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1 Copyright © 2012 Tata Consultancy Services Limited
Structured Problem Solving (SPS)
August 14, 2012
2
Is there a better approach to work?
"Here is Edward Bear, coming downstairs, bump,
bump, bump, on the back of his head, behind
Christopher Robin. It is, as far as he knows, the
only way of coming downstairs, but
sometimes he feels that there really is another
way,
if only he could stop bumping for a moment and
think of it “
- From “ Winnie the Pooh”
- By A A Milne
3
Why SPS?
Eliminate Defects/Errors and Common Problems
– We need to eliminate the errors and problems at the source - do we really need to?
– Let us do a little exercise in two teams to find out
Improve Critical Metrics
– We need to improve on critical metrics on a continuous basis
Provide Helping Tools
– We need to use techniques to address above two
4
The Inspection Exercise
Count the number of times alphabet “f” appears in the following text:
The necessity of training farm hands for the first class farms in the fatherly handling of
farm live stock is foremost in the eyes of the farm owners. Since the forefathers of the
farm owners trained the farm hands for first class farms in the fatherly handling of farm
live stock, the farm owners felt they should carry on with the family tradition of training
farm hands of the first class farmers in the fatherly handling of farm live stock because
they believe it is the basis of good fundamental farm management.
Reality of Escaping Defects :
No matter how good your inspection and test processes are, the more defects you create, the more defects escape to the customer.
5
Examples of Some Critical Metrics
Can you think of any metrics relevant to your process?
Productivity
SLA Compliance
Resource Utilization
Turn around time
Response time
Resolution time
First time right
On time delivery
Application of SPS can improve performance quickly for any of these metrics
6
SPS Roadmap
Phase Steps Tools
Define Capture Voice of Customer (VOC) VOC to Critical to Quality (CTQ) Flow
Simple project charter preparation Problem statement
Goal statement
Explore Understand current performance level Basic statistics
Understand current performance
Analyze improvement metric
Identify stratification factors
Bar charts, Pie chart, Trend chart
Pareto Analysis, Histogram, Scatter Diagram
Improve Analyze process/sub-process Flow diagram
Identify root causes Fishbone (brainstorming)
Identify solutions Brain storming (brainstorming)
Sustain Ensuring Sustenance Standard Operating Process (SOP), Control Plan
Control Charts (optional)
7
DEFINE
8
Voice of Customer (VOC)
Definition
“Voice of Customer" is the term used to describe the stated
and unstated needs or requirements of the customer for our
product/service or process
Example1
“I called a renowned Insurance Company yesterday. I got
their phone number after several attempts. They put me on
hold for a long time and then I had to go through several
menus. I could not get the item which I wanted in any of the
options. After listening to the music for a long time the
operator told me I need to meet them in person.”
Example2
“Code deliveries contain too many defects”
What does my customer need?
9
Critical To Quality (CTQ)
Critical to Quality (CTQ) is the key measurable characteristic of a product or process
whose performance standards must be met in order to satisfy the customer.
While determining the CTQ, it is absolutely critical to
Understand VOC
Interpret the VOC correctly while transforming it to a CTQ
Translate the VOC to CTQ from the customer‟s perspective
Example
On-hold time at call center
Service cycle time
What is critical to the quality of the process?
…according to your customer!
10
Identify Customer Needs
The Specific Need Statement leads directly to defining the CTQ
From High-Level VOC to Specific Needs
Customer
Satisfaction
I am always kept on
hold for a long time
I get my bill at
different times of the
month
Service/Quality
Issue
Functionality
Want to talk to the
right person quickly
Accuracy
Consistent month bill
Specific Needs
Statement
Customer gets to the
correct person in a
short time
Customer bill
received same day of
the month
Project Y Output
Characteristic
On hold time
On time receipt of
bills
11
Team Charter
A Charter is a document that provides purpose and goals for an improvement team
A Charter
Clarifies what are the team expectations
Maintains focus of the team
Ensures the team is aligned with organizational goals and priorities
Transfers the project from the champion to the improvement team
Example
On-hold time at call center
Service cycle time
Assure that the reasons for undertaking the project are clearly stated and justified and that the plan for improvement is well defined
12
Five Major Elements of a Charter
Business Case
– How is this project linked to the business goals
– What financial benefits are expected and where will they come from
Problem and Goal Statements
– Problem Statement indicates the pain area of the process or product. It also
quantifies the problem
– The Goal Statement defines the goals or improvement objective for the project. It
quantifies the target of the project
Project Scope
– Process dimensions, what „is‟ and „is not‟ included
Milestones
– A detailed plan of key steps and timelines to complete the project
Team Roles and Responsibilities
– Roles of team members and their responsibilities during project execution
13
Business Case - Example
Example
The Futura Mobile company provides mobile services to subscribers across the country.
