8 Discipline Methodology (Team Oriented Problem Solving) The SunPower Way

8 Discipline Methodology (Team Oriented Problem Solving)The SunPower Way An essential part ofContinual Improvement and Problem Prevention June 2008

Audience Audience: This class is designed for individuals seeking a basic understanding of the SunPower 8-D Problem Solving Methodology. Prerequisites: SunPower On-boarding Quality Training Time: Course requires 8 hours of classroom instruction.

Workshop Objectives • As a result of attending this course the participant will be able to: • Understand the 8-D method of problem solving and apply it to actual problems. • Be aware of typical problem solving potholes (and what to avoid). • Be able to use basic problem solving tools and techniques leading to root cause analysis, corrective and preventive action and globalization. • Develop a common language within the team to be used for problem solving. • Learn the 5-Why’s method for determining root cause and techniques for problem prevention.

Workshop Outline – The SunPower Way Introduction Overview of 8-D Problem Solving Section I Step 1 –Form the Cross-functional Team Section II Step 2 –Describe the Problem Section III Step 3 –Implement and Verify Interim Containment Section IV Step 4 –Identify and Verify Root Cause Section V Step 5 –Choose and Verify Corrective Action Section VI Step 6 –Implement Permanent Corrective Action Section VII Step 7 –Prevent Recurrence & Globalize Section VIII Step 8 –Congratulate the Team

8D Problem Solving Certification Requirements Overview • Criteria • Complete the 1 day 8D Problem Solving Workshop. • Pass the culmination exam at the conclusion of training.

Desired Results Desired Results from the 8D Problem Solving Workshop . . . .

Problem Solving • Problem Solving Defined • The systematic process used by individuals and teams for defining, analyzing, solving and verifying the solution to complex problems. • Key Points: • Systematic • Individuals and Teams • Complex Problems • 8D stands for 8 Disciplines of Problem Solving • At SunPower we also add ‘prevention of similar problems’ as part of our problem solving definition.

Typical Problem Solving Failures Problem Description is Inaccurate:Effective problem solving needs a clear definition of the problem to be attacked. The statement of the problem must adequately define the problem and be narrow enough in scope for the team to pursue. Skipping Steps:Due to urgency and routing, key steps in the problem solving process are skipped, leading to faulty decisions being made. Lack of Involvement of a Key Individual:Not having the correct team make-up to solve the problem and/or lack of commitment and involvement of team members. Reacting to Symptoms:Team reacts to symptoms rather than conducting root cause analysis.

Problem Solving Benefits • Efficient use of time, energy, and resources in solving problems. • Build a body of knowledge, so that solved problems remain solved. (A core competency for the company) • Increased customer satisfaction. • Enhanced employee involvement. • Reduce the “headache factor”. • Support ISO 9001:2000 efforts within the organization for corrective actions and continual improvement. • Help the organization to achieve bottom line exceptional results.

8-D Problem Solving Applicability • When to Use 8-D • Significant problems ($, customer satisfaction) • At the request of customers. • Systemic, Chronic or Acute problems (Painful). • Cross-functional issues. • Safety Issues • When to not use 8-D • Small problems (low significance) • Things that can be easily fixed. • One time issues that are not likely to be repeated. • Note that “RCCA” is a shortened version of 8D. Its’ use and more detail on when to use 8D is covered in the CAPA system training.

8 Discipline Problem Solving Flow – The SunPower Way Discipline 1 Form the cross-functional team Discipline 8 Congratulate the Team & Closure with Customer Discipline 2 Describe the problem (Document and Analyze) Discipline 7 Prevent Recurrence / Globalize Discipline 3 Implement and Verify Interim Containment Discipline 6 Implement Permanent Corrective Action Discipline 4 Identify and Verify Root Cause Test Solutions Discipline 5 Choose and Verify Corrective Action Robust Cause & Effect Diagram New Ideas Learning 5 Whys RESULT: Solutions that prevent future problems & get us away from fighting fires.

