Cause And Effect Tools Halliburton Tax Cause & Effect Tools.
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Transcript of Cause And Effect Tools Halliburton Tax Cause & Effect Tools.
Cause And Effect Tools
Halliburton Tax
Cause & Effect Tools
2FOR INTERNAL USE ONLY
Module Objectives
By the end of this module, the participant should be able to:
Build a Cause & Effect Diagram.
Build a Cause & Effect matrix.
Use Cause & Effect Tools to:
– Identify potential X’s
– Create consensus within the team on critical X’s
Use the 5 Why process to find root causes of problems.
3FOR INTERNAL USE ONLY
Why Learn About C And E Tools?
Focus on causes, not symptoms
Focus team on content of problem
Create snapshot of team’s collective knowledge
Create consensus of problem root causes
Identify potential Critical Xs
Build support for resulting solutions
Basic fundamental problem solving tools.
4FOR INTERNAL USE ONLY
What Are C And E Tools?
Qualitative or subjective problem solving tools
Graphical display
Team generated
Two main types
– C and E Diagram– C and E Matrix
Used to identify/prioritize potential root causes.
Cause And Effect Diagram
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Cause And Effect Diagram
Also known as Fishbone and Ishikawa diagram
Identifies and graphically displays potential root causes
– Many separate causes combined for single effect
Can be used for
– Troubleshooting– Forecasting and planning– Exploiting improvement opportunities
“Visual organizer" of factors that influence a particular result.
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Cause And Effect Diagram(Fishbone Diagram)
Used to allow team to identify and graphically display, in increasing detail, all potential root causes
Place problem (effect) in box on right-hand side of chart
Draw major cause categories as bones on chart
Repeatedly ask why each cause happens
Look for root cause that appears repeatedly within or across major causes
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Basic Structure Of The C&E Diagram
Problem/DesiredImprovement
Causes Effect
Main Category
Measurements Materials People
Environment Methods Machines
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Source Categories For Potential Causes
People Do they follow standards? Efficiency acceptable? Are they problem conscious? Are they responsible? Are they qualified? Are they experienced? Are they assigned to the right job? Are they willing to improve? Do they maintain good
human relations? Are they healthy?
Machines (facilities) Do they meet production
requirements? Process capability? Oiling, greasing adequacy? Is inspection adequate? Frequency of downtime and why? Does it meet precision requirements? Unusual noises? Layout adequacies? Are there enough
machines/facilities? Are they in good working order? Preventative maintenance schedule?
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Source Categories For Potential Causes
Material
Mistakes in volume?
Mistakes in grade?
Mistakes in brand name?
Are there impurities mixed up?
Is the inventory level adequate?
How much WIP is there? Where?
Is the layout adequate to accommodate materials?
Is the quality standard adequate?
Method (operation)
Are the work standards adequate?
Is the work standard upgraded?
Is is a safe procedure or method?
Does it ensure a good product?
Is the method efficient?
Is the sequence of work adequate?
How is it setup?
Is the setup adequate?
Is there adequate contact/ communication with the upstream and downstream steps?
What method is used to communicate?
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Fishbone Diagram Major Categories
The 8 Ms (used in manufacturing)Machine (technology)Method (process)Material (Includes Raw Material, Consumables and Information.)Man Power (physical work)/Mind Power (brain work): Kaizens, SuggestionsMeasurement (Inspection)Milieu/Mother Nature (Environment)Management/Money PowerMaintenance
The 8 Ps (used in service industry)Product=ServicePricePlacePromotion/EntertainmentPeople(key person)ProcessPhysical EvidenceProductivity & QualityThe 4 Ss (used in service industry)SurroundingsSuppliersSystemsSkills
These Are Only Examples – Use What Is Right For Your Project
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Basic Structure Level 1 Causes
Level 1 Cause
Problem/DesiredImprovement
Causes Effect
Main Category
Measurements Materials People
Environment Methods Machines
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“Five Whys?” One Approach To More Cause Category Detail
Ask why?
When presented with an answer, ask why?
