The document discusses operational excellence and provides a guidebook on key principles and tools. It begins by noting the need for organizations to improve productivity and excellence due to competitive pressures. It then discusses how operational excellence combines various theories and methodologies to achieve excellence. The guidebook aims to compile important principles and tools from various sources into a concise desktop reference to help embed an operational excellence philosophy.
2. Preface
The changing business environment along with fierce competition and
pressures from the investors have forced even highly stable and mature
organizations to look for ways of improving productivity and excellence in
every echelon of business. The business gurus and perfectionists have
long been in the process of coining theories and suggesting methodologies
for transforming businesses and sustaining Excellencies. These strategic
initiatives really provide miracle benefits, alone; General Electric claims
benefits worth US $ 12b from six sigma initiatives.
The challenges faced by the various manufacturing sectors are even more
severe and required a pool of strategies to be remained in business.
Though Operational Excellence tools provide equally good mechanism of
achieving accelerated excellence in services and non manufacturing sector
yet it’s applicability in manufacturing sector have harvested un parallel
results and we believe can do even far more better.
Operational excellence is the most advance form of strategic initiatives and
combines all the theories and methodologies in the journey to excellence.
Substantial amount of material on the subject is available on the Internet in
the form of publications, books and articles. Our focus was to exploit these
sources and develop a guide book covering important principles and tools
required for embedding operational excellence as a way of life in
convenient desk top book form.
All our efforts were to precise and concise the available material into a
meaningful and useful publication. Hope, our humble effort will help in
reinforcing the understanding of Operational Excellence Philosophy.
Dr. Abid Ali Sajjad Shaukat
3. Operational Excellence – Principles and Tools
Table of Contents
1. Data Analysis and Presentation
a. Pareto Charts
b. Histogram
c. Radar Analysis
2. Issue Analysis
a. 5 Whys
b. Brainstorming
c. Issue Diagrams
d. Fishbone Diagram
e. Reality Tree
3. Preparing For Change
a. FMEA
b. Force Field Analysis
c. Gantt Chart
d. Project Start
e. DMAIC Process
4. Process Mapping
a. Time Value Map
b. Logical Flow Chart
c. Value Stream Mapping
d. Load Charts
e. IPO Diagram
5. Problem Solving
a. Problem Solving Method
6. Organizing the Workplace
a. 5 S
b. Visual Factory
7. Statistical Process Control
a. SPC / Control Charts
b. Design of Experiments (DOE)
8. Meeting Tools
a. Spacer
b. AAR
9. Additional Tools
a. Prioritization Model
b. Kaizen Blitz
c. Six Sigma Vs Lean Sigma
d. Kanbans
4.
5. DATA ANALYSIS & PRESENTATION
Pareto Charts
Purpose: To focus efforts on the problems that offers the
greatest potential for improvement by showing their
relative frequency or size in a descending bar graph.
When To Use It
It can be used to help a team focus on the causes that will have
the greatest impact if solved. It displays the relative importance
of problems in a simple, quickly interpreted, visual format. Pareto
Charts also help prevent “shifting the problem” where the
“solution” removes some causes but worsens others.
Underlying Principle
The theory behind Pareto Charts originated in 1897 when an
Italian economist called Vilfredo Pareto created a formula
representing the uneven distribution of wealth. It showed that
20% of the Italy’s population earned 80% of the wealth. This is
otherwise known as the 80-20 rule. The Pareto Principle was
extended to: 20% of the sources are responsible for 80% of any
issue. This principle was then applied to defect analysis,
separating the ‘Vital Few’ from the ‘Trivial Many’. The graphical
illustration of this, the Pareto Chart, shows the relative frequency
of the sources to provide a prioritisation tool to help organise
process improvement activities.
6. Construction:
PLEASE NOTE THAT GUIDELINES TO TAKE YOU THROUGH THE
EXCEL SPREADSHEET PRODUCTION OF PARETO CHARTS ARE
PRESENTED AT THE END OF THIS SECTION.
1. Decide which problem you want to know more about.
E.g. Being late to work
2. Choose the causes or problems that will be monitored,
compared and ranked.
This can be done by brainstorming or with data collection.
For brainstorming (see Brainstorming Module) ask what might
be the typical causes, issues or problems surrounding your
general problem area.
Collect all ideas and then choose the top six - ten issues.
If using the brainstorming method, use Post It notes, with only
1 idea clearly written on each Post-It note in felt tip pen.
E.g. reasons for being late:
- Oversleeping (oversleep)
- Things to be done at home (house tasks)
- Arguing with spouse/ children (argue)
- Leaving things behind (go back)
- Traffic (traffic)
- Had to take kids to school (kids)
For data collecting, base these top six - ten issues on existing
data.
3. Choose the most meaningful unit of measurement for your
issues.
This will normally be one of:
- time
- frequency
- cost
- size
- errors
7. E.g. frequency
4. Choose the relevant period of time to be studied.
For example, if measuring late deliveries to the customer,
doing it over a month may show a different pattern to
collecting data over a week. While Fridays may regularly show
late deliveries, it may actually be that the bulk of the problems
occur at month end or at a particularly busy period in the
month. Longer studies tend to translate to better information.
E.g. 1 month
5. Gather the necessary data on each problem category either by
’real time’ or reviewing historical data.
L = late
SEPTEMBER 2001
MON TUES WED THURS FRI SAT SUN
1 2
3 L- kids 4 L-
go 5 6 7 8 9
back
10 L- 11 12 13 L- 14 15 16
traffic Oversleep
17 18 L- 19 L- 20 L - 21 L- 22 23
kids kids oversleep oversleep
24 L- 25 26 27 L- 28 29 30
traffic oversleep
6. Put the data into a table reflecting the unit of measurement and
its percentage of the overall total.
8. REASON FOR LATENESS FREQUENCY PERCENT
OF TOTAL
Traffic 2 20%
Oversleeping 4 40%
Take kids to school 3 30%
Left something behind at home 1 10%
Arguing with spouse/ kids 0 0
Things to be done at home 0 0
TOTAL 10 100%
7. Compare the relative frequency or cost of each problem
category.
8. Construct your chart.
Place the problem categories along the bottom axis (the
horizontal one).
At the beginning of this axis, place the problem category that
has the highest measurement unit, (in our example,
frequency) from your data compilation. Then place the next
highest frequency category, then the next highest etc.
On the tall axis (the vertical one) place the numbers
measuring the frequency of each problem category.
TIP: If you started out with more than 5 or six
categories, you may like to group the
remaining categories with insignificant
frequencies into an ‘Other’ category.
9. BEING LATE TO WORK
5
Number of Times Late
4
3
2
1
0
Oversleeping Take kids to Traff ic Left Arguing Home tasks
school something
behind
FREQUENCY
Reasons For Being Late
9. Draw the cumulative percentage line showing the portion of the
total that each problem category represents.
BEING LATE TO WORK
4.5 120
4
100
3.5
FREQUENCY
3 80
2.5 FREQUENCY
60
2 cumulative freq
1.5 40
1
20
0.5
0 0
nd
ol
ng
s
g
fic
sk
in
ho
af
hi
pi
gu
ta
Tr
be
sc
ee
Ar
e
l
to
ng
rs
m
ve
Ho
hi
ds
O
et
ki
om
ke
s
Ta
ft
Le
REASONS
We can now see from our Cumulative Frequency line that the first
two causes contribute 70% of the total reasons.
10. However it is important to remember that this chart only shows
one measurement. If for example, our late to work chart was then
calculated with how many minutes each event made you late, you
may get quite a different picture.
REASON FOR LATENESS FREQUENCY HOW LATE TOTAL MINS
(from original graph) (MINUTES) LATE
Traffic 2 15 30 mins
Oversleeping 4 10 40 mins
Take kids to school 3 45 135 mins
Left something behind at home 1 20 20 mins
Arguing with spouse/ kids 0 5 0 mins
Things to be done at home 0 10 0 mins
By incorporating this into our graph, we can see that even though
we are most often late by oversleeping, it is when we have to take
the kids to school that causes the substantial lateness.