Step 1 –Form the Cross-Functional Team (Overview) • Purpose: To select a cross-functional team to address significant problems at the organization. The teams will have defined roles, including that of sponsor, leader and team members. • Tools: • Team Identification Worksheet

Step 2 –Describe the Problem (Overview) • Purpose: To accurately identify a problem statement that the team can pursue. The team should define a justification for the problem to be pursued and to clarify the parameters of the problem with data. • Tools: • Is / Is Not Worksheet • Photographs • Data Collection Tools (Pareto, Trend or SPC Charts, Logs, Timeline of events, Process flow charts)

Step 3 –Implement & Verify Containment (Overview) • Purpose: To prevent the problem from affecting the customer or to minimize loss to the organization. The containment effort should clearly define actions to be taken and is meant to be a short-term “fix” versus a long term solution. • Tools: • Containment Action Plan (3WI)

Step 4 –Identify & Verify Root Cause (Overview) • Purpose: To determine the underlying cause of the problem being seen so that true remedial corrective actions can be taken. Root cause analysis depends on the interplay between theory/conjecture and data. • Tools: • Cause and Effect Diagram (also called Ishikawa or Fishbone Diagram) • The 5 Why’s • Brainstorming • Pareto Analysis • Trend or SPC Charts

Step 5 –Choose & Verify Corrective Action (Overview) • Purpose: To select the optimal solution to address the identified root cause. Team’s should brainstorm potential corrective actions and select the most efficient and effective solution available. • Tools: • Solution Development Worksheet

Step 6 –Implement Permanent Corrective Action (Overview) • Purpose: To plan and implement selected corrective action(s) and to validate that the solution had the desired effect. • Tools: • 3WI (What, Who, When, Impact) • Data Collection Tools (same as described in Step 2)

Step 7 –Prevent Recurrence & Globalize (Overview) • Purpose: To ensure that actions are taken to prevent similar problems. The team should ensure that implemented solutions are institutionalized and communicated to benefit other parts of the organization. • Tools: • Training • PSC Audits • FMEA (Failure Mode & Effects Analysis) • Poka Yoke (Mistake Proofing) • Documentation • Communication to other sites, product lines, BUs

Step 8 –Congratulate the Team & Closure (Overview) • Purpose: To successfully conclude the team and to recognize the team’s efforts. • Tools: • Cost/Benefit Analysis • Lessons Learned • “Close the Loop” with Customer

CAPA System & Presentation Template The CAPA system (CATSWeb) is used to initiate CAPAs, track progress, document actions taken and serve as a knowledge database. The Corrective Action Presentation Template (001-12590) guides the team at each Discipline to complete the appropriate tools and record the information relevant to the CAPA. These are covered in the CAPA System training course which is a follow-on to this 8D training.

8-D Overview Discussion Questions • Of the 8 Steps of the 8-D, which steps are most likely to be skipped? • What effect will skipping these steps likely have? • Are any of these steps potentially unnecessary? Under what conditions?

Workshop Outline – The SunPower Way Introduction Overview of 8-D Problem Solving Section I Step 1 –Form the Cross-functional Team Section II Step 2 –Describe the Problem Section III Step 3 –Implement and Verify Interim Containment Section IV Step 4 –Identify and Verify Root Cause Section V Step 5 –Choose and Verify Corrective Action Section VI Step 6 –Implement Permanent Corrective Action Section VII Step 7 –Prevent Recurrence & Globalize Section VIII Step 8 –Congratulate the Team 22

Identify that a Problem or Opportunity Exists • There are numerous sources of information to determine that a problem or opportunity exists: • Customer complaints • Failures from internal quality checks • Field failures • Negative data from trend charts • Schedule slips • Opportunities –based on team goals for improvement.

