© EFQM 2011

No part of this publication may be reproduced, stored ina retrieval system, or transmitted in any form or by anymeans (be this electronically, mechanically, throughphotocopy, or recording or otherwise) without either theprior written permission of, or a licence permitting restrictedcopying, and use for a third party, from the publisher.

About EFQM

EFQM is a global non-for-profit membership foundationbased in Brussels, Belgium. With more than 500 memberscovering more than 55 countries and 50 industries, weprovide a unique platform for organisations to learn fromeach other and improve performance. EFQM is thecustodian of the EFQM Excellence Model, a business modelwhich is helping over 30,000 organisations around the globeto strive for Sustainable Excellence. EFQM Members share a common goal: the pursuit ofexcellence. The EFQM Excellence Model provides acommon framework and language that facilitates the effectivesharing of information between organisations; transcendingsectorial, cultural and maturity barriers. As part of this network you are able to engage with like-minded individuals and share experience on the developmentof innovative solutions that can help your organisationaddress some of its most important challenges.

About this document

The EFQM User Guides are designed to help memberorganisations by giving examples of common approaches,techniques and methods which support the practicaldeployment of the EFQM Excellence Model. We havedeveloped them in response to feedback from a number ofour members; using their knowledge and experience toidentify approaches commonly used within our memberorganisations. The EFQM Excellence Model is non-prescriptive andthere are many different approaches that can help you onyour journey towards excellence – the challenge is findingthe one that works best within your organisation. The aim ofthis guide is to give you a number of ideas to help inspire,based on the experience of others. This document is not intended to be a “definitiveversion” or to describe all the approaches possible withinthis area. This document will be adapted and updated toincorporate new ideas and learning as EFQM continues toshare what works.

Introduction

We all come across problems within our workingenvironment. The temptation is to immediately move into“solution mode” before we really understand what’s causingthe problem we’re observing. DMAIC is a structured approach for problem solving. Itis often used in Six Sigma or Lean approaches to define thestages of a project. It provides a framework forunderstanding the root causes of a problem and thendeveloping appropriate solutions to eliminate them. The DMAIC approach itself can be used both within andoutside these techniques. It is scalable and can be used totackle a range of different problems, from relatively simpleto highly complex. What is DMAIC?

DMAIC is an acronym for the 5 key phases in animprovement project: Define: this is a statement that describes the desiredoutcome; the result you want to achieve. Measure: this phase describes the current situation, interms of the current process and performance. Analyse: during this phase you analyse the informationavailable to identify the root cause and possible solutions.

Improve: during this phase you implement theimprovement you have selected. Check: finally, you check whether you have achieved thedesired outcome, as defined in the first phase. DMAIC & RADAR

There is a clear alignment between the DMAIC approachand the RADAR, although the RADAR is an ongoing cyclewhich looks at continually improving and refiningapproaches over time. The DMAIC approach is for a singleimprovement cycle. Why use DMAIC?

The main advantage of using DMAIC is that, in itssimplest form, it can be used pretty much out of the box, withlittle or no formal training. It provides a structured approachthat helps ensure improvement projects successfully identifyand address the root causes of problems, checking that theyhave been effective before moving on to the next issue. Because the DMAIC approach is scalable, it is possibleto consistently use it to document all improvement projects. It can be used within a team to structure brainstorming andinvolve people in the identification and implementation ofimprovement actions. Alternatively, it can be used with SixSigma techniques to resolve more complex issues throughstatistical analysis.