BEING LATE TO WORK
160 120
140 100
Minutes late
120
100 80
80 60
60 40
40
20 20
0 0
ol
g
g
s
fic
...
in
in
sk
ho
af
be
ep
gu
ta
Tr
sc
le
Ar
ng
e
to
rs
m
hi
total minutes late
ve
Ho
ds
et
O
om
ki
cumulative freq
ke
s
Ta
ft
Le
Reasons for being late
TOOL TAKEAWAY: (remember this if nothing else!) – The
most important thing about Pareto charts is to make sure you are
analysing the right unit of measurement, in order to effect the real
underlying issue.
11. Computer Tips
Use Excel to complete your Pareto charts.
Make the table of your data collection into an excel spreadsheet.
Make sure you include the column titles for whatever unit of
measurement you have used, along the top of the table with the
causes listed down the left hand side and the frequency recorded
in the columns. Your table should have three columns, with the
Causes, Frequency and Cumulative Percentage total in the third
column. Make sure your Categories are in the correct order with
the most frequent at the top of the table.
REASON FOR LATENESS FREQUENCY cumulative %
Oversleeping 4 40
Take kids to school 3 70
Traffic 2 90
Left something behind 1 100
Arguing 0 100
Home tasks 0 100
Once your table is complete, highlight the table, then use the
Chart Wizard button to complete the Chart.
The chart wizard button looks like
Alternatively on the Chart drop down menu at the top of the page,
select the ‘Chart’ option.
Click on the chart wizard and a dialogue box will come up with
two option tabs at the top; Standard Types or Custom Types.
Select Custom Types, scroll down the chart types until you reach
“Line – Column on 2 Axes”.
Once this is selected, click on ‘next’ button at the bottom of the
dialogue box.
The next step of the Chart Wizard will bring up the text you have
previously highlighted from your table.
You should have the Series to be displayed in ‘columns’.
Once this is done, click on
12. At Step three of the chart wizard you should enter in the title of
your chart, and the titles of the axes. The X axis is the title of
your categories i.e. Reasons For Being Late, while the Y axis is
the unit of measurement used, i.e. Number of times late.
Click on Next once these boxes are complete.
Select the option to have the graph as an object in either your
current worksheet, or if you want the graph on a whole separate
page, then select it to be placed as a new sheet.
Click on finish and your graph will appear.
To change any of the details, highlight your chart again and go
through the steps until you reach the information you want to
change.
Alternatively if you click on the part of the chart you want to
change (i.e. titles, formatting etc) it should let you change it.
Note any changes to the data in your original table will
automatically be reflected in your Pareto Chart.
Interpretation
Generally, the tallest bars indicate the biggest contributors to the
overall problem. So normally you would pick these categories to
deal with first.
However you need to remember that Pareto charts only deal with
one dimension at a time, and other variables may have an impact
on your decision making.
See some of the variations suggested below to provide further
ideas on interpretation.
Variations
The Pareto Chart is one of the most widely and relatively used
improvement tools. The variations used most frequently are:
13. A. Major Cause Breakdowns in which the “tallest bar” is
broken into subcauses in a second, linked Pareto.
For example- breaking down the causes for oversleeping
might come down to:
- forgot to set alarm
- late night the night before
- children up all night
- slept through the alarm
B. Before and After in which the “new Pareto” bars are
drawn side by side with the original Pareto, showing the
effect of a change. It can be drawn as one chart or two
separate charts.
C. Change the Source of Data in which data is collected
on the same problem but from different departments,
locations, equipment, and so on, and shown in side-by-
side Pareto Charts.
D. Change Measurement Scale in which the same
categories are used but measured differently. Typically
“cost” and “frequency” are alternated.
(in this module, frequency and time were used)
Example Problems (Good to practise on)
* There is never enough milk in the fridge
* Types of errors on letters
* Types of department complaints
For Further Information:
See your mentor expert
See your local advocate
Check the ‘Memory Jogger’ book (held by advocate)
14. DATA ANALYSIS & PRESENTATION
Histograms
Purpose: It is a visual summary of data that is often
difficult to understand in a spreadsheet or tabular form. A
histogram summarises data from a process that has been
collected over a period of time, and graphically presents
its frequency distribution in bar chart form.
When To Use It
Histograms are useful when you are looking at one issue or
problem and trying to make sense of the data collected. It helps
you to see whether a piece of data is in the mainstream or is an
extreme.
Histograms also reflect a range of information, for example, how
long it takes people to do a certain task, heights of people in a
group etc.
PLEASE NOTE THAT GUIDELINES TO TAKE YOU THROUGH THE
EXCEL SPREADSHEET PRODUCTION OF HISTOGRAMS ARE
PRESENTED AT THE END OF THE CONSTRUCTION SECTION .
Construction:
1. Decide on the area you wish to investigate.
15. 2. Decide what you want to measure about the issue. Your data
must be variable, i.e. measured on a continuous scale. For
example: temperature, time, dimensions, height, weight,
speed, cost.
i.e. monthly rental on 1 bedroom flat in London
3. Collect data on the issue. The more data points you have the
more useful your graph will be.
50 is a good number of data points, as it will reflect any
trends. Normally over 50 data points should be collected to
see meaningful patterns.
MONTHLY RENTALS FOR 1 BEDROOM FLATS IN LONDON
710 735 740 800 935 980 820
855 920 840 870 790 800 880
910 1010 790 695 840 820 860
870 870 660 835 945 910 995
990 1000 1040 880 845 780 785
775 710 715 875 890 875 930
750 750 965 1000 840 840 695
835 910 780 840 780 900 975
TIP: You might also want to consider collecting
data for a specific period of time, depending on
the topic. These may be values recorded on an
issue within an hour, a shift, a day, a week etc.
4. Divide your data into ‘classes’. This is a measure of grouping
all your data into sections.
One way to determine how many classes you should have is
the square root rule. Take the number of data points
16. collected, and find the square root. Round it up to the
nearest whole number
TIP: as a rough guide, consider this for the
number of classes.
NO. OF DATA POINTS NO. OF CLASSES
Under 50 5-7
6-10
7-12
Over 250 10-20
i.e. n = 56 √56 = 7.48 = 8
5. Determine the range.
Take the lowest value in your data points and subtract it
from the highest value.
i.e. 1040 – 660 = 380
6. Now you know how many classes you are going to have, you
need to know how big to make those classes.
To do this, divide the range by the number of classes and
round up.
i.e. 380 ÷ 8 = 47.5 = 50 (rounded up to nearest 10)
TIP: It is usually more useful if all class widths are
the same. It is easier to compare the areas of 2
rectangles of equal width than to compare the areas
of 2 rectangles with different widths.
TIP: Depending on your data, you may find it
easier to start at your lowest value and go up in
groups of 1, 10, 20, or 100 – whichever seems
most obviously appropriate for your data.
i.e. heights – classes of 2 inches at a time
rents - £50 intervals at a time
17. 7. Now construct your classes.
It is important that your first class should contain your lowest
value and your last class should contain your highest value.
If the first or last class is empty, you may need to change the
class width, the number of classes or the anchoring (the
number system) of the classes.
650 - 699
700 – 749
750 – 799
800 – 849
850 – 899
900 – 949
950 – 999
1000 - 1049
8. For a final check on your classes, look to make sure they are:
- exhaustive – so every data point can be inserted into a
class. The classes must span the entire range of data
collected.
- mutually exclusive - the classes do not overlap and each
data point fits into only 1 class.
The usual procedure is to assume that each class interval
opens on the left and closes on the right.
Class 1 = 0 – 5 , not incl. 6
Class 2 = from 6 up, but not incl. 12
Class 3 = from 12 up, but not incl. 18
Class 4 = from 18 up, but not incl. 24
Class 5 = from 24 up, but not incl. 30
Class 6 = from 30 up, but not incl. 36
6 12 18 24 30 36
So the data point 18 would belong in the 4 th class, not the third
class.
