problem solving

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1

Problem Solving

Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 2

Contents

Introduction and Problem Solving Statements

Methods of Problem Solving

Problem Solving Process

Finding the cause of the problem

Problem Solving – Overall objectives

Problem Solving Approaches

Definition


Definition

The process of working through

details of a problem to reach a

solution. Problem solving may

include mathematical or systematic

operations and can be a gauge of

an individual's critical thinking skills.


Contents






Definition



Problem Solving – Introduction (1/2)

Problem solving

Problem solving is the main and core activity of all management

activities. Innumerable problems will mushroom because of

these unsolved problems. The way in which the problems are

solved depends on the skills which the managers possess – their

proactivity, responsiveness and their management style

There is no definite problem-solving model which has the

capacity to work in all given situations and with all management

styles


Problem Solving – Introduction (2/2)

Symptoms of problem

Problem identification

Definition of problem

Causes of problem

Alternatives for problem solving

Choice of solution

Consequences or impact of alternatives


The problem statement (1/2)

Problem statement refers to the issues that need immediate attention from the decision-making team. Before the team tries to achieve a

particular purpose, they should be provided with problem statement

A problem statement should answer the following questions

This should explain why the team is needed.

This should explain who needs the solution and who will decide the problem has been solved.

What is the scope and limitations (in time, money, resources, technologies) that can be used to solve the problem? Does the client want a white paper? A web-tool? A new feature for a product? A brainstorming on a topic?

What is the problem?

Who has the problem or who is

the client/customer?

What form can the

resolution be?

?


The problem statement (2/2)

• The primary purpose of a problem statement is to focus the attention of the problem solving team. However, if the focus of the problem is too narrow or the scope of the solution too limited the creativity and innovation of the solution can be stifling.

• In project management, the problem statement is part of the project charter. It lists what's essential about the project and enables the project manager to identify the project scope as well as the project stakeholders

• A research-worthy problem statement is the description of an active challenge (i.e. problem) faced by researchers and/or practitioners that does not have adequate solutions available including the argumentation for its viability based on solid peer-reviewed sources as well as theoretical foundation.

• The research-worthy problem statement should address all six questions: what, how, where, when, why, and who.

• On the other hand, a statement of the problem is one or two sentences claim that outlines the problem that the study addresses.

• The statement of the problem should briefly address the question: What is the problem that the research will address?


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Contents






Definition



Brainstorming (1/2)

Brainstorming is a popular method of group

interaction in both educational and business

settings. Even though there have been

arguments about its productivity,

brainstorming is still a widely used method

for developing creative solutions. It’s an area

that is under research and improvements or

variations are still developing. Many of these

methods claim to be more efficient than the

original brainstorming; however, there are too

many factors that can alter the outcome of

brainstorming. Therefore, how well these

methods work, and whether or not they

should be classified as being more effective

than brainstorming, are questions that require

further research


Brainstorming (2/2)

There were 4 principles which were formed to reduce the social inhibitions among the members

Focus on quantity

This rule is a means of enhancing divergent production, aiming to facilitate problem solving through the maxim quantity breeds quality. The assumption is that the greater the number of ideas generated, the greater the chance of producing a radical and effective solution.

1

Withhold criticism

In brainstorming, criticism of ideas generated should be put 'on hold'. Instead, participants should focus on extending or adding to ideas, reserving criticism for a later 'critical stage' of the process. By suspending judgment, participants will feel free to generate unusual ideas.

2

Welcome unusual ideas

To get a good and long list of ideas, unusual ideas are welcomed. They can be generated by looking from new perspectives and suspending assumptions. These new ways of thinking may provide better solutions.

3

Combine and improve ideas

Good ideas may be combined to form a single better good idea, as suggested by the slogan "1+1=3". It is believed to stimulate the building of ideas by a process of association.

4


Types of brainstorming (1/2)

Electronic

Electronic brainstorming outperforms both regular brainstorming and nominal group brainstorming. It is a computerized version of the manual brainstorming technique typically supported by an electronic meeting system (EMS) but simpler forms can also be done via email and may be browser based, or use peer-to-peer software.

Directed

Directed brainstorming is a variation of electronic brainstorming (described above). It can be done manually or with computers. In directed brainstorming, each participant is given one sheet of paper (or electronic form) and told the brainstorming question. They are asked to produce one response and stop, then all of the papers (or forms) are randomly swapped among the participants. The participants are asked to look at the idea they received and to create a new idea that improves on that idea based on the initial criteria. The forms are then swapped again and respondents are asked to improve upon the ideas, and the process is repeated for three or more rounds.

