improve – i intro - getting to tangible action john conway – pro-dairy

Improve – IIntro - Getting to Tangible Action

John Conway – PRO-DAIRY

Northeast Center for Risk Management Education


Day 2*What was Learned/Gained from Actions Taken over Week? (20)

*Improve - I: Improving intro - Getting to Tangible Action (10)

*Improve - II: Problem Diagnosis -- Measure & Analyze (40)

*Improve - III: Explore, Create, Judge & Decide (40)

*Improve - IV: Getting from Idea to Implementation (40)

*Improve - V: Pitfalls -- Finding the Time to Implement (30)

*Improve - VI: Overview of "Change Campaign" (Change, Conflict, Communication) (30)

*Is it Working? Measured Impacts (Control) (20)

*Next Steps – SWOT Analysis Challenge & Course Evaluation (15)

MeasureDetermine appropriatemeasures, apply and

compare with benchmarks

AnalyzeDetermine root cause(s)

of sub optimal perf ormance or accept current perf ormance

ControlDetermine measures and perf ormance standards –

“I s it working”?

I mproveCombine alternative generation,

decision making and tactical planning

DefineCompelling Vision of

Business Translated through Goals and into Systems of

Interest defineDetermine interactions

among systems and “where to look”

AnalyzeDetermine root cause(s)

of sub optimal performance or accept current performance

ImproveCombine alternative generation,

decision making and tactical planning

ControlDetermine measures and performance standards –

“Is it working”?

DMAIC* Approachto Problem Solving

and Continuous Improvement

*adapted from Six Sigma

MeasureDetermine appropriatemeasures, apply and

compare with benchmarks

We’re Going Here(at all levels)

Strategic Operations Systems Processes

C = D x V x F > RChange occurs when Dissatisfaction

with the status quo times Vision of

something better times the energy to

take the First step is greater than the

Resistance. Borrowed from Dr. Ken Sanderson, DVM

“Improving” infers “Change”, and change has its tough side…

Improve - IIProblem Diagnosis

Measure, Analyze, get to the Root Cause



You are here

Define

Analyze

Improve

Control



*adapted from Six Sigma Measure

Case Farm or Your Farm Shorter Term Supporting “SMART” Goals

Specific, Measurable, Attainable, Rewarding, Timed - Goals

DRIVE Goal # 1:

Supporting SMART Goal:


Improve Profitability (indexed to standardized milk price)

Fix our “who does what” and responsibility problem by 12/07

Increase Corn Silage Dry Matter Fed by 10%, Measured March 15, 2008

Your SMART Goals infer that something is either:

Unmet – compared to where you think you could be

Unset – never thought of it as something to shoot for

or

Conflicting – two or more items at odds with one another

Case Farm or Your Farm Shorter Term Supporting “SMART” Goals

Specific, Measurable, Attainable, Rewarding, Timed - Goals

DRIVE Goal # 1:



Improve Profitability (indexed to standardized milk price)

Fix our “who does what” and responsibility problem by 12/07

Increase Corn Silage Dry Matter Fed by 10%, Measured March 15, 2008

So re-stating a goal in terms of a problem makes it easierto work with:

Everyone does a little of everything and consequently no-one stays on top of performance

We technically have plenty of corn acres, but never seem to have enough to bridge from January to January

Now you have something you can diagnose…

Why?

The last word in problem diagnosis:

(and sometimes “so”)

Insufficient root cause analysis (problem diagnosis) can leave you frustrated!

“This farm business is just not cutting it anymore for the needs of my family.”

“Cows are not milking like they were a year ago.”

“Darn! We’re down 3 pounds per cow this morning.”

Is there likely a deeper “why” to these often heard statements? What kinds of data would you mine to get to the root cause(s):

“Two thirds of our grass hay crop tests over 64% NDF.”

“Cows are not milking like they were a year ago.”

Days in Milk are way up

Why?

Forage quality way down

Why?

Overall DMI is down, productionfollows

so…

Fresh Cow problems

so…

Short on heifers(sold a few for $)

Why?