The services offered by Futura include a range of attractive features offered under two
schemes; pre-paid and billing. Billing depends on subscription towards a particular feature
being offered.
Since the last 2 quarters there has been an increase in the billing service subscribers by
20%. This has increased billing errors from 5% to 30% resulting in huge rework effort and
customer dissatisfaction.
Reducing errors in billing would help reduce rework, saving $50,000 per quarter
14
Problem Statement - Example
Poor Example
The billing errors are too high in mobile bills.
Improved Example
For the last six months (When), it has been observed that billing errors in mobile bills for
Futura (a mobile provider company) (Where) has been increasing with growing number of
users.
The billing errors (What) has increased from about 5 % to 30% (extent). This negatively
impacts the productivity of the employees and customer satisfaction. (impact or
consequence).
15
The Goal Statement
Definition of improvement the team is seeking to
accomplish
Starts with a verb (Reduce, Eliminate, Control, Increase)
Tends to start broadly - Eventually should include
measurable target and completion date
Should follow the “SMART” rule
Example1 - Reduce the billing error from 30% to 5% in the
next 4 months
Example2 - Reduce ProWeb response time to 5 seconds in
the next 3 months
SMART Goal Statement -
Specific Measurable Attainable Relevant Time bound
16
Activity
Activity - Critique Project Objectives
Critique the project objectives below by checking to see if each one has the five
recommended parts
Improve customer satisfaction index to an average of 90%.
Decrease the number of accidents in the Stillwater facility by 1st October.
Reduce the cycle time taken to procure Grade A materials from 21 days to 10
days by 1st January.
17
Project Scope and Milestones
The Project Scope must address
What process will the team focus on?
What are the boundaries of the process we are to improve?
Start point? Stop point?
What (if anything) is out-of-bounds for the team?
Milestones provide realistic target completion dates of different phases of your project.
Milestones should be
Aggressive - Do not miss the „Window of Opportunity
Realistic - Do not force yourself into „Band-Aid‟ solutions
START
Boundary Boundary
18
Project Charter - An Example
The Internal IT Infrastructure Services (IS) team focuses on services to all
associates in TCS. IS includes Hardware, Software, Collaboration and
Messaging tools. Global Helpdesk (GHD) is available to help users for
resolution of issues related to IS. Tickets are submitted by users in the category
„Internal IT Services‟ in GHD, available off the Ultimatix portal. Tickets are
resolved by Level 1 (L1) generic solution providers or Level 2 (L2) specialized
solution providers. After the resolution of an issue, the IS support team
'resolves' the ticket. In case the user feels that the resolution is incomplete or
he/she needs more clarity on the solution, the user „reopens‟ the ticket.
All Reopened Tickets are considered as defects which involve rework for the
solution providers in Internal IT IS. The % of reopened tickets is 3.89% (Nov
„09) at L1 (Internal IT) and 13.41% (Jun „10) at L2 Messaging. This project aims
at reducing % of reopened ticket to < 2% at L1 (Internal IT) and < 10% at L2
Messaging.
This improvement will result in reduced % of Reopened Tickets thereby
improving the overall customer experience and reducing efforts of the L1
generic solution providers and L2 messaging teams.
Business Case (Including High Level Benefit Analysis)
Reopened Ticket count for L1 (Internal IT Services)
and L2 Messaging
In Scope
The % of Reopened Tickets for L1 (Internal IT Services) is 3.89% (Nov „09) and for L2 Messaging is 13.41% (Jun „10). Reopened
Tickets indicate customer dissatisfaction and results in rework for the solution providers in Internal IT IS. If this improvement initiative is
not implemented, the % of Reopened Tickets may continue to be high.