It is possible to integrate a number of different tools andapproaches within the different phases. For example, if youalready have a standard approach for project management,this can be used in the Improve phase to implement theimprovement. Techniques like Six Sigma and Lean are most commonlyassociated with the manufacturing sector but some of thetools used, such as DMAIC, can be applied within anysector. Solving problems is not exclusive to themanufacturing industry. Picking the Right Team

Identifying the right people to include in the DMAICImprovement Team will be crucial to the success of theproject. Selecting people who actually work on the processwill help the project team gain a clear insight into the currentsituation and, more often than not, these people have ideas onhow the process can be improved. Having an experiencedfacilitator, who understands how to use a range of differentproblem solving tools, is always useful. They can helpstructure the data analysis and brainstorming using thesetools, ensuring all views and options are considered. The number of people and their level within theorganisation will depend on the nature and scope of theproblem being addressed. However, there should be a“project manager” responsible for ensuring each phase issuccessfully completed and coordinating the actions of the

other team members. There may also be a “projectsponsor”, normally a senior manager who makes sure thetime and resources are made available to the team. Theywould normally agree the improvement objective, theproposed solution and ultimately sign off the project once thecheck phase has been completed. The team members should include people who areactively involved in the process as they are most likely tohave access to the relevant data and will understand what’sactually happening. Depending on the subject process, thismay be a group of people from a single department or across functional team. You should be careful when trying toimprove part of a process in isolation that your improvementdoesn’t have a negative impact further down the value chain. One way to avoid this is to involve these people in theimprovement team. It’s worth remembering that often theproblem lies in the interfaces between process steps, notwith the steps themselves. Start Simple

If you’re just starting out using DMAIC, or any problemsolving tools, it’s advisable to start with simple problemsthat can be resolved relatively quickly. Not only does thishelp to demonstrate results relatively quickly, it also helps tobuild people’s confidence in the tools. The more often youuse the tools, the easier they become to use effectively.

DMAIC Storyboard

One of the advantages of the DMAIC approach is theability to show the whole improvement project on a singletable. This could either be a piece of paper or an electronicdocument but the concept remains the same. The Storyboardcan be used as a communication tool, showing what stage theproject is currently at. Once the project is complete, itshould be clear to anyone reviewing the storyboard whatactions have been taken and what the impact has been.

The level of complexity of the content that goes into this

storyboard will depend on the size, scope and complexity ofthe problem you are trying to address. As mentionedpreviously, the DMAIC approach is scalable, so can be usedto address relatively simple problems or for summarising theprogress of extremely complex projects. The level of detail that sits behind each of the phaseswill vary greatly but the concept is that the key learning fromeach phase should be able to fit onto the Storyboardtemplate.

Phase 1: Define

The first phase is crucial to the success of theimprovement project. The problem statement should clearlydefine what the team is expected to achieve and by when. Agood problem statement will focus on one specific issue at atime. This will enable the team to focus on eliminating theroot cause of that problem before moving on to the nextissue. If the statement is not sufficiently clear, time may bewasted as the team debate what the desired outcome is and,in the worst case, may deliver an improvement that does notreally address the issue originally identified. One useful tool in helping define the problem statementis the concept of the SMART objective. A SMARTobjective is: - Specific

- Measureable- Achievable- Realistic- Timebound

For example, “To improve the defect rate on Product Xto less than 1 in 1000 within 3 months” is Specific,Measurable and Timebound. Whether it is Achievable andRealistic would depend on the subject and currentperformance levels. However, this could be determinedduring the “Measure” phase. One way to determine thiscould be through a benchmarking exercise, either internally

or externally. If no one else can achieve this level ofperformance, the achievability could be questioned. Theproblem statement can always be refined following the“Measure” phase to ensure it is realistic. Useful Tools for Phase 1 - SMART objectives

Phase 2: Measure

The Measure phase is used to establish the baselineposition. If you’re going to be able to demonstrate animprovement over time, it is vital to understand whereyou’re starting from. It is possible that you’re starting from a“zero point”, for example, if you’ve completed a self-assessment and there is no standard approach in place. Ifthis was the case, the “desired state” could well be definingand establishing a standard process. The achievement wouldbe measured by the existence of the new approach. However, in most instances, there is some defined approachor process. Often, the first step in this phase is to review the currentprocess. If a flowchart is not available, it should be definedto show the flow and who is involved. This can be arelatively simple flow, showing the key steps and definingthe current measures in place. One of the concepts from Six Sigma that can be appliedhere is the identification of the points that are “Critical toQuality” (CTQ). These are the points within the processwhere errors that will impact the end product are most likelyto occur. Establishing measures in these points will helpestablish the baseline and help identify the root cause in the“Analyse” phase. Whilst these concepts are most commonlyapplied in manufacturing, they can also be applied in othersectors, especially service industries. However, it is often

more difficult to define and measure what is “Critical toQuality” accurately and consistently. This often means thereis limited data available. Useful Tools for Phase 2 - Process Flow Chart