Guided

A guided brainstorming session is time set aside to brainstorm either individually or as a collective group about a particular subject under the constraints of perspective and time. This type of brainstorming removes all cause for conflict and constrains conversations while stimulating critical and creative thinking in an engaging, balanced environment. Innovative ideas consistently emerge.Participants are asked to adopt different mindsets for pre-defined period of time while contributing their ideas to a central mind map drawn by a pre-appointed scribe. Having examined a multi-perspective point of view, participants seemingly see the simple solutions that collectively create greater growth. Action is assigned individually.


Types of brainstorming (2/2)

Individual

"Individual brainstorming" is the use of brainstorming in solitary. It typically includes such techniques as free writing, free speaking, word association, and drawing a mind map, which is a visual note taking technique in which people diagram their thoughts. Individual brainstorming is a useful method in creative writing and has been shown to be superior to traditional group brainstorming.Research has shown individual brainstorming to be more effective in idea-generation than group brainstorming.

Question

This process involves brainstorming the questions, rather than trying to come up with immediate answers and short term solutions. Theoretically, this technique should not inhibit participation as there is no need to provide solutions. The answers to the questions form the framework for constructing future action plans. Once the list of questions is set, it may be necessary to prioritize them to reach to the best solution in an orderly way."Questorming" is another phrase for this mode of inquiry


Employing a SWOT Analysis

One of the traditional points in the development of strategies is a SWOT

analysis. SWOT is an acronym that stands for Strengths, Weaknesses,

Opportunities and Threats. The analysis is merely a guide for organizing

your thinking about your company and the environment in which it

operates. Strengths and Weaknesses are part of the internal analysis of

our organization. Opportunities and Threats are part of the external

analysis of the environment in which your company operates – in short,

everything outside your organization that may affect it


Process involved in SWOT analysis

SWOT analysis

Internal analysis

Strengths

Weaknesses

External analysis

Opportunities

Threats

Vision

Mission

Strategies and tactics


Examining your company’s strength

• An organization’s strength are its skills, capabilities and core competencies

that helps the company to achieve its strategies, goals and objectives.

Examples of strengths are an extraordinary team that works well, an

innovative technology that the company has.

• One or more of the organization’s strengths may become competitive

advantage in the market place. For instance, if your company has introduced

a good, innovative design for new products in the market, then that is

probably in your best interest to focus your efforts and resources on that

strength to differentiate your company in market place

• Scattering scarce resource across too many diverse capabilities only

weakens your competitive stance. The company can outsource its

weaknesses to other companies and focus on what it can do


Evaluating the company’s weaknesses

The company’s weaknesses also plays a crucial role in the ability to achieve its long term goals, objectives etc. CEOs often can more easily describe their business strength and weaknesses, generally because they don’t like to admit that they have any weaknesses. Weaknesses are those skills, capabilities that your company lacks and that prevent the company from achieving its goals and objectives. If the organization does not have a critical skill or capability to achieve a goal, there are 3 options

1 Modify the goal to something achievable with the skill set the company has

2 Raise the capital needed to acquire the skill or capability you needed

3 Find another company that has the core competency it needs and outsource that need or collaborate through a strategic partnership

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

EVALUATION


Recognizing the company’s opportunities and threats

Opport-unity

Opportunities are those things that help the company and its business grow to new levels. Whenever we see a threat or barrier, it means that there is an opportunity to move forward in the market. Various opportunities are available like market developments, competitor’s weaknesses, global influences , major contracts or tenders, seasonal weather or fashion influences etc.

Threats are barriers to the growth. These threats or barriers may be in the form of – Threat of new entrants, threat from substitute products, threat from buyer’s bargaining power, threat from suppliers bargaining power, threat from rivalry among existing industry firms

Threats


Pareto analysis – An introduction

Pareto analysis was coined after Vilferdo Pareto, an economist who postulated this theory. It uses statistical methods and techniques to solve various problems and find the optimum solution. Pareto analysis commonly called as 80:20 rule, suggests that 80% of the problems arise because of 20% of the causes. According to this rule, if we address 20% of the issues, it can lead to 80% advantage in overall performance. The underlying idea is that by doing 20% of the work we can generate 80% of the advantage of doing the entire job.