Specific Problem Statement
Reopened Ticket count for other Support Groups
and levels like Resident Engineer (RE), IAM, Level 3
(L3) Messaging.
Out of Scope
To reduce the % of reopened tickets resolved by
* L1 (Internal IT Services) team from 3.89% (Nov ‟09)
to < 2%
* L2 Messaging team from 13.41% (Jun ‟10) to <
10%
by end of March 2011
Specific Goal Statement
19
Project Charter - An Example
Roles & Responsibilities General Information Tollgate Review Dates
Internal IT Services
Project Lead (GB/BB):
Project Coach
(BB/MBB):
Project Sponsor:
Team Members:
Tollgate Date Signoff (xx/xx/xx)
Contact Information for Project Lead:
Define
Measure
Analyze
Improve
Control
Industry/Function: Nirupama Nagaraj
Shashank Kulkarni
Neha Agrawal
Amit Jain
Parimal Bhatia
Sep 2009 Shashank Kulkarni
Oct 2009 Shashank Kulkarni
Nov 2009 Shashank Kulkarni
Dec 2009 Shashank Kulkarni
Mar 2011 Amit Jain
Big Y:
Customer satisfaction
Reduce rework
20
Case Study - Project Charter
Exercise - Prepare a Project Charter (20 minutes)
(This must include Business Case, Problem and Goal Statements, Project Scope, Team
Roles and Responsibilities and Milestones for the Specified Project)
21
EXPLORE
22
Performance Measurement
How to measure Baseline (current) Performance level?
Concept of
Mean
Median
Mode
Standard Deviation
Range
Central Tendency
Variation
23
Measures of Central Tendency
Mean
The average data point value within a data set. It is normally denoted by X (for sample)
or μ (for population).
Mean = Number Of Values
Summation Of All Values
Mathematically X
n
i =1
xi
=
n
24
Measures of Central Tendency
Median
The middle value when the measurements are arranged in order of magnitude (ascending
or descending)
Mode
The value or data point which has maximum frequency of occurrence
Median = ( n / 2 )nd Value + (n / 2 + 1 )th Value
2
; When n is even
[(n+1) / 2 ) ]nd Value ; When n is odd Median =
25
Performance Measurement
Measures of Spread
Range
It is the difference between the highest value and the lowest value.
R= Max. value - Min. Value
26
Measures of Spread
Standard Deviation
It is the square root of the average of the squared differences between data points and
the mean. It is denoted with the Greek letter σ (sigma).
If X1, X2, ........ ...... Xn are individual values and X is the Mean
i = 1
n
n (Xi - X)2
= σ
Verify with the formula - STDEVP (Data Range)
(X1-X)2 + (X2 -X)2 + ......... (Xn - X)2
n
= σ
27
Types of Data
Data Type
Discrete Continuous
Binary Ordered Categories Count
Classified into
one of two
categories
Example
True or False
Defect or No
defect
Ranking of
ratings
Example
Employee
satisfaction rating
Counted
discretely
Example
No. of defects in
a product
Measured on a
continuum or scale
,expressed by whole
number or fraction
Example:
Cycle Time (in
hours) to generate a
report
How does the customer measure your process?
Expressed by the whole
number
28
Which data type do we choose?
As far as possible, we must choose a continuous measure for the Project Y metric.
Although, collecting data for continuous measures can be tedious, time consuming and
expensive, continuous data measures are preferred over discrete data measures
because they provide more information about the process.
The more continuous we can make the data, the more it will tell us about our process
Project Y Discrete Y Measure Continuous Y Measure
Time to Procure Units procured within specs Actual procurement time for each unit
Delivery Time Number Late Actual time deviated from target
Customer Satisfaction Yes/No Questions Rating 1-100
(Insurance) Policies lost due to Price Number Lost Difference from Competition
29
Develop Data Collection Forms
Data Collection Forms help to standardize both the data that is collected as well as the
data collection process
Elements of Data Collection Form
Description of what data is being collected
Places to put the data
Room for comments
Room to keep track of segmentation factors
Always keep in mind the following
Make the form simple to use and understand
Include only information you intend to use
Pilot the data collection form
30
Data Collection Form - Example
CR Schedule Slippage
Sr. No CR # Request
Date
Completion Date
Expected Actual
Schedule
Slippage
(days)
CR Type Severity
User
Group
Skill level
of Team
Frequency of Measurement - Every CR this month
Purpose - For Schedule Slippage Analysis
31
Data Display - Graphs and Charts
Graphs and charts are pictorial representation of the data, making it easy to spot trends
and comparisons among different groups of data
The common types of graphs and charts are
Line graphs - To depict change or variation over time.
