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Cause And Effect Tools Halliburton Tax Cause & Effect Tools

Cause And Effect Tools Halliburton Tax Cause & Effect Tools

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Page 1: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

Cause And Effect Tools

Halliburton Tax

Cause & Effect Tools

Page 2: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

2FOR INTERNAL USE ONLY

Module Objectives

By the end of this module, the participant should be able to:

Build a Cause & Effect Diagram.

Build a Cause & Effect matrix.

Use Cause & Effect Tools to:

– Identify potential X’s

– Create consensus within the team on critical X’s

Use the 5 Why process to find root causes of problems.

Page 3: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

3FOR INTERNAL USE ONLY

Why Learn About C And E Tools?

Focus on causes, not symptoms

Focus team on content of problem

Create snapshot of team’s collective knowledge

Create consensus of problem root causes

Identify potential Critical Xs

Build support for resulting solutions

Basic fundamental problem solving tools.

Page 4: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

4FOR INTERNAL USE ONLY

What Are C And E Tools?

Qualitative or subjective problem solving tools

Graphical display

Team generated

Two main types

– C and E Diagram– C and E Matrix

Used to identify/prioritize potential root causes.

Page 5: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

Cause And Effect Diagram

Page 6: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

6FOR INTERNAL USE ONLY

Cause And Effect Diagram

Also known as Fishbone and Ishikawa diagram

Identifies and graphically displays potential root causes

– Many separate causes combined for single effect

Can be used for

– Troubleshooting– Forecasting and planning– Exploiting improvement opportunities

“Visual organizer" of factors that influence a particular result.

Page 7: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

7FOR INTERNAL USE ONLY

Cause And Effect Diagram(Fishbone Diagram)

Used to allow team to identify and graphically display, in increasing detail, all potential root causes

Place problem (effect) in box on right-hand side of chart

Draw major cause categories as bones on chart

Repeatedly ask why each cause happens

Look for root cause that appears repeatedly within or across major causes

Page 8: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

8FOR INTERNAL USE ONLY

Basic Structure Of The C&E Diagram

Problem/DesiredImprovement

Causes Effect

Main Category

Measurements Materials People

Environment Methods Machines

Page 9: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

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Source Categories For Potential Causes

People Do they follow standards? Efficiency acceptable? Are they problem conscious? Are they responsible? Are they qualified? Are they experienced? Are they assigned to the right job? Are they willing to improve? Do they maintain good

human relations? Are they healthy?

Machines (facilities) Do they meet production

requirements? Process capability? Oiling, greasing adequacy? Is inspection adequate? Frequency of downtime and why? Does it meet precision requirements? Unusual noises? Layout adequacies? Are there enough

machines/facilities? Are they in good working order? Preventative maintenance schedule?

Page 10: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

10FOR INTERNAL USE ONLY

Source Categories For Potential Causes

Material

Mistakes in volume?

Mistakes in grade?

Mistakes in brand name?

Are there impurities mixed up?

Is the inventory level adequate?

How much WIP is there? Where?

Is the layout adequate to accommodate materials?

Is the quality standard adequate?

Method (operation)

Are the work standards adequate?

Is the work standard upgraded?

Is is a safe procedure or method?

Does it ensure a good product?

Is the method efficient?

Is the sequence of work adequate?

How is it setup?

Is the setup adequate?

Is there adequate contact/ communication with the upstream and downstream steps?

What method is used to communicate?

Page 11: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

11FOR INTERNAL USE ONLY

Fishbone Diagram Major Categories

The 8 Ms (used in manufacturing)Machine (technology)Method (process)Material (Includes Raw Material, Consumables and Information.)Man Power (physical work)/Mind Power (brain work): Kaizens, SuggestionsMeasurement (Inspection)Milieu/Mother Nature (Environment)Management/Money PowerMaintenance

The 8 Ps (used in service industry)Product=ServicePricePlacePromotion/EntertainmentPeople(key person)ProcessPhysical EvidenceProductivity & QualityThe 4 Ss (used in service industry)SurroundingsSuppliersSystemsSkills

These Are Only Examples – Use What Is Right For Your Project

Page 12: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

12FOR INTERNAL USE ONLY

Basic Structure Level 1 Causes

Level 1 Cause

Problem/DesiredImprovement

Causes Effect

Main Category

Measurements Materials People

Environment Methods Machines

Page 13: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

13FOR INTERNAL USE ONLY

“Five Whys?” One Approach To More Cause Category Detail

Ask why?