9. Now distribute your data amongst your classes.
18. 650 - 699 660 695 695
700 – 749 710 735 740 710 715
750 – 799 790 790 780 785 775 750 750 780 780
800 – 849 800 820 840 800 840 820 835 845 840 840 835 840
850 – 899 855 880 860 870 870 880 875 890 875 870
900 – 949 935 920 910 945 910 910 930 900
950 – 999 980 990 995 975 965
1000 - 1049 1010 1000 1040 1000
10. Plot the classes along the X (horizontal) axis.
99
9
9
9
9
9
9
9
04
74
79
84
89
94
99
-6
-1
–
–
–
–
–
–
0
0
0
0
0
0
0
65
00
85
70
75
80
90
95
10
Monthly Rent (£)
11. Decide on the intervals for the Y axis. This should be in
whole numbers and may be in intervals of 1, 2, 5 or 10
depending on how many data points are collected. Once again
it will depend on the range or frequency of your data.
12. For each of your classes, count the number of data items
that fall into that category (see Variations section for Stem and
Leaf diagram). Bring the bar up to this level on the Y axis.
19. Repeat for each one of your classes.
Monthly Rent paid on 1 bedroom
flats in London
14
12
Frequency
10
8
6
4
2
0
9
9
9
9
9
9
9
99
04
74
79
84
89
94
99
-6
-1
–
–
–
–
–
–
0
0
0
0
0
0
0
00
65
70
75
80
85
90
95
10
Monthly Rent (£) Frequency
Computer Tips
Use Excel to complete your Histograms.
Make the table of your data collection into an excel spreadsheet.
Have a column containing your classes and a second column of
their frequency.
Once your table is complete, highlight the table, including column
titles then use the Chart Wizard button to complete the Chart.
The chart wizard button looks like
Alternatively on the Chart drop down menu at the top of the page,
select the ‘Chart’ option.
20. Click on the chart wizard and a dialogue box will come up with
two option tabs at the top; Standard Types or Custom Types.
Select Standard Types, and highlight “Column”.
Once this is selected, click on ‘next’ button at the bottom of the
dialogue box.
The next step of the Chart Wizard will bring up the text you have
previously highlighted from your table.
You should have the Series to be displayed in ‘columns’.
Once this is done, click on
At Step three of the chart wizard you should enter in the title of
your chart, and the titles of the axes. The X axis is the title of
your categories i.e. Monthly Rent (£), while the Y axis is the unit
of measurement used, i.e. Frequency.
Click on Next once these boxes are complete.
Select the option to have the graph as an object in either your
current worksheet, or if you want the graph on a whole separate
page, then select it to be placed as a new sheet.
Click on finish and your graph will appear.
To change any of the details, highlight your chart again and go
through the steps until you reach the information you want to
change.
Alternatively if you click on the part of the chart you want to
change (i.e. titles, formatting etc) it should let you change it.
Note any changes to the data in your original table will
automatically be reflected in your Histogram.
Interpretation
Histograms show centering, dispersion (spread) and shape
(relative frequency) of data.
21. The shape of the Histogram (the frequency distribution) tells us a
lost about probability. If a height Histogram was representative of
the overall population, we could conclude the probability of finding
people v. short (under 65 inches) or very tall (over 72 inches) is
low.
The shape of this distribution is called the normal distribution and
looks like a bell shaped curve.
Most sets of data fall into a ‘normal’ distribution i.e. there are a lot
of medium height people and a few tall and a few short in most
populations.
As a Histogram picks up these patterns and expresses them in a
graphical form it makes it easy to highlight whether a piece of data
is in the mainstream or at an extreme.
Not all data falls conveniently into a normal distribution.
Other main possibilities include:
POSITIVELY SKEWED NEGATIVELY SKEWED
BI-MODAL FLAT OR UNITARY
22. To interpret your Histogram you need to ask:
Why this shaped distribution and what is it telling us?
For example, if assessing how long it took to perform a certain
task and it falls into normal distribution, you may look to cut out
the extremes, in order to have more values fall into the centre.
Alternatively if it is a skewed distribution you may only need to
adjust 1 extreme.
Histograms can be good comparison diagrams. Constructing a
second Histogram some time after the original may reflect the
changes made as steps taken to improve processes.
JUNE DECEMBER
10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24
26 26
(seconds) (seconds)
TIME TAKEN TO ANSWER TELEPHONE (seconds)
Here you can see an improvement in times from June to
December, suggesting that measures put in place after June have
had an effect and increased performance.
Histograms can also be used to examine your data for accuracy
and/or process changes.
FIGURE A FIGURE B
23. Figure A is a Histogram with a fairly symmetrical shape with no
obvious outliers (extreme data values) which might be due to an
error or process change.
However figure B may reflect that the far right data is not a part of
the symmetric shaped Histogram.
So it may be a good idea to investigate the far right data in order
to check whether it is incorrect, inaccurate or something in the
process changed when that data was collected.
Variations
Stem & Leaf Display
The Stem & leaf Display is a cross between a frequency
distribution and a histogram.
It reflects the shape of the histogram, but displays all the original
data points, providing some more detail. While a histogram will
show you how many values may fall in a class, it will not reflect
the pattern of that data, i.e. Whether or not all the data in the
class 18-24 is made up of mostly 18 scores or if it is evenly
distributed across the class.
The ‘stem’ of the diagram is normally determined by the leading
digit in your collected data.
The following ‘leaves’ are then all the numbers in that data set.
For example, if I was collecting data on ages of people buying the
latest Oasis CD, I might come up with the following data
collection:
18 16 30 29 28 21 17
41 8 17 32 26 16 24
27 17 17 33 19 18 31
27 23 38 33 14 13 26
11 28 21 19 25 22 17
24. 12 21 21 25 26 23 20
22 19 21 14 45 15 24
Given that all our data was all integers with one or 2 digits, we
can use the tens digit as our choice for the stem. The leaf is then
the following digit, as illustrated below.
Alternatively you can use the classes already determined in
preparing your histogram.
Sort or order the data, then the following diagram can be
displayed.
Stem Leaf
0 8
1 123445667777788999
2 0111112233445566677889
3 0123348
4 15
So the Stem & Leaf display still shows the individual elements in
each class, while still retaining the ‘feel’ or ‘shape’ of a histogram.
Example Problems (Good to practise on)
* ages of people at work
* how many cups of tea people drink
* how long it takes people to get to work
For Further Information:
See your mentor expert
See your local advocate
Check the ‘Memory Jogger’ book(held by advocates)
25. DATA ANALYSIS & PRESENTATION
Radar Charts
Purpose: To visually show in one graphic the size of
gaps among a number of both current performance
areas and ideal performance areas.
When To Use It
Radar Charts are useful to illustrate strengths and weaknesses in
important areas of performance.
Construction:
PLEASE NOTE THAT GUIDELINES TO TAKE YOU THROUGH THE
EXCEL SPREADSHEET PRODUCTION OF RADAR CHARTS ARE
PRESENTED AT THE END OF THIS SECTION.
1. Decide on the issue to be assessed. It may be the
performance of an organization, groups or process.
i.e. skill areas I need to improve to go for a job promotion
2. Assemble the right team of people capable of rating the
selected organization, group or process. Try to get varied
perspectives to avoid ‘blind spots’.
i.e. probably just me, or if appropriate, my boss or my partner
3. Select the rating categories. On average, choose between 5-
10 categories you want to rate performance on.
26. Brainstorm to create the categories. Alternatively, if you
have done previous study of this issue, you may like to use
the category headings from an Issue Diagram (see Issue
Diagram Module)
i.e. people management
budgeting
problem solving & facilitation
communication skills
computer skills
industry knowledge & experience
4. One you have your headings, if possible see if there are any
similarities between them.
For example you may like to have the categories of Financial
Performance and Share Price close together or Number of
Staff and Training for example.
i.e. people management
communication skills
problem solving & facilitation
budgeting
computer skills
industry knowledge & experience
5. Once selected, define your rating categories. Determine the
definition on non-performance and full performance within each
category so that ratings are done consistently. For each
definition assign it a number in a range. Make it the same
number for all categories.
i.e. 1 = non performance, 5 = full performance
27. CATEGORY 1 2 3 4 5
People No experience Managed teams Managed teams of at
Management managing people of at least 5 least 10 people in a
people variety of situations.