How to use it

List the causes for problems you face, or the options you have available. Group options where they are facets of the same larger problem. Go through the list and apply an appropriate score to each group. Work on the group with the highest score, or the group whose score adds up to 80%.


Pareto analysis – Guidelines and challenges

Guidelines and instructions

• Form a table listing the causes and their frequency as a percentage.

• Arrange the rows in the decreasing order of importance of the causes, i.e. the most important cause first.

• Add a cumulative percentage column to the table.

• Plot with causes on x-axis and cumulative percentage on y-axis.

• Join the above points to form a curve.• Plot (on the same graph) a bar graph with

causes on x-axis and percent frequency on y-axis.

• Draw a line at 80% on y-axis parallel to x-axis. Then drop the line at the point of intersection with the curve on x-axis. This point on the x-axis separates the important causes on the left and less important causes on the right.

Challenges

• Misrepresentation of the data.

• Inappropriate measurements depicted.

• Lack of understanding of how it should be

applied to particular problems.

• Knowing when and how to use Pareto Analysis.

• Inaccurate plotting of cumulative percent data.


Scientific methods of problem solving (1/2)

The value of method

The scientific methods is a general methods for all fields. This particular method was developed, recognized by many scientists. Numerous methods are being offered by other people which are just variations of this scientific method. Still, most people do not realize that it is the universal method of originating reliable knowledge in all fields. This is another reason the scientific method is one of the major problem solving strategies and the major problem solving process.

Divisions of scientific method

Intuitive method

Short model formula for scientific method

Full model formula for scientific method


Scientific methods of problem solving (2/2)

• A guide or model formula, being subject neutral, will not solve problems. • Certain ingredients were recognized as necessary to use at these mental

activity stages. There are 3 ingredients which are considered necessary to apply this method− Creative, non-logical, logical and technical methods− Procedural principles and theories − Attributes and thinking skills

Full model formula for scientific method

• There are disagreements to what it really is. Intuitions are spiritual, physic, psychological, scientific process but mostly they are normal brain processes

• Intuitive thinking enables you to unconsciously utilize hundreds to many thousands of bits and pieces of knowledge you possess in memory

• Many intuitions may be important, so too many errors of intuition can hurt your success, relationships, or reputation for problem solving and decision making skills

Intuitive method

• Complex decisions should normally be put through all the steps or stages of the scientific method of problem solving of problem solving. However, a shorter formula is needed for− An easily remembered formula you can use at any time. It should also

be suitable for teaching problem solving.− The problem or decision you are working on is important but urgency is

so great there is no time to go through the 11 stages of SM-14.− You are in a place or situation in which research facilities are not

available.

Short model formula for scientific method


Contents






Definition



Problem-solving process

Define Problem

1Identify potential

causes

2

Analyze potential causes

3

Dra

w

Con

clus

ions

4

Make

recommendations

5


Define the problem

Define Problem

Make

recommendations

Identify potential causes

Dra

w

Con

clus

ions


1

2

3

4

5

• This is the most important step

in the process because it drives

the analysis

• Deal with facts, what is known to

be true about the problem you

are dealing with . Challenge

assumptions

• Separate symptoms from actual

problems

• Develop a main question .

Questions are most useful way to

structure problems



• We want to take our main

question and identify more

specific questions

• Each of these questions can be

further broken down into more

granular questions . These

questions can then be analyzed

• A mutually exclusive , collectively

exhaustive should be used for

completeness purposes

Define Problem

Make

recommendations


Dra

w

Con

clus

ions


1

2

3

4

5



• Once the questions are

formulated, pick one or more of

the subordinate questions to

address

• Identify the list of data sources

that can be used to research

your question

• Seek secondary data first. Time

and cost permitting , seek primary

data

• Develop a work plan and assign

the questions to different

members of your team where

possible

Define Problem

Make

recommendations


Dra

w

Con

clus

ions


1

2

3

4

5


Draw conclusions

• After all of the primary and

secondary data collected it must

be synthesized

• Raw data typically comes in

various forms and must be

interpreted

• Team members need to develop

a common point of view regarding

their research findings so they

should work together to

synthesize the findings

• A summary of pertinent data

should be developed that

incorporates all of the research

especially conflicting view points

Define Problem

Make

recommendations


Dra

w

Con

clus

ions


1

2

3

4

5


Make recommendations

• The data summary should be

paired with the question

• The main questions should be

addressed using the findings

from step 3 (Analyze potential

causes)

• Where gap exists, make

assumptions but be sure to

document them as such

• Be sure that your answer to the

question can be substantiated

using the data

Define Problem

Make

recommendations


Dra

w

Con

clus

ions


1

2

3

4

5


Contents






Definition



Plan-Do-Check-Act

DOPLAN

CHECKACT

New thoughts implementation

• If something goes wrong, need to be changed, need to be fixed and delivered?