When presented with an answer, ask why?

Add additional levels to the C&E Diagram

Repeat step two until you get the real problem or issue identified

An Affinity Diagram will also add detail to the Cause Categories.

Page 14: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

14FOR INTERNAL USE ONLY

The Five Whys Business Process Example

The “Five Whys” Method Supervisor: “Why is the sales order being released so late?”Employee: “Because the customer requirements are not entirely known”

Supervisor: “Why are the customer requirements not known?”Employee: “Because the proposal was vague and incomplete”

Supervisor: “Why was the proposal vague and incomplete?”Employee: “Because the performing organization didn’t participate in creating it”

Supervisor: “Why didn’t the proposal team consult with the proper experts?”Employee: “Because we hardly ever talk with those guys”

Supervisor: “Why is communication so poor between departments?”Engineer: “Because that is how we always do proposals, and we don’t have a

process that encourages us to work together”

Page 15: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

15FOR INTERNAL USE ONLY

Basic Structure Level 2 Causes

Problem/DesiredImprovement

Causes Effect

Level 1 Cause

Level 2 Cause

Main Category

Measurements Materials People

Environment Methods Machines

Page 16: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

16FOR INTERNAL USE ONLY

Why is Mike late for work?

Example One

Me

LateForWork

Family

Car Drive

c-Oversleep

c-Lousy watch

c-Slow in AM

c-Bathroom jam

C-Fighting

C-Breakfast

s-Warm up

c-Low on gasn-Traffic

n-Weather

n-Light @ Rt 1

kids

spouse

Characterization Level 2 Cause

Level 1 Cause

Characterization:C – ControllableN – Not ControllableS - System

Page 17: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

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Example Two

Delayed Payment ofGPC Marketing Event

Invoices

PersonnelPolicies

Procedures

Over $25K Finance Director signature req’d

FMC procedures

Finance procedures

FMC Internal form

Master budgetupdated weekly

W-9, ACH forms

AP system

MSPA

Transmit forms

Over $50K Head of Mktingsignature req’d

FMC Director signs all invoices

Controller signs all

invoices

Invoices rec’d by variousFMC Consultants

Turnaround time

Must be acceptedby AP

System updated every 24 hours

FMC InvoiceCoordinator

Finance Invoice SpecialistChecks budget

Process new vendors

Obtains Mgr signature

Enters invoice inMSPA

Transmits to AP

Obtainssignatures

Page 18: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

18FOR INTERNAL USE ONLY

Ensure appropriate resources present

Everyone present participates

Allow conflicts – Work with group to resolve

Stopping too soon – May miss major cause

Focus on the issue/problem – Not on people

Make necessary refinements

Best Practices

Strength of tool stems from being a "group process."

Page 19: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

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Cause and Effect Diagram

Flow Chart

Scatter Diagram

Pareto Diagram

Brain-storming

Control Charts

Potential cause

Potential cause

Raw information

Raw information

Rank and Prioritize

Rank and Prioritize

Verify Cause and Effect Relation

Verify Cause and Effect Relation

Variables to chart

Variables to chart

Linkages

Supports other problem solving tools

Page 20: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

20FOR INTERNAL USE ONLY

Cause And Effect Matrix

Modified Quality Functional Deployment (QFD) matrix

Primary use (Black Belt):

– Identification of potential critical Xs

Secondary use (Leadership):

– Prioritizing project selection– Scoping down assigned project

Helps to focus improvement efforts

Page 21: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

21FOR INTERNAL USE ONLY

C And E Matrix Format

Rating of Importance to

Customer1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Process Inputs Total

1

2

3

4

5

6

Total

Process Outputs

1Identify customer requirements.(Process Outputs)

2 Assign output priority.

3List all inputs.

4Correlate inputs to outputs using scale.

5Multiply correlation by output priority.

6Add down columns for each output.

7Add across rows for each input.

8Sort output and input totals and display on separate Pareto Charts.

