Problem Solving: 1 Reserved

Problem Solving
1
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
reserved.
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.

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4
Contents
Definition
reserved.
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
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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
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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?
?
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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
reserved.
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. Its 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
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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
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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.
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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
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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
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Process involved in SWOT analysis
SWOT analysis
Internal analysis
Strengths
Weaknesses
External analysis
Opportunities
Threats
Vision
Mission
Strategies and
tactics
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Examining your companys strength
An organizations 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 organizations 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
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Evaluating the companys weaknesses
The companys 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 dont 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

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Recognizing the companys
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, competitors
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 buyers bargaining power, threat from suppliers bargaining
power, threat from rivalry among existing industry firms
Threats
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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%.
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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.
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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
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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
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25
Contents
Definition
reserved.
Problem-solving process
1
2
Analyze potential
causes
3
4
5
reserved. 26
Define the problem
Analyze potential
causes
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
reserved. 27
Identify potential causes
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
Analyze potential
causes
1
2
3
4
5
reserved. 28
Analyze potential causes
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
Analyze potential
causes
1
2
3
4
5
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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
Analyze potential
causes
1
2
3
4
5
reserved. 30
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
Analyze potential
causes
1
2
3
4
5
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Contents
Definition
reserved.

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Plan-Do-Check-Act
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 solution
The PDCA cycle gives confidence in your
approach to problem solving and implementing
solutions to get best quality output
34
reserved.
Plan-Do-Check-Act Using the tools
35
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
reserved.
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
reserved.
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
reserved.
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
reserved.
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
reserved.
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 Copyright 2008 - 2012
reserved.
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
Design Phase
reserved.
Appreciation Inquiry: Key points
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
reserved.
The Simplex Process
A Robust Creative Problem-Solving Process
Simplex 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
43
reserved.
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?
reserved.
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
reserved.
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
reserved.
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
Dos 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
reserved.
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
reserved.

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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

reserved.
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
reserved.
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
reserved.
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.
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
reserved.
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
reserved.
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
reserved. 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
reserved. 56

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58
Contents
Definition
reserved.
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
reserved. 59
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
reserved. 60
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
reserved. 61
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
reserved. 62
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
reserved. 63
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
reserved. 64
Drill down approach
65
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
reserved. 65

reserved. 66




Cause and Effect Analysis
67
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
reserved. 67
Cause and Effect analysis the process
68
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
McKinseys 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
reserved. 68
Cause and Effect Analysis Key points
69
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
reserved. 69
70
Contents
Definition
reserved.
Overall objective Problem solving
71
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)
reserved. 71
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
reserved. 72
Common biases limit our ability to
solve problems and make decisions
Bias Description
Representative
The 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
available
Availability
Anchoring
The scope or extent of the analysis is limited to starting point
Commitment
Adherence to a previous decision increases despite the knowledge of
information contrary to the prior decision
Confirmation
The solution has been decided or if known before any data is collected
or analysis is completed
Hindsight
The 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
Overconfidence
The practice of being overly optimistic often time is the face of data to
the contrary
reserved. 73

reserved. 74




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