Bar charts - To compare quantities between persons, regions, time intervals etc
Pie charts - To show percentages or proportions of different components of a specific
item
32
Graphs Examples
5.6
4.9
6.2
7.1
4.3 4.6
5.2 4.9
6.3
4.8
33.5
44.5
55.5
66.5
77.5
1 2 3 4 5 6 7 8 9 10
% E
rro
rs
Week Number
80 70
60
75 68
76
0102030405060708090
WS 1 WS 2 WS 3 WS 4 WS 5 WS 6Av
g.
Pro
du
cti
on
Work Stream
11
5
10
21
2 3
10
4 3
13
20
14
11
6 8
13
20
15 15
11
0
5
10
15
20
25
1 2 3 4 5 6 7 8 9 10
% R
eje
cti
on
Week Number
263 285 201
435
133
375 321 307 294 348
244 336
221
257
275
422
281 317 299
358
0
100
200
300
400
500
600
700
800
900
1 2 3 4 5 6 7 8 9 10
NA
Ns C
od
ed
Week Number
Weekly % Errors Work Stream based Average Production
Weekly Reject comparison for WS 1 & 2 Comparison of WS 1 & 2 production
33
Example Pie Chart
A 42%
B 27%
C 13%
D 6%
E 4%
F 3%
G 5%
Watch maker analyzing
Problem
A - Glass Broken
B - Movement Stoppage
C - Mvt. Trouble
D - Defective Dial
E - Regulation
F - Stem Loose
G - Others
34
Scatter Diagram
A tool for finding relationship between Cause & Effect of a problem. Generally used in
either Define or Explore Phase.
If two types of data, x and y, are related in that x increases or decreases with y, a
correlation exists between them.
A scatter diagram is a chart that expresses the relationship between two such data types.
35
Scatter Diagram - Example
Car Speed Vs Mileage……
Which Car is likely to give more mileage?
All factors remaining same (use the same car) - does mileage depend on speed ?
15
20
25
30
35
40
25 35 45 55 65 75
Mileag
e (
km
/Lit
)
Speed (km/h)
If y increases with x, then x and y are
positively correlated
If y decreases as x increases, then the two
types of data are negatively correlated
If no significant relationship is apparent
between x and y, then the two data types
are not correlated
36
Histogram
What is a Histogram?
A Histogram is a variation of a bar chart in which data values are grouped together and
put into different classes.
This grouping allows you see how frequently data in each class occur in the data set.
Higher bars represent more data values in a class.
Lower bars represent fewer data values in a class.
37
Histogram - A Sample
38
Applying Histogram
A Histogram can be used
To display large amounts of data values in a relatively simple chart form
To tell relative frequency of occurrence.
To easily see the distribution of the data.
To see if there is variation in the data.
To make future predictions based on the data.
39
Summary of Charts
Data Type Chart Type
Continuous
Line Chart/Run Chart
Scatter plot
Histogram
Discrete
Bar Chart
Pie Chart
Pareto
Ready - Reckoner to select the Graph/Chart
40
Process Flow Diagram
What is Process Flow Diagram?
A Process Flow Diagram is a schematic representation of a process.
It is in the form of a diagram that uses graphic symbols to depict the nature and flow of
the steps in a process.
41
Why Use Process Flow Diagram
AS-IS Process
To document the logical flow of the process for better understanding of the process.
To document the process for standardisation and unambiguous communication.
To depict intricate relationships between cross functional responsibilities and decision making
Start
Add Ingredients Ingredients SOP
Boil
Boil Time >
5 Min?
Filter
End
N
Y
Search for ingredients
and pots
Activity can be removed
by fixing location for tea
making pots and required
ingredients
Bring ingredients and
pots near to oven
42
IMPROVE
43
Truth of Life
Let’s Face It
Every morning in Africa, a gazelle
awakens. He has only one thought
on his mind - To be able to run faster
than the fastest lion. If he cannot,
then he will be eaten.
