Plan-Do-Study-Adjust: A Deep Dive

Plan‐Do‐Study‐Adjust (PDSA):A Deep Dive

WebinarDecember 3, 2013

© 2013 The Karen Martin Group, Inc.

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Coach / Facilitator / Consultant / Trainer: Lead Lean transformations & develop people across all industries.

Teacher: University of California, San Diego

Author & Speaker:Karen Martin, President

The Karen Martin Group, Inc.www.ksmartin.com

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2013 Shingo Prize winner!

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After the webinar…

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First,a little history…

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Two Great Minds

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W. Edwards Deming (1900‐1993)

Walter Shewart(1891‐1967)

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Develophypothesis

Conduct experiment

Measure results

RefineStandardize Stabilize

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Detailed Steps

  1.  Define and break down the problem.

  2.  Grasp the current condition.

  3.  Set a target condition.

  4.  Conduct root cause & gap analysis.

  5.  Identify potential countermeasures.

  6.  Develop & test countermeasure(s)

  7.  Refine and finalize countermeasure(s).

  8.  Implement countermeasure(s).

StudyEvaluate Results

  9.  Measure process performance.

10. Refine, standardize, & stabilize the process.

11. Monitor process performance.

12.  Reflect & share learning.

Adjust

Do

Clarifying the PDSA Cycle

PlanDevelop 

Hypothesis

Conduct Experiment

Refine Standardize Stabilize

Phase

Continuous Improvement

New Problem

50‐80% of the total time

Study

Adjust

© 2013 The Karen Martin Group, Inc.

1. Define and break down the problem (PLAN)

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• What’s the problem?

• What is NOT the problem?

• What are the variables?

• What should we focus on first?

© 2013 The Karen Martin Group, Inc.

2. Grasp the Current Condition (PLAN)

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3. Set a Target Condition (PLAN)What SHOULD it look like? How SHOULD it perform?

How does it need to perform? How do you want it to perform?

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© 2013 The Karen Martin Group, Inc.

4. Conduct root cause & gap analysis (PLAN)

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CauseCause--andand--Effect DiagramEffect Diagram

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule

Machine Measurement Environment

People Material / Info Method

Budgets Submitted Late

Lack of experience

Time availability

No sense of import

No stnd spread sheet

Email vs. FedEx

No standard work

Input rec’d late

Forecast in other system

Manual vs. PC

System avail.

No milestones

$ vs. units

Weather delays

Dispersed sales force

Changing schedule5 Why’s

Why?   Why?    Why? Why?    Why?

P a r e t o Cha r t Cr e di t Appl i c a t i on De l a y s

2 9 0 9

6 2 7 5 6 1

2 4 2 1 8 0

2 4 9 3

4 1 %

7 7 %8 6 %

1 0 0 %9 7 %9 4 %

0

500

1000

1500

2000

2500

3000

3500

N o S i g n a t u r e I n s u f f i c i e n t

B a n k I n f o

N o p r i o r

a d d r e s s

C u r r e n t

C u s t o me r

N o C r e d i t

H i s t o r y

O t h e r

Re a son f or D e l a y

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Check Sheets Quantify Occurrences

|Equipment failure

|||||||||||||Changing customer requirements w/ no adjustment to expected delivery

||||||||||Order entry error

|||Staffing/absenteeism

|||||Quality issue requiring rework

|||||||Material shortage

Tally Reason

|Equipment failure

|||||||||||||Changing customer requirements w/ no adjustment to expected delivery

||||||||||Order entry error

|||Staffing/absenteeism

|||||Quality issue requiring rework

|||||||Material shortage

Tally Reason

© 2013 The Karen Martin Group, Inc.

5. Identify potential countermeasures (DO)

• The clearer you are about the problem, current state, and root cause, the more obvious the countermeasures become.

• Brainstorming may or may not work.

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© 2013 The Karen Martin Group, Inc.

6. Develop & test countermeasure(s) (DO)

• Test “live” if possible.• Testing may be merely getting feedback from non‐ core team members.

• Use rapid iterative cycles (mini‐PDSA cycles).

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© 2013 The Karen Martin Group, Inc.

7. Refine & finalize countermeasure(s) (DO)

• Document the new standard work.– Process maps (occasionally, value stream maps will do the trick)

– Flow charts– Check lists– Concise, visual work instructions– Etc.

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© 2013 The Karen Martin Group, Inc.

