Copyright © managementstudyguide.com. All rights reserved.

Contents Definition Introduction and Problem Solving Statements Methods of Problem Solving Problem Solving Process Problem Solving Approaches Finding the cause of the problem Problem Solving – Overall objectives Copyright © managementstudyguide.com. All rights 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.   Copyright © managementstudyguide.com. All rights reserved.

Problem Solving – Introduction (1/2)
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 Copyright © managementstudyguide.com. All rights reserved.

Problem Solving – Introduction (2/2)
Problem identification Definition of problem Causes of problem Alternatives for problem solving Choice of solution Symptoms of problem Consequences or impact of alternatives Copyright © managementstudyguide.com. All rights reserved.

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 What is the problem? Who has the problem or who is the client/ customer? What form can the resolution be? ? 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? Copyright © managementstudyguide.com. All rights reserved.

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? Copyright © managementstudyguide.com. All rights reserved.

ManagementStudyGuide.com - Premium Membership
Learning Made Easier – ”Interactive trainings that make learning a real life experience, so that you learn and never forget” Premium Membership at ManagementStudyGuide.com is a Lifetime Membership wherein you can download all the Power-point Presentations on Various – Academics, Soft Skills and Management Topics. All these Presentations are customized to meet the needs of Management Students and Corporate Learners. Few of the Topics are: Human Resource Management, Functions of Management, SWOT Analysis, Time Management, Team Work, Facing an Interview, Positive Attitude, Business Writing Skills, Public Relations, Virtual Teams, Recruitment Skills, Personal Goal Setting, Improving Productivity, Job Hunt Strategies, Negotiation Skills, Change Management, Portfolio Management, etc. Check the list of all the Presentations: There is a Continuous Addition of Presentations every week. Copyright © managementstudyguide.com. All rights 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. 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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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 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. Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

Process involved in SWOT analysis
Vision Mission SWOT analysis Internal analysis Strengths Weaknesses External analysis Opportunities Threats Strategies and tactics Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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%. Copyright © managementstudyguide.com. All rights reserved.

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. Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

Scientific methods of problem solving (2/2)
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 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 Copyright © managementstudyguide.com. All rights reserved.

Problem-solving process
Make recommendations 5 Define Problem 1 Draw Conclusions 4 Identify potential causes 2 Analyze potential causes 3 Copyright © managementstudyguide.com. All rights reserved.

Define the problem 5 1 Make recommendations
Define Problem Make recommendations Identify potential causes Draw Conclusions 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 Copyright © managementstudyguide.com. All rights reserved.

Identify potential causes
Define Problem Make recommendations Identify potential causes Draw Conclusions Analyze potential causes 1 2 3 4 5 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 Copyright © managementstudyguide.com. All rights reserved.

Analyze potential causes
Define Problem Make recommendations Identify potential causes Draw Conclusions Analyze potential causes 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 Copyright © managementstudyguide.com. All rights reserved.

Draw conclusions Define Problem Make recommendations Identify potential causes Draw Conclusions Analyze potential causes 1 2 3 4 5 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 Copyright © managementstudyguide.com. All rights reserved.

Make recommendations 5 1 Make recommendations Define Problem
Identify potential causes Draw Conclusions Analyze potential causes 1 2 3 4 5 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 Copyright © managementstudyguide.com. All rights reserved.

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 . . . DO PLAN CHECK ACT Plan: Identify and working on the problem Do: Developing a potential solution Check: How effective and efficient the solution, whether it can be improved? The PDCA cycle gives confidence in your approach to problem solving and implementing solutions to get best quality output Act: Implement final solution Copyright © managementstudyguide.com. All rights reserved.

Plan-Do-Check-Act – Using the tools
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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

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 Copyright © managementstudyguide.com. All rights reserved.

Plan-Do-Check-Act – 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 CHECK ACT DO PLAN Copyright © managementstudyguide.com. All rights reserved.

Solving Problems by looking at what is going right
Appreciation Inquiry 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 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 Copyright © managementstudyguide.com. All rights reserved.

Appreciation Inquiry: The 5D Approach
Need to look for the best happened in past and what is currently working well Define the problem Define what you are looking at Discovery Phase Implementation phase – requires lot of planning and preparation ensuring dream (vision) is the focus point. It should support and sustain the dream Dream ‘What Might be’ and take positives you identified Brainstorm creative and innovative ideas that team could accomplish Deliver Phase Dream Phase Look at the practicalities needed to support the vision. Start focusing on processes and strategies Design Phase Copyright © managementstudyguide.com. All rights reserved.

Appreciation Inquiry: 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 Discovery Phase Define the problem Dream Phase Deliver Phase Design Phase Copyright © managementstudyguide.com. All rights 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 8. Action 1 Problem Finding 2. Fact Finding 7. Pilot Idea 3.Problem Defini-tion 4. Idea finding 6. Planning 5. Selection SIMPLEX Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Problem Finding
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? Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Fact Finding
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 Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Problem Definition
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 Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Idea finding
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 Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Selection and evaluation
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 Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Planning
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 Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Piloting
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 Copyright © managementstudyguide.com. All rights reserved.

The Simplex Process – Action
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 Copyright © managementstudyguide.com. All rights 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 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. Action 1 Problem Finding 2. Fact Finding 7. Pilot Idea 3.Problem Defini-tion 4. Idea finding 6. Planning 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 Copyright © managementstudyguide.com. All rights reserved.

Build it up, Knock it down and create a solid final solution
The Straw Man concept 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 Copyright © managementstudyguide.com. All rights 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 Copyright © managementstudyguide.com. All rights reserved. 55

Straw Man approach – 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 Copyright © managementstudyguide.com. All rights reserved. 56

Root cause analysis Identifying a problem to its origins 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 Copyright © managementstudyguide.com. All rights reserved. 59

Root Cause Analysis – the interrelation
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 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 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 Copyright © managementstudyguide.com. All rights reserved. 60

Root Cause Analysis – the process
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 Copyright © managementstudyguide.com. All rights reserved. 61

Root cause analysis – Key points
Understanding and solving the problem 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 Copyright © managementstudyguide.com. All rights reserved. 62

5 Whys 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 Copyright © managementstudyguide.com. All rights reserved. 63

5 Whys – Example 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 Copyright © managementstudyguide.com. All rights reserved. 64

Drill down approach 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 Copyright © managementstudyguide.com. All rights reserved. 65

Cause and Effect Analysis
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 Copyright © managementstudyguide.com. All rights reserved. 67

Cause and Effect analysis – the process
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 Copyright © managementstudyguide.com. All rights reserved. 68

Cause and Effect Analysis – Key points
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 Copyright © managementstudyguide.com. All rights reserved. 69

Overall objective – Problem solving
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) Copyright © managementstudyguide.com. All rights 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 Copyright © managementstudyguide.com. All rights reserved.

Common biases limit our ability to solve problems and make decisions
Description 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 Representative The practice of assessing the likelihood of an event or outcome by drawing parallels to other events or outcomes that are unrelated Copyright © managementstudyguide.com. All rights reserved.

Copyright © managementstudyguide.com. All rights reserved.

Similar presentations

Presentation on theme: "Copyright © managementstudyguide.com. All rights reserved."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Copyright © managementstudyguide.com. All rights reserved.

Similar presentations

Presentation on theme: "Copyright © managementstudyguide.com. All rights reserved."— Presentation transcript:

Similar presentations

About project

Feedback