Teaching Executives about the Benefits of Statistical Analysis and Problem-solving

  • Thread starter qualitygoddess - 2010
  • Start date
Q

qualitygoddess - 2010

I could use some help from the dedicated Covers on this one. I did do a couple of searches on SPC and management, but did not find the advice I was hoping to locate. I have been asked to talk to some execs at a company about implementation of SPC (their term) and the use of problem-solving tools at a manufacturing facility. I can handle the line worker training and the mid-level supervisors. I need some ideas for the execs. The company does not want to hop onto the Six Sigma bandwagon. As they put it, "we used to do SPC and we stopped. We want to start it again, but we don't have the resources to do the training."

Here are my thoughts on how to proceed with the execs. Any input from Covers who know and love SPC (and talking to the execs) would be appreciated:

TOPIC OUTLINE -- Just ideas

1. Introduction to costs of poor quality
2. introduction to process control methods and problem-solving using process analysis (or why inspection isn't the way to quality)
3. introduction to process design and analysis tools (overview look -- DMAIC, FMEA, pareto, flowcharts, histograms, C&E, others??)
4. introduction to run charts, control charts, process capability, scatter diagrams, DOE
5. Types of training for what levels of tool use. In other words, when do we need statistical analysis and when do we need other types of analysis?
6. wrap up

--QG
 
W

wmarhel

Its About the Dollars

qualitygoddess said:
I could use some help from the dedicated Covers on this one. I did do a couple of searches on SPC and management, but did not find the advice I was hoping to locate. I have been asked to talk to some execs at a company about implementation of SPC (their term) and the use of problem-solving tools at a manufacturing facility. I can handle the line worker training and the mid-level supervisors. I need some ideas for the execs. The company does not want to hop onto the Six Sigma bandwagon. As they put it, "we used to do SPC and we stopped. We want to start it again, but we don't have the resources to do the training."

Here are my thoughts on how to proceed with the execs. Any input from Covers who know and love SPC (and talking to the execs) would be appreciated:

TOPIC OUTLINE -- Just ideas

1. Introduction to costs of poor quality
2. introduction to process control methods and problem-solving using process analysis (or why inspection isn't the way to quality)
3. introduction to process design and analysis tools (overview look -- DMAIC, FMEA, pareto, flowcharts, histograms, C&E, others??)
4. introduction to run charts, control charts, process capability, scatter diagrams, DOE
5. Types of training for what levels of tool use. In other words, when do we need statistical analysis and when do we need other types of analysis?
6. wrap up

--QG

QG, You definately need to focus on the dollars and the potential savings that are out there. I wouldn't even try to go into too much detail the initial training session, and give more of a broad overview on the benefits, some of the tools, case studies of people in your industry, etc. See where that leads you based on their level of interest and questions.

Also, at first focus on some of the easier tools to grasp: Flowcharts, Pareto Charts, Fishbone and others. Let them get comfortable with those tools and when they need help getting to the next level of the root cause analysis, introduce them to the next tool/s.

I definately stay away from some of the potentiallly cumbersome tools such as DOE at first. No sense scaring them away right out of the gate. It would also be beneficial that as part of the training session to work on a real life project so they can experience firsthand the potential benefit.

Hope that helps.

Wayne
 
C

Craig H.

QG:

At that level, I would also want to include some cautions about using the data as a weapon with which to bash people. It would be a good idea to point out that the focus should be the process and not individuals. Also, choosing what to measure is very important as well.

In other words, I would stress the "softer" side of SPC implementation more than I would for the line folks, FWIW.
 

Wes Bucey

Prophet of Profit
Help me to understand your situation, qualitygoddess. As I understand it, you are being asked (as an academic) to come in and give an "overview" of quality tools and SPC in particular to the executives of a manufacturing facility. The end result being that the executives intend to "implement SPC" again after the process being absent for a period of time.

Is this an accurate synopsis as far as it goes?

There are a host of questions I'd like resolved BEFORE I would come in to do such a presentation (I've done a LOT of these and every situation is different enough from any of the others that I can't really give a "canned" presentation, although many elements are the same.) Here's a partial list of things I want to know to make my presentation as focused and effective as possible:
  • For openers - how big an audience?
  • "Some execs" - how much authority do they have? do "middle management execs" folk expect to get briefing from you and then further dilute that to top dog with ink in his pen?
  • How much time are they willing to allot?
  • How much experience/background knowledge do they have as group? as individuals?
  • Do they have any of their old SPC records?
  • Do they have a budget for their whole implementation?
  • Are they going to pay you or is this "school outreach?
  • Do you have some of their product drawings together with critical characteristics? (these are "customer critical" characteristics)
  • Do they know (or suspect?) what in-process characteristics might be valuable to chart? (to confirm processes are running smoothly BEFORE final product is turned into scrap.)
  • Do they want "quick and dirty" or are they serious players? (i.e. is SPC their idea for business improvement or customer-driven requirement?)
  • How big a dog and pony show are they expecting? Powerpoint? Videotape? practical run-throughs on their product?
  • do we know if they will be doing "manual" inspection of characteristics and data entry or will they be able to get automatic readings and entry directly into computer software program?
Typically, for a project like this, I spend 5 or 6 hours of special preparation of props, exhibits, handouts for every 1/2 hour of "stage time" in presentation. That does NOT count interviewing the target to get answers to my questions.