• How are you going to approach the situation?

• If you are 100% confident that your solution to the problem would be right not once but every time

• A process that will ensure to identify, develop, test and implement . . .

Plan: Identify and working on the problem

Do: Developing a potential solution

Check: How effective and efficient the solution, whether it can be improved?

Act: Implement final solutionThe PDCA cycle gives confidence in your

approach to problem solving and implementing solutions to get best quality output

34


Plan-Do-Check-Act – Using the tools

35

PLAN

Plan

• Identify exactly what problem is

• Use cause and effect diagrams to know the root of the problem

• Then Structure your process at the root of the problem

• List down all the information/data you need that will help start sketching out possible solutions



36

Do

• Think and generate possible solutions

• Select the best solution from all the listed solutions

• Implement a trial project with a small group

• Generate a trial design which is appropriate to the nature of the problem

DO



37

Check

• Measure how effective the pilot solution has been so far

• List down all learning and analyze which section can be done even better

• Repeat ‘do’ and ‘check’ tools after implementing additional improvements

• Once you got the final sketch and benefits for your problem, move to final phase

CHECK



38

Act

• Implement your final solution

• Use Kaizen approach for continuous improvement

• Identify new solutions and improvement that are repeated frequently

• Look back to the Plan phase and find out if whole PDCA cycle need further improvement

ACT


Plan-Do-Check-Act – Key Points

39

CHECK

ACT

DO

PLAN

Key points

• The Plan-Do-Check-Act is simple and effective approach for problem solving

• It ensures that ideas are fully tested before full implementation and makes a quality change

• PDCA cycle can be used in product development, manu-facturing sectors, marketing sectors

• It begins with planning phase where the problem is identified, then generating potential solution, testing and implementing the selected solution


Appreciation Inquiry

40

Solving Problems by looking at what is going right

Appreciation means to recognize contributions, things and people

around us

Inquiry means to discover, explore, find new techniques,

possibilities

Appreciation and Inquiry combined together we get a valuable tools to solve present situation and learn the ways to effective positive change for the future


Appreciation Inquiry: The 5D Approach

41

Implementation phase – requires lot of planning and preparation ensuring dream (vision) is the focus point. It should support and sustain the dream

Define what you are looking at

Need to look for the best happened in past and what is currently working well

Dream ‘What Might be’ and take positives you identified Brainstorm creative and innovative ideas that team could accomplish

Look at the practicalities needed to support the vision. Start focusing on processes and strategies

Discovery PhaseDefin

e the problem

Dream

Phase

Del

iver

Pha

se

Design Phase


Appreciation Inquiry: Key points

Discovery PhaseDefin

e the problem

Dream

Phase

Del

iver

Pha

se

Design Phase

Key points

• When faced with your next challenge or problem, take a step back and look at if from the standpoint of what is good and is currently working well. This positive perspective brings about a whole new set of positive solutions you and your team may not have previously discovered. Use this process to get your organization looking at itself in unique and positive ways.

• The Deliver phase of the cycle is not so much an end but a place to start to re-evaluate and continue the process of Appreciative Inquiry to continuously improve. Once you embrace the idea of positive change you can apply the cycle over and over again to various aspects of your team or organization, and enjoy the positive outcomes that positive thinking brings

42


The Simplex Process

A Robust Creative Problem-Solving ProcessSimplex Process is powerful step-by-step tool helps identify and solve problems creatively and effectively. It helps in business where you can skip important steps in problem-solving process and miss good solutions to the issue

8. Action1 Problem Finding

2. Fact

Finding7. P

ilot

Idea

3.P

robl

em

Def

ini-

tion

4. Idea

finding6.

Plan

nin

g

5. Selection

SIMPLEX

43


The Simplex Process – Problem Finding

44

• The most difficult part of the creative process is finding the right problem

• Existing problems will make you have opportunities for change and improvement and makes problem finding a valuable skill

• This is the first step in Simplex model and below are the few questions that will come across:

− What would our customers want us to improve? What are they complaining about?