Add additional levels to the C&E Diagram
Repeat step two until you get the real problem or issue identified
An Affinity Diagram will also add detail to the Cause Categories.
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The Five Whys Business Process Example
The “Five Whys” Method Supervisor: “Why is the sales order being released so late?”Employee: “Because the customer requirements are not entirely known”
Supervisor: “Why are the customer requirements not known?”Employee: “Because the proposal was vague and incomplete”
Supervisor: “Why was the proposal vague and incomplete?”Employee: “Because the performing organization didn’t participate in creating it”
Supervisor: “Why didn’t the proposal team consult with the proper experts?”Employee: “Because we hardly ever talk with those guys”
Supervisor: “Why is communication so poor between departments?”Engineer: “Because that is how we always do proposals, and we don’t have a
process that encourages us to work together”
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Basic Structure Level 2 Causes
Problem/DesiredImprovement
Causes Effect
Level 1 Cause
Level 2 Cause
Main Category
Measurements Materials People
Environment Methods Machines
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Why is Mike late for work?
Example One
Me
LateForWork
Family
Car Drive
c-Oversleep
c-Lousy watch
c-Slow in AM
c-Bathroom jam
C-Fighting
C-Breakfast
s-Warm up
c-Low on gasn-Traffic
n-Weather
n-Light @ Rt 1
kids
spouse
Characterization Level 2 Cause
Level 1 Cause
Characterization:C – ControllableN – Not ControllableS - System
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Example Two
Delayed Payment ofGPC Marketing Event
Invoices
PersonnelPolicies
Procedures
Over $25K Finance Director signature req’d
FMC procedures
Finance procedures
FMC Internal form
Master budgetupdated weekly
W-9, ACH forms
AP system
MSPA
Transmit forms
Over $50K Head of Mktingsignature req’d
FMC Director signs all invoices
Controller signs all
invoices
Invoices rec’d by variousFMC Consultants
Turnaround time
Must be acceptedby AP
System updated every 24 hours
FMC InvoiceCoordinator
Finance Invoice SpecialistChecks budget
Process new vendors
Obtains Mgr signature
Enters invoice inMSPA
Transmits to AP
Obtainssignatures
18FOR INTERNAL USE ONLY
Ensure appropriate resources present
Everyone present participates
Allow conflicts – Work with group to resolve
Stopping too soon – May miss major cause
Focus on the issue/problem – Not on people
Make necessary refinements
Best Practices
Strength of tool stems from being a "group process."
19FOR INTERNAL USE ONLY
Cause and Effect Diagram
Flow Chart
Scatter Diagram
Pareto Diagram
Brain-storming
Control Charts
Potential cause
Potential cause
Raw information
Raw information
Rank and Prioritize
Rank and Prioritize
Verify Cause and Effect Relation
Verify Cause and Effect Relation
Variables to chart
Variables to chart
Linkages
Supports other problem solving tools
20FOR INTERNAL USE ONLY
Cause And Effect Matrix
Modified Quality Functional Deployment (QFD) matrix
Primary use (Black Belt):
– Identification of potential critical Xs
Secondary use (Leadership):
– Prioritizing project selection– Scoping down assigned project
Helps to focus improvement efforts
21FOR INTERNAL USE ONLY
C And E Matrix Format
Rating of Importance to
Customer1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Process Inputs Total
1
2
3
4
5
6
Total
Process Outputs
1Identify customer requirements.(Process Outputs)
2 Assign output priority.
3List all inputs.
4Correlate inputs to outputs using scale.
5Multiply correlation by output priority.
6Add down columns for each output.
7Add across rows for each input.
8Sort output and input totals and display on separate Pareto Charts.
