LLCprocessimprovement

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“The F.A.D.E.S Solution”Process Improvement Methodology

By: LCC, LLC (Founder – Wayne Oliver)& John Sisti (CMQ/QE)

GETTING STARTED• Are their any Enterprise Environmental Factors /EEF’s to be aware of?

(Conditions, not under the immediate control of the team, that influence or constrain a project)

• Did you check to see if any Organizational Process Assets / OPA’s exist? (Polices, procedures, and knowledge bases that are specific to the organization)

• Do you have upper management sponsorship for this effort?• Will you pre-assign initial resources? • Did you assign a Project Manager?• Consider a 5 “S” project as an option before starting the process?

(Sort, Shine, Set in Order, Standardize, Sustain)

…operational expert committed to lasting change

What is Quality?• PMI defines quality as the degree to which a set of inherent

characteristics fulfills requirements• What is the FADES Process? A hybrid improvement process which

incorporates Process Improvement (PDCA), Project Management (PMBOK), Lean, Six Sigma and other tools

• F = Focus• A = Analyze• D = Develop• E = Execute• S = Sustain

• My objective is to reduce waste, improve quality and increase margins


F.A.D.E.S. PROCESS

(+)PLUS SUSTAIN…operational expert committed to lasting change

FOCUS• Phase 1

oChoose a problem and describe it.• Output

oDefine high level project requirements and scopeoCreate a charter, gain approvalo Identify StakeholdersoA written statement of the problem

• STEPSo1A Generate a list of problems – Brainstormingo1B Select One Problem – Multi-vote or Selection Grido1C Verify and define the problem – Problem Statement or Impact Analysis


ANALYZE• Phase 2

o Learn about the problem from data• Output

o A list of the most influential factorso Root Cause Analysis (Five Why’s)o Cost Benefit Analysiso Baseline data

• Stepso 2A Decide what you need to know - Checklisto 2B Collect data, baselines and patterns – Data gathering plan, Survey, Sampling, Check sheeto 2C - Determine the most influential factors – Pareto Analysis, Fishbone Diagram, Flow chart,

Process Map and Linear Regression


ABC COMPANY – PRODUCT FLOWCHART (Example)

Sales enters order

Receiving enters

inserts into Maestro

Package is built in

Maestro and closed for

IHD

Information is entered into Maestro for

Receiving and Schedule

Pull sample For Target Direct Sales/

CS

Weigh Verify incoming procedure

Accept or reject count

Refuse Load

Locate material in racking

Material is staged outside warehouse

Customer sells into zones on UVP side

Paper Work Orders created

Pick Ticket is created

Alphaliner Set-up

Wrap created in housePress Process Printing in-house

or Outside Client

Ship to outside Vendor

File Created for DAL

DAL’s Created

Pallet Plagues Created

Scheduling Creates priority and machine

Muller 227 set up

Kansa Set-upMaterial is pulled from Warehouse

Post press production Material Palletized

Pallet ShagedMail or Ship

Ship to customer

Mail Verified by USPS

Loaded on USPS TrucksDeliver to SCF

Customer Service

Load on our trucks

USPS or Our Trucks

Deliver to DDU for Discounts

USPS to DDU

In-Home

ABC COMPANY PRODUCT FLOW – 1/22/15

Load on our TrucksDeliver to SCF for Discounts


FISHBONE “ISHIKAWA” DIAGRAM (Example)


Histogram / Pareto Principle (Example)


Cause

#11,3

7

Cause

#3,13

,19

Cause

#16

Cause

#1

Cause

#4, 5

Cause

#21

Cause

#26

Cause

#29,4

3,41,1

0

Cause

#40

Cause

#6

Cause

#7

Cause

#36

Cause

#14

Cause

#20

Cause

#23

Cause

#33

Cause

#35

Cause

#42

Cause

#2

Cause

#8

Cause

#9

Cause

#12,2

2

Cause

#17

Cause

#18

Cause

#24

Cause

#25

Cause

#27

Cause

#28

Cause

#30

Cause

#31

Cause

#32

Cause

#34

Cause

#38

Cause

#39,1

50

2

4

6

8

10

12

14

16

18

Multi-vote Histogram

DEVELOP• Phase III

o Develop a solution and a plan• Output

o A solution for the problemo Define Successo Create metrics

o A plan for implementing the solution and subsidy planso Create Cost Management Plano Create a Risk Management Plan or FMEAo Create a Communications Plano Create other PMBOK subsidy plans as required

• Stepso Generate a list of promising solutionso Select one solutiono Create WBSo Develop an implementation plan

o Create a MS Project Gantt Chart


EXECUTE• PHASE IV

o Implement the plan, monitor results, adjust as needed• Output

o Gain Organizational Commitment to planso An Executed Plano A record of Impacto Earned Value Analysis

• Stepso Gain sponsor commitmento Execute the plan

o Assign additional resources as requiredo Monitor the Impact

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Earned Value Management (Formula’s)• Planned Value - % planned completion• Earned Value - % complete x BAC• Cost Variance - CV = EV-PC• Schedule Variance - SV = EV-PV• Cost Performance Index - CPI = EV/PV• Schedule Performance Index - SPI = EV/PV• Estimate at Completion - EAC = BAC/CPI• Estimate to Completion - ETC = EAC-AC• Variance at Completion - VAC = BAC-EAC


SUSTAIN• PHASE V

o Ensure a disciplined, repeatable process oMust be able at all levels of OPERATIONAL LEADERSHIP - to sustain the “LCC

Process” in the current year, and years beyond.• Output

o Lessons Learnedo Team Recognition

• StepsoClose any Procurementso Evaluate Mistake Proofing (Poka-Yoke)o Institute a Gemba Walk/Board as a SOP



Poka-yoke (Mistake-proof example)

Decision time to use the process ?

YES

Business

LLCprocessimprovement