− What could they be doing better if we could help them?

− Who else could we help by using our core competences?

− What small problems do we have which could grow into bigger ones? And where could failures arise in our business process?

− What slows our work or makes it more difficult? What do we often fail to achieve? Where do we have bottlenecks?

− How can we improve quality?

− What are our competitors doing that we could do?

− What is frustrating and irritating to our team?


The Simplex Process – Fact Finding

45

• The next stage is to research the problem and below list helps you to:

− Understand fully how different people perceive the situation.

− Analyze data to see if the problem really exists.

− Explore the best ideas that your competitors have had.

− Understand customers' needs in more detail.

− Know what has already been tried.

− Understand fully any processes, components, services, or technologies that you may want to use.

− Ensure that the benefits of solving the problem will be worth the effort that you'll put into solving it

• Effective fact-finding confirms the view of the situation and ensure future problem solving has accurate view and reality


The Simplex Process – Problem Definition

46

• The next stage is to identify the exact problem you want to solve

− Make sure to solve the problem at right level

− If questions are too broad, then resources will be short to answer them effectively

− If questions are too narrow, then you will end up fixing symptoms of the problem, rather than problem itself

• Make the big problem into many smaller ones. Use techniques like drill down to break the problem into smaller ones.

• 5 Whys technique, Cause and Effect analysis and root cause analysis helps to get into root of the problem


The Simplex Process – Idea finding

47

• The next stage is to generate problem solving ideas

• Present your ideas to people and ask opinions

• Have a brainstorm session through creativity tools and thinking techniques

• Try to look at the problem from another angle/perspective

• Have a reframing matrix which helps you to concentrate on Do’s and Don'ts

• Get random inputs from people to have new ideas

• Do not evaluate or criticize in this stage, instead just concentrate on generating new ideas

• Sometimes some impractical ideas can often generate new ideas


The Simplex Process – Selection and evaluation

48

• The next stage is to select the best possible solution

• Use techniques like ‘Decision Making Techniques’, Decision Tree Analysis’, ‘Grid Analysis’

• If your idea does not work or does not bring enough benefit, then see if you can generate new ideas or restart the whole process

• Few Techniques which are helpful include:

− Risk analysis: Explore things where things go wrong

− Impact analysis: A framework for exploring consequences of your decision

− Force field analysis: Explains pros and cons against the change

− Six thinking hats: which helps you to explore to make valid decision making


The Simplex Process – Planning

50

• After selecting the idea, then next stage is to plan its implementation

• Action plans help you to manage simple projects – they emphasize on the layout of Who, What, When, Where and Why and how of delivering the work

• Build project management skills which will be used to deliver implemented project successfully within the given deadline

• Draw a Gantt chart to plan your deliverables phase by phase and to deliver the whole project in a specified time


The Simplex Process – Piloting

51

• You have almost finalized the plan now and ready for final implementation . . . . In this stage:

• Test your idea with small team and know if implemented process running smoothly

• Learn if you can improve your idea at any stage in the process

• Look at the problem from other perspectives and analyze if it causes any adverse effects at any stage

• Your implementation has an impact on several people – make sure people support your idea


The Simplex Process – Action

52

• This is the last stage of the whole process and your creativity and preparation comes into action

• Ensure process is implemented smoothly

• Once the action is running smoothly, you might again look at stage 1, problem finding to continue improving your idea

• Use tools like Kaizen principles for continuous improvement


The Simplex Process key points

Simplex is a powerful approach to creative problem-solving. It can be used for projects and organizations of almost any scale

53

The process follows an eight-stage cycle. Upon completion of the eight stages you start it again to find and solve another problem. This helps to ensure continuous improvement.

8. Action1 Problem Finding

2. Fact

Find

ing7.

Pilo

t Id

ea

3.P

robl

em

Def

ini-

tion

4. Idea

finding

6.

Plan

nin

g

5. Selection

SIMPLEX

These 8 stages ensure that you solve the most significant problems with the best solutions available to you. So, this process can help you to be intensely creative


The Straw Man concept

54

Build it up, Knock it down and create a solid final solution

Straw Man

• If something is built out of straw, imagine what would happen in long run – it will collapse or blown away

• Straw man approach would be similar to that – it lacks solid foundation

• The question now is – is this proposal should be avoided?

