PDCA / Scientific
Thinking
Continuous Learning
What is Scientific Thinking?
 Goal is PERFECTION!!
 Eliminate any waste in value creation processes
 Therefore, Scientific Thinking is the PROCESS for
WASTE:
 Finding
 Understanding
 Eliminating
 Scientific Thinking is the PROCESS for improving the
PROCESSES which create value
 Ultimately, scientific thinking is the process for
continuous learning
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Examples of Problem Situations
 Correcting weakness in skill levels and development of
training plans
 Purchasing new equipment
 Cost reduction activities
 Team improvement activities
 Improving productivity and process flow
 Annual planning and strategy development
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Where are the Opportunities?
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PDCA AT THE PROBLEM
SOLVING LEVEL
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The Foundation of Hoshin Kanri
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What is your problem Consciousness?
 What should be happening (WSBH)
 What is actually happening (WAH)
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Problem Solving Image
Vague
Big
Concerns
WHY?
WHY?
WHY?
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Grasp the Situation
 Take careful aim – ready-aim-fire vs. ready-fire-aim
 Potential value of the project
 Potential cost of the project
 Compare the ratios of various projects
 Decide which problems to solve before searching for
solutions – “Go See”
 Find the “True Problem” to get the most significant
results
 Clearly connect the true problem to primary
performance measures
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Grasp the Situation
 Defining the Problem
 Actual current performance with some historical data
 Desired performance
 Magnitude of the problem as defined by the difference
between current performance and desired performance
 The extent and characteristics of the problem
 Make a Strong Case
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Symptoms of the problem provide supporting evidence
Importance
Urgency
Tendency
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Grasp the Situation
 Clear Ownership of the Problem
 What, who, when, where (and how)
 Individual responsibility (not a group or team)
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Grasp the Situation
 Thorough Root Cause Analysis
 Good thinking, good products
 Principles
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Eliminate preconceived ideas
Use data to decide “where” to “Go and see”
Analysis continues until we are certain of the root cause
Almost always multiple root causes – get them all
Focus on the most significant root causes
Find causes you can fix – don’t blame others
Clearly defined root problems usually have clearly defined
solutions
Thorough analysis provides data which will predict the outcome
of the solution
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5 Whys and 5 Therefore(s)
Why?
Why?
Why?
 Why?
• Why?
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Plan
 Countermeasures - Problems are never really solved
 Overall permanency of countermeasure
 Short-term
 Long-term
 Length of time to implement
 Minutes to hours
 One week to one month
 Develop consensus during the plan process
 Predict results
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Plan (Continued)
 Consider alternative solutions while building
consensus
 Broadly consider all possibilities
 Criteria for good solutions
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Simple
Low cost
Within area of control
Can be implemented quickly
 Develop consensus
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Do
 Models
 Make a prototype
 Run a test case
 Simulations
 Run experiments (last resort!)
 Whatever it takes to be sure!
 Now we test our solutions to see what works best
 Action frequently leads to identifying additional opportunities
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Check
 Verify Results
 All the way to desired performance measure
 5 Therefores
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Check
 Did the countermeasure alter THE PROBLEM?
 Measure locally (effect on root cause)
 Measure globally (effect on THE PROBLEM)
 We are not focused on projects, just results
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Adjust (Reflect)
 Make necessary adjustments to solutions and the
Action Plan
 Standardize
 Create stability in process with new processes
 Establish standardized work with new process
 Monitor performance results of new process
 Identify future steps
 Where is the next opportunity?
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Adjust
 Problem solving is a learning process
 We learn from mistakes, near successes, and clear
successes
 Experimentation and simulation can minimize
surprises
 Stand in the circle and observe
 Establish stable operations
 Reflection**
 The learning process must achieve learning
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Practice Problem
My friend comes to share every Christmas Eve with me. I
live on the fifteenth floor. Unfortunately, he arrives
without being announced by the doorman (who waits
outside the elevator), puffing and panting from walking
the last five flights. When he leaves, however, he gets
into the elevator for the ride down. How can this be?
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Practice Problem
It’s a mistake to hire amateurs, as the archaeologist found
to his great distress. One of his new staff came
running in one day, all excited. He had just paid a
local a great deal of money for an extremely valuable
coin. As he said, “I’ve never seen one like this before,
and I’ve been looking in museums for thirty years. It’s
a genuine Egyptian coin marked “100 B.C. – solid
gold!” The director of the expedition sighed wearily
and fired him. Why?