8. Implement countermeasure(s) (DO)

• Training! Training! Training!– Include why & WIIFM– Hands on, when possible– If there’s a gap between implementation and people engaging with the new process, you must retrain.

• DO NOT MERELY COMMUNICATE BY EMAIL.

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© 2013 The Karen Martin Group, Inc.

9. Measure process performance (STUDY)

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• OBSERVE, TALK, LISTEN• Measure performance against target condition.• What obstacles to success remain?

– How can you remove them?

© 2013 The Karen Martin Group, Inc.

10. Refine, standardize & stabilize the process (ADJUST)

• Retrain if the process is adjusted.

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10. Refine, standardize & stabilize the process (ADJUST) ‐continued

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11. Monitor process performance (ADJUST)

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• Requires a Process Owner.• Define & monitor 2‐5 key performance indicators.

– How do you define success? – What does success look like?– Note: KPIs are dynamic, not static. Measure what matters NOW.

© 2013 The Karen Martin Group, Inc.

12. Reflect & share learning (ADJUST)

• Study and discuss process.– What obstacles did the team confront?– How did they overcome them? – What organizational discoveries did they make? – What needs to be adjusted going forward?– What went well?– What could been better?

• Hold “Grand Rounds” or Improvement Briefings.• Physically post story boards and results.• Post on Intranet home page.

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© 2013 The Karen Martin Group, Inc.

Requirements for Excellence in ANY Endeavor

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Shingo award‐winning The Outstanding Organizationwww.bit.ly/TOObk

Practice vs. Performance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Athletes Businesses

TrainPerform

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Train90%

Train1%

Perform 99%

Perform 10%

Jim Loehr & Tony Schwartz, The Power of Full Engagement

© 2013 The Karen Martin Group, Inc. 26

Problem‐solving capabilities developed?

Which target condition do you             want to achieve?

OR

Problems solved?

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Attaining Mastery

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From The Outstanding Organization, p. 115

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Improvement Coaching

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REFLECTIVE DEVELOPMENT DIRECTIVE DEVELOPMENT

From The Outstanding Organization, p. 117

© 2013 The Karen Martin Group, Inc.

© 2013 The Karen Martin Group, Inc.

Value Stream Mapping

Strategy Deployment (Hoshin Kanri) 

or A3

Daily Improvement, Projects, & Rapid Improvement Events

Building PDSA Capabilities

© 2013 The Karen Martin Group, Inc.

Annual Hoshin Planning (Strategy Deployment)

• Builds consensus• Creates organizational focus on what matters most

© 2013 The Karen Martin Group, Inc.

Tying Improvement to Overarching Business Goals

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© 2013 The Karen Martin Group, Inc.

Classic Strategy Deployment (Hoshin Kanri)X‐Matrix

© 2013 The Karen Martin Group, Inc. 34

1. Increase sales 5%.3. Achieve 10% profit.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IT Mktg Ops HR Bob Fin PE Pario COM Direct 

CDs / AMs

PD Rec

PD Mgmt

BMD SWS

23,500 units  sold by 12/31/2013 through al l  channels  (approx. $700K)

X X X X X X X X X X X X Bob Dana 2 3 3 3 2 3 3 1 1 3 3 1 3

11 Develop & del iver tra ining to top 50 Dealers X X X X X X Bob Rex/Tim  3 3 3

21 Revised course  materia ls  by 6/30/2013 X X X Bob Josh R? 2 3 3 2 2

5Education: 1 school  dis trict spec'd/underperforming COM dis tributor (25) by 12/31 valued at min $35K each

X X X X X X X X X X X X Howard Michael   S 1 3 2 3 3

810 new dea lers  on board (net) ($500K per dealer this  year)

X X X X X X X X X X X X Howard Mike  B 2 3

95 new dis tributors  bringing $200K annual  rev (& 5 terminated)

X X X X X X X X X X X X Howard Howard 1 1 1 2 3

17 10 projects  spec'd  by 12/31; $300K rev by 12/31 X X X X X X X X X X Howard Dana 1 3 3 3

29 20 by year‐end X X X X X X X X X X X X Howard Mark H 2 3 3 3

32 TBD X X X Howard Howard

33 TBD X X X X X X X X X Howard Howard

10Useful  reporting and metrics  are  establ i shed and in place  

X X Jim Randal l 3 1 1 1 1 1 1

30 TBD X X X X X Jim Josh 3

31 TBD X X X X X X Jim Josh 1 1 1 3 1 1 1 1 1 1 1 1 1 1

25 TBD Jim  Shannon  3 3 1 1 1 1 1

26 System 7.0's  in place X X X Jim  Randal l 3 2 1 2 1

15100% accurate  payrol l ; 100% management sati s faction at Apri l  mgmt. meeting

