Transcript Risk Assessment Instructions

I11.2 – Assess Risks
Improve
1
Generate
Alternative
Solutions
Gather Data
• Research process
history
• Identify constraints
• Understand
operating
environment
Develop Possible
Alternatives
• Brainstorming
• Creative Thinking
• Benchmarking
• Process Mapping
• Mistake Proofing
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2
Assess Risks
• Risk Assessment
Tool
• Failure Mode
Effects Analysis
(FMEA)
Run Trial
Experiments to Test
Alternatives
• Small-scale
experiments
4
Evaluate and
Select Best
Alternatives
• Graphing Tools
• Hypothesis
Testing
• Capability
Analysis
• Criteria-Based
Decision Matrix
Screen Alternatives
• “Musts” Criteria
• N/3 Voting
• Payoff Matrix
Green Belt – v2.1 – Updated September 7, 2004
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I11.2 – Assess Risks
Improve
Two aspects of assessing risk
Remember, implementing any change successfully has two aspects:
Technical quality of the proposed solution
Acceptance by those affected and the stakeholders
Technical quality
Acceptance
Customers
Do we risk exposing
customers to potential
defects?
Will the customers accept
the change?
Employees
Will the new process impact
the safety of employees?
Will the employees buy-in to
the change?
Business
Compliance
Will the new process adversely Have the key business
affect business goals, such as stakeholders bought into the
change?
cost or schedule?
Are there any compliance
issues?
Green Belt – v2.1 – Updated September 7, 2004
Will stakeholders (govt, etc.)
accept the new procedures?
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Improve
I11.2 – Assess Risks
Risk Assessment Steps
1. Identify Risks
2. Analyze Risks
3. Plan, Communicate, and Implement Abatement Activities
Risk Assessment Tools
Risk Assessment Spreadsheet, available in Quality Coach
FMEA Spreadsheet, available in Quality Coach
Green Belt – v2.1 – Updated September 7, 2004
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I11.2 – Assess Risks
Improve
4
Risk Assessment Tool
Risk Area #___
Last revised on:
Team members:
Risk Issue (group by sub-category)
Initial R/O/
Prob Imp Score Y/G
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number
Red
0
Orange
0
Yellow
0
Green
0
Total
0
Green Belt – v2.1 – Updated September 7, 2004
Abatement Action
Rev
Red Red Rev R/O/
Prob Imp Score Y/G
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number
Red
0
Orange
0
Yellow
0
Green
0
Total
0
Owner
Measure of
Success
Est.
Com p.
Date
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I11.2 – Assess Risks
Improve
1.
2.
5
Identify Risks
Analyze Risks.
Risk Area #___
Last revised on:
Team members:
Risk Issue (group by sub-category)
Initial R/O/
Prob Imp Score Y/G
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Customers
(SBUs, Plants, External
Customers)
Employees
Business
(CFO, Business Strategy)
Compliance
(Corporate Core Values, Safety, Red
Travel, HR Regulations)
Orange
Yellow
Green
Total
Green Belt – v2.1 – Updated September 7, 2004
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number
0
0
0
0
0
Abatement Action
Rev
Red Red Rev R/O/
Prob Imp Score Y/G
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number
Red
0
Orange
0
Yellow
0
Green
0
Total
0
Owner
Measure of
Success
Est.
Com p.
Date
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Green Belt – v2.1 – Updated September 7, 2004
I11.2 – Assess Risks
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Improve
I11.2 – Assess Risks
Risk Probability and Impact
Green Belt – v2.1 – Updated September 7, 2004
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I11.2 – Assess Risks
Improve
3.
8
Plan, Communicate & Implement Abatement Activities
Risk Area #___
Last revised on:
Team members:
Risk Issue (group by sub-category)
Initial R/O/
Prob Imp Score Y/G
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Red
Orange
Yellow
Green
Total
Green Belt – v2.1 – Updated September 7, 2004
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number
0
0
0
0
0
Abatement Action
Rev
Red Red Rev R/O/
Prob Imp Score Y/G
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Number
Red
0
Orange
0
Yellow
0
Green
0
Total
0
Owner
