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A Problem Statement should be concise and include the following: • A brief factual description of the problem and the metric used to describe the problem • Where the problem is occurring by system, process, and location • The time frame over which the problem has been recurring • The size and magnitude of the problem Elements of With Example 06, 51, 58, 00, 19. 24, 67, 36, 60, 97, 38. 17, 51, 55, 95, 25. 14, 41, 75, 94. By Larry Dalton Inventory levels at the Powerlink inventory storage facility in Virginia , utilising the Stores Inventory and Order processes, are consuming space, taking up asset management time, and creating cash flow issues. Inventory levels are averaging 365 days, with a high of 500 days. These levels have exceeded the target of 60 days 95 percent of the time since January 2012. $6 million could be saved per year if inventories were at the targeted level. The problem statement must not include any indication of speculation about the cause of the problem or what actions will be taken to solve the problem. Never attempt to solve the problem in the problem statement. “Problems are not stop signs, they are guidelines." While needing to be brief, avoid under-writing the problem statement. Don’t write the statement too simplistically because you are familiar with the problem. Others have to understand the context and significance of the problem to lend support. Inventory levels are too high and must be reduced. The values that represent the problem, in measured form, should be articulated. The metric should represent the Baselined Value of the current state and where possible the value of the aspirational state. This may allude to a whole-of- PQ problem, an isolated process, or anything in- between. This context helps to establish the scope of the problem and often assists in setting out the scope boundaries for the solution. This usually alludes to the time from when the problem was first identified. Under certain conditions and compliance compulsions, the date by when the problem is to be rectified may be known – this is then to be included in the Problem Statement. The value, loss of income, pressures on cash-flow, perishing of stock and the ilk are to be represented here. Where it is at all possible, a financial value should be identified here, along with other meaningful metrics that define the manifest extent of the problem. Poor Problem Statement Better Problem Statement

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Page 1: Problem Statement

A Problem Statement should be concise and include the following:• A brief factual description of the problem and the metric used to describe the

problem• Where the problem is occurring by system, process, and location• The time frame over which the problem has been recurring• The size and magnitude of the problem

Elements of

WithExample

06, 51, 58, 00, 19. 24, 67, 36, 60, 97, 38. 17, 51, 55, 95, 25. 14, 41, 75, 94.

By Larry Dalton

InventorylevelsatthePowerlinkinventorystoragefacilityinVirginia,utilisingtheStoresInventoryandOrderprocesses,areconsumingspace,takingupassetmanagementtime,andcreatingcashflowissues.Inventorylevelsareaveraging365days,withahighof500days.Theselevelshaveexceededthetargetof60days95percentofthetimesinceJanuary2012.$6millioncouldbesavedperyearifinventorieswereatthetargetedlevel.

Theproblemstatementmustnotincludeanyindicationofspeculation aboutthecause oftheproblemorwhat

actions willbetakentosolvetheproblem.Neverattempttosolve theproblemintheproblemstatement.

“Problems are not stop signs, they are guidelines."

Whileneedingtobebrief,avoidunder-writingtheproblemstatement.Don’twritethestatementtoo

simplistically becauseyouarefamiliarwiththeproblem.Othershavetounderstandthecontext andsignificance of

theproblemtolendsupport.

Inventorylevelsaretoohighandmustbereduced.

Thevaluesthatrepresenttheproblem,inmeasuredform,shouldbearticulated.Themetricshould

representtheBaselinedValueofthecurrentstateandwherepossiblethevalueoftheaspirational

state.

Thismayalludetoawhole-of-PQproblem,anisolatedprocess,oranythingin-

between.Thiscontext helpstoestablishthescopeoftheproblemandoftenassistsin

settingoutthescopeboundaries forthesolution.

Thisusuallyalludestothetimefromwhen theproblemwasfirst

identified.Undercertainconditionsandcompliance

compulsions,thedatebywhentheproblemistoberectifiedmaybeknown– thisisthentobeincludedintheProblem

Statement.Thevalue,lossofincome,pressuresoncash-flow,

perishingofstockandtheilkaretoberepresentedhere.Whereitisatallpossible,afinancialvalueshouldbe

identifiedhere,alongwithothermeaningfulmetricsthatdefinethemanifestextentoftheproblem.

PoorProblemStatement

BetterProblemStatement

Problem Statement

PROBLEM STATEMENT

Problem Statement:

Problem Statement Problem Solution