• The answer is ‘no’ - When you begin a project or start looking into a problem, you often have incomplete information to work with. So you can spend time gathering facts and data until you are ready to build a really strong argument or plan, or, you can get going straight away and jump in with a not-so-complete solution, with the intention of finding a much better one, as you learn more and more

• This is the principle behind building a straw man – the draft created is available for criticism and testing, and then using the feedback you receive to develop a final result that is rock solid


Few lines on Straw Man idea

Working on Straw Man strategies

• Create a draft proposal

• Outline your thoughts/ideas to offer good prospects, based on your initial judgment, experience and findings

• Present your draft proposal to team – ensure that it is still Straw Man – they should understand that your idea is starting point and was created for the purpose of criticism

• Analyze your idea/proposal and find the weak points, clarify assumptions and have a decision-making criteria and work on modified proposal

• Draft a new proposal and repeat each step until final decision is made

55


Straw Man approach – Key Points

56

Key points

• Straw Man is a prototype solution built on incomplete information and ideas not fully thought

• It ensures everyone understands initial concept

• The main aim to build the Straw Man concept is to build and knock it down and rebuild something much better

• Straw Man makes you to take action and gain progress towards a winning solution

• Throw all ideas and use problem solving and decision making skills to fine tune straw into a strong and resilient product


Contents






Definition



Root cause analysis

59

• How to approach a problem at work?

• Do not enter into surface of the problem and try to rectify it or fix it, instead think if any deeper problem that needs attention

• Fix the underlying problem and systems that cause the problem

• Root Cause Analysis (RCA) is a technique used to find out why the problem occurred in first place

• RCA identifies the problem and uses specific steps to find the primary cause of the problem:

− Investigate what happened

− Analyze why it happened

− Draw out what to do to reduce or not to repeat gain

1

2

3

4

5

6

7

8

9

10

Identifying a problem to its origins


Root Cause Analysis – the interrelation

60

• A system or schedule not worked on properly and people ignores their allotted work

• Example – no one was responsible for transformer maintenance and everyone assumed that someone has filled the oil

Organizational causes

RCA assumes that system and events are interrelated. An action in one area impacts another area and another . . . and so on. By looking back step-by-step we can discover the problem origin

Physical causes

• Some items failed to work in some way

• Example – failure of power transformer

Human Causes

• People did something wrong or have done which is not needed and this gain leads to physical causes

• Example – no one filled oil in transformer which led to power failure

Root causes analysis looks at all these 3 types of causes and investigates not only one issue but finding hidden flaws and actions that contributing to the problem


Root Cause Analysis – the process

61

Define the problem

1

• Identify what is happening

• What are the key symptoms

Collect Data

2

• Ensure to have proof that problem still exists

• Duration of the problem existed

• What is the impact of the problem?

Identify possible factors

3

• What are the events that led to the problem?

• What situations allow the problem to occur?

• Use tools like ‘Appreciation’, ‘5 Whys’, ‘Drill Down’, ‘Cause and effect diagrams’ to help identify casual factors

Identify the root cause

4

• Analyze Why casual factor exists

• Identify what is the real reason behind the problem

Recomm-end and Implement solutions

5

• What is the best solution you need to develop to prevent the problem happening again

• How will you implement?

• Who is responsible?

• What are the risks and benefits of implementing the solution

Analyze your cost and effect process, and identify the changes you need for various systems. It is also important that you plan ahead to predict the effects of your solution. By doing this you can identify potential failures before they happen


Root cause analysis – Key points

62

• Figure out what negative events are occurring. Then, look at the complex systems around those problems, and identify key points of failure. Finally, determine solutions to address those key points, or root causes

• As an analytical tool, Root Cause Analysis is an essential way to perform a comprehensive, system-wide review of significant problems as well as the events and factors leading to them

• You can use tools to support your Root Cause Analysis process

1

2

3

4

5

6

7

8

9

10

Understanding and solving the problem


5 Whys

63

WHY

WHY

WHY

WHY

WHY• This is simple problem-solving technique to get in depth of a problem quickly

• The 5-Why strategy made popular by Toyota Production System in 1970s involves looking at any problem and asking Why? and What caused the problem?

• Advantages of 5 Whys include:

− It quickly identifies the root cause of the problem

− It is simple and easy to learn and apply

Quickly getting to the root of a problem


5 Whys – Example

64

WHY

WHY

WHY

WHY

WHY• Why is our client not satisfied with our work?− Because we did not deliver on time

• Why we did not complete the work on time?− The work took much time than expected

• Why did it took much longer to complete?− Because we underestimated the complexity of job

• Why did we underestimate the complexity of the job?− Because we made a quick estimate and did not

approach stage by stage• Why did not we spot our deadline?