- Process Performance Indicators- Critical to Quality (CTQ)- Pareto Diagrams

Phase 3: Analyse

The Analyse phase is where we investigate andunderstand the root cause of the problem we are observing. To develop a long-term solution, it is crucial to identify andeliminate the root cause. If you take an action that onlyaddresses one of the symptoms, whilst in the short term youmight see some initial improvement in performance, theproblem is more than likely to reoccur. Within DMAIC, you can use whichever problem solvingtools are available to you and that you are comfortableusing. Examples of commonly used problem solving toolsinclude pareto diagrams, statistical analysis and Fishbone /Ishikawa diagrams. Once the root cause has been identified, you can start todevelop potential solutions to address this. It is advisable tocome up with, and assess the merits of, a number of differentimprovement options. Considering a range of potentialsolutions will enable you to choose the solution that bestmeets your needs. Things to consider could include cost,resources, time taken to implement, time taken to recoverinvestment, impact on different stakeholder groups, etc. The Forcefield Diagram is a tool that can help determinewhich factors will help drive you towards the “desiredstate” you have defined and which will drive you towardsthe “worst case scenario”. This can be useful in helping toidentify potential solutions.

In some circumstances, you may be looking to identifyand implement a “quick fix” to take the pressure off whilst amore permanent solution is developed. If this is the case,you would need to focus the attention of the team on thingsthat will be easy to implement and require minimalinvestment in terms of both time and money. The “Spheres of Influence” can be used to prioritisecauses of the issue you’re observing, based on which onesyou can actively change. This can help focus the group onidentifying “quick wins”, rather than focusing on issues thatwill be difficult to resolve, whether because they requireaction from other players, the involvement of seniormanagement or are factors they have to accept, such as thingsthat have happened historically. The Analyse phase is considered complete when thesolution has been identified and agreed. Useful Tools for Phase 3 - Pareto Diagrams

- Fishbone / Ishikawa Diagrams- Statistical Analysis Techniques- Spheres of Influence- Forcefield Diagrams

Phase 4: Improve

Once the solution has been identified, you need todevelop the implementation plan. If you have a standardproject management methodology in your organisation, youcould use this approach to implement the improvement. Depending on the size of the project, this phase could beas simple as a list of tasks, owners and dates in a table or itcould be a Gantt Chart. It is best to use the tools that peoplein the organisation are already familiar working with andusing the DMAIC to ensure that they are used in the rightorder to deliver the best result. If you are going to run a pilot exercise to test theeffectiveness of the chosen solution, the results could beincluded in this phase. If you are going to change the process flow as part of theimprovement, the revised process flow could be included. Useful Tools for Phase 4 - Gantt Charts

- Process Flow Diagrams- Action & Owner List

Phase 5: Check

The final phase is normally shown as a graph, showinghow the process has improved over time. It can be useful toindicate on the graph when key improvements wereimplemented to help explain changes in performance. If thetarget has not been achieved, further improvement oranalysis may be required. It could be that one of thesuggested solutions was rejected as the benefits did notoutweigh the investment required. Under thesecircumstances the sponsor may choose to close the project ifthere are no other options available. In Six Sigma, statistical process control charts arenormally used in this phase to demonstrate whether theprocess is now under control. By this, they mean the processwill deliver a predictable result within a given set of finiteparameters (normally 1 defect in 1,000,000). Anyperformance that lie outside these parameters would have tobe investigated as in “normal conditions” such performancewould not be possible. Useful Tools in Phase 5 - Process Performance Graphs