Measure of
Success
Est.
Com p.
Date
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I11.2 – Assess Risks
Improve
Risk Assessment Example
Risk Area # 1
Last revised on: October 98
Team members: Ken (GE), John (FPI), Pat (Latitude)
Risk Issue (group by sub-category)
System Availability
Can't schedule calls (over capacity)
Initial R/O/
Prob Imp Score Y/G
3
5
15
O
Can't schedule/attend (server down)
3
5
15
O
Issues w/ critical GE/Client call
1
5
5
Y
3
5
15
O
VP admins uncomfortable with system
5
3
15
O
User errors scheduling calls
3
1
3
G
No operator on-line to address issues
5
3
15
O
5
1
5
Y
3
1
3
G
User Acceptance
Users unaware of new MP service
Business Benefits
Sprint service still used for calls
Incorrect billing for system service
Red
Orange
Yellow
Green
Total
Green Belt – v2.1 – Updated September 7, 2004
Number
0
5
2
2
9
Abatement Action
Rev
Red Red Rev R/O/
Prob Imp Score Y/G
Owner
Borrow additional ports from Latitude to ensure
enough capacity until steady state achieved
Latitude to provide "hot spare" server in CA to
back up GE server in case of server failure
Keep Sprint service available, permit Sprint
usage for critical calls w/ GE or clients
1
5
5
Y
Pat (Lat)
1
5
5
Y
Pat (Lat)
1
1
1
G
Ken (GE)
Create communication plan to inform users of
benefits and implementation schedule
Hold special training session for VP admins,
create "hot line" to operator for VP admins
Hold training sessions, create wallet-size tip
cards, set up user profiles
Connect FPI operator to "0" on MeetingPlace
conference calls, permit special calls
1
2
2
G
Ken (GE)
3
1
3
G
1
1
1
G
1
3
3
G
Monitor Sprint usage on monthly basis, analyze
trends, notify users of lost savings
Do not bill users for first 3 months to ensure
effective switchover, internal bill afterwards
3
1
3
G
Ken (GE)
1
1
1
G
John (FPI)
Red
Orange
Yellow
Green
Total
Measure of
Success
Est.
Com p.
Date
Additional ports Nov-98
tested
Hot spare
Nov-98
transition tested
Sprint service
Oct-98
still available
All comms sent
to new users
John (FPI)
VP Admin
training held
John (FPI)
Training
sessions held
John (FPI) "0" to operator
tested
Sprint usage
down to 10%
No billing until
April
Jan-99
Jan-99
Jan-99
Nov-98
Apr-99
Apr-99
Number
0
0
2
7
9
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I11.2 – Assess Risks
Improve
Failure Modes & Effects Analysis
FMEA is a process for systematically identifying
potential problems.
FMEA is used to:
 Identify
What Can Fail
 Identify How It Can Fail
 Estimate Risk of Failure
 Determine Effect of Failure
 Evaluate Control Plans
 Prioritize Actions
Green Belt – v2.1 – Updated September 7, 2004
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I11.2 – Assess Risks
Improve
11
Failure Modes & Effects Analysis Spreadsheet
Total Risk Priority Number
Green Belt – v2.1 – Updated September 7, 2004
Resulting Risk Priority Number
Beauchamp Consulting – Proprietary and Confidential
RPN
Detection
Action
Taken
Occurrence
Responsibility
And Target
Recommended Completion
Action
Date
Severity
RPN
Current
Controls
Detection
Action Results
Occurrence
Potential
Failure
Mode
FMEA Process
Potential
Cause(s)
Of
Failure
Severity
Process
Step
Potential
Effect(s)
Of
Failure
I11.2 – Assess Risks
Improve
S
FMEA Guidelines for the ratings
O
D
RPN = S x O x D
Green Belt – v2.1 – Updated September 7, 2004
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I11.2 - FMEA v Risk Assessment Spreadsheet
Improve
Similarities





Excel Spreadsheets
Encourage team participation
Use numbers for ranking and prioritizing
Are revisited as the improvements/abatement actions are taken
It’s the process that’s important … Not the Numbers.
Differences

Risk Assessment looks at risk at a higher level for a potential solution
o
Technical and Cultural (Acceptance)

All projects should have a risk assessment, particularly before a
pilot/solution
 FMEA takes a much more detailed look at failure modes that would
cause the solution to fail.
o
o
o
Technical
Good for projects where process is major contributor to defects
Good where solution is a new product or process
Green Belt – v2.1 – Updated September 7, 2004
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