OEE One Point Lessons
4. Team Based Problem Solving
Objective Setting (SMART)
Description: The acronym SMART - Specific, Measurable, Attainable, Relevant, Time Bound - provides a simple and effective way to evaluate the quality
of your opportunity objective / goal statement.
Make sure that the start of a project contains an appropriate objective/goal. A methodology for evaluation is called “SMART”.
This acronym is a checklist to ensure the charter is effective and thorough.
Specific
 Does it address a real business problem?
Measurable
 Are we able to measure the problem, establish a baseline and
set targets for improvement?
Attainable
 Is the goal achievable? Is the project completion date realistic?
Relevant
 Does it relate to a business objective?
Time Bound
Poor examples:
Install monitoring devices to catch sales people
putting the wrong codes on their
sales slips.
Improve client satisfaction with the valuations
process.
Improved examples:
Reduce the number of trade amendments for rates
from X% to Y% by Z date.
Reduce the new account opening lead time by from
15 days to 10 days by DD/MM/YY.
Reduce Abandon rate in part X of customer
services from 12% to 5% by the end of year Y.
 Have we set a date for completion?
Benefit: The approach ensures clarity of intent and appropriateness of scope. The objective is to provide a
checks & balance against defining opportunities too loosely or in ways that can not be easily measured.
OEE One Point Lessons
6 ©
March
OEE 2014
Team Based Problem Solving
Description: A team-based approach used to identify the root causes behind identified issues.
From problem definition to solution
Brainstorming
analytical
stage
Ishikawa diagrams
creative
stage
SOLUTION SELECTION
creative
stage
many alternative
solutions suggested
BRAINSTORMING
defined
problem
root
cause(s)
confirmed
MEASURE/ANALYSE
Careful
definition of
the problem
BRAINSTORMING
many possible
causes identified
best
solution(s)
Implementation
of the solutions
analytical
stage
Pareto analysis
Benefit: A cross-functional team enables the problem to be addressed from all angles. Identification of the true
root-cause of the issue prevents reoccurrence.
OEE One Point Lessons
6 ©
March
OEE 2014
Fishbone Diagrams (Cause and Effect Diagrams)
Description: Fishbone Diagrams or ‘Ishikawa Charts’ are tools for running a user group, steering meetings and consolidating the findings into an
improvement plan - often used for problem solving especially directly after a brainstorming session and are a great tool for developing a complete
specification for a new process.
Main Cause
Main
Cause A
Level 2 cause
2. The Lean facilitator is critical to guide the
meeting:
• Summarise comments into a specific
main cause and focus on it to exhaustion
- remain neutral to avoid influencing the
outcome
Level 1 cause
Level 3 cause
Problem to
be resolved
(effect)
Main Cause
Main Cause
1. The main causes should be defined by
your problem. They may not always be
the same. (e.g. methods, measures,
man, materials)
3. Once the main details have been compiled,
try to link the causes – they often share a
common root cause – then consolidate
these into a project with an owner and
agreed support from the team and
manager
Benefit: A powerful, visual tool to focus a team on a range of issues which result in a common problem.
OEE One Point Lessons
6 ©
March
OEE 2014
Pareto Chart
Description: Pareto analysis is a statistical technique in decision making , used for selection of a limited number of causes that produce significant overall
effect. It is helpful when prioritizing effects to focus on improvement. It uses the Pareto principle - the idea in terms of Lean continuous improvement: 80% of
the problems (effect) are produced by 20% of the causes - known as the 80:20 rule. Pareto analysis is a creative way of looking at causes of problems as it
helps stimulate thinking and organise thoughts. However, it can be limited by its exclusion of possibly important problems which may be small initially but
grow with time. It should be combined with other analytical tools such as failure modes & effects analysis (FMEA) and Ishikawa analysis.
A Pareto chart, named after Vilfredo Pareto (an Italian industrialist & economist), combines a bar
chart and a line graph. The bar chart display the values in descending order and the line graph
shows the cumulative totals of each category, left to right.
The left-hand vertical axis is the frequency of occurrence - it can alternatively represent cost or
other important units of measure. The right-hand vertical axis is the cumulative percentage of the
total number of occurrences, total cost or total of the particular unit of measure. The reasons are
in decreasing order so the cumulative function is concave.
The purpose of the Pareto chart is to highlight the most important among a typically large set of
factors - in Lean, this is often the most common sources of defects, the highest occurring type of
defect or the most frequent reasons for customer complaints, etc.
Benefit: Provides a basic quantitative tool to narrow focus on the vital few variables that contribute to process /
product performance. Helps to ensure solutions address the most important and meaningful root causes.
OEE One Point Lessons
6 ©
March
OEE 2014
Brainstorming
Description: Brainstorming is a group creativity technique used to generate a large volume of ideas to solve a problem. While there are several techniques you may
apply, universal guidelines should be followed regardless of approach: Clearly state the problem and ensure understanding; outline the objective of the session; provide
sufficient time to generate ideas; establish the method of collection and recording up-front; ensure equal participation; don’t over analyse or dwell on individual points; avoid
criticism and prepare an effective technique to consolidate the output.
Techniques to Brainstorm
•
Review the problem statement (to address a specific root cause you are seeking to improve)
•
Clarify the goal and provide background information (e.g. data that leads to ID of root cause X, process maps)
•
Give participants time to generate ideas and record them (e.g. individually on Post-it notes)
•
Gather ideas (this can be done round robin or free-form). Allow new ideas to be posted during this process.
•
Group like ideas into common themes to be discussed
DO’s and DON’Ts
Do…
Don’t…
Generate as many ideas as
possible
Criticise ideas during the
process
Provide time to generate
Allow select individuals to
dominate the session
Ensure proposals are stated
briefly
Build off existing ideas
Get into prolonged discussion
about ideas & solutions
Benefit: Quickly generates a large volume and variety of ideas to address a problem. Helps to ensure broad
participation from various stakeholders. Creates a participatory atmosphere.
OEE One Point Lessons
6 ©
March
OEE 2014
PDCA
Description: The essence of Lean is continuous improvement. Based on the scientific method, the PDCA cycle is the major tool at the heart of continuous
improvement. PDCA should be used to reach all levels and involve all value streams or processes, internally and along the supply chain.
• Without this step, all previous steps are
wasted
• Act on information learnt in Check to
close gaps, adjust Plan accordingly
• Identify further improvements
• Write and adopt new standards
• Communicate the requirements
• Recurrence prevention
• Celebrate and congratulate
• Define activities that are to take place, and
the intended result
• Determine customer needs
• Identify the concerns of the problem
• Set-out the working plan
• Collect data and study
• Seek root causes
• Train as necessary
From experience, companies are
focused on D, but often fail to P and to
follow through on C and A
• The learning stage, but all too frequently
an opportunity lost
• Were the objectives met? What gaps
remain? What didn’t work?
• Review root causes
• Confirm the results through analysis
• Review what was learned - what can be
done better next time?
• Is the problem completely solved?
• Only effective if you have planned well. It is
about carrying out the improvement, often in
a pilot environment
• Implement the improvement
• Go to the area and SEE what is happening
Benefit: Sustainability of change and drives a CI culture.
OEE One Point Lessons
6 ©
March
OEE 2014
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