INNOVATION TRANSFER Bernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 1 PiT- Stop ® P roblem-Finding

INNOVATION TRANSFERBernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 1

PiT-Stop®

Problem-Finding and Problem-Solving

in Teams


The Importance of Employee Engagement

From the Best Employers in Canada study: • employee engagement is a measure of

how positively employees feel and speak about their employer, how likely they are to stay, achieve high morale, provide excellent customer service and how committed they are to go "above and beyond" to help achieve business objectives


high

nonelow

Emotional Engagement

Workers as of 18 Years Source: Gallup

later

“Even if a Type C employee were to work for nothing, it would be too expensive.” Jack Welch, long-time CEO General Electric


Employee Engagement• the activity to harness this discretionary

effort is particularly important• Pit-Stop .... our idea generation

methodology ... demonstrates the proven ability to harness this descretionary effort

• the organization wins corporate health (productivity, cost savings, hard ROI)

• the employee wins personal health, recognition, being engaged


An idea is a fragile thing. Turning

it off is much easier than keeping

it lit. Ideas shine because

somebody had them, somebody

helped them and nobody turned

them off.excerpt from TRW Advertisement, TRW Inc. 1984-Tom Peters ‘A Passion for Excellence’


Every day, in which you do not

actively occupy yourself with the ideas and suggestions

of your employees,is a day of wastefulness


Idea Management closes the gap

between the planned improvements

and the non-utilized performance

reserves within an organization


Idea Management unlocksthe potential in our heads!


Creativity = having ideas

Innovation = implementing ideas

" to add value "


The ‘Value-Add’ Question

? Avoidable waste ?

“Everything which is unnecessary for the actual work process”

“Everything which the customer won’t pay for”

“Everything which doesn’t add value”


1. Excess Production Beyond a customer‘s needs (“hoarding”)

2. Waiting Time Slow workflow/processes (“time robber”), high periods of loss, no loyalty to deadlines

3. Transport Interim stock, slow shipping process

4. Unnecessary Processes Complicated flow, bad use of facilities, minor utilization

5. Inventory Outdated material, emergency stock

6. Unnecessary Movement Search for material and procedures, wrong documentation, many steps

7. Work Error Drawnout processes, production of faulty parts, rework, scrap

The 7 Forms of Waste


Examples of Waste in Production Areas

• Moving of Material

• Lengthy Throughput Times

• Waiting Times

• Transport

• Inventory

• Too Much Material Choice

• Searching for ...

• Long Distances for Employees

• Over Production

• Production of Faulty Parts

• Inspection and Control Req‘mts

• Inefficent Usage of Materials

• Bad Information Flow

• Energy Wastage

• Lack of Cost Consciousness

• Tooling Changes/Set-up Times


Examples of Waste in Administrative Areas

• Sign Off Procedures

• Lack of Competence

• Inefficient Processes

• Paper Requirements

• Waiting Times

• Mail Delivery

• Bottlenecks

• Procedural Delays

• Unnecessary Storage / Copies

• Checks and Controls

• Long Distances for Employees

• Inaccurate Distr’n Information

• Errorprone Documentation

• Lack of Cost Consciousness

• Bad Information Flow

• Lengthy Decision-Making Times


Productivity Innovation

We are asking for employee ideas across the Innovation Hierarchy


Innovation Hierarchy

Business Model Innovation

(Pricing, Channels)

Product Innovation

(Features, Functions)

Process Innovation

(Efficiency and Effectiveness)


Efficiency = doing things right

Effectiveness = doing the right things

or

Efficiency is completing a task successfully

and without wasting time


Costs Past: Nowadays:

The “old” equation:

The producer fixes the purchase price based on

his profit expectation.

Price = Costs + ProfitPrice = Costs + Profit

Costs

Profit

Selling Price

The “new” equation:

Profit

The price is fixed by the customer. In the future the

profit results from thereduction of costs.

Profit = Price - CostsProfit = Price - Costs

Costs

ProfitSellingPrice

STOP

Focus on Costs


Savings Potential• The greatest savings potential resides

in the mind of the employee

• This can only be fully derived through and by management


Top Down and Bottom Up

Improvement is a guided process !