Page 22: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

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Example

Inputs Outputs

Coffee

Light

Hot

Coffee

Water

Cream

Electricity

Make Coffee

Process

Start by looking at process maps

Page 23: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

23FOR INTERNAL USE ONLY

8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Hot

Ligh

t

Not

too

Str

ong

Not

Fla

vore

d

TOTALProcess Inputs

1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0

Rating of Importance to Customer

Process Outputs

Cause & Effect MatrixProject : Making coffee for spouse

Identify Customer Requirements

Outputs from CT Tree and SIPOC

1) List Process Outputs

Use SIPOC/Process Maps

Page 24: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

24FOR INTERNAL USE ONLY

8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Hot

Ligh

t

Not

too

Str

ong

Not

Fla

vore

dTOTAL

Process Inputs

1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0

Rating of Importance to Customer

Process Outputs

Cause & Effect MatrixProject : Making coffee for spouse

Assign Priority To Each Output

Ratings must come directly from customer

2) Assign output priority.

Page 25: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

25FOR INTERNAL USE ONLY

8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Hot

Ligh

t

Not

too

Str

ong

Not

Fla

vore

d

TOTALProcess Inputs

1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0

Rating of Importance to Customer

Process Outputs

Cause & Effect MatrixProject : Making coffee for spouse

List All Inputs

Inputs from SIPOC or Process Map

3) List Inputs

Page 26: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

26FOR INTERNAL USE ONLY

Scoring Scales

0 = No correlation

1 = Process requirement only remotely effects customer requirement

4 = Input variable has low/moderate effect on customer requirement

7 = Input variable has moderate/high effect on customer requirement

10 = Input variable has direct and strong effect on customer requirement

Suggested scale reduces scoring conflicts

Page 27: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

27FOR INTERNAL USE ONLY

Correlate Inputs To Outputs

8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Hot

Ligh

t

Not

too

Str

ong

Not

Fla

vore

d

TOTALProcess Inputs

1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0

Rating of Importance to Customer

Process Outputs

Cause & Effect MatrixProject : Making coffee for spouse

4) Team scores significance of Input to Output

Page 28: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

28FOR INTERNAL USE ONLY

Cross Multiply And Add Across Rows

Math is built into the spreadsheet

8 9 6 61 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Hot

Ligh

t

Not

too

Str

ong

Not

Fla

vore

dTOTAL

Process Inputs

1 Coffee 7 10 10 1832 Cream 10 903 Water 04 Coffee Maker 7 565 Coffee Filters 06 Electricity 10 807 Cup 08 ** Process ** ?? 09 0

Rating of Importance to Customer

Process Outputs

Cause & Effect MatrixProject : Making coffee for spouse

(7X9) + (10X6) + (10X6) = 183

Page 29: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

29FOR INTERNAL USE ONLY

Prioritization Of Inputs For Analysis

“Coffee” is the most important input variable

Coffee Cream Electricity Coffee Maker Water Coffee Filters Cup ** Process ** ??0

20

40

60

80

100

120

140

160

180

200

0%

20%

40%

60%

80%

100%

Project : Making coffee for spouse

Page 30: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

30FOR INTERNAL USE ONLY

Cross Multiply And Add Down Columns

Analyze outputs to compare to customer rating

Page 31: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

31FOR INTERNAL USE ONLY

Process Output Ratings Possible Uses

Compare outputs to customer rating

Look for mismatch discrepancies

– Inputs focused on wrong output– Insufficient inputs

Always check output ratings

Page 32: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

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Example One

Project: Paperwork Processing

Page 33: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

33FOR INTERNAL USE ONLY

Example One:Pareto Chart/Process Inputs

Be honest about barriers – list any potential ways to remedy the situation

Be honest about barriers – list any potential ways to remedy the situation

O thers

STP Transfer?

