Project Management, Process Mapping, and Failure Mode and Effects Analysis

Leon Spackman PMP, LSS Master Black Belt Kirtland Federal Credit Union

Agenda
Project Management Process mapping What is FMEA? When do you use it? How do you use it? How do you interpret a FMEA? Pareto Charts--show results
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Project Management
InitiateSelect project, define initial scope PlanEstablish schedule, budget, team, risk, communications, project management plan ExecuteWork the plan Monitor and ControlQuality control, monitor schedule/budget, corrective actions CloseVerify scope, deliver results, close contracts and project

Project Definition
Temporary endeavor with beginning and end Creates unique product or service Know more about the project as it progresses

Project Management
Multiple processes in project management PMI defines the high level process Project processes should be defined clearly and understood by all on the project team Lean efficient processes result in successful projects
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Integration Management Process (1)

Develop project charter Develop preliminary project scope statement Develop project management plan Direct and manage project execution Monitor and control project work Integrated change control Close project
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Scope Management Process (2)

Scope planning Scope definition Create Work Breakdown Structure Scope verification Scope control

Time Management Process (3)

Activity definition Activity sequencing Activity resource estimating Activity duration estimating Schedule development Schedule control

Cost Management Process (4)

Cost estimating Cost budgeting Cost control

Quality Management Process (5)

Quality planning Perform quality assurance Perform quality control

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HR Management Process (6)

Human resource planning Acquire project team Develop project team Manage project team

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Communications Management Process (7)

Communications planning Information distribution Performance reporting Manage stakeholders

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Risk Management Process (8)

Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control

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Procurement Management Process (9)

Plan purchases and acquisitions Plan contracting Request seller responses Select sellers Contract administration Contract closure

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Project Management Tools

Charter WBS Network Diagrams Earned Value Bar/Milestone Charts Monte Carlo Analysis Communication matrix Fishbone Diagram Risk Plan/Matrix Contracting Tools/types Fast Tracking Crashing Cost Estimating
Analogous Bottom-up Parametric
Control Charts

Scatter Diagram Design of Experiments Motivation Theories

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Lessons Learned
Lean Six Sigma projects must use sound project management principles
Initiatingproject selection criteria Planningoften not done Team building tools Communicationmore is needed Risk Managementoften not done Stakeholder management Milestones (schedule management) Closewrap up, have a party, release resources
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Lessons Learned
Project Managers must eliminate waste, and improve their processes Clearly define how projects will be selected establish and map the process Establish templates and mistake-proof processes as much as possible Emphasize doing it right the first time (First Pass Yield) Eliminate waste in the projectLook for clutter, rework, bottlenecks, and uneven work load Gather metrics and use statistical tools if appropriate
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Lessons Learned
Project Managers must eliminate waste, and improve their processes Spend time finding root causesdont just use a band-aid fix Manage using process mentality (Remember:Y=f(x)) Map processes

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Process Mapping
Before we can manage processes, we must identify, define, and centralize them Provides a clear, visual way to examine processes Helps identify redundancies, waste, and weaknesses

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Why Map Processes?

The way you think it is.

What the customer expects, and is willing to pay for.

The way it really functions.

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Micro-Level Processes

Payroll

Collect Emp. Data

Collect Timesheet Info

Calculate Pay, Benefits, etc

Cut Check or Direct Deposit

Update Vac, sick time, YTD info

Send/make pay info available

End Process

Detailed steps that must be followed in order to produce a product/result.

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Macro-Level Processes
Mid level detail showing how an overall task or deliverable is accomplished.
Business Deployment Management Responsibility

Gather inputs from One-Page Strategy and Quarterly Plan

Quarterly Plan Updated

Incentive Goals negotiated with Managers

Incentive Plan goals scored quarterly

Incentive Goals negotiated with all other employees

Incentive Plan Progress reviewed monthly

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Business System--High Level Relationships Across Functions

Organization

Human Resources

Engineering

Finance

Marketing

Operations

Department

Department

Department

Department

Department

Department

Department

Department

Department

Department

Department

Department

Department

Department

Department

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Process Symbols
Boundary Reference Document