Grain feeding pushed a bit to maintain cash flow

so…

Grain stealing in dry period (retain “owned” stall in winter)

Why?

Diet “unbalancers” prone to high MUNs and/or acidosis

so…

Repro problems

Why?

Poor Heats

Why?

Higher levels of clinical/subclinical ketosis

so…

Poor Conception

Why?

so…

(poor implantatio

n)

so…(delayed estrus)

so…

(sore feets,

weak heats)

“Employees Drift from Task Protocols Over Time”

Interest seems to fade with time

Why?

It’s human nature

Why?

Why?

Just is

Why?

Don’t feel responsible

Why?

Never occurred that we’d need to

No one is “watching”

Why?

Why?

Don’t feel connected to outcomes

Why?

Not part of planning process (strategic and operational)

So more often than not, starting with the problem and moving your way through analysis towards the root cause helps determine how complex the situation is (define) and what measures will help tell you what really is wrong!

One more wrinkle… the root Cause may be only the first of the 3 C’s of thoroughly analyzing a problem.

The 3 C’s of problem analysis:

Causes of the problem? Competency to deal with it? Climate exists to promote changes?

Causes demand quality information.

Competency promotes the analysis team

approach Climate gets back to the change equation, business’ vision and involvement of all stakeholders

Using a SMART Goal from either your farm or one you created for the Case Farm: re-state it as a problem work it down towards the root cause list what measures you need to be certain you have indeed nailed the root cause

7:30 Case Farm Intro - Jim Grace, CCE Steuben 7:40 Building Your Compelling Vision (adopting the Case scenario) - Ron Kuck, CCE Jefferson 8:30 Where are we at with your team implementation guide? Changes to tomorrow’s agenda? - Joan Petzen 9:00 Adjourn Tuesday, May 8th 7:00 Breakfast 8:00 Setting Long and Short Term Goals – Sandy Ferry, CCE Washington 8:35 Assuring the “Change Campaign” – the 3-C’s: Change, Conflict & Communication - Molly Ames, CCE Jefferson & Ruth Maltz, FarmNet 9:35 Tried and True management Tools: Problem Diagnosis (Measure/Analyze) - John Conway 10:00 Break 10:30 Dairy Profit Monitor as SWOT Analysis Tool for MFS Participating Farms - Griffin Moag, PRO-DAIRY 10:50 Group Discussion (using more tried and true management tools) - Lee Telega -Brainstorm team options for optimum impact on local dairy industry -Set criteria for decision making grid, debate grid “scores” -Tactical plans -Control plans 11:35 The “What’s Got to Give” Conundrum – Finding Time for Implementation - Lori Shipman, FarmNet 12:10 Wrap-up - Joan Petzen/John Conway -Post-workshop SWOT Analysis and Consulting Opportunities -e-clips 101 - Molly Ames -Website for post-conference momentum -How’s your team implementation guide looking? 12:30 Adjourn

Improve – III

Explore, Create, Judge & Decide



Define

Analyze

Improve

Control



*adapted from Six Sigma Measure

You are here

What to do and how to decide… Brainstorming and evaluatingbest possible solutions

Do you know what time of day you are most alert? That’s the time to work on these tough questions…

working ideas out on paper will save time if you mull this over a long period…

discuss ideas with someone you trust and respect to make sure you didn’t miss something!

Big decisions beg for creative, sturdy solutions. Brainstorming sessions, where ideas can flow without criticism or evaluation, is a powerful way to get there!

Some Tips:Get the best possible peopleKeep it lightChoose a comfortable environmentReview farm’s mission and problem solving process leading up to this point

Rules of engagement:Appoint a good facilitatorAppoint a diligent recorderIf possible, post ideas live and in a way that all can see themAbsolutely NO EVALUATION of ideas!Go at it until ideas are exhausted, leaving door open for additional “ahas” people will have over the next few days

BrainstormingBrainstorming 101 101

… Continuing with Problem Root Cause

We’ll work in teams of 4 (if possible).