Every morning in Africa a lion awakens. He has only one thought on his mind: To be able
to run faster than the slowest gazelle. If he cannot, he will die of hunger.
Whether you choose to be a gazelle or a lion is of no consequence. It is enough to know
that with the rising of the sun, you must run. And you must run faster than you did
yesterday or you will die.
This is the race of life.“
- African Proverb
44
How to find better ways?
The following tools can be used in the improvement phase:
Brainstorming
Cause and Effect Diagram (Covered earlier in PDCA)
5-Why Technique
Benchmarking
45
Brainstorming
Brainstorming is a creative process for generating several solution ideas in a short
period of time.
Benefits
Significantly involves team members and key stakeholders
Provides for more creative solutions
Allows for synergy; building on the ideas of others
Prevents team from initially „settling‟ on only one solution
46
Brainstorming
Brainstorming is a technique where a group of people get to generate ideas. The basic
guidelines for Brainstorming are
Understand the exact issue, topic, or business area that is being focused on
Allow silent time to think
Allow individuals to complete their thoughts
Collect as many ideas as possible
Do not discuss or evaluate ideas
Document ideas
Build on existing ideas
Be precise when stating an idea
Organize, categorize, and evaluate ideas only after the session is completed
Do not dominate the session
47
Brainstorming
Modified Brainstorming
Channeling - An approach to generate a broad range of ideas (several channels) as well
as in large quantities (as many ideas per channel)
Analogy - An approach where the team brainstorms related or analogous issue which
helps unblock people‟s thinking to ensure complete information. Ideas on the analogy are
then translated to the real situation.
Anti-Solution - An approach where the team is asked to think of scenarios in which a
particular option/solution is not available or is assumed that it couldnot be implemented.
The team comes up with ideas as alternatives or the effects of not having the solution.
Brainwriting - An approach where team members list their ideas on a piece of paper.
This removes bias of an experienced or a senior individual in the group.
48
Five Whys Technique
“Five Whys” Technique helps to drill deeper to identify potential root causes by asking “Why”
repeatedly at the drilled down levels.
Example
49
Act Now..
For want of a nail a shoe was lost,
For want of a shoe a horse was lost,
For want of a horse a rider was lost,
For want of a rider an army was lost,
For want of an army a battle was lost,
For want of a battle the war was lost
For want of the war the kingdom was lost,
and all for the want of a little horseshoe nail.
Find out the root cause and fix up the problem. You do not know what you may lose in future if you
don‟t fix it now …
50
Benchmarking
Definition
Benchmarking is the process of continually searching for the best methods, practices and
processes, and either adopting or adapting their good features and implementing them to
become the “best of the best”
Why do we Benchmark?
To identify, establish and achieve standards of excellence based on the realities of the
market.
To measure our products, services and practices against our toughest competitors.
World
Class
51
SUSTAIN
52
SOP
What is SOP?
Standard Operating Procedure (SOP) is a set of written instructions that document a routine
or repetitive activity followed by an organization.
SOP provides the information to perform the job properly and facilitates consistency in the
quality and integrity of a product or end-result.
53
SOP
What is SOP?
Details the regularly recurring work processes.
Documents the way the activities are to be performed
Is specific to the organization whose activities are described.
Minimizes the opportunities for miscommunication and can address safety concerns.
Assists the organization in maintaining their quality control and quality assurance
processes
Is made available to the work areas of the individuals performing the task
54
Control Plan
A Control plan is
A summary of all of the control activities for the process
A method of identifying gaps in the control system
An end output of the Failure Mode Effect Analysis (FMEA)
A long term control strategy that ensures that the improvements will remain effective and
in-control
55
Control Plan
Control Plan Template
Process
Step
What's
Controlled
Spec Limits/
Requirements
How
measured
Sample
Size Freq.
Who
measures Record
Reaction
plan SOP
A comprehensive, documented
control plan is very important to
maintain improved process controls
Can you think of a Control Plan for the Game?
Please see the next page for help.
56
Support different situations by Different Tools
57
Sample Case Studies
1. Reduction in salary related tickets raised in
GHD
2. Reduction in transport cost for Wellspring
centre
Thank You