Task

Multiple Documents

Decision

Data Base

Embedded Process

Connector

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Putting It All Together

No

Data Base

Yes

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Interactive Electronic Map

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Online Electronic Document

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What is FMEA?
FMEA--a tool to identify risks in your process Can be used in multiple places in process improvement
Determine where problems are Help identify cause/effect relationships Highlight risks in solutions and actions to take

Starts with input from processes Identifies three risk categories

Severity of impact Probability of occurrence Ability to detect the occurrence
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When to Use
Early stages (Define) to understand process and identify problem areas Analyze data (Analyze) to help identify root causes Determine best solutions (Improve) with lowest risk Close out stage (Control) to document improvement and identify actions needed to continue to reduce risk

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FMEA Worksheet
Process or Product Name Person Responsible
Process Step Key Process Input Potential Failure Mode Potential Failure Effect S e v Potential Causes

Prepared by:

Page _____ of ______

Date (Orig) ___________ Revised __________

O Current c Controls c

D R Actions e P Recommended t N

S e v

O D R c e P c t N

Sev - Severity of the failure (what impact will it have on our process?) Occ How likely is the event to occur (probability of occurrence) Det How likely can the event be detected in time to do something about it RPN Risk Priority Number (multiply Sev, Occ, and Det)

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How To Complete the FMEA

General Suggestions Use large white board or flip chart with a FMEA form drawn on it during the generation phase Focus the team on the specific area of study (product or process). Have process map available Have all subassemblies and component part of a product.

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Process for FMEA

Process to Change Oil in a Car

3000 miles Run

Drive car on lift

Drain Oil

Replace Filter

Fill with new oil

Take Car off lift

Process Complete

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How to Complete the FMEA

Step 1. Complete header information Step 2. Identify steps in the process Step 3. Brainstorm potential ways the area of study could theoretically fail (failure modes) Suggestion: Use Affinity Diagram as a brainstorming tool
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FMEA Worksheet
Process or Product Name Person Responsible
Process Step Key Process Input

Change Oil in Car Leon Mechanic

Prepared by: Leon

Page _1____ of __1____

Date (Orig) __27 Sep 2007___ Revised __________

Potential Failure Mode

Potential Failure Effect

S e v

Potential Causes

O Current c Controls c

D R Actions e P Recommended t N

S e v

O D R c e P c t N

Fill with new oil

New Oil Mech anic

Wrong type of oil

No oil added

Engine wear

Engine Failure

Sev - Severity of the failure (what impact will it have on our process?) Occ How likely is the event to occur (probability of occurrence) Det How likely can the event be detected in time to do something about it RPN Risk Priority Number (multiply Sev, Occ, and Det)

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How to Complete a FMEA

Step 4 For each failure mode, determine impact or effect on the product or operation using criteria table (next slide) Rate this impact in the column labeled SEV (severity)

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Severity (SEV) Rating

SEV
1 2 3 4 5 6

Severity
None Very Minor Minor Very Low Low Moderate No effect

Product/Process Criteria
Defect would be noticed by most discriminating customers. A portion of the product may have to be reworked on line but out of station Defect would be noticed by average customers. A portion of the product (<100%) may have to be reworked on line but out of station Defect would be noticed by most customers. 100% of the product may have to be sorted and a portion (<100%) reworked Comfort/convenience item(s) would be operable at a reduced level of performance. 100% of the product may have to be reworked Comfort/convenience item(s) would be inoperable. A portion (<100%) of the product may have to be scrapped

7
8 9 10

High
Very High Hazardous Warning Hazardous w/out Warning

Product would be operable with reduced primary function. Product may have to be sorted and a portion (<100%) scrapped.
Product would experience complete loss of primary function. 100% of the product may have to be scrapped Failure would endanger machine or operator with a warning Failure would endanger machine or operator without a warning

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FMEA Worksheet
Process or Product Name Person Responsible
Process Step Key Process Input

Change Oil in Car Leon Mechanic

Prepared by: Leon

Page _____ of ______

Date (Orig) __27 Sep 2007___ Revised __________

Potential Failure Mode

Potential Failure Effect

S e v

Potential Causes

O Current c Controls c

D R Actions e P Recommended t N

S e v

O D R c e P c t N

Fill with new oil

New Oil Mech anic

Wrong type of oil

No oil added

Engine wear

Engine Failure

1 0

Sev - Severity of the failure (what impact will it have on our process?) Occ How likely is the event to occur (probability of occurrence) Det How likely can the event be detected in time to do something about it RPN Risk Priority Number (multiply Sev, Occ, and Det)

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How to Complete a FMEA

Step 5 For each potential failure mode identify one or more potential causes (Could use Affinity Diagram again to brainstorm ideas) Rate the probability of each potential cause occurring based on criteria table (next slide) Place the rating in the column labeled OCC (occurrence).

