CHAPTER 6 TOOLS

• Tools


  Strategic tools and frameworks that assist organizations in making informed decisions, formulating effective strategies, and managing various aspects of their operations
• Criteria Elements

  • Consistency - Allows measurement
  • Predictability - Operations decision-making
  • Minimal Variability - Process optimization
• Doing it once, and doing it right is a much better operating practice and in general, error avoidance is superior to error detection
• Histograms


  Charts that show the frequency distribution of numerical data using rectangles, each of which represents intervals. They display the probability distribution of a continuous variable.
• Control Charts


  One of the seven basic tools of quality and although it is widely used by quality control specialists, it is seldom known, and even less frequently used, by internal auditors. A graph used to plot and study how a process changes over time. Data are plotted in time order, in a similar fashion as run charts.
• Pareto Chart


  A type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line. The Pareto principle, also known as the 80/20 rule, posits that for many events approximately 80% of the effects are caused by 20% of the causes.
• Fishbone (Ishikawa) diagram


  One of the best tools to identify contributing causes of an issue, and hone into the root cause most accurately
• Fishbone (Ishikawa) diagram


  • Helps auditors organize their thoughts and systematically investigate the causes of operational issues
  • The name fishbone diagram is due to its shape, which is similar to the side view of a fish skeleton
• Categories used in fishbone (Ishikawa) diagram

  • Manpower / People
  • Methods
  • Machines
  • Materials
  • Measurements
  • Mother Nature / Environment
• 6M


  Mnemonic to remember the 6 categories used in fishbone (Ishikawa) diagram
• Force Field Analysis


  A method to identify factors that contribute to achieving a desired outcome (driving forces) and those that hinder it (restraining forces)
• How to create a Force Field Analysis

  1. Identify the Objective

  2. List Driving Forces

  3. List Restraining Forces

  4. Assign Weightings

  5. Analyze the Balance
• Flowchart / Process Flow Map / Value Stream Map


  A diagram that represents a workflow or process, showing the steps in the form of boxes of different shapes and the order or sequence of events by connecting the items with arrows
• Flowchart / Process Flow Map / Value Stream Map


  • Illustrate the sequence of steps, activities, decisions, and interactions involved in a process from start to finish
  • Provide auditors with a clear understanding of how processes are executed, facilitating identification of inefficiencies, bottlenecks, and areas for improvement
  • Indicate operations performed in detail, which can be very helpful to search for efficiencies
• Common symbols used when drawing flowcharts

  • (various flowchart symbols)
• Common Process Improvement Areas

  • Backlogs
  • Cycle time
• Takt Time


  Rate at which the production operation produces output, derived from the German word "takzeit" meaning "rhythm"
• Lead Time


  Time from the initiation to the completion of a process
• Eight Areas of Waste

  • Transporting
  • Unnecessary Inventory
  • Excess Motion
  • Waiting
  • Unnecessary Processing or Paperwork
  • Defects
  • Overproductions
  • Underutilized Employees
• Affinity Diagram/KJ Analysis


  Tools that can help auditors organize ideas and large amounts of data
• Check Sheet


  A structured form or document used to collect and analyze data, often done real time where the data are generated or collected
• Scatter Diagram


  A visual tool for analyzing pairs of numerical data and showing the relationship between two variables
• Suppliers, Inputs, Process, Outputs, and Customers Map

  1. Summarize the participants, inputs and outputs of a process

  2. Identify all relevant elements of a process before work begins

  3. Define risk exposures, size of operation, audit coverage, and customer requirements
• Suppliers, Inputs, Process, Outputs, and Customers Map


  • Helps answer questions about who supplies inputs, what is supplied, how critical the inputs are, high-level process breakdown, what the process produces, who the customers are, and what the customer requirements are
• Poka Yoke


  A mechanism in a process that helps operators avoid mistakes
• Poka Yoke


  • Divided into control approach (process stops on defect) and warning approach (gives warning of defect)
  • Includes contact methods, counting/fixed-value methods
• Poka Yoke Examples

  • Machine won't operate without door closed
  • Fixture design to hold part in correct orientation
  • Sensors to detect missing parts
  • Two-hand operation to prevent accidents
• Five Whys


  A root cause analysis tool that involves repeatedly asking "why" to determine the underlying cause of a problem
• Benchmarking


  The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies
• Five Whys technique

  • Collaborative approach that involves cross-functional teams working together to analyze and solve problems
  • Helps to tap into diverse perspectives and expertise, leading to more comprehensive solutions
• Benchmarking


  The process of comparing an organization's performance, processes, practices, or metrics against those of industry peers, competitors, or best-in-class organizations
• Typical metrics used in benchmarking are time, quality, and cost
• Obtaining benchmarking information

  1. Not always necessary to have face-to-face contact with other organizations

  2. Information available in news, trade publications, professional journals, annual reports, and online databases

  3. If gathered personally, there must be an agreement regarding confidentiality and a plan to share the information collected with all benchmarking partners
• Benchmarking examples

  • Time benchmarking: Order processing time, customer waiting time
  • Cost benchmarking: Ingredient costs, operating expenses
  • Quality benchmarking: Product ingredients, customer satisfaction
• Work Breakdown Structure (WBS)


  A deliverable-oriented grouping of project elements that organizes and defines the work scope of the project. Each descending level represents an increasingly detailed definition of the project work.
• 5S


  A workplace method that uses a list of five Japanese words to describe how to clear, organize, and maintain the workspace for efficiency and effectiveness by identifying, storing, and maintaining the items used, maintaining the physical space and items, and sustaining the arrangement
• 5S


  • Seiri
  • Seiton
  • Seiso
  • Seiketsu
  • Shitsuke
• Responsible (in RACI)


  Describes those responsible for performing the task and refers to those who do the work to achieve the task
• Accountable (in RACI)


  Identifies the person that approves the completed activity. Since an approval should always include a review prior to the sign off, this person is accountable for the completion of the activity according to established standards
• Consulted (in RACI)


  Those whose knowledge is important for the successful completion of the task are identified as consulted. Their opinions and skills are sought, so they are team members or subject matter experts