Bottom Up:

Ideas, Suggestions

Top Down:

Demands, Stimulation, Coaching


PiT-Stop – Problem Finding and Solving in Teams

PiT-Stop – Problem Finding and Solving in Teams

Pre-paration

ProblemFinding

ProblemStructuring

Problem Solving

Con-clusion

Follow-up

The PiT-Stop ProcessThe PiT-Stop Process

Idea = Problem with SolutionIdea = Problem with Solution

? = Problem without Solution? = Problem without SolutionImprovementImprovement

Problem Solving

Realization



PiT-Stop®Problem Finding and Problem Solving in Teams

Start


PiT-Stop Days

3 Mottos:

Go to GEMBA (seek and find rather than wait and hope)

Find MUDA (Problems are free consultations)

Make KAIZEN (Improvements through Teamwork)


Training


Interviews


A problem is half solved when it is clearly defined.

John DeweyAmerican Philosopher and TeacherPresident of the American Psychological AssociationKnown through his “Learning by Deweying”


Why " on-site " ?

• the 70% Theory

• have never submitted a suggestion • do not speak the company language as their

mother tongue • work according to their job description • can define a problem but not a solution • have never been asked at their workplace


Name of Employee interviewed:

Problem Description:( Why does this happen? Name of part, process? Where does it happen?)

Problem Detail:( Where? How often? Frequency? Costs? Important to determine the worth in time and money )

Possible Solution: (If the employee offers a solution: How to eliminate the problem? What measure are necessary?)

Date: …………… Name of Interviewer

Hours per Week

Problem Card Text: Number:


The 3 Kinds of Questions

- Entry-level Questions

- Probing Questions

- In-depth Questions


Sample Entry Level Questions

• Is anything a hazard?• Do you get complaints from

customers?• Do you run out of supplies?• Is the product inconsistent?• Is time lost waiting?• Is there waste?• Does a rule seem stupid?

• Is energy wasted?• Could cheaper material be

used?• Do jobs have to be

repeated?• Is anything too small?• Is anything too big?• Is something you do

unsafe?• Does something annoy

you?


Active Probing "Problems are free Consultations"

Two sides of the same coin: Front: Problem Back: Improvement Suggestion

What if an employee says “yes” ? Our answer (active questioning) : you don‘t say?

In short form write the interviewee‘s answers:- can the problem be effectively described? - how often does the problem occur … once or often?- why is that so?- where does it happen? - what is the process called? - what is the part called … number, series ? - can the employee tell me what it costs, guestimate? - what does this type of wastage cost? - how can it be imporoved?- what would be the savings if we did it differently? - if the employee can also provide a suggestion, then it will be credited to him . No ideas will be stolen ... We are looking for problems!

- 5W 2H ( The Toyota Method ) - What - Why- Where- When - Who - How much - How many

- 5 W - Ask why 5 times


Common Issues that can be dealt with in the Team Framework

How can one, for example...

- avoid unnecessary transport or employee loss of time ?- reduce inventory, ie. residual stock ?- avoid duplication of tasks ?- better utilize machinery, labour, maintenance, and work areas ?- reduce the error frequency in products and tasks ?- reduce the error frequency of machinery ?- reduce errors in forms and documents ?- reduce rework and quality checks ?- improve the quality of information ?- improve customer relations ?- reduce the production time of particular products ?- speed up a specific work process ?- decrease holding and preparation times, work stoppages ?- accelerate the throughput and output of workteams ?- optimize personnel ?- organize better group cohesiveness between departments ?


Writing Problem Cards


Every problem card should representa need for action:

“starting with negatively-loaded words”

incompletelackingrepeatedduplicatedincorrectdefectivewrong, faultyexpensiveinappropriatemissing

the ‘un’ words: unnecessary unsafe unclean unorganized unlabelled unwieldy unsatisfactory unrecognizable underutilized

in need of:recyclingscrappingidentificationupdatingadaptationchangerestructurereplacement

e.g.

… non value-adding


Problem Structuring


Cluster Nomenclature

Personnel- Training- QualificationHealth & Safety-Work Clothes- LightingCleanliness - HygieneLeadershipErgonomics

Work Material- Tools, ProgramsMachinesCommunication- Dept. A-B, …Information IT-Hard/SoftwareLogisticConstructionPlanning

Footprint Reduction- Recycling- Water UsageEnergy- Gas, Electric, OilFacility Management- Noise, Climate Control- Repair & MaintenanceCustomers- Complaints, Loyalty

HR Themes Process Themes Environment Themes


Electronic Database


Development of Spreadsheet forManagement with following Content:

• Problem Card Number• Cluster Name• Problem Description• Problem Details• Suggester Name• Estimated Benefits • Solution Keywords• Measures / Next Steps• Cluster Responsibility• Implementation Responsibility• Implementation Date• Status