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FMEA Occurrence (OCC Rating)

OCC
1 2 3 4 5 6 7 8 9 10

Occurrence
Remote Low Low Moderate Moderate Moderate High High Very High Very High

Criteria
1 in 1,500,000 Very unlikely to occur 1 in 150,000 1 in 15,000 Unlikely to occur 1 in 2,000 1 in 400 Moderate chance to occur 1 in 80 1 in 20 High probability that the event will occur 1 in 8 1 in 3 Almost certain to occur > 1 in 2 39

FMEA Worksheet
Process or Product Name Person Responsible
Process Step Key Process Input

Change Oil in Car Leon Mechanic

Prepared by: Leon

Page _____ of ______

Date (Orig) __27 Sep 2007___ Revised __________

Potential Failure Mode

Potential Failure Effect

S e v

Potential Causes

O Current c Controls c

D R Actions e P Recommended t N

S e v

O D R c e P c t N

Fill with new oil

New Oil Mech anic

Wrong type of oil

No oil added

Engine wear

2 Mislabeled

Engine Failure

1 Hurrying 0

Sev - Severity of the failure (what impact will it have on our process?) Occ How likely is the event to occur (probability of occurrence) Det How likely can the event be detected in time to do something about it RPN Risk Priority Number (multiply Sev, Occ, and Det)

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How to Complete the FMEA

Step 6 Identify current controls or detection Rate ability of each current control to prevent or detect the failure mode once it occurs using criteria table (next slide) Place rating in Det column

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FMEA Detection (DET) Rating

DET Detection
1 2 3 4 5 6 7 8 9 Almost Certain Very High High Mod. High Moderate Low Very Low Remote Very Remote

Criteria
Current Controls are almost certain to detect/prevent the failure mode Very high likelihood that current controls will detect/prevent the failure mode High Likelihood that current controls will detect/prevent the failure mode Moderately High likelihood that current controls will detect/prevent the failure mode High Likelihood that current controls will detect/prevent the failure mode Low likelihood that current controls will detect/prevent failure mode Very Low likelihood that current controls will detect /prevent the failure mode Remote likelihood that current controls will detect/prevent the failure mode Very remote likelihood that current controls will detect/prevent the failure mode 42

FMEA Worksheet
Process or Product Name Person Responsible
Process Step Fill with new oil Key Process Input New Oil from supplier

Change Oil in Car Leon Mechanic

Prepared by: Leon

Page _____ of ______

Date (Orig) __27 Sep 2007___ Revised __________

Potential Failure Mode Wrong type of oil No oil added

Potential Failure Effect Engine wear

S e v 2

Potential Causes Misread oil chart for vehicle Hurrying

O Current c Controls c 3 None

D RPN e t 9

Actions Recommended

S e v

O D R c e P c t N

Engine Failure

1 0

Engine light

Sev - Severity of the failure (what impact will it have on our process?) Occ How likely is the event to occur (probability of occurrence) Det How likely can the event be detected in time to do something about it RPN Risk Priority Number (multiply Sev, Occ, and Det)

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How to Complete the FMEA

Step 7 Multiply SEV, OCC and DET ratings and place the value in the RPN (risk priority number) column. The largest RPN numbers should get the greatest focus. For those RPN numbers which warrant corrective action, recommended actions and the person responsible for implementation should be listed.
Sev x Occ x Det = RPN
Process Step Fill with new oil Key Process Input New Oil from supplier Potential Failure Mode Wrong type of oil Potential Failure Effect Engine wear S e v 2 Potential Causes Misread oil chart for vehicle O c c 3

( 2 x 3 x 9 = 54 )
Current Controls None D e t 9 RPN Actions Recommended S e v O c c D e t R P N