− Because we are running behind other projects

5 Whys


Drill down approach

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• This technique describes about breaking a complex problem into progressively smaller parts

• Write down problem in a sheet of paper and list down the points relating to the problem like factors, information, questions and potential solutions that need to create at each stage. This is called ‘Drilling Down’

• For each point listed, repeat the process until you fully understand the factors that contributing the problem

Breaking Problems into manageable parts


Cause and Effect Analysis

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• This technique is also called as ‘Cause and Effect diagrams’, ‘Fishbone’ diagrams or ‘Ishikawa diagrams’

• This tool explores all the things that caused the problem and it is useful before you think or draw a solution

• ‘Cause and Effect’ diagrams solve the problem completely and not part by part

− Identifies the root cause of the problem

− Analyzes performance of the entire system

− Identifies where and why a process is not working

Identifying the likely cause of problems


Cause and Effect analysis – the process

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Identify the problem

• List down what exactly the problem is

• Identify who is involved/ responsible

• Check out where and when the problem occurs

1

Look at the major factors involved

• Identify factors that are part of the problem – like systems, infrastructure, employees, external forces

• Use models like McKinsey’s 7S framework – Strategy, Structure, Systems, Shared Values, Skills, Style and Staff or 4Ps of marketing – Product, Place, Price and Promotion

2

Identify possible causes

• For each factor which you have listed in step 2, look out all possible causes of the problem that may relate to the factor

• If cause is large, breakdown to small sub-causes as done in ‘Cause and Effect diagrams’

• Have a diagram showing all possible causes of the problem that you face

3

Analyze your diagram

• Investigate the likely causes further

• Make a list of causes on a paper and try to test each one

• Note the possible causes actually effecting the problem

4


Cause and Effect Analysis – Key points

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• Identify the problem

• Work out the major factors involved

• Identify possible causes

• Analyze your diagram

• Cause and Effect diagram plays an important role when you are trying to solve complex problems

4 Steps involved in Cause and Effect analysis


Contents






Definition



Overall objective – Problem solving

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• Improving the delivery performance in a company

• Developing a cost control system at distribution center in a service company

• Improving the performance of a recently introduced electronic system for a small company

• Developing a decision support system for the allocation of resources to research and design projects for a small high-tech company

• Developing a system of measuring the performance of a marketing and sales department

• Improving the effectiveness and efficiency of training courses for the human resource management department of a large company

• Improving the quality control system of production department by introducing statistical process control

Problem-solving projects for Business students(Few Examples)


Problem Solving and decision making

Both for corporate and personal life problem-solving and decision-making are considered as important skills. Problem-solving often involves decision-making and decision making is important for leadership and management. Decision making is more natural for few people in management and the only thing they have to learn is the quality of the decisions taken. People that are less natural decision-makers are often able to make quality assessments, but then need to be more decisive in acting upon the assessments made. Problem-solving and decision-making are closely linked, and each requires creativity in identifying and developing options

Various process involved in problem-solving and decision-making

• Define and clarify the issue - does it warrant action? If so, how? Is the matter urgent, important or both. Gather all the facts and understand their causes.

• Think about or brainstorm possible options and solutions.• Consider and compare the pros and cons of each option - consult if necessary - it

probably will be.• Select the best option - avoid vagueness or 'foot in both camps' compromise.• Explain your decision to those involved and affected, and follow up to ensure proper

and effective implementation


Common biases limit our ability to solve problems and make decisions

Bias Description

RepresentativeThe practice of assessing the likelihood of an event or outcome by drawing parallels to other events or outcomes that are unrelated

Too much importance is placed on information or data that is recent or availableAvailability

AnchoringThe scope or extent of the analysis is limited to starting point

CommitmentAdherence to a previous decision increases despite the knowledge of information contrary to the prior decision

ConfirmationThe solution has been decided or if known before any data is collected or analysis is completed

HindsightThe belief that the occurrence of an event or outcome was caused by a previous action that in fact had little to do with the outcome

OverconfidenceThe practice of being overly optimistic often time is the face of data to the contrary

problem solving

Documents

real life

personal goal

full model

job hunt strategies

human resource

short model

business writing

problem solving