Initial Problem Awareness • Determine if first time or repeat problem • Provide all available information about the issue or accident • Information – Date, Time, Location, Product Details, $ • Sequence of events • Photographs • Reference relevant cases (Complaint, Service call, RMA,…)

Team selection is the critical step where the appropriate resources necessary to address the problem are assigned. What is needed Form a small core group of 5-7 people Select individuals with appropriate skill sets -process, product and technical knowledge and those with vested interest. Allocated Time and team commitment Key tasks Define Team composition and roles. Set high level team objectives Clarify initial problem statement D1: Form the Cross-functional Team

D1: Form the Cross-functional Team • Team Selection – Pick the ‘Top Guns’ • Leader: Coordinates the investigation; Leads the team; Has time allocated • Character fit & experience: Helpful to have project management skills; tenacity; & ability to ask questions • Scribe: Keeps minutes and assignments in an action plan • Sponsor: Supports the team in accessing appropriate resources, assists if the team ‘stalls’, promotes executive awareness • Facilitator: 8D process and team tools expertise; asks questions; guides team on the process • Subject Matter Experts & Consultants • Team Process • Regular meetings • Action Item Tracking • Work with speed / urgency • Communication (internally, externally and regularly)

D1: Selecting Cross-Functional Team Members • Consider the following criteria when selecting likely candidates for a problem solving team: • Able to contribute a unique perspective • Able to be part of a team (logistics) • Have no preconceived notions of “the answer” • Have the authority to affect change Remember, team members can come from a variety of sources.

D1: Problem Solving Team Worksheet - Sample

8-D Step D1 Discussion Questions • What is the likely outcome if a team does not have the right membership to address the problem? • Why may it be hard to enlist team members to the team? What might help? • What is the difference between the Sponsor and the Team Leader?

Describe the problem in QUANTIFIABLE terms. The problem statement should accurately represent the problem the team is trying to solve, and should not pre-suppose an answer. Problem Statement = Problem Description + Measureable Goal. TOOLS Pictures of the problem Flow chart: Determine the process/product flow, and where problem or opportunity was identified, escaped and originated. Timeline of events: Capture series of activities before, during and after the issue was raised or accident happened. Include events that are outside the normal process flow. “Is / Is Not” Table Initial Cause and Effect diagram (fishbone) D2: Describe the Problem

D2: Defining the Problem Statement • The problem statement should have 2 parts: • A description of the problem • A goal statement • The problem description should accurately describe the problem that is being seen (use the Is/Is Not Chart) • Example: 4 customer complaints were received in Q1’08 for having a SPR-220 installation manual packed with SPR-225 modules. • The goal statement should define success criteria and what the team is striving to achieve. • Example: 0 modules delivered with incorrect installation manuals in Q2’08. • Remember, a goal should have an action, a measurable and a timeframe.

D2: Describe the Problem – Is / Is Not Chart

D2: Refining the Problem Statement • Consider the following questions when refining the problem statement. • Do we fully understand the problem symptoms? • Have we considered the process that is being impacted, including the processes inputs and outputs? • Have we clarified the performance gap, “what is expected”? (Remember, if it can’t be measured, it can’t be improved.) • It is important that the team agrees with the problem statement. Be sure to review the problem statement with the team champion.

D2: Problem Statement • Consider the following problem statement: • Modules are being shipped with incorrect documentation. • Is this a good or bad problem statement? • The problem statement can be stated in terms of a goal or a specific negative event or trend that is meant to be improved upon. Example: • In Q1 there were 4 customer reported instances of modules delivered with the wrong installation manual (SPR-220 instead of SPR-225) enclosed in the box. The team’s objective is to reduce the number of modules shipped with the wrong installation manuals to 0 by the end of Q2 ’08.

8-D Step 2 Discussion Questions • A good problem statement has two components. What are they? • Why is it important the team’s problem is measurable? • What is the value of utilizing the Is / Is Not Chart?