(min 5 different
situations)
Communication Problem Good at Comfortable with
Skills communicating presenting on communicating with
with people; topics to various all levels of staff in
formally or groups many situations
informally
Prob Solv & Unable to work Can demonstrate Comfortable taking
Facilitation through Prob problem solving unfamiliar groups
Solving process skills in small through complex
independently groups problem solving
workshops
Budgeting No experience of Able to budget Advanced level of
managing or and stick to budgeting skills; able
being responsible budget on less to deliver accurate
for a budget complex projects budgets on complex
issues
Computer Skills Limited Substantial Advanced knowledge
knowledge of knowledge of of Word, Excel,
Microsoft word word, excel, Powerpoint, Access
and excel powerpoint and and Microsoft Project
access
Industry Know. & Role experience Worked in wide Worked in more than
Exp in 1 sector range of roles one company in the
within the industry, in a range of
company over the roles over last 10
last five years years.
6. Decide what rating your ideal should contain in each of the
categories. This can be done based on a subjective
assessment, or on information available, but should be agreed
upon by the whole group.
JOB XYZ COMPETENCIES RATING REQUIRED
People Management 5
Communication Skills 5
Problem Solving & Facilitation Skills 5
Budgeting 3
Computer Skills 3
Industry Knowledge & Experience 4
28. 7. Using a large piece of flipchart paper, draw as many spokes as
there are rating categories.
Write down each rating category at the end of each spoke
around the perimeter of the wheel, paying attention to any
links you highlighted between categories in step 4, placing
them next to each other.
Mark each spoke on a 0 to ‘n’ scale where n is the highest
number on your scale in step 5 = highest performance. The
‘0’ at the centre is equal to ‘no performance’.
8. Rate all performance categories. Performance can be
People Management
5
4
Industry Know ledge & 3 Communication Skills
Experience 2
1
0
Computer Skills Problem Solving & Facilitation
Budgeting
measured objectively or subjectively.
Get each individual to make their own rating.
These ratings can either be recorded on your Radar Chart
using markers or coloured stickers directly on to the flipchart
or they can be written down.
Once individual ratings have been determined, the final
ratings for each category should be decided by either
consensus or an average of individual scores.
29. JOB XYZ COMPETENCIES CURRENT RATING
People Management 3
Communication Skills 4
Problem Solving & Facilitation Skills 3
Budgeting 4
Computer Skills 3
Industry Knowledge & Experience 2
9. Record final ratings on chart, as well as the required rating
measures.
TIP: make team ratings highly visible on the chart
– make sure it is distinguishable from individual
team members ratings if these have been recorded
directly on to the flipchart.
10. Connect the team ratings for each category and highlight as
needed.
JOB XYZ COMPETENCIES
People Management
5
4
Industry Knowledge & 3 Communication Skills
Experience 2
1
0
Problem Solving &
Computer Skills
Facilitation
Budgeting
CURRENT RATING
REQUIRED RATING
30. Computer Tips
Use Excel to complete your Radar Charts.
Make the table of your data collection into an excel spreadsheet.
Have one column for your Category heading, one column for your
Required Rating and one column for your Current Rating.
Once your table is complete, highlight the table, then use the
Chart Wizard button to complete the Chart.
The chart wizard button looks like
Alternatively on the Chart drop down menu at the top of the page,
select the ‘Chart’ option.
Click on the chart wizard and a dialogue box will come up with
two option tabs at the top; Standard Types or Custom Types.
Select Standard Types, and highlight “Radar”.
Once this is selected, click on ‘next’ button at the bottom of the
dialogue box.
The next step of the Chart Wizard will bring up the text you have
previously highlighted from your table.
You should have the Series to be displayed in ‘columns’.
Once this is done, click on
At Step three of the chart wizard you need to enter in the title of
your chart.
Click on Next once this is complete.
Select the option to have the graph as an object in either your
current worksheet, or if you want the graph on a whole separate
page, then select it to be placed as a new sheet.
Click on finish and your graph will appear.
To change any of the details, highlight your chart again and go
through the steps until you reach the information you want to
change.
31. Alternatively if you click on the part of the chart you want to
change (i.e. titles, formatting etc) it should let you change it.
Note any changes to the data in your original table will
automatically be reflected in your Radar Chart.
Interpretation
The interpretation of your Radar Chart lies in the difference
between the two shapes. The Radar chart will show you what
areas you have not yet reached the required performance level
and also what areas you have exceeded the required
performance level.
Using our example, our skill level was fine for the competencies
of Computer Skills and Budgeting, but our skill levels were not up
to the required level for Industry Knowledge & Experience, People
Management, Communication and Problem Solving & Facilitation
Skills.
The overall ratings will identify the categories with the biggest
performance gaps. However it will not show the relative
importance of the categories themselves.
For example, the potential employer may believe that not being
up to scratch on People Management is not as important as
having the right level of skills for Communication. They may
decide that sending you on a course will take you near enough to
the required level.
When selecting a performance measure to improve, work on the
biggest gap in the most critical category.
For our job at XYZ, the area requiring the most work might be our
Industry Knowledge & Experience and our Problem Solving &
Facilitation skills.
The Radar Chart works well as a visual ‘report card’. It
can be used to review progress towards a required
32. state over time. Post the Radar Chart in a prominent
place. Review progress regularly and update the chart
accordingly.
Variations
A Radar Chart doesn’t have to measure performance but can also
be a pictorial reflection of the ‘shape’ of the issue, reflecting its
priorities.
Given the same categories the shape can then be redrawn to
reflect the change needed to move away from the ‘old’ shape to
the ‘new’ shape.
Work can then begin on how to achieve this process.
One Radar Chart can also reflect the range of ratings within the
team, the average team rating, the deserved level of performance
for each category and the level required to be world class
standard per that category.
Example Problems (Good to practise on)
* 5s in your area (see module on 5S)
* options for buying a new car
For Further Information:
See your mentor expert
See your local advocate
Check the ‘Memory Jogger’ book (held by advocates)
33.
34. ISSUES ANALYSIS
5 Whys Analysis
Purpose: To be able to move past symptoms and get to
the true root cause of a problem.
When To Use It
The 5 Whys Analysis is a good tool to use when you quickly want
to get to the root cause of a problem. It can be used in
conjunction with a Fishbone Analysis (see Fishbone Analysis
Module) and Pareto Chart (see Pareto Chart Module).
Construction:
The 5 Whys Analysis is a brainstorming technique that identifies
root cause by asking WHY events occurred or conditions existed.
The simple yet powerful tool gets you write down the problem and
ask why, peeling back the layers unitl you get to a root cause.
It involves selecting one event associated with an action and asks
why the event occurred. This produces the most direct cause for
each event. Then, for each of these sub events or cause, in turn
you need to ask why that happened.
It has been found that by the time you ask why 5 times, and got 5
sensible answers, you can normally see where the problem
originated, thereby enabling you to treat the root cause rather
than the symptoms.
35. Example of Using 5 Whys To Discover Root Cause
PROBLEM: There is a damp patch on the ceiling
Because water is dripping through from the roof
Because there is a hole under the eaves
Because birds have been nesting there
Because they can’t nest in the trees
Because there are no trees tall enough for them to stay out of
reach of the cat!!
So need to secure hole in eaves and provide birdhouse that cat
can’t get to.
TIP: Ensure that the 5 Whys still make sense
when you read them backwards.
If you can’t finish the 5 Whys, because you get stuck on an ‘I
don’t know’ answer, you need to go out and find out why, before
continuing with the 5 Whys Analysis.
36. Example from a kitchen range manufacturer
PROBLEM: There is too much work in process inventory, yet we
never seem to have the right parts.
WHY? 1
The enamelling process is unpredictable, and the press room
does not respond quickly enough.
WHY? 2
It takes them too long to make a changeover between parts, so
the lot sizes are too big, and often the wrong parts.
WHY? 3
Many of the stamping dies make several different parts, and
must be reconfigured in the tool room between runs, which takes
as long as eight hours.
WHY? 4
The original project management team had cost overruns on the
building site work, so they skimped on the number of dies they
traded dedicated dies and small lot sizes for high work-in process
(which was not measured by their project budget!)
