01‐14‐13

Revised: Level of Effort/Involvement Required

Priority Goal or Measurable Objective Exec Owner

Plan review dates:

Tactical Owner

● = Actual

< Company Name >

Conten

trem

oved

for con

fiden

tiality

Modified Strategy Deployment Annual Plan:Regular Reviews Improve Focus & Drive Results

A3 Management


What is A3?

• The core of Toyota’s renowned management system.• A structured method for applying the PDCA (plan‐do‐check‐act) approach to problem solving.

• International designation for 11 x 17” paper.

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Common Components of the A3 Report

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Theme: “What is our area of focus?” Owner: Person accountable for results.

Plan Do, Study, Adjust

Background

Current Condition

Countermeasures / Implementation Plan

Effect Confirmation

Follow‐up Actions

• What?

• Who?

• When?

• Where? (if relevant)

Target Condition / Measurable Objectives

• Diagram of desired state

• Measurable targets – how will we know that the improvement has been successful?

• Diagram of current situation or process

• What about it is not ideal?

• Extent of the problem (metrics)

• Problem statement

• Context ‐Why is this a problem? How large is the problem?

Root Cause & Gap Analysis

• Graphical depiction of the most likely direct (root) causes

• What measurable results did the solution achieve (or will be measured to verify effectiveness)?

• Who’s responsible for ongoing measurement?

• Where else in the organization can this solution be applied?

• How will the improved state be standardized and communicated?


Value Stream Mapping: Using PDSA to realize the future state


Kaizen Event – Definition

A two‐ to five‐day focused improvement activity during which a sequestered, cross‐functional team designs and implements

improvements to a defined process or work area, generating rapid results and learned

behavior.

Karen Martin & Mike OsterlingThe Kaizen Event Planner

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5‐Day Kaizen Event: Typical Structure

Day 1 & 2 (Plan)

Day 3 & 4(Do, Study)

Day 5 (Study, Adjust)

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Kick‐offAnalyze current state Perform root cause analysisDesign future stateInterim briefingDesign & test improvementsObtain buy‐inInterim briefingFinalize improvementsTrain process workers & stakeholdersPresent resultsCELEBRATE!


Every person in the organization needs to have

proficiency in PDSA.

In addition, managers need proficiency in improvement

coaching.


True Continuous Improvement

CHECK

CHECK

CHECK

ACT

ACT

ACT


“When PDSA is used as it was intended, there is no separation between improving and managing work—they are part of the same cycle.”

The Outstanding Organization, p. 120


Karen Martin, President7770 Regents Road #635San Diego, CA 92122

858.677.6799

[email protected]

44

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