Assume you did get to a root cause. Don’t worry if you feel forced to speculate due to insufficient data. Go with this as a “root cause”.

Take it to “improve” mode. Brainstorm as many ideas as possible in 5 minutes that will improve this situation and lead towards meeting the SMART goal you started with.

You can use the next page as a worksheet

Improvement ideas:

While you have them together, this same group may be equally important in deciding on the process and criteria for choosing among the alternatives. The “decision making process” of weighing alternatives against agreed upon criteria is hugely important and may require considerable fact-finding.

Scoring System

Often “1 to 5” or “1 to 10” with higher as betterMay take it a step further and give more or less “weight” to certain alternatives. “Greatest return” may be given a multiplier weight of 1.25 for example.Or you can list alternatives by order of their relative weight and use it visually to break a “tie”.

WeighingWeighingScoringScoringAccepting

Accepting

Does this address the root cause?Will everyone involved accept it ?Will it fit our current system?Does it provide greatest return?Will it enhance my farm’s resources for future generations?Will it adversely affect others outside my farm business? Other criteria you believe important

Criteria for weighing alternatives:

Alternatives

Alternatives

Criteria

Criteria

The Decision MakingGrid…

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Scoring scale based on personal preference. “Weighting Factor”,when needed

Goal:

Does this address the root cause?

Will everyone involved accept it ?

Will it fit our current/future systems?

Does it provide greatest return?

Will it enhance my farm’s resources for future generations?

Will it adversely affect others outside my farm business?

Alternative Solutions

Likelihood of success

Likelihood of sustaining if we measure success

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Goal:








Limit ration “unbalancing” by individual cows (Root cause: bad actors selectively consuming)

3x 4x grain feeding

Shorten chains on offenders

Build swivel-up boxes for offenders

Rebalance with less forage, safer grain

Rebalance with citrus pulp topdress

to offenders

Rebalance with prime hay to

offenders

4 4 5 4 4 4

3 4 3 4 4 4

4 2 4 4 4 4

5 4 4 3 3 3

5 5 5 5 5 5

5 5 5 4 4 4

5 3 5 3 3 3 Likelihood of success

Likelihood of sustaining if we measure success 5 4 5 3 3 3

37 31 37 30 30 30

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Goal:








Control grain stealing by far off Dry Cows

Shorten chains on dry cows

Build new barn for Dry &

Transition Cows*

Banish Dry Cows to other

barn

**Drench them all with propylene

glycol for 5 days PF

Go to 40 Day Dry Period and use Transition Diet

5 4 5 3 4 4

4 4 4 2 2 4

4 3 4 2 3 3

5 4 ? 1 4 4

5 5 5 3 5 5

5 4 5 2 4 4

5 3 5 1 4 3 Likelihood of success

Likelihood of sustaining if we measure success 5 4 5 5 5 5

38 31 ?? 19 31 33

Build swivel-up boxes for dry

cows

*Assume you’ll eventually milk cows in those emptied stalls *”Pump the bad ones too

…Back to your list of improvement ideas

We’ll stay in our teams of 4.

Let’s now take all of those great alternatives you came up with and see which of them stand up to the criteria you agree upon to judge them by.

Use the “empty” grid, but feel free to amend the criteria written into the left side column.

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Goal:








Likelihood of success

Likelihood of sustaining if we measure success

Some tools “the gridmay call for …

Is it profitable? Partial Budget*

Items that add to Net Income Items that Reduce Net Income

Added Receipts

Reduced Expenses

Reduced Receipts

Added Expenses

Total (A) $238.15 Total (B) $140.52

Change in Net Income (A - B) +$97.63

*Whole farm budget is the more appropriate tool!

20 days milk (65 lbs., $12.) = $147.55

Feed costs for extra milking days and move to transition diet $140.52

Current feed expense with traditional far off and transition diet - 60 days $90.60

improve – i intro - getting to tangible action john conway – pro-dairy

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