WHY? 5
ROOT CAUSE:
Company management did not understand lean Manufacturing
and they did not set appropriate targets when the plant was
launched.
TIP: Quite often, a 5 Whys Analysis will point to the
Example using themanagement or training issue!
root cause being a template:
37. This template gathers information to help you complete your 5
Whys Analysis. This form captures historical data, problem
priorities, Pareto analysis, corrective action and verification.
1. As you can see from the template, the first step is to establish
the primary cause of the error. You can do this by either using
a Pareto Chart (See Pareto Chart Module) or a Fishbone
Diagram (See Fishbone Diagram Module).
38. 2. Once the top cause has been selected, then ask the question
as to why that happens 5 times.
3. Once root cause is determined, establish temporary and
permanent measures to correct the error.
4. Update in three months time to show improvement.
Historical Example:
FOR WANT OF A NAIL A SHOE WAS LOST
FOR WANT OF A SHOE A HORSE WAS LOST
FOR WANT OF A HORSE A RIDER WAS LOST
FOR WANT OF A RIDER AN ARMY WAS LOST
FOR WANT OF AN ARMY A BATTLE WAS LOST
FOR WANT OF A BATTLE A WAR WAS LOST
FOR WANT OF A WAR A KINGDOM WAS LOST
AND ALL FOR THE WANT OF A LITTLE HORSESHOE NAIL.
39. Example Problems (Good to practise on)
* why is the monthly report always late?
* why do I always get injured playing sport?
* why do we have high staff turnover in our department?
For Further Information:
See your mentor expert
See your local advocate
40. ISSUES ANALYSIS
Brainstorming
Purpose: To establish a common method for teams to
creatively and efficiently generate a high volume of ideas
on any topic by creating a process that is free of criticism
and judgment.
When To Use It
Can be used individually, but is usually more effective in a group
when you need to generate a lot of ideas; whether they be
solutions or causes or data.
Brainstorming is a well known but often badly practised technique
– it is important to learn to use it properly.
Also remember that many solutions to complex problems come
from ideas that might seem ‘crazy’ at first, so brainstorming is
intended to encourage fresh thinking and ‘crazy’ ideas.
Rules For Brainstorming:
There are five simple rules designed to prevent barriers to the
flow of ideas.
41. 1. NO CRITICISM
There should be no criticism of any ideas thrown up during a
session. This means suspending any judgement of ideas and
suggestions until the appropriate time.
TIP: This can be very challenging and difficult to deal with!
Perhaps have a forfeit of penalty system for those “Yes,
but…” people.
This should also apply to body language as well, which
can also be negative and critical.
Also, make sure you don’t succumb to self censorship,
criticising in your head what you are thinking that might
stop you from suggesting ideas.
No criticism is important as what may seem unrealistic and way
off base can sometimes be enough to develop into a good idea or
inspire someone else along a different track altogether.
Remember that the brain is a complex machine and our thoughts
are rarely in a logical ordered fashion, but instead tend to jump
around randomly – there is no telling what can spark off a great
suggestion from someone else.
2. FREEWHEELING
Often we have our best ideas when our brain waves are in the so-
called ‘Theta’ pattern. This occurs when we are just dropping off
to sleep, just waking up, driving on a long journey or relaxing in a
bath or shower, times during which our minds roam free. It is this
state you should try and encourage in a brainstorming session.
As such, freewheeling encourages people to come up with
random ideas ‘off the top of their heads’. Don’t worry about how
TIP: Maybe spend a few minutes concentrating
on the most way-out ideas possible concerning
the current topic as part of your brainstorming
session.
42. impractical the ideas are. In fact brainstorming sessions are much
more effective if really crazy ideas are encouraged.
There are two ways to record the ideas from the brainstorm.
The first is to have everyone call out the ideas and have a scribe
write them down. This lets others generate ideas from everyone
else’s ideas, but it can be difficult to get all the ideas down and
quieter members of the group may not be heard.
The second approach is to have individuals’ complete Post-It
notes, using 1 Post-It per idea. This approach is effective where
you may have a mix of seniority or someone that exerts personal
power and others withdraw. It can also let you move the ideas
around once the brainstorming process is finished. However, be
aware that the Post-It note approaches which can sometimes
mean people get caught up in their own thinking channel without
an opportunity to be inspired by the ideas from everyone else. If
the Post-It note approach is used, ensure there is time set aside
to read out each of the Post-It notes – with NO criticism – and
then a few further minutes for any last minute brainstorms.
To decide which approach to use, the facilitator should ask the
group which approach they would prefer, and try and gain
consensus.
Whichever approach is used, the facilitator needs to make sure
the points noted are accurate and specific enough.
3. QUANTITY
Brainstorming promotes quantity over quality. Take existing
suggestions or ideas and use them as a springboard for further
possibilities.
Typically groups might like to aim at producing 100 ideas in 20
minutes, although if a brainstorming session is going well, a list of
250 ideas can easily be produced.
4. RECORD ALL IDEAS
Every single idea must be written down, however extraordinary it
may seem, and even if it is that same as a previous idea but
expressed in a different way.
43. It is also important to make sure the group can see the list being
compiled.
The scribe, who should be someone different to the facilitator,
needs to write the ideas on flipchart paper and the sheets need to
be posted around the room when full so that they remain in view
and therefore ‘live’.
TIP: All team members should be prepared to help the
scribe get all ideas down by repeating themselves. The
scribe should abbreviate as much as possible without
changing the content of the suggestion.
5. INCUBATE
If possible, give yourself an opportunity to process the ideas.
‘Sleeping on it’ ensures you have had the chance to really think
about the brainstormed suggestions. This is not always possible
but do try and put some kind of break in there, even if it is just for
5 or 10 minutes.
TIP: Many problem solving groups incubate their
brainstorming sessions for a week and come back to
the lists at the next group meeting with a further few
minutes of brainstorming to see if any more ideas
have occurred to anyone during the week.
Steps For Running Brainstorming Meetings:
As well as the rules of brainstorming there are also some steps to
note in running a successful brainstorming meeting and
evaluating the ideas after they have been incubated.
Step One:
44. Restate, write up and reinforce the rules of Brainstorming! It
can be easy to assume everyone can slot into the role of
brainstorming- they won’t. So make sure you promote the
rules and stick to them.
1. NO CRITICISM
2.FREEWHEEL
3.QUANTITY
4.RECORD ALL
IDEAS
5. INCUBATE
Step Two:
Write up the subject to be brainstormed.
This can either be a problem statement, or a subject
proceeded by the phrase “what are all the ways we can…?”
Make sure you do write the heading up clearly to make sure
the group stays focussed on the topic at hand.
Ensure the statement is clearly stated and everyone has the
same understanding.
TIP: If using a problem statement, make sure it
doesn’t seem to suggest a solution. Problem
statements that read “We need more space”
suggest a solution that will have everyone only
thinking down one track. A better problem statement
would be “The work area is congested”.
Step Three:
Start the ideas coming.
45. You can do this in a structured way by going around the
room and taking it in turns to call out ideas. If someone can
not think of a suggestion he or she just says ‘pass’ and the
next person carries on so as not to halt the flow of ideas.
This way makes sure everyone is involved and ideas come
one at a time which makes it easier to record them.
However the unstructured approach is generally more
popular.
This is more a free for all session, letting anyone call out an
idea at any time. This is more difficult for the person writing
to keep up with, but has the advantage of letting the ideas
come more freely which results in better quality
brainstorming.
Let people know how long the generating ideas part will go
for; this will make it easier for people to suspend their
negative tendencies to criticise and evaluate immediately if
they know how long they have to suspend them for.
However make sure you remain flexible with this rule.
Sometimes there can be a lot lost by restricting people to
time – if ideas are flowing, or conversely not flowing at all,
people may need a bit more time.
The role of facilitator is important here. The facilitator should
be able to appreciate when to step in to start off the flow of
ideas and when to ease off and let the ideas run. Once the
flow of ideas has started to plateau or stall, the facilitator
46. should step in and try rephrasing the topic to get a different
angle. Example questions might be:
- What would you like done differently about XYZ?
- What’s dumb about what we do?
- What do other people perceive as problems in this area?
