Problem Solving

Problem Solving

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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
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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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Contents

Definition






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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)

Problem identification

Definition of problem

Symptoms of
Causes of problem
problem

Alternatives for problem Consequences or impact
solving 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

What is the problem?
This should explain why the team is needed.
Who has the
problem or who is
This should explain who needs the solution and
the client/
who will decide the problem has been solved.
customer?

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






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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
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than brainstorming, are questions that require
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Brainstorming (2/2)
There were 4 principles which were formed to reduce the social inhibitions among the members

1 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.

2 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.

3 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.

4 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© 2008 - 2012association.
Copyright process of
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Types of brainstorming (1/2)
Electronic brainstorming outperforms both regular brainstorming and nominal group
brainstorming. It is a computerized version of the manual brainstorming technique
Electronic 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 brainstorming is a variation of electronic brainstorming (described above). It
can be done manually or with computers. In directed brainstorming, each participant is
Directed 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.

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.
Guided 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
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solutions that collectively create greater growth. Action is assigned individually.
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Types of brainstorming (2/2)
"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
Individual 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.

This process involves brainstorming the questions, rather than trying to come up with
immediate answers and short term solutions. Theoretically, this technique should not
Question 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

Vision

Mission

SWOT analysis

Internal analysis External analysis

Strengths Opportunities

Weaknesses Threats

Strategies and
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tactics
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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
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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
EVALUATION
weaknesses, generally because they don’t like to admit
10%
that they have any weaknesses. Weaknesses are those
9% skills, capabilities that your company lacks and that
8% prevent the company from achieving its goals and
objectives. If the organization does not have a critical skill
7%
or capability to achieve a goal, there are 3 options
6%

5% 1 Modify the goal to something achievable with the skill
set the company has
4%

3% 2 Raise the capital needed to acquire the skill or
capability you needed
2%

1% 3 Find another company that has the core competency it
needs and outsource that need or collaborate through
a strategic partnership
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Recognizing the company’s
opportunities and threats

Opport- Opportunities are those things that help the company and its business
unity 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

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

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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 Challenges
• Form a table listing the causes and their
frequency as a percentage. • Misrepresentation of the data.
• Arrange the rows in the decreasing order of
importance of the causes, i.e. the most important • Inappropriate measurements depicted.
cause first.
• Add a cumulative percentage column to the table. • Lack of understanding of how it should be
• Plot with causes on x-axis and cumulative
percentage on y-axis. applied to particular problems.
• Join the above points to form a curve.
• Plot (on the same graph) a bar graph with causes • Knowing when and how to use Pareto Analysis.
on x-axis and percent frequency on y-axis.
• Draw a line at 80% on y-axis parallel to x-axis. • Inaccurate plotting of cumulative percent data.
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.

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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.

Intuitive method

Divisions of Short model formula
scientific method for scientific method

Full model formula
for scientific method
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Scientific methods of problem
solving (2/2)
• There are disagreements to what it really is. Intuitions are
Intuitive spiritual, physic, psychological, scientific process but mostly they are
method 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
• Complex decisions should normally be put through all the steps or stages
Short model of the scientific method of problem solving of problem solving. However, a
formula for shorter formula is needed for
scientific method − 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.
• A guide or model formula, being subject neutral, will not solve problems.
Full model formula • Certain ingredients were recognized as necessary to use at these mental
for scientific activity stages. There are 3 ingredients which are considered necessary to
method apply this method
− Creative, non-logical, logical and technical methods
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− Procedural principles and theories
− Attributes and reserved. skills
thinking 23




Management, etc.

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Contents

Definition






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Problem-solving process

5
1

4

2

3 Analyze potential
causes
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Define the problem

5
1
• This is the most important step
in the process because it drives
the analysis
• Deal with facts, what is known to
4 be true about the problem you
are dealing with . Challenge
2
assumptions
• Separate symptoms from actual
problems
• Develop a main question .
Questions are most useful way to
structure problems
3 Analyze potential
causes
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Identify potential causes

5
1
• We want to take our main
question and identify more
specific questions
• Each of these questions can be
4 further broken down into more
granular questions . These
2
questions can then be analyzed
• A mutually exclusive , collectively
exhaustive should be used for
completeness purposes

3 Analyze potential
causes
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Analyze potential causes

5
1 • Once the questions are
formulated, pick one or more of
the subordinate questions to
address
• Identify the list of data sources
4 that can be used to research your

2 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
3 Analyze potential
causes possible
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Draw conclusions

5 • After all of the primary and
1
secondary data collected it must
be synthesized
• Raw data typically comes in
various forms and must be
interpreted
4
• Team members need to develop
2 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
3 Analyze potential incorporates all of the research
causes
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Make recommendations

5
1

• The data summary should be
paired with the question
• The main questions should be
4 addressed using the findings from
step 3 (Analyze potential causes)
2
• 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
3 Analyze potential
causes
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Contents

Definition






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Management, etc.