- Run Time Diagrams- Process Control Charts

Four Step Approach for the AnalysePhase

It’s quite common for groups of stakeholders to bebrought together so people can “understand the issues”. However, if nothing happens following these discussions,the effect can be worse than not having asked them. When you want to get a group of people involved andengaged in identifying and implementing the solution to anissue, you can use the following 4 step approach. It’sdesigned for a workshop environment and can be completedin about an hour, if effectively facilitated, by allowing 15minutes for each step. Instead of leaving the room with flipcharts full of issues,they should leave the room with a clear action plan,understanding who’s going to be taking what actions andwhen they will see the result. Some of them may also beresponsible for delivering those actions, so it’s important tohave the right people involved in the discussions. There is an example of this approach being used later inthis document.

Step 1 – Brainstorm the Causes The first step is to brainstorm all the possible causes forthe problem you’re observing. In normal “brainstorming”mode, you don’t discuss at this stage; you’re looking forpeople to get all the issues out in the open. Discussing mayput some people off contributing or may side track thediscussions. It’s also very difficult to stop people gettinginto “solutions mode” once the discussions start. The Fishbone Diagram (also known as an IshikawaDiagram or a Cause & Effect Diagram) is often used tostructure the brainstorming.

Example of a Fishbone Diagram

The problem statement sits at the “head”, focusingpeople on the issue. The participants put their ideas on thechart. The “spines” are used to theme ideas. The facilitatorcan use these to prompt people to consider issues from adifferent perspective. The titles on the spines can bechanged to suit the subject matter, if considered appropriate.

Step 2 – Focus on what you can control When all the issues have been captured, it’s a good ideato start grouping things together. This can help start thediscussions in a controlled way by seeking clarification fromthe person who contributed the issue. Grouping thingstogether should help you to identify themes. Once the themes have been identified, the group shouldconsider the issues in terms of what they can control, whatthey can influence and what is outside of their control. Anumber of the issues that are classified as “outside ourcontrol” will be historical issues. Agreeing this in the groupwill help people focus on the future, rather than past eventsthat cannot be changed. This approach is called the “Sphere of Influence”. Youcan colour the issues according to the level of influence thegroup has over them. The things that can be influenced willtake additional time; these may be things that require amanagement decision or could involve changes in people’sattitudes and behaviours. The objective of this step is toempower the group by getting them to consider what isinside their control; the things you can change today.

Step 3 – Brainstorm Solutions Remove the issues that are “outside our control” or canonly be influenced and focus on the issues that people saythey can control. You’re now looking to get the group into“positive brainstorming mode” and come up with potentialsolutions that will address the issues identified. You can usethe same tool as you used in Step 1. Again, you’re looking for as many ideas as possible atthis stage; you can discuss and prioritise them in the nextstep. Step 4 – Develop the Plan The final step is to agree which of the solutions meritfurther action, who is going to do this and when it needs tobe completed by. In most cases, a simple table can be usedto capture this. As the people who came up with thesuggestions will be sitting in the room, look to involve themin the implementation plan as much as possible. Remember,they said they could control the issue, so they should beempowered to take the appropriate action to address it. Based on the agreed deadlines, you may wish to set oneor more meetings to review the progress and, ultimately, theimpact of the action plan.

Alignment between DMAIC andRADAR

In assessment, one of the things you should be looking foris evidence of improvements to approaches being embeddedover time. There is a clear alignment between the DMAICapproach and the RADAR logic. Improvement projectscompleted using the DMAIC methodology can therefore beused to provide evidence of a systematic approach toimplementing and embedding improvements in keyapproaches.

Where no approach exists, the improvement project willeffectively complete a cycle through the RADAR:

Where an existing approach exists, you will be focusingon the “Assess & Refine” elements of the RADAR:

Example 1: Product X ManufacturingProcess

Phase 1: Define Let’s go back to the improvement statement example weused in Phase 1: “To improve the defect rate on Product X toless than 1 in 1000 within 3 months”. This statement would appear in the first box of theDMAIC Storyboard.