- What things or areas could we make better?
Towards the end of the time ask for any last suggestions to
give people a chance to get any last thoughts down.
Step Four:
Record all ideas and make sure the list is visible to all group
members as mentioned in Brainstorming Rule 4.
Step Five:
As mentioned in rule 5 of the Brainstorming rules, incubating
the ideas is an important and valuable part of the process.
Maybe post the list of brainstormed suggestions somewhere
in the work area. This keeps the subject in mind and can
help the incubation process.
Step Six:
Now you need to evaluate the ideas. The best way of
organising the evaluation is to begin by grouping the items
on the list into themes. This should be before any items are
rejected as being impractical.
Once sorted, each theme can then be examined to find
instant winners, ideas that can be quickly and easily
implemented.
For a problem solving session you can also evaluate the
ideas using the Pareto Principle (see module on Pareto
47. Charts) to isolate the one or two ideas that would solve most
of the problem.
48. Variations
To generate the flow of ideas you may like to switch between the
structured and unstructured method of brainstorming. If the group
is silent early on, or if the manager has had a lot of input early on,
start off in the freewheeling mode and then switch to the round
robin, structured fashion.
Or if people start to fidget waiting for their turn, switch to the free
wheeling session, but ensure everyone gets a turn to be heard.
Try and make your brainstorming sessions something different.
Another rule could be: Don’t Treat It Like A Meeting. Sitting
around a table can be boring, so encourage people to get up and
pace around or even just stay standing - this can contribute to
the ‘Eureka!’ effect.
You may also like to give everyone access to paper and bright
coloured pens. Sometimes just doodling can spark off ideas, or
alternatively instead of writing the statement to be brainstormed,
draw the situation to further stimulate creative minds.
One further idea is to bring in at least one employee who
is NOT affiliated intimately with the initiative being discussed. This
allows an impartial witness to any short-sightedness and lets you
show other departments how good you are!!
The following are two articles written about the brainstorming
process at Ideo, one of Silicone Valleys foremost creative product
design companies.
49. 7 Secrets to Good Brainstorming
Generating rafts of good ideas is Ideo’s business. Here’s how this
world-class product-development firm keeps the lightbulbs blazing
bright.
by Linda Tischler
According to The Economist's Innovation Survey, half of the U.S.
economy's current growth comes from companies that didn't exist 10 years
ago. Corporate titans have learned to fear the prodigy in his dorm room or
the garage-based whiz kid who's forging a bullet with their company's name
on it. "Innovate or die" is not an idle threat. It's the harsh reality of the
modern, fast-forward economy.
Silicon Valley-based Ideo has sparked some of the most innovative products
of the past decade -- the Apple mouse, the Polaroid I-Zone Pocket Camera,
and the Palm V, among others. But Ideo staffers don't just sit around
waiting for good ideas to pop into their heads. The company has
institutionalized a process whereby ideas are coaxed to the surface through
regular, structured brainstorming sessions. At Ideo, idea-generation
exercises are "practically a religion," Kelley says.
On any given day, multiple brainstorming sessions may spawn hundreds of
ideas and burn through just as many chocolate-chip cookies, the preferred
fuel of world-class idea mongers. Indeed, collective idea generation is so
important at Ideo that a staffer caught trying to noodle a problem alone at
his desk may be called on the carpet for wasting his time and the client's
money.
"The social ecology at many American companies says that when you're
stuck, you're supposed to go back to your desk and think harder, because
you were hired for your skills," Kelley says. "At Ideo, the culture is exactly
the opposite. You have a social obligation to get help."
But a poorly planned brainstorming session could cause more harm than
good, That's why Ideo follows strict rules for sparking good ideas.
Some are simple truths: Morning meetings work best; 3 - 10 participants
should take part; and cookies always spur creativity. Some, like those
outlined below, are a bit more refined.
1. Sharpen the focus.
Start with a well-honed statement of the problem at hand. Edgy is better
than fuzzy. The best topic statements focus outward on a specific customer
need or service enhancement rather than inward on some organizational
goal.
2. Write playful rules.
Ideo's primary brainstorming rules are simple: "Defer judgment" and "One
conversation at a time." The firm believes in its rules so strongly that they're
stenciled in 8-inch letters on conference-room walls. "If I'm the facilitator
and somebody starts a critique or people start talking, I can enforce the
50. rules without making it feel personal," Kelley says. Other rules include, "Go
for quantity," "Be visual," and "Encourage wild ideas."
3. Number your ideas.
"This rule seems counterintuitive -- the opposite of creativity," Kelley says.
"But numbered lists create goals to motivate participants. You can say, 'Let's
try to get to 100 ideas.' Also, lists provide a reference point if you want to
jump back and forth between ideas."
4. Build and jump.
Most brainstorming sessions follow a power curve: They start out slowly,
build to a crescendo, and then start to plateau. The best facilitators nurture
the conversation in its early stages, step out of the way as the ideas start to
flow, and then jump in again when energy starts to peter out.
"We go for two things in a brainstorm: fluency and flexibility," Kelley says.
"Fluency is a very rapid flow of ideas, so there's never more than a moment
of silence. Flexibility is approaching the same idea from different
viewpoints."
5. Make the space remember.
Good facilitators should also write ideas down on an accessible surface. Ideo
used to hold its brainstorms in rooms wallpapered with whiteboards or
butcher paper. Lately, however, the group has started using easel-sized
Post-it notes. "When the facilitator tries to pull together all the ideas after
the session," Kelley says, "she can stack up nice, tidy rectangular things
instead of spreading butcher paper all the way down the hall."
6. Stretch your mental muscles.
Brainstorming, like marathon running, should begin with warm-up exercises.
Ideo studied various methods of prepping for a session. For a project on the
toy industry, for example, Ideo divided the group into three teams: The first
team did no preparation. The second listened to a lecture on the technology
involved and read background books. The third team took a field trip to a
toy store. Far and away, the toy-store team produced ideas in greater
quantity and quality than the other two.
7. Get physical.
At Ideo, brainstorming sessions are often occasions for show-and-tell.
Participants bring examples of competitors' products, objects that relate to
the problem, or elegant solutions from other fields as springboards for ideas.
Ideo also keeps materials on hand -- blocks, foam core, tubing -- to build
crude models of a concept.
51. Six Surefire Ways to Kill a Brainstorm
Coming up with good ideas -- even in an ideal environment -- is hard
work. But these tactics will guarantee failure.
by Linda Tischler
A poorly planned brainstorming session could cause more harm than good.
And more frustration than anything else. That's why Silicon Valley design
firm Ideo follows strict rules for sparking good ideas.
These are not those rules.
The six strategies below are absolute no-no's -- surefire innovation killers
from Tom Kelley, general manger of Ideo Product Development.
1. Let the boss speak first.
Nothing kills a brainstorming session like a dominating CEO or the
brownnosers who rush to agree with his every statement. Ideo recommends
that bosses lock themselves out of idea-generation sessions all together.
Send him out for doughnuts, and you'll get better results.
2. Give everybody a turn.
Kelley remembers packing 16 people into a room for one particular meeting.
Each person had two minutes to speak. It was democratic. It was painful. It
was pointless. It was a performance, not a brainstorm. "In a real
brainstorm, the focus should never be on just one person," Kelley says.
3. Ask the experts only.
When it comes to generating truly innovative ideas, deep expertise in a field
can actually be a drawback. "In a brainstorm, we're looking for breadth,"
Kelley says. Cross-pollination from seemingly unrelated fields can lead to
authentic breakthroughs.
4. Go off-site.
By conducting off-site brainstorming sessions, you only reinforce the concept
that great ideas only come on the beach or at high altitudes -- not in the
proximity of your daily work.
5. No silly stuff.
Kelley remembers one brainstorming session doomed by the boss's opening
remarks: All ideas had to result in something the firm could patent and
manufacture. The silence that followed was deafening. Silly is important.
Wild ideas are welcome. Brainstorming should be fun.
6. Write down everything.
Obsessive note taking is toxic to brainstorming. It shifts the focus to the
wrong side of the brain. It makes the session feel like History 101. Doodles
52. and sketches are fine. A short note that preserves a thought is acceptable.