Open House


Decision Making


Problem/Ideas: Target Allocation by %

10% Just-Do-It’s10% Short-term (Quick Wins - Fast Money)20% Suited for 1-hour Problem Solving Methodology10% Repair & Maintenance / Facility Management10% Candidates for other Techniques ie Six Sigma, VSM 10% Existing Projects 20% Middle and Long Term Success10% Don’t-Do-It’s

100% Sum of all Problems/Ideas through Employee Interviews


Complexity Time

Complexityof

Problem/Idea

Time (Hours)

Expert Methods 10%

ShopfloorMethods30-50%

minimal

minimal

maximal

maximal


Problem Solving Teams


2. Step:2. Step:

Describe and SortProblem Causes

Describe and SortProblem Causes

1. Step:Define the Problem

1. Step:Define the Problem

4. Step: Establish and ImplementSolutions

4. Step: Establish and ImplementSolutions

Team Meeting

Date

Participants

Problem

Manpower MaterialOtherCauses

Machine Method

123

Who

When

Solutions

3. Step:3. Step:

Rate the CausesRate the Causes

The Meeting


The Clock

Step 2b:Discuss and group cause / effect

cards

Step 2a:Write cause / effect

cards

Step 1: Define and frame the problem

Step 3:Assign points to keyc cause and effect

cards

Step 4:Find solutions for cards with most points

Buffer5Min

5Min

5Min

15Min

20Min

5

10

15

20

3035

40

45

50

25


Problem Solving Worksheet

Examples


Management Presentations


Under “Status” in the Spreadsheet the following are determined:

1 = problem is identified2 = measures, responsibility, date are established3 = in progress4 = implemented5 = no implementation 6 = later implementation ( with evidence )


Example: City Works Düsseldorf 58 employees interviewed, 156 Problems identified

54 = problem identified59 = measure, responsibility, due date defined41 = in progress 0 = Implemented12 = no implementation 0 = later Impelementatiop ( with evidence)156

Status 9.11.2007 at end of PiT-Stop week Status 27.12.2007 … one month later

Status 28.2.2008… two months later


Closing Presentation - Results - Certification - Recognition


These action days should not be viewed as a theoreticalworkshop but rather as a practical assistance, a visual display and development of a database.

We help management to visualize their problems from the employee’s perspective and to structurethe idea potential. They are in a position to act as thefirst filter.

LIVE Action Days with the Pit-Stop® Method

Contents and Work Flow


The evaluation of the potential savings is undertaken together with management. Per Interview Day between 100.000 and 200.000 Euro/$/Pd of Savings Potential is identifed.

Through the demonstration and active use of the “Problem Solving in Teams” methodolgy results are immediately demonstrated and it is shown that the method can be trained and is results sure.

LIVE Action Days with the Pit-Stop® Method

Contents and Work Flow


Proven PiT-Stop® Results

3 Problems/Ideas per 20 Minute Interview

50% of Ideas with Monetary Benefits

100.000 - 200.000 Monetary Savings Potential Per Interview Day


• 80% of Innovations come from employees at least 3 levels below top management

• grey is all theory, proof lies on-site

• we gather the idea potential quicker and more deliberately as before

• "Seek and Find" rather than "Wait and Hope"

Why PiT-Stop® ?


Requirements for the effective use of “PiT-Stop® LIVE”:

1. CIP Work Group “CIP Work Group” is defined as a homogenous process/work flow and an employee total between 30 und 50

2. Interview Teams - how large? between 10 (min.) and 20 (max.) employees are actively involved (size is dependent on the work group size)

they can be employees from the work group itself or from outside - who? motivated employees who through “learning-by-doing” want to enhance their qualification, already trained facilitators or ‘hi-potentials’ can be selected - the multiplier-effect is caused by the sum total of the involved

Interview Teams


3. Work Location Training room, preferably at the interview site, fitted with

work islands, boardcharts, flipchart and projector, facilitator’s kit and interview equpiment (clipboard, writing material).

4. Back Office Support For the excel database spreadsheet. The results of the day and the measures to be undertaken are immediately recorded (laptop, coded worksheets)

5. Verification of Benefits Company comptroller validates formulas and metrics used. Designated employees, immediately after the data collection, use the problem solving techniques to generate solutions. It is important that implementable solutions are generated quickly and put to proof.

Requirements for the effective use of “PiT-Stop® LIVE”:


Organizations (Customers) who use these Techniques


“If the right person at the right time passes by, I will not have the problem anymore”


Documents

INNOVATION TRANSFER Bernie Sander, Ottawa/Canada © Copyright (Alle Rechte vorbehalten) 2010 IT Innovation Transfer Inc. 1 PiT- Stop ® P roblem-Finding