Q 594. What is a Process Decision Program Chart? Explain how it is used for contingency planning in process improvement projects along with an example.

 

Note for website visitors -

• This platform hosts two weekly questions, one on Tuesday and the other on Friday. 
• All previous questions can be found here: https://www.benchmarksixsigma.com/forum/lean-six-sigma-business-excellence-questions/. 
• To participate in the current question, please visit the forum homepage at https://www.benchmarksixsigma.com/forum/.
• The question will be open until Tuesday or Friday at 5 PM Indian Standard Time, depending on the launch day. 
• Responses will not be visible until they are reviewed, and only non-plagiarised answers with less than 5-10% plagiarism will be approved. 
• If you are unsure about plagiarism, please check your answer using a plagiarism checker tool such as https://smallseotools.com/plagiarism-checker/ before submitting. 
• All correct answers shall be published, and the top-rated answer will be displayed first. The author will receive an honorable mention in our Business Excellence dictionary at https://www.benchmarksixsigma.com/forum/business-excellence-dictionary-glossary/ along with the related term.

• Some people seem to be using AI platforms to find forum answers. This is a risky approach as AI responses are error prone as our questions are application-oriented (they are never straightforward). Have a look at this funny example - https://www.benchmarksixsigma.com/forum/topic/39458-using-ai-to-respond-to-forum-questions/

• We also use an AI content detector at https://crossplag.com/ai-content-detector/. Only answers with less than 15-20% AI-generated content will be approved.

PDPC is one of seven management methods that systematically identifies possible issues or process flaws which can go wrong in process and seeks solutions to close these flaws.

 

PDPC tool is used for contingency planning in continuous improvement (CI) projects when:

·       In advance of a plan's implementation (Improve phase)

·       Used for preventing problems or providing better solutions for a problem

·       Deliver complex or complicated project

 

Create a PDPC using a tree diagram for a contingency plan that has 5 levels as shown below:

·       1^st level – overall objective

·       2^nd level – main activities to reach the objective

·       3^rd level – tasks performed to get activities

·       4^th level – possible risks while performing tasks (generally risks are identified by conducting brainstorming sessions with the team; Review risks and eliminate insignificant risks from 4^th level

·       5^th level – preventive actions (one or more) for each risk identified so that these risks can be prevented. Actions that are practically possible are identified and actions that are difficult for implementation due to cost constraints, more time taken, difficulty to achieve are not considered

 

I have used PDCA tool shown below for better improvement of invoice processing process. Green marked in Level 5 are the actions that can be taken and red marked those actions that cannot be taken

 

L1: Objective L2: Activities L3: Tasks L4: Risks L5: Action Plan   

 

 

Process Decision Program chat is a tree diagram and it highlights the risks in the improvement plan. we can understand the risks involved and if something goes wrong in the execution of plan, we can be ready with Plan B.

PDP Chat aids a subject matter expert to understand the loose ends or issues that may arise and so SME can prepare a decision tree and interim process to mitigate the failure in the improvement plan.

Process Decision Program Chart is a sort of Risk register. But this risk identification et mitigation tool is connected to a Continuous Improvement projet implementation plan.

This is about drawing a plan to ameliorate a process or product and right after that, identify all the risks that could compromise the effectiveness of the solution planned to improve the situation. As far as the risks are concerned, they can either be accepted or Transffered or mitigated. In the PDPC, the mitigation position is to be adopted

 

In contingency planning in process improvement prject, PDPC is used to maximize success rate chance et acheive project expected goals. If we stick to the same process improvement project, we have an important risk that is failure in change management, that is to say, at the end the change didn't get through. Using PDPC, will first of all identify this risk, then the recommandation to use Kotter 8 Steps would be recommanded and implemented to get all the stackeholders get engaged and involved.

Below is an example of PDPC

PDPC is also known as Tree Diagram or Decision Tree.  Tree Diagram or Decision tree help to prepare contingency planning as its allow to draw multiple branches or scenario with possible decision and repercussion of the same with Cost attached to decision.  

 

Process improvement project can always have multiple scenarios with efforts and cost attached to efforts ( time and money). PDPC help to prepare alternatives in order or priority to facilitate decision in scientific manner. 

 

Practical use of Decision tree :

 

Option 1. Purchase of Heavy High tech Equipment or Modern Machinery keeping future requirement and residual value which will also help reduce time to complete project- Cost 100K Benefit 1000K USD

 

Option 2 : Getting machinery as per requirement to get work done - Cost 50K Benefit 250k USD. 

 

In contingency plan you can execute improvement project even with Option 2.

 

Hence PDPC help you to detailed out various branches with cost and benefits and prepare you for contingency plan if it need to be executed. 

Process Decision program Chart

 

This is generally a visual tool which is used for planning and decision making in project management.

It really helps to identify any potential risks and other barriers for a particular course of action.

This includes a sequence of steps, any decisions, and other possible outcomes which generally allowing team to mitigate risks effectively and preventively.

This is a very organized way to inspect the different paths of a project so that a project can take informed decision to achieve any desired goals.

 

Uses in continuous improvement projects: -

 

·       Potential risk identification

·       Decision points creation and drafting

·       Can outline any potential outcome & scenario

·       Can identify the issues and help to create countermeasure

·       Helping to understand different impact and outcomes

·       Can gauge the potential impact of various risks

·       Helping in decision making and choosing the best course of action

·       Creating any contingency plan related to risks identified

·       Support in continuous improvement of a project

 

 Few real-life examples: -

 

Software development – It can be used in many phases in software development like – requirement gathering, development phase, testing phase etc.

Manufacturing Process – Its widely used in manufacturing in many phases like – material sourcing, production, quality control.

Marketing - It is also using in marketing fields like – planning of campaign, content creation and promotion etc.

All the published answers are correct and worth reading. The best answer has been written by B Ravi Sankar. He has also provided a relevant example for the same.