But detailed writing destroys momentum, dissipates energy, and distracts
from the main purpose of the exercise: unfettered thinking. Each session
should have an assigned scribe who records suggestions. And that person
should not be the group facilitator.
Example Problems (Good to practise on)
* Where to go for my birthday
* Christmas presents
* Coming up with a name for a rock band
* Promotion ideas for a business
For Further Information:
See your mentor expert
See your local advocate
53. ISSUES ANALYSIS
Issue Diagrams
Purpose: To identify the problem attributes and the
specific areas that you are going to address. It will not
provide solutions.
When To Use It
The Issue Diagram is a tool that you can use as an individual
when you have a specific problem/ objective or in a team
environment where you are trying to get consensus in what the
problem is. It can be especially powerful in multi-functional
discussions.
You can use the Issue Diagram when you have a lot of issues
around a topic as it allows you to organise and summarise natural
groupings to understand the essence of a problem.
Construction:
Two methods: Top Down and Bottom Up.
Generally Bottom Up is easiest to use.
54. Bottom Up:
1. Place 2-3 pieces of Flipchart paper on the wall.
2. On a whiteboard, or separate piece of Flipchart paper,
write a broad problem statement. It should be as
generic as possible and brought into by everybody.
i.e. “I can’t afford to buy a house”
Alternatively you can write down an effect
i.e. “The Zido cycle is too long”
3. Brainstorm by asking “what are all the issues
contributing to this problem?”.
Follow the brainstorming rules (see Brainstorming
Module).
A quick summary of the brainstorming rules are:
1. NO CRITICISM
2. FREEWHEEL
3. QUANTITY
4. RECORD ALL IDEAS
5. INCUBATE
55. 4. Use thin tipped felt pens on Post-It notes. This makes it
easy for everyone to read. It is also important to use
Post-Its so that you can shift ideas into groups as
necessary. Make sure there is only 1 idea per Post-It.
5. Be prepared to put things to one side if you are getting
bogged down – return when appropriate. Don’t allow
solutions to be discussed. Don’t lay blame – encourage
openness and honesty.
I CAN’T AFFORD TO BUY A HOUSE
Interest
rates too Don’t earn Market Bank
enough prices too requirements
high Started
high too strict
smoking
In competition
Haven’t saved Preferred
with other buyer
enough for house too big Problem with
deposit and expensive bank & savings
Need to keep history
TIP: You may like to initially limit the number of Post-Its
savings for
Not earning
given out in order to make it interest to pullbackup – job
good
easier the diagram
Bills too high
Money tied rate total of aboutsituationissues
together. Aim for a potentialon 30-40 Only looking
up in shares and distribute a set number of Post-Its to group
savings in expensive
area
members (depending on the number of people in the
group), remembering to stick to 1 issue per Post-It.
TIP: Don’t make your points too technical.
Outputs are often shared with people outside
the meeting or workshop – so try to avoid using
language they might not understand.
6. Collate the issues into groups. You should aim to have
3-6 major categories. If you have too many more you
will end up with too much detail.
7. It should be up to the facilitator to decide the process
for grouping. Depending on time, the facilitator may like
to start grouping while everyone else is brainstorming.
The facilitator may also like to do the sorting if they
have a pre determined idea of the sort of groups they
56. would like to see it split into. This doesn’t need to be a
hard and fast sorting process but good as a prompt.
Alternatively, without talking, get everyone to sort the ideas
simultaneously. Sorting in silence will focus everyone on the
meaning behind and the connections among all ideas, instead
of emotions and ‘history’ that often arrives in discussions.
Move the Post-Its where they fit best for you; don’t ask,
simply move any notes you think belong in another grouping.
If an idea is moved back & forth, try to see the logical
connection the other person is making. It may be a good idea
to create a duplicate Post-It if agreement can’t be reached.
TIP: It is ok for some notes to stand alone. These
loners can be as important as others that fit into
groupings naturally.
I CAN’T AFFORD TOi BUY A HOUSE
Interest
rates too Don’t earn
Market
high enough
prices too
high
Not earning
good interest
Haven’t saved In competition
rate on
enough for with other buyer
savings
deposit
Bills too high
Money tied
Preferred
up in shares
house too big
and expensive
Need to keep
Bank savings for
Only looking
requirements backup – job
too strict in expensive
situation area
Problem with Started
bank & savings smoking
history
57. 8. Write a statement that summarises each group on a
header card or Post-It. It is possible a Post-It within the
grouping becomes a header card. However don’t just
choose the “closest one” because its convenient.
Creating a new, accurate header card can often lead to
breakthrough ideas.
BANK HOUSE
EARNINGS & MARKET
EXPE
9. Test each ‘major category’. Are they mutually
exclusive? If not, why not? Review the categories to
make them mutually exclusive.
10. Refine and tighten the original problem statement.
I’M HAVING PROBLEMS SAVING FOR A HOUSE DEPOSIT
11. Review the diagram.
Have all the issues been captured? Can any of the
major categories be broken down further? Do they need
to be?
58. I’M HAVING PROBLEMS SAVING FOR A HOUSE DEPOSIT
BANK HOUSE
EARNINGS & MARKET
EXPE
Interest Don’t earn Market
rates too enough prices too
high high
Not earning Haven’t saved In competition
good interest enough for with other buyer
rate on deposit
savings
Bills too high Preferred
Money tied house too big
up in shares and expensive
Need to keep
Bank Only looking
requirements savings for in expensive
too strict backup – job area
situation
Problem with Started
bank & savings smoking
history
59. Top Down:
1. Place 2-3 pieces of Flipchart paper on the wall.
2. Start with a problem statement. Place it at the top of
the page.
I AM HAVING PROBLEMS SAVING FOR A HOUSE DEPOSIT
TIP: Make sure your problem statement doesn’t
seem to suggest a solution. Problem statements that
read “We need more space” suggest a solution that
will have everyone only thinking down one track. A
better problem statement would be “The work area is
congested”.
3. Brainstorm ‘major categories’ that are contributing to
the problem. Write them descending from the
problem statement. Aim for 3-6 major categories
I AM HAVING PROBLEMS SAVING FOR A HOUSE DEPOSIT
AMOUNT FOR
SPENDING INVESTMENT EARNINGS
DEPOSIT
60. 4. Test each ‘major category’. Are they mutually
exclusive? If not, why not? Review the categories to
make them mutually exclusive. Make sure there is no
overlap between categories. This is because you
want to spend your time sorting your issues – not
arguing over the most appropriate category!
5. Take each ‘major category’ and break down into
specific components. Brainstorm.
Following the brainstorming rules (see module on
Brainstorming), brainstorm all of the issues that are
contributing to the problem.
A quick summary of the brainstorming rules are:
1. NO CRITICISM
2. FREEWHEEL
3. QUANTITY
4. RECORD ALL IDEAS
5. INCUBATE
6. Use thin tipped felt pens on Post-It notes. This makes
it easy for everyone to read. It is also important to
use Post-Its so that you can shift ideas into groups as
necessary.
61. 7. Be prepared to put things to one side if you are
getting bogged down – return when appropriate.
Don’t allow solutions to be discussed. Don’t lay
blame – encourage openness and honesty.
62. I AM HAVING PROBLEMS SAVING FOR A HOUSE DEPOSIT
SPENDING INVESTMENT AMOUNT FOR EARNINGS
DEPOSIT
Rent Interest Rate Size Of Salary
House
Bills Amount
Lenders Job
Invested Stability
Entertainment Requirement
Hobbies Type Of Savings
Account Type Of
History Job
Transport
Money Tied Amount Promotion
Road Up In Shares Already Saved Opportunity
Luxuries i.e Area House
cigarettes is In Overtime
available
Clothes Other
Buyers Bonuses
Insurance
Qualifications
Holidays
Children
8. Review the issue diagram have all of the issues been
captured? Can any of the major categories be broken
down further? Do they need to be?
63.