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What is Hoshin Kanri
ho = direction
kan = control, chanelling
shin = needle
ri = reason, logic
“policy, direction”
“management”
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Hoshin Kanri (Policy Deployment)
 Keep all problem solving / continuous improvement
activities coordinated
 Ensure common goals and direction
 Facilitate consensus understanding and decision
making
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A Touch of Fresh Air
 Hoshin Kanri is the antidote for Conventional
Planning
 Analysis + Intuition
 Intuition
 The mood in the plant
 The look on the customer’s face
 The supplier’s tone of voice
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The Foundation of Hoshin Kanri
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PDCA in Lean Companies
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Annual Planning & Execution
Cycle
1. Determine
current state
9. Record in database
8. Year-end Review
(Book of Knowledge)
Perfection: Learning
points next steps
Current Status
A3
2. Determine future
state
7. Mid-Year
Review
Current Status
A3
3. Prioritize needs
& choose
breakthrough
objectives
6. Micro Check &
Adjust (weekly?)
Dashboard
4. Create one-page
plan (A3) to achieve
breakthrough
objectives
5. Deploy the plan
Output – a Tree
Diagram, action
plans
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5. Each level
implements its
action plan
Plan – Telling Compelling Stories
 The A3 report is the “currency” of Hoshin Kanri
 One-page storyboard on 11” x 17” paper
 Can you tell a compelling story?
 “Let’s talk about our business . . .”
 A3 Thinking
 The piece of paper is not the point
 The point is . . .
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Do – Deploying the Plan
 We can’t tell people what to do
 We need to translate our plans level by level
 And engage people thereby (leads to empowerment)
 Mental models: What do you think? vs. Thou shalt
 Keep it simple
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“Catchball”
 Refers to the horizontal and vertical give & take
required to  Align activities
 Translate & thereby engage
 Objectives
 Focus & alignment
 Example: “Mr. Cho and “the beloved
company”
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Check – “The Pacemaker” or
“Daily Management”
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Check – Making Problems Visible
 Check entails
 Simple, connected meetings wherein the problems
become visible to all
 Exception management
 What are the hot spots?
 What are you doing about them?
 Mental model:
 Problems are nuggets to be mined – not garbage to be
buried
 Image:
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Checking as a System of Gears
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Adjust – Solving Problems
 Adjust phase requires simple, shared problem solving
approach
 Six sigma and other advanced approaches are needed
for ~ 10% of problems
 Problem solving requires support strategy
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10 Step Hoshin Kanri Process
1.
Assess Current State
2.
Envision Future State
3.
Identify Breakthrough Objectives
4.
Identify Links to Daily Management
5.
Create Breakthrough Strategies (A3)
6.
Deploy Plan through Catch Ball
7.
Implement Plan
8.
Review Plan (micro check & adjust dashboard)
9.
Conduct Annual Review
10.
Improve Planning & Execution Process
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Hoshin Kanri Review
 A Policy Deployment Process
 Focuses on vital few breakthrough objectives
 Tells stories
 Challenges conventional mental models
 Engages each level
 Provides umbrella structure for PDCA
 Checks and improves planning process
 Supports organizational learning
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Tell the Story – A3
 An A3 is a story explaining a:
 What’s in it for me? (WIFM)
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Proposal Story
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Problem Solving Story
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Chapters in the Problem Solving Story
 Thoroughly understand situation & Identify “THE
SITUATION”
 Complete a detailed root cause analysis
 Consider alternative solutions while building consensus
 Plan-Do-Check-Act (PDCA)
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Plan: Develop an action plan
Do: Implement solutions rapidly
Check: Verify results (improve “THE SITUATION”?)
Adjust/ Reflect: Make necessary adjustments, standardize
solutions, and reflect and learn. Start all over!
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Status Story
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Formatting Tips
 No “one” way
 Avoid excessive verbiage
 A picture is worth 1000 words
 Use familiar formats for particular information
 Use consistent scales on charts for comparison
 Eliminate the “noise” or small issues
 Avoid color
 Overlay arrows to show logical flow
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Questions?