One of the side issues you have to cover is "change management" and being able to ameliorate fear, footdragging, inertia, et cetera, so the program can move forward.

Any serious questions on this, contact me privately.
 

Steve Prevette

Deming Disciple
Leader
Super Moderator
You may want to take a look at the MC506 City University discussion in the education area. This is a course where I had to teach MBA students quantitative methods. Next quarter I teach "Operational Management" which should be even more interesting, and the syllabus requires teaching of Deming's methods and the 14 points.

I have attached a point paper I developed here on SPC. I know some of the terminolgy is unique to here, but this is our experience, and it is being accepted more and more at Fluor Hanford. The structure of the paper may provide some ideas.
 

Attachments

  • spc business case 0303.doc
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Wes Bucey

Prophet of Profit
Steve Prevette said:
You may want to take a look at the MC506 City University discussion in the education area. This is a course where I had to teach MBA students quantitative methods. Next quarter I teach "Operational Management" which should be even more interesting, and the syllabus requires teaching of Deming's methods and the 14 points.

I have attached a point paper I developed here on SPC. I know some of the terminolgy is unique to here, but this is our experience, and it is being accepted more and more at Fluor Hanford. The structure of the paper may provide some ideas.
With Steve's permission, you should make pocket cards laminated in plastic of the "Business Model" flow chart on page 14 of Steve's paper (think using luggage tag laminator.) Use them as handout/giveaways to EVERYBODY involved at target.

I always consider acquaintance with statistical gurus like Steve Prevette and Tim Folkerts as among my top assets. They are very sharp in the math and equally sharp in the business application of the statistics.
 

Steve Prevette

Deming Disciple
Leader
Super Moderator
Wes Bucey said:
With Steve's permission, you should make pocket cards laminated in plastic of the "Business Model" flow chart on page 14 of Steve's paper (think using luggage tag laminator.) Use them as handout/giveaways to EVERYBODY involved at target.

I always consider acquaintance with statistical gurus like Steve Prevette and Tim Folkerts as among my top assets. They are very sharp in the math and equally sharp in the business application of the statistics.

Thanks Wes. Along the lines of a "one pager", I use the attachment provided here. Any one is welcome to stick their own logo on it and go forth. This is a version I made once to push PDSA as part of the process. I have on occasion made a two-sided copy, with the flowchart (or some variation of it) on the backside.
 

Attachments

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Q

qualitygoddess - 2010

Many Thanks!

Gentlemen:

Thank you for the valuable feedback and attachments! I've only been teaching stats for a few years, but to undergrad students or the line supervisors in factories. Getting ready to talk to the big guys about statistical process analysis and problem-solving curriculum is not the same as talking to them about implementing ISO 9001 or solving a particular customer's problem, which is my typical focus.

Wes, I agree wholeheartedly about your comments regaring Steve and Tim. I also think you have excellent input to topics here on the Cove. I'm glad I can learn from all of you.

--Jodi, aka QG
 
B

Bill Pflanz

Steve and Wes did not specifically mention it but the concept of normal variation needs to be explained to the executives when teaching control charts. Executives get plenty of monthly charts of how things have improved but in reality they are just seeing normal variation.

Part of the reason is that accountants have traditionally supplied reports that show current month vs. last month or current month vs. same month last year rather then trends. In addition, the executives react to each change in the trend line (either up or down) rather than recognizing that it is just normal process variation.

Bill Pflanz
 

Caster

An Early Cover
Trusted Information Resource
qualitygoddess said:
asked to talk to some execs at a company about implementation of SPC
[font=Times New (W1)]Not much to add. Steve Prevette is the man on this topic.[/font]
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[font=Times New (W1)]I can’t find the thread, but somewhere Steve suggested NOT explaining the math behind SPC at all at the executive level. Executives accept ROI, payback, RONA, and dozens of other complex mathematical constructs at face value. So just state SPC as an accepted fact and move on to the “using SPC part. I liked this idea and it worked for me, no one questioned it at all.[/font]
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[font=Times New (W1)]I may be paranoid, but I see some warnings signals in your post, especially "we used to do SPC and we stopped”. Can you find out why?[/font]
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[font=Times New (W1)]Wheeler in Advanced Topics in SPC quotes Shewart as follows “control charts are effective only to the extent that the organization can use in an effective manner the knowledge gained from the charts”…”This leads to Demings14 points “as long s there are internal barriers and obstacles preventing the organization from using charts, nothing will happen”….”SPC alone is not enough”[/font]
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[font=Times New (W1)]The second warning signal is they want to “implement SPC”. Is the tool confused with the result? I can buy the exact same woodworking tools that Norm Abram has, but it does not make me a master craftsman![/font]
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[font=Times New (W1)]Are these executives prepared to work hard on the system to see improvement?[/font]
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[font=Times New (W1)]We have all lived through failed SPC projects. The idea that some action needs to be taken BEFORE it is OUT OF SPEC is really hard for production oriented people to internalize. This leads to supervisors under relentless production pressure to tell our newly trained SPC users to ship it. A few months later cynicism rules and "we used to do SPC and we stopped”[/font]
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[font=Times New (W1)]Are the executives willing to provide time and money to improve the process? Even when the result is only that the product is more in spec than it was before?[/font]
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[font=Times New (W1)]Try out the Taguchi loss function on them. If they get it - you are good to go![/font]
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[font=Times New (W1)]Good luck, please let us know how it goes.[/font]
 
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