54

No oil added

Engine Failure

1 0

Hurrying

Engine light

90

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FMEA Rankings
Rating High10

Severity
Hazardous without warning
Loss of primary function

Occurrence

Detection

Very high and almost Cannot detect or detection inevitable with very low probability
High repeated failures Remote or low chance of detection Low detection probability Moderate detection probability Almost certain detection

Loss of secondary Moderate failures function Minor defect No effect Occasional failures Failure Unlikely

Low 1
Source: The Black Belt Memory Jogger, Six Sigma Academy

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Action Results
Step 8

After corrective action has been taken, place summary of the results in the Actions Recommended block Assign new value for:
Severity Occurrence Detection

Calculate new RPN number

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FMEA Worksheet
Process or Product Name Person Responsible
Process Step Fill with new oil Key Process Input New Oil from supplier

Change Oil in Car Leon Mechanic

Prepared by: Leon

Page _____ of ______

Date (Orig) __27 Sep 2007___ Revised __________

Potential Failure Mode Wrong type of oil No oil added

Potential Failure Effect Engine wear

S e v 2

Potential Causes Misread oil chart for vehicle Hurrying

O Current c Controls c 3 None

D RPN e t 9 54

Actions Recommended

S e v

O c c

D R e P t N

Engine Failure

1 0

Engine light

3 90

Oil level checked by partner

1 0

3 0

Sev - Severity of the failure (what impact will it have on our process?) Occ How likely is the event to occur (probability of occurrence) Det How likely can the event be detected in time to do something about it RPN Risk Priority Number (multiply Sev, Occ, and Det)

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FMEA Example
Process or Product Name: Person Responsible: Process Step Key Process Input Service Desk Hotel Service at Special Olympics Joe Quality Potential Failure Mode Cannot Register in time Potential Failure Effect Complaints S e v 5 Potential Causes Prepared by: Page _____ of ______ Date (Orig) ___________ Revised __________ O c c 4 Current Controls D e t 3 R P N 72 Actions Recommended S e v O c c D e t R P N

Register guest

Lack of language and communicat ion skills, support of volunteers not sufficient Cannot provide barrier-free facility Past shelf life

No plan on training content; training and volunteer support sufficient

Provide Guest Services

Guest Support

Lack of barrierfree facility Food goes bad

Inconvenien ce and injury

10

Providing barrier-free facility

210

Provide Meals

Food Service

Disease or injury

10

No control of raw material

240

Provide Medical Service

Medical Service

Service not in time

Illness changes for worse

10

No 24 Hour service

12 hour service

180

Source: Quality Digest/ August 2006 Quality Service at the Special Olympics World Games, Tang Xiaofen

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Summary
FMEA identifies risk in our processes
Impact/Severity Probability of Occurrence Detection

Helps identify what can go wrong and what we should fix Can be used in multiple stages of process improvement
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Continuous Improvement
Process improvement not a linear process Never really ends Journey not a destination
Define Control Measure

Improve

Analyze
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Challenge

We are what we repeatedly do. Excellence, therefore, is not an act but a habit. -- Aristotle

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Questions
Leon Spackman leon415@comcast.net (505) 254-4330 (Work) (505) 401-8850 (Cell)

Group Exercise
Build a FMEA to identify problem areas to be addressed in your process (Cake Baking)
Identify process step(s) to analyze Use Affinity Diagram to brainstorm for possible failure modes, effects, causes and detection controls Rate severity, occurrence, and detection Analyze results with a Pareto Chart

Report to the group

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Baking a Cake
Birthday Arrives Select Type of cake Get Recipe Mix Dry Ingredients

Add Liquid Ingredients

Bake

Frost and Decorate

Serve at Party

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Pareto Chart
Sorted Bar Chart with the bars arranged in descending order from left to right Useful in taking a spreadsheet of data and showing which category stands out from the rest. Identify where the biggest pain occurs in process Help determine where to focus our efforts Based on 80/20 rule
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Pareto ChartExample
Pareto Chart--Special Olympics
Risk Priority Number
300 250 200 150 100 50 0 Food goes bad Lack of barrier-free facility Medical service not in time Cannot Register in Time

Failure Modes
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Pareto Chart--Example

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Pareto Chart Hints

Must have category/attribute data List categories in descending order on horizontal line & frequencies on vertical line Break down tall pole into another Pareto Chart for further analysis Involve customer/sponsor in selecting area to focus on
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