64. I AM HAVING PROBLEMS SAVING FOR A HOUSE DEPOSIT
SPENDING INVESTMENT AMOUNT FOR EARNINGS
DEPOSIT
Rent Interest Rate Size Of Salary
House
Bills Amount
Lenders Job
Gas Invested Stability
Phone Requirement
Electric
Type Of Savings
Account Type Of
History Job
Entertainment
Money Tied Amount Promotion
Hobbies Up In Shares Already Saved Opportunity
Area House
Transport Overtime
is In
available
Food
Other
Buyers Bonuses
Luxuries i.e
cigarettes Qualifications
Clothes
Insurance
Contents
Car
Medical
Holidays
Children
65. Interpretation
Look at the issue diagram and through the team identify
the perceived major causes for the problem. Prove the
major cause i.e. collate data to prove the theory
Move to Solution mode – identify what you are going to
do.
You may choose to deal with the area with the most
causes, or some causes may stick out as being more
significant than others.
Example Problems (Good to practise on)
Deciding what school to send your children to
Deciding where to go on holiday
A process is taking too long
The work area is too crowded
For Further Information:
See your mentor expert
See your local advocate
Check the ‘Memory Jogger’ book(held by advocates
66. ISSUES ANALYSIS
Cause & Effect / Fishbone Analysis
Purpose: To determine the root cause(s) of the
problem so that solutions will have an impact on the
real problem and not just the effects of the problem.
When To Use It
When you need to explore, identify and graphically
display, in increasing detail, all of the possible causes or
variables related to a problem, condition or process to
discover its root cause.
Construction:
1. Decide what you are trying to achieve.
Are you trying to solve a problem or are you trying to
identify variables in a process?
For a problem solving tool, devise the problem statement
that best describes the issue you want to determine the
root cause of.
This statement should describe the problem, be clear and
concise and understood by everyone.
i.e. The car is going through petrol faster
67. TIP: Make sure your problem statement doesn’t
seem to suggest a solution. Problem statements that
read “We need more space” suggest a solution that
will have everyone only thinking down one track. A
better problem statement would be “The work area is
congested”.
If using the tool to identify variables in a process, then
write down the name of the process. E.g. hplc method
reference
2. Tape together 3 pieces of flipchart paper and place
on wall.
3. Write the problem statement/ process name in a box
in the middle of the far right hand side of the paper,
at the ‘head’ of the fish, followed by a line which is
the ‘backbone’.
PROBLEM
STATEMENT/
PROCESS
4. Depending on which version you are using, there are
two ways to categorise the causes.
The causes can be determined by
a) representing each step in the process involved (a
process classification type fishbone) or
b) deciding the ‘major’ causes for problem solving and
then asking of each major cause: - ‘why does this
happen?’ (a dispersion analysis type fishbone)
5. From the ‘back bone’ of the fish, draw one fishbone
for each major cause category or step in the process.
68. For a Process Classification Type Fishbone, a maximum
of 6-8 major steps should be identified, to ensure major
classes of cause.
For a Dispersion Analysis Type Fishbone, the most
common way to group the major causes is under the 6 M
categories: Manpower/ Machines/ Measurement/
Methods/ Materials/ Mother Earth (Environment).
MANPOWER MACHINES ENVIRONMENTAL
PROBLEM
STATEMENT
MEASUREMENT METHODS MATERIALS
TIP: Other types of groupings may be Places/
Procedures/ People/ Policies or Surroundings/
Suppliers/ Systems/ Skills.
Don’t confine yourself to these however; add and
delete categories as you feel are appropriate.
Make the categories fit the problem. For example,
particular problem statements may mean you
need to focus on areas such as Communications
or Training, so you should add a ‘fishbone’ for
this.
6. Generate the major causes to build the diagram.
These causes many come from:
- brainstorming (see Brainstorming Module)
- data collection
69. Group members can call out suggestions for causes/
variables to the facilitator. The group member should also
state which category the cause comes under. If they don’t
know, then the facilitator should decide, as opening up a
discussion for each cause will make the process very
long!
Another recommended alternative is to use Post It notes
for each idea. This makes it easier to move causes around
between category as well as re-word them at a later date if
necessary.
Also use thin tipped felt tip pens so that everyone can
read the Post Its.
If you are having problems getting ideas started, use the
cause categories as catalyst questions.
For example, what in “materials” might cause the car to be
going through petrol faster?
7. Make sure you follow the Brainstorming rules to get
the best ideas. Remember Brainstorming is about
quantity over quality. (Refer Module on
Brainstorming).
70. A quick summary of the brainstorming rules are:
1. NO CRITICISM
2. FREEWHEEL
3. QUANTITY
4. RECORD ALL IDEAS
5. INCUBATE
8. Place the brainstormed or data based causes from
Step 3 in the appropriate categories on the ‘bones’.
71. MEASUREMENT METHODS MATERIALS
Car not being Poor quality
Odometer maintained of petrol
faulty
Driven with
window open
Air filter blocked
Petrol gauge reading Car used to
incorrect tow caravan
THE CAR IS
GOING
Car being Car is getting older THROUGH
used more Spend more time PETROL FASTER
Handbrake left on in traffic jams
Petrol Leak
Different Tires are wearing
driver
Bad weather
conditions
Blown head gasket
Air conditioning on
MANPOWER MACHINES MOTHER NATURE
9. For each cause listed on the bones, ask repeatedly:
-why does it happen? OR
-what could happen?
This will give rise to a deeper understanding of the
problem and identify further causes.
72. MEASUREMENT METHODS MATERIALS
Car not being maintained Poor quality of petrol
Odometer too busy
faulty can’t afford change of supplier
Been damaged forget about it now using unleaded
bits in petrol
Driven with window open
window broken Air filter blocked
Petrol gauge incorrect
hot
Car not being maintained muggy getting old
Car used to tow caravan
THE CAR IS
GOING
Car is getting older THROUGH
Car being used more Spend more time in traffic jams PETROL FASTER
daughter using car Handbrake left on new job
more shopping inexperienced driver new route to work
more holidays Petrol Leak road works
train strike hole in tank more accidents
damaged pipes
Different driver Tires are wearing Bad weather conditions
daughter just got not enough air
licence English ‘summertime’
being driven badly by daughter need to drive cautiously
change of owner
Blown head gasket due to road conditions
Air conditioning on
muggy hot weather
MANPOWER MACHINES MOTHER NATURE
73. 10. Check for sufficiency along each bone – are all aspects of
cause addressed?
If not, then add new category type and roots.
Interpretation
Interpret or test for root causes or drivers of the effect by one or
more of the following methods:
Look for causes that appear repeatedly
Looking for obvious clues – i.e. one branch of your fishbone
having the majority of causes attached to it.
Select key causes through an unstructured consensus process
or one that is structured, such as multi voting.
Gather data through check sheets or in other formats to
determine the relative frequencies and weightings of the
different causes.
The Cause & Effect Fishbone is an integral part of the PF/ CE/
CNX/ SOP process. For further details on this, please contact
your mentor expert.
Variations
FISHBONE SOLUTIONS DIAGRAM
The Fishbone diagram can also be used as a solution generating
tool, as opposed to a cause discovery tool.
To use it as a Solutions tool, follow Steps 1-3.
Then decide which categories you are going to brainstorm for
solutions to the problem. You may use the same category titles as
you have used for the Cause & Effect Fishbone.
74. Then follow the Brainstorming rules to come up with solutions in
each area.
OPEN AIR FISHBONE
Traditionally, Cause & Effect Diagrams have been created in a
meeting setting. The completed fishbone is reviewed by others
and or confirmed with data collection.
An effective alternative is to display a large, highly visible blank
fishbone chart with a problem statement at the head in a
prominent work area. Everyone posts both potential causes and
solutions on post-it notes in each of the categories.
Causes and solutions are reviewed, tested and posted.
This technique opens up the process to the knowledge and
creativity of every person in the operation.
Example Problems (Good to practise on)
PROBLEM SOLVING
• There is never fresh milk in the fridge
• The lawn mower keeps breaking down
• I can’t get my reports in on time
PROCESS VARIABLES
• Planning to go on holiday
• Getting documents authorised
Remember the Fishbone diagram only
represents a point in time and it can be useful
to revisit the tool to see if there are new
causes or variables affecting the situation
since improvements were made.