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Example
Inputs Outputs
Coffee
Light
Hot
Coffee
Water
Cream
Electricity
Make Coffee
Process
Start by looking at process maps
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8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Hot
Ligh
t
Not
too
Str
ong
Not
Fla
vore
d
TOTALProcess Inputs
1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0
Rating of Importance to Customer
Process Outputs
Cause & Effect MatrixProject : Making coffee for spouse
Identify Customer Requirements
Outputs from CT Tree and SIPOC
1) List Process Outputs
Use SIPOC/Process Maps
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8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Hot
Ligh
t
Not
too
Str
ong
Not
Fla
vore
dTOTAL
Process Inputs
1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0
Rating of Importance to Customer
Process Outputs
Cause & Effect MatrixProject : Making coffee for spouse
Assign Priority To Each Output
Ratings must come directly from customer
2) Assign output priority.
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8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Hot
Ligh
t
Not
too
Str
ong
Not
Fla
vore
d
TOTALProcess Inputs
1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0
Rating of Importance to Customer
Process Outputs
Cause & Effect MatrixProject : Making coffee for spouse
List All Inputs
Inputs from SIPOC or Process Map
3) List Inputs
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Scoring Scales
0 = No correlation
1 = Process requirement only remotely effects customer requirement
4 = Input variable has low/moderate effect on customer requirement
7 = Input variable has moderate/high effect on customer requirement
10 = Input variable has direct and strong effect on customer requirement
Suggested scale reduces scoring conflicts
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Correlate Inputs To Outputs
8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Hot
Ligh
t
Not
too
Str
ong
Not
Fla
vore
d
TOTALProcess Inputs
1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0
Rating of Importance to Customer
Process Outputs
Cause & Effect MatrixProject : Making coffee for spouse
4) Team scores significance of Input to Output
28FOR INTERNAL USE ONLY
Cross Multiply And Add Across Rows
Math is built into the spreadsheet
8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Hot
Ligh
t
Not
too
Str
ong
Not
Fla
vore
dTOTAL
Process Inputs
1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0
Rating of Importance to Customer
Process Outputs
Cause & Effect MatrixProject : Making coffee for spouse
(7X9) + (10X6) + (10X6) = 183
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Prioritization Of Inputs For Analysis
“Coffee” is the most important input variable
Coffee Cream Electricity Coffee Maker Water Coffee Filters Cup ** Process ** ??0
20
40
60
80
100
120
140
160
180
200
0%
20%
40%
60%
80%
100%
Project : Making coffee for spouse
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Cross Multiply And Add Down Columns
Analyze outputs to compare to customer rating
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Process Output Ratings Possible Uses
Compare outputs to customer rating
Look for mismatch discrepancies
– Inputs focused on wrong output– Insufficient inputs
Always check output ratings
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Example One
Project: Paperwork Processing
33FOR INTERNAL USE ONLY
Example One:Pareto Chart/Process Inputs
Be honest about barriers – list any potential ways to remedy the situation
Be honest about barriers – list any potential ways to remedy the situation
O thers
STP Transfer?
Branch T
raining
Branch S
O P
Suf f icient /
Accurate Docs
Types of funds
Contra F irm
ATS Training
ATS SO P