Phase 2: Measure Currently, the process flow is as follows:

In this example, the only test carried out during theassembly is at the end, meaning that if the final product isfaulty, the 2 components have to be disassembled, repairedand then reassembled. The only process performance dataavailable is based on this final test. The defect rate iscurrently 3.95 per 1000. The process flow chart andperformance graph can be added to the “Measure” box todefine the baseline position.

Phase 3: Analyse Identifying the points that are Critical to Quality willhelp understand the root cause of the problem. There areseveral in this process: - The quality of the raw materials from the suppliers

- The quality of the 2 components being manufactured- The final assembly of the 2 components

This gives us 5 different measures. These measures areshown on the second process flow, now appearing in theAnalyse phase. In a real situation, these measures could be done bybatch, sample or on each individual part. The cost, time andresource demands would ultimately determine how many andover what time period these measurements would be carriedout. However, as there is already a test on the raw materialscoming in from Supplier A, it would be reasonable toquestion why similar checks are not in place for thematerials coming in from Supplier B. This is not anuncommon scenario. For example, “Supplier B” could be aninternal supplier and there may be different quality controlsin place for internal & external suppliers. A Pareto Analysis or a Pie Chart can be used to showwhere the most common source of defects is. In this case,we’ve used a pie chart.

Once the root cause has been identified, the team canbrainstorm possible solutions. If there are a large number ofpotential solutions, you may need a structured approach fordetermining which is the most suitable. This could be assimple as ranking or may involve a cost / benefit analysis.

Phase 4: Improve Once the improvement actions and owners have beenagreed, these need to be implemented. The Improve box canbe used to show who is doing what and when theimplementation is due. This can be a simple action list or aGantt Chart. If the process has changed, a revised processflow could be included at this point. In this example, we’ve chosen to put the action list in atable and include a copy of the revised process, indicatingthe new test points that have been added.

Phase 5: Check The final phase is to check that the improvement has hadthe desired impact. In this case, we’ve indicated when theimprovements were implemented to explain the changes inperformance.

Example 2: Sharing Internal BestPractice

Whilst these techniques seem most applicable in a“manufacturing” environment, it is possible to use thismethodology in virtually any situation. For example, it canbe used very effectively in involving teams of people inidentifying and implementing improvements followingperception studies, where the underlying root cause is notalways apparent from the results. The next example is basedon a real project identified from an EFQM assessment. Phase 1: Define The issue identified was the lack of a structured processto effectively share and implement best practices across theGroup. The first part of the problem statement came directlyfrom the feedback report; the target was agreed with theBoard.

Phase 2: Measure The Business Excellence Group within the Head Officereviewed the current process for sharing best practices. Itwas based on an annual recognition scheme whereapplications were submitted by the countries in the Group. Although the submission documents were available to allcountries, and the resulting “best practices” circulated, therewas no process in place to track whether any of these werebeing implemented elsewhere in the organisation.

Phase 3: Analyse The Business Excellence Representatives from each ofthe countries met each 6 months to review progress on keyissues and discuss future initiatives. During one of thesemeetings, the “Analyse” phase was completed using the 4step approach described earlier in this document during a 1hour workshop. A number of the potential root causes identified weredeemed “Outside the Control” of the BE Representatives. These included things like language issues and a lack ofstandardised processes and systems across the Group. Whilst these are valid issues, if the BE Representativesfocused on trying to resolve these issues, there would belittle progress in the short to medium term and the projects, ifapproved, would require significant funding. However, there were a number of issues that wereagreed to be “Inside the Control” of the group, so theyfocused attention on these areas to identify possiblesolutions. The BE Representatives would take ownership ofthe process and, through the established self-assessments,would be able to identify “good practices” they could shareand the areas where their country would benefit fromlearning from another’s experience.

Phase 4: Improve The action plan was agreed at the end of the session. Asthe action plan had been developed by the BERepresentatives, they were engaged in the process andempowered to take action. The actions were tracked by theBE Group in the Head Office to ensure the agreed deadlineswere met.