Purpose: Define and Implement Interim Containment Actions to isolate the effect of the problem from any internal or external customer until a Permanent Corrective Action has been implemented. Verify the effectiveness of the containment action. D3: Implement and Verify Interim Containment Action (ICA)

D3: Containment Action Examples: If the problem was a leaky roof, the containment action might be to put a bucket underneath the leak. The solution would not be long term, but it would save damage to the floor. If the problem involved product failing at the customer site we would probably want to have an action to address other lots with potentially the same problem. This might include: Increased screening, product recall or customer notifications. If the problem involved schedule slip for a new product the containment might be to shift resources from or temporarily halt another product development project. Remember, containment actions are typically costly and temporary. When considering the cost of containment actions consider the cost of lack of containment. (Customer dissatisfaction, liability, warranty costs)

D3: Containment Action -Tylenol Example: Years ago Tylenol had a problem with tainted product resulting in consumer injuries and death. Their initial containment action was to recall all their product (not just the tainted lot). This containment action cost Tylenol millions of dollars but the cost of lost consumer confidence lost was much higher. Tylenol very rapidly developed and deployed a tamper proof process (that is now the industry norm) that addressed the root cause (that the product could be tampered with once it was on the store shelf). The Tylenol response is an excellent example of containment action.

D3: Containment Action -Typical Examples: • Short term containment action may include: • Identify any other potential lots and quarantine them. • Implement increased inspection of incoming parts/ materials for critical characteristics. • Add more testing to the process before passing to the next step or the customer. • Add verification sign-off that process was performed correctly. • Shut down a tool until further investigation. • Cease using a supplier until investigation is complete.

D3: Containment Action Worksheet (3WI)

8-D Step 3 Discussion Questions • What would happen if containment action were skipped? • Under what conditions would containment action be unnecessary? • What are the key components of a containment plan? • Why are containment actions typically considered temporary?

Purpose: Identify all possible causes. Then isolate and verify root causes. Steps Identify what is new or different based on the “Is / Is Not” analysis. Identify the most likely causes from the cause and effect diagram Perform data analysis to verify the “theory” of root cause Do a 5-why’s analysis Verify most probable root cause(s) identified in the 5-why’s analysis D4: Identify and Verify Root Cause

D4: Root Cause Analysis Tools • Problems have a way of coming back again and again. We think we have it solved, only to find the problem back again. • Like a weed, a problem may only be removed by getting to the root cause. • Root cause analysis involves the systematic review of data to identify causality. Some tools to help in this analysis are: • Cause and Effect Diagrams • 5-Whys analysis • Brainstorming • Process Flow Analysis • Timeline of Events • Pareto Analysis • SPC or Trend Charts • Logsheets

D4: Root Cause Analysis Process Flow

Team Brainstorming Brainstorming is a technique used by a group to generate ideas about a particular topic. The intent of brainstorming is to generate as many ideas as possible without scrutiny or criticism during the process. Evaluation does not take place until all ideas have been recorded. Listed below are three proven methods to facilitate brainstorming. Brainstorming is used during every phase of problem solving, from the identification of a problem to pursue and the selection of team members to the considering of potential solutions. Brainstorming is especially important when developing ideas on Root Cause Analysis.

Brainstorming Guidelines • The idea for brainstorming is to generate a lot of ideas on a given topic. Some guidelines to help: • No criticism during brainstorming. • The more ideas generated, the better. (Wild ideas are O.K.) • Everyone gets a chance to contribute. • Only one person at a time speaks. • All ideas are recorded. • It is O.K. to build on someone else’s ideas.

Team Brainstorming Typical Brainstorming Methods include: Free Wheeling: Unstructured free flow of ideas. Everyone shouts out their ideas and these ideas are captured by a recorder. The session continues until there are no more inputs. Advantage is lot’s of ideas. Disadvantage is the chance for one person to dominate and it can be somewhat chaotic. Round Robin: More structured, one person speaks at a time, everyone gets a chance to contribute. If someone doesn’t have anything to contribute they “pass”. Advantage is everyone participates. Disadvantage is it may seem somewhat stifling to team members who have to “wait their turn”. Nominal Group Technique (NGT): Sticky pad method. To provide anonymity and independence of thoughts, the Sticky Pad Method (NGT) is often used where ideas are generated on sticky pads and then posted on the board anonymously. Advantage is independent thought and anonymity for sensitive issues. Disadvantage is the process is more time consuming.

8 Discipline Methodology (Team Oriented Problem Solving) The SunPower Way