49211218218275296317384384
2.1 9.0 9.3 9.311.712.613.516.316.3
100.0 97.9 88.9 79.7 70.4 58.7 46.1 32.7 16.3
2000
1000
0
100
80
60
40
20
0
Defect
CountPercentCum %
Perc
ent
Cou
ntPareto Chart for Process Inputs
34FOR INTERNAL USE ONLY
Example Two
Rating of Importance to Customer9 9 7 5 4 1 2
Process Inputs
Process Outputs
Po
int-
of-
Ca
ll R
es
olu
tio
n
Ac
cu
rac
y
Clie
nt S
atisfa
ctio
n
Err
ors
co
rre
cte
d
Co
urt
eo
us S
erv
ice
Co
st o
f R
ep
ea
t ca
lls
PS
R P
rod
uct K
no
wle
dg
e
Total
1 Inaccurate information 9 9 9 4 4 9 9 279
2 Incomplete information 9 9 4 4 4 9 4 234
3 Checks not received 9 4 9 4 4 9 1 218
4 Client issue not resolved 9 4 9 1 4 9 4 209
5 Plan Rule Changes 9 9 1 4 4 0 1 207
6 KRS updated 9 9 0 4 1 4 4 194
7 Dept. Labor or Legislative changes 9 9 1 1 1 0 1 180
8 PSR understands issue 9 4 4 1 4 4 4 174
9 Processing requirements not updated 9 4 4 1 4 9 0 166
10 Errors in Processing 0 4 9 9 1 9 4 156
11 Original request not processed 4 4 4 9 1 9 1 151
12 Call volumes 4 1 9 0 9 4 0 144
13 Research knowledge of plan 1 9 0 9 0 9 0 135
14 Type of issue 4 1 4 9 1 4 4 130
Total 11
25
87
3
66
5
37
5
28
8
14
2
13
0
3598
Cause & Effect Matrix
Project: Point of Call Resolution
35FOR INTERNAL USE ONLY
Best Practices
Be certain inputs and outputs link to previous tools
Only customer should rate output importance
Team needed to rate correlations
Rank and complete Pareto Chart for both outputs and inputs
Low scores could indicate unrealistic ratings, customer disconnect, or missing steps
Follow Eight Steps
Very powerful tool when used correctly
36FOR INTERNAL USE ONLY
Linkages
Rating of Importance to Customer
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Process Inputs Total
1234567
Cause and Effect Matrix
Process Outputs
Complete Travel
AuthorizationContact Agency
Traveler Information Verification
Gather Customer Billing Info
Auth. Code?
Authorized TravelAuth. CodeŸŸ
Authorization Form, S
DomesticInternationalTravelerApprover
Website, STravel Budget CCost Estimate SComputer Systems,NLocation Variation,N
Ÿ
ŸŸŸŸ
ŸŸŸŸ
Ÿ
Contact Service, SPhone/Web
Travel Information,STraveler/Designee, N Agency Resources
day time, SNafter hours, SN
Computer Systems, NMeasurement Systems, S
Time In QueueTime in VRUCall VolumePeak Hours
ŸŸ
ŸŸŸ
ŸŸ
ŸŸ
ŸŸŸŸ
Agency Request Entered Ÿ Correct Traveler
InformationŸ
Traveler Info, SCompany Info, S
Restrictions if applicable, SPreferences, S (seat, class)
Agent NTraveler N
Computer Systems, NMeasurement Systems, S
ŸŸŸŸŸŸŸŸ
Customer name, SLocation, SAuth. Code, SOperator, SAgent NTraveler N
Computer Systems, NMeasurement Systems, N
ŸŸŸŸŸŸŸŸ
Correct Traveler Billing Info Into System
Ÿ
Y
NNeed For
Travel
Rationale, NViable Alternatives, N
Traveler NDestination Customer,N
ŸŸŸŸ
Complete Travel Request
Form
Request Form, SCharge No., STraveler NLocation Variation, NComputer Systems, N
Other Personnel?Form Procedure
STravel
Information N
ŸŸŸŸ
Ÿ
ŸŸ
Ÿ
InformationCorrect
Updated ProfileŸTravel RequestŸ
X Y
Detailed Process Map
Scoping
Xs Identification
Voice Of the Customer
Delivery Defects
PEOPLE
ENVIRONMENT
MATERIALS
METHODS
MEASUREMENTS
MACHINES
Maintenance
Servers
Resources/Shift
Ticket Types
Times
Training
Freq of Updates
Experience Level
Postal Service
Co. Profiles
Traveler Profiles
Terminals
Call Volume
Self
systems
internet
Zabar Volume
Process
Queue
Hol
ida
yTim
e of
D
ay
Phone Service
T-1
Line
s
Credit card
addressem
ail
Computer Prog
PO Damage
PO DamageCall Routings
Carrier Updates
Time Zones
Comp Downtime
Team Ratings
C and E Matrix receives inputs from several Define/Measure tools.
37FOR INTERNAL USE ONLY
Linkages(Cont’d)
C and E Matrix outputs feed FMEA
0
1000
2000
3000
4000
5000
6000
7000
Defect
Cou
nt
C&E Matrix, Pareto of Customer Requirements As They Relate To The Process