Phase 5: Check At the end of the year, there were 19 examples of a“good practice” from one country being implemented in atleast one other country. Whilst the numerical improvementtarget had not been met, the improvement objective ofestablishing a process for effectively sharing best practicesinternally had been established. Had this plan beendeveloped elsewhere and imposed on them, the resultachieved might have been very different.

Simple Training Exercise

One of the problems with training people on techniqueslike DMAIC is getting a real set of data for people to usewithin a short period of time. We have developed thefollowing simple exercise that will enable people tocomplete a full DMAIC improvement project in around 1hour. The training works best with a group of at least 8people, working in 2 teams of 4. If you have more than 12people, form 3 teams. The training uses the 4 step analysis approach describedearlier in this document. However, you can introducestatistical analysis techniques if you have more time. In thisexample, a regression analysis, which is available as afunction in Excel, can be used to determine the solution in theAnalyse phase. Materials Required For each team, you will need the following: - 1 prepared DMAIC Chart, printed on A3 paper, withthe problem statement, empty tables and fishbone templatesincluded.

- 1 tape measure- 1 friction powered toy car (pull back and release type)- 1 calculator (or a laptop with Excel)

Method

- Measure 5 runs of the car using “Current Process” tosee how far it goes (5 minutes)

- Brainstorm potential causes of variation and highlighttop 4 (or less) causes of variation (10 minutes)

- Brainstorm possible solutions to address key issues andselect top 4 (or less) actions (10 minutes)

- Agree improvement actions, including documentingchanges to process (10 minutes)

- Check whether improvement actions have worked with5 more runs (5 minutes)

DMAIC Training Exercise

Further information and feedback

For more information about EFQM, you can: Visit our website www.efqm.org for regularly updatedinformation, publications and tools Attend one of the EFQM Training Courses to learn howto assess using the Model or practically apply the conceptsof excellence within your organisation; Contact your EFQM Account Manager for furtherinformation on self-assessment tools, case studies and otheropportunities to get involved. Improving this guide This document is designed to evolve with feedback fromour Members, Assessors and other stakeholders, based ontheir practical experiences. After reading this guide, if you would like to contributeyour ideas on how we can improve this document, you cando so by writing to EFQM, at info@efqm.org.

Getting Involved

EFQM is a membership organisation. We rely on input,ideas and suggestions from you to create a vibrantcommunity. If you have any ideas, questions or suggestions,please don’t hesitate to contact us via e-mail(info@efqm.org) or via telephone (+32 2 775 35 11). Join us on LinkedIn On the 1st of September 2010, we created The EFQMNetwork for Sustainable Excellence to facilitate a dialoguebetween our peers and the wider community. The group isopen to anyone with an interest in this area. Over 1800individuals have already joined our group and shared theirexperiences. If you have a question, it is a great place tostart. Becoming a member Organisations can join the EFQM member communityand enjoy some exclusive benefits such as access to freeassessment and improvement tools, participation to events,themed webinars and good practice visits. To learn moreabout our member community, feel free to contact us or tojoin one of the free introduction meetings at our offices inBrussels. As a member of EFQM, you will enjoy the followingexclusive benefits:

- Expert advice and support for your organisation’sjourney towards excellence.

- Access to the EFQM Knowledge Base is a databasecontaining a number of free to download assessment,management and improvement tools; as well as GoodPractices identified from the last 3 years of the EFQMExcellence Awards.

- Members receive a discount of 20% on EFQMProducts & Services, including Training, Publications andRecognition.

- There are themed events and webinars throughout theyear, with Good Practices and new tools being shared andexplained by EFQM and member organisations. For more information, please e-mail info@efqm.org

EFQM Members Include

EFQMAvenue des Olympiades 25th FloorB-1140 Brussels – BelgiumTel : +32 2 775 3511Fax : +32 2 775 3535Email : info@efqm.org

http://www.efqm.org