X X X Josh Phyl l is 1 3

20Internet task l i s t i s  s impl i fied and streaml ined for PDs  then plan i s  rol led out to PDs  

X X X X Michael  M Michael  M 2 3 2 3

22Des ign Calculator i s  updated success ful ly and rol led out

X X X Neal l Matt D 3 1 1 3 2 2 3

24 Competi tive  Analys is  complete  and distributed for use X X X Neal l Dana 2 3 3 3 3 3 3

1 Des ign changed to solve  delam i ssue   long‐term X X X X X Susan David R 3 2 3

1230 parts  sourced in U.S.; completed plan for managing China ‐sourced parts

X X X X X X Susan Shannon 3 3 2 2

13Warehouse  la id out; kanban revised; Syspro implemented

X X X Susan Shannon 3

14 Lay out complete; equipment ins ta l led X X X Susan David  R 3 3

X = Planned

2013 Priorities

2013 Goals & Objectives4. Improve morale (metric TBD).2. Achieve 50% gross margin. Created: 01‐14‐13

Revised: Level of Effort/Involvement Required

Priority Goal or Measurable Objective Exec Owner

Plan review dates:

Tactical Owner

● =  Actual

< Company Name >

Conten

trem

oved

 for con

fiden

tiality 

Modified Strategy Deployment Annual Plan:Regular Reviews Improve Focus & Drive Results

A3 Management

© 2013 The Karen Martin Group, Inc.

What is A3?

• The core of Toyota’s renowned management system.• A structured method for applying the PDCA (plan‐do‐check‐act) approach to problem solving.

• International designation for 11 x 17” paper.

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© 2013 The Karen Martin Group, Inc.

Common Components of the A3 Report

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Theme:  “What is our area of focus?” Owner: Person accountable for results.

Plan Do, Study, Adjust

Background

Current Condition

Countermeasures / Implementation Plan

Effect Confirmation

Follow‐up Actions

• What?

• Who?

• When?

• Where? (if relevant)

Target Condition / Measurable Objectives

• Diagram of desired state

• Measurable targets – how will we know that the improvement has been successful?

• Diagram of current situation or process

• What about it is not ideal?

• Extent of the problem (metrics)

• Problem statement

• Context ‐Why is this a problem? How large is the problem?

Root Cause & Gap Analysis

• Graphical depiction of the most likely direct (root) causes

• What measurable results did the solution achieve (or will be measured to verify effectiveness)?

• Who’s responsible for ongoing measurement?

• Where else in the organization can this solution be applied?

• How will the improved state be standardized and communicated?

© 2013 The Karen Martin Group, Inc.

Value Stream Mapping: Using PDSA to realize the future state

© 2013 The Karen Martin Group, Inc.

Kaizen Event – Definition

A two‐ to five‐day focused improvement activity during which a sequestered, cross‐functional team designs and implements 

improvements to a defined process or work area, generating rapid results and learned 

behavior.

Karen Martin & Mike OsterlingThe Kaizen Event Planner

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© 2013 The Karen Martin Group, Inc.

5‐Day Kaizen Event: Typical Structure

Day 1 & 2          (Plan)

Day 3 & 4(Do, Study)

Day 5                (Study, Adjust)

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Kick‐offAnalyze current state Perform root cause analysisDesign future stateInterim briefingDesign & test improvementsObtain buy‐inInterim briefingFinalize improvementsTrain process workers & stakeholdersPresent resultsCELEBRATE!

© 2013 The Karen Martin Group, Inc.

Every person in the organization needs to have 

proficiency in PDSA.

In addition, managers need proficiency in improvement 

coaching.

© 2013 The Karen Martin Group, Inc.

True Continuous Improvement

CHECK

CHECK

CHECK

ACT

ACT

ACT

© 2013 The Karen Martin Group, Inc.

“When PDSA is used as it was intended, there is no separation between improving and managing work—they are part of the same cycle.”

The Outstanding Organization, p. 120 

© 2013 The Karen Martin Group, Inc.

Karen Martin, President7770 Regents Road #635San Diego, CA 92122

858.677.6799

ksm@ksmartin.com

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