Branch T

raining

Branch S

O P

Suf f icient /

Accurate Docs

Types of funds

Contra F irm

ATS Training

ATS SO P

49211218218275296317384384

2.1 9.0 9.3 9.311.712.613.516.316.3

100.0 97.9 88.9 79.7 70.4 58.7 46.1 32.7 16.3

2000

1000

0

100

80

60

40

20

0

Defect

CountPercentCum %

Perc

ent

Cou

ntPareto Chart for Process Inputs

Page 34: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

34FOR INTERNAL USE ONLY

Example Two

Rating of Importance to Customer9 9 7 5 4 1 2

Process Inputs

Process Outputs

Po

int-

of-

Ca

ll R

es

olu

tio

n

Ac

cu

rac

y

Clie

nt S

atisfa

ctio

n

Err

ors

co

rre

cte

d

Co

urt

eo

us S

erv

ice

Co

st o

f R

ep

ea

t ca

lls

PS

R P

rod

uct K

no

wle

dg

e

Total

1 Inaccurate information 9 9 9 4 4 9 9 279

2 Incomplete information 9 9 4 4 4 9 4 234

3 Checks not received 9 4 9 4 4 9 1 218

4 Client issue not resolved 9 4 9 1 4 9 4 209

5 Plan Rule Changes 9 9 1 4 4 0 1 207

6 KRS updated 9 9 0 4 1 4 4 194

7 Dept. Labor or Legislative changes 9 9 1 1 1 0 1 180

8 PSR understands issue 9 4 4 1 4 4 4 174

9 Processing requirements not updated 9 4 4 1 4 9 0 166

10 Errors in Processing 0 4 9 9 1 9 4 156

11 Original request not processed 4 4 4 9 1 9 1 151

12 Call volumes 4 1 9 0 9 4 0 144

13 Research knowledge of plan 1 9 0 9 0 9 0 135

14 Type of issue 4 1 4 9 1 4 4 130

Total 11

25

87

3

66

5

37

5

28

8

14

2

13

0

3598

Cause & Effect Matrix

Project: Point of Call Resolution

Page 35: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

35FOR INTERNAL USE ONLY

Best Practices

Be certain inputs and outputs link to previous tools

Only customer should rate output importance

Team needed to rate correlations

Rank and complete Pareto Chart for both outputs and inputs

Low scores could indicate unrealistic ratings, customer disconnect, or missing steps

Follow Eight Steps

Very powerful tool when used correctly

Page 36: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

36FOR INTERNAL USE ONLY

Linkages

Rating of Importance to Customer

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Process Inputs Total

1234567

Cause and Effect Matrix

Process Outputs

Complete Travel

AuthorizationContact Agency

Traveler Information Verification

Gather Customer Billing Info

Auth. Code?

Authorized TravelAuth. CodeŸŸ

Authorization Form, S

DomesticInternationalTravelerApprover

Website, STravel Budget CCost Estimate SComputer Systems,NLocation Variation,N

Ÿ

ŸŸŸŸ

ŸŸŸŸ

Ÿ

Contact Service, SPhone/Web

Travel Information,STraveler/Designee, N Agency Resources

day time, SNafter hours, SN

Computer Systems, NMeasurement Systems, S

Time In QueueTime in VRUCall VolumePeak Hours

ŸŸ

ŸŸŸ

ŸŸ

ŸŸ

ŸŸŸŸ

Agency Request Entered Ÿ Correct Traveler

InformationŸ

Traveler Info, SCompany Info, S

Restrictions if applicable, SPreferences, S (seat, class)

Agent NTraveler N

Computer Systems, NMeasurement Systems, S

ŸŸŸŸŸŸŸŸ

Customer name, SLocation, SAuth. Code, SOperator, SAgent NTraveler N

Computer Systems, NMeasurement Systems, N

ŸŸŸŸŸŸŸŸ

Correct Traveler Billing Info Into System

Ÿ

Y

NNeed For

Travel

Rationale, NViable Alternatives, N

Traveler NDestination Customer,N

ŸŸŸŸ

Complete Travel Request

Form

Request Form, SCharge No., STraveler NLocation Variation, NComputer Systems, N

Other Personnel?Form Procedure

STravel

Information N

ŸŸŸŸ

Ÿ

ŸŸ

Ÿ

InformationCorrect

Updated ProfileŸTravel RequestŸ

X Y

Detailed Process Map

Scoping

Xs Identification

Voice Of the Customer

Delivery Defects

PEOPLE

ENVIRONMENT

MATERIALS

METHODS

MEASUREMENTS

MACHINES

Maintenance

Servers

Resources/Shift

Ticket Types

Times

Training

Freq of Updates

Experience Level

Postal Service

Co. Profiles

Traveler Profiles

Terminals

Call Volume

Self

systems

internet

Zabar Volume

Process

Queue

Hol

ida

yTim

e of

D

ay

Phone Service

T-1

Line

s

Credit card

addressem

ail

Computer Prog

PO Damage

PO DamageCall Routings

Carrier Updates

Time Zones

Comp Downtime

Team Ratings

C and E Matrix receives inputs from several Define/Measure tools.

Page 37: Cause And Effect Tools Halliburton Tax Cause & Effect Tools

37FOR INTERNAL USE ONLY

Linkages(Cont’d)

C and E Matrix outputs feed FMEA

0

1000

2000

3000

4000

5000

6000

7000

Defect

Cou

nt

C&E Matrix, Pareto of Customer Requirements As They Relate To The Process