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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?
• If you are 100% confident that
your solution to the problem
would be right not once but every
time
• How are you going to approach
the situation?
• 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? The PDCA cycle gives confidence in your
Act: Implement final solution approach to problem solving and implementing
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Plan-Do-Check-Act – Using the tools

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

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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

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

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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

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Plan-Do-Check-Act – Key Points

Key points

• The Plan-Do-Check-Act is simple
and effective approach for
PLAN DO 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,
ACT CHECK then generating potential
solution, testing and
implementing the selected
solution

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Appreciation Inquiry

Solving Problems by looking at what is going right

Appreciation means to recognize Inquiry means to
contributions, things and people discover, explore, find new
around us 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
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Appreciation Inquiry: The 5D Approach

Need to look
for the best
happened in
Define what
past and what
you are
is currently
looking at
working well
Implementation
phase – requires lot Dream ‘What Might
of planning and be’ and take positives
preparation ensuring you identified
dream (vision) is the Brainstorm creative
focus point. It should and innovative ideas
support and sustain that team could
the dream accomplish

Look at the
practicalities
needed to support
the vision. Start
focusing on
processes and Design Phase
strategies
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Appreciation Inquiry: Key points
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
Design Phase positive outcomes that positive thinking
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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

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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?
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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

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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

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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

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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

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Management, etc.

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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

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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

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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

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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.

These 8 stages ensure that you solve the most significant problems with the best solutions
available to you. So, this process can help you2008 - 2012
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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

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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

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Straw Man approach – Key Points

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
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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

10
• RCA identifies the problem and uses
specific steps to find the primary cause of
9
the problem:
8
7 − Investigate what happened
6 − Analyze why it happened
5
− Draw out what to do to reduce or not to
4
repeat gain
3
2
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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

Root causes analysis
looks at all these 3
types of causes and
Organizational investigates not only
Physical causes Human Causes one issue but finding
causes
hidden flaws and
• Some items failed • People did • A system or actions that
to work in some something wrong or schedule not contributing to the
way have done which is worked on properly problem
• Example – failure not needed and this and people ignores
of power gain leads to their allotted work
transformer physical causes • Example – no one
• Example – no one was responsible for
filled oil in transformer
transformer which maintenance and
led to power failure everyone assumed
that someone has
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filled the oil
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Root Cause Analysis – the process
1 2 3 4 5
Recomm-
Identify Identify
Define the Collect end and
possible the root
problem Data Implement
factors cause
solutions

• Identify what is • Ensure to • What are the • Analyze Why • What is the best
happening have proof events that led casual factor solution you
• What are the that problem to the problem? exists need to develop
key symptoms still exists • What situations • Identify what is to prevent the
• Duration of the allow the the real reason problem
problem problem to behind the happening again
existed occur? problem • How will you
• What is the • Use tools like implement?
impact of the ‘Appreciation’, • Who is
problem? ‘5 responsible?
Whys’, ‘Drill • What are the
Down’, ‘Cause risks and
and effect benefits of
diagrams’ to implementing
help identify the solution
casual factors
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 failures2008 - 2012 happen
Copyright © before they
reserved. 61 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
10
significant problems as well as the events
9 and factors leading to them
8
• You can use tools to support your Root
7
Cause Analysis process
6
5
4
3
2
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5 Whys

WHY
WHY
WHY

WHY
Quickly getting to the root of a problem
• This is simple problem-solving technique to WHY
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
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5 Whys – Example

WHY
WHY
WHY

WHY
5 Whys
• Why is our client not satisfied with our work? WHY
− 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?
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− Because we are running behind other projects
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Drill down approach

Breaking Problems into manageable parts

• 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

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Cause and Effect Analysis
Identifying the likely cause of
problems
• 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
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reserved. 67 67

Cause and Effect analysis – the process
1 2 3 4
Look at the Identify
Analyze your
Identify the problem major factors possible
diagram
involved causes

• List down what • Identify factors that • For each factor • Investigate the likely
exactly the are part of the which you have causes further
problem is problem – like listed in step 2, look • Make a list of
• Identify who is systems, infrastruc out all possible causes on a paper
involved/ ture, employees, e causes of the and try to test each
responsible xternal forces problem that may one
• Use models like relate to the factor
• Check out where • Note the possible
and when the McKinsey’s 7S • If cause is causes actually
problem occurs framework – large, breakdown to effecting the
Strategy, Structure, small sub-causes as problem
Systems, Shared done in ‘Cause and
Values, Skills, Styl Effect diagrams’
e and Staff or 4Ps • Have a diagram
of marketing – showing all possible
Product, Place, Pri causes of the
ce and Promotion problem that you
face

Copyright © 2008 - 2012
reserved. 68 68

Cause and Effect Analysis – Key points

4 Steps involved in Cause and
Effect analysis
• 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

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reserved. 69 69

Overall objective – Problem solving
Problem-solving projects for Business students
(Few Examples)

• 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
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2008 - 2012
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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

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Common biases limit our ability to
solve problems and make decisions

Bias Description

Too much importance is placed on information or data that is recent or
Availability available

The scope or extent of the analysis is limited to starting point
Anchoring

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

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

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

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

The practice Copyright © 2008 - 2012
of assessing the likelihood of an event or outcome by
Representative drawing parallels to other eventsAll rights
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Problem Solving

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