5 Steps of Problem Solving

1. 5 STEPS OF PROBLEM SOLVING A Systematic Approach to Solutions © Operational Excellence Consulting. All rights reserved.

2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Acquire knowledge of key concepts and principles in PDCA problem solving. Understand team dynamics and define roles within the problem- solving team. Familiarize with the five- step problem-solving process and tools. Discover key strategies for successful problem- solving. 2 © Operational Excellence Consulting

3. CONTENTS KEY CONCEPTS & PRINCIPLES 01 PROBLEM SOLVING & VISUALIZATION TOOLS 04 PROBLEM SOLVING TEAMS & ROLES 02 PRACTICAL TIPS FOR SUCCESS 05 5 STEPS OF PROBLEM SOLVING 03 3 © Operational Excellence Consulting

4. THE BLIND MEN AND THE ELEPHANT It’s a spear! It’s a fan! It’s a wall! It’s a rope! It’s a snake! It’s a tree! Problems are often perceived differently by different people. by different people. Problems are often perceived differently 4 Image: Mythgyaan © Operational Excellence Consulting

5. THE MINDSET OF A TRADITIONAL PROBLEM SOLVER “I have the solution; other ideas won’t work.” “Why bother investigating? It’s probably not that important.” “This problem is too big to solve; there’s no hope.” “Which problem solving process should I use?” “I can’t solve the problem alone!” “Who will get the credit?” 5 © Operational Excellence Consulting

6. WHAT IS A PROBLEM? A problem is a deviation from a standard, i.e., a difference between what should be happening and what is actually happening. Standard – what should be happening Gap = Problem Current situation – what is actually happening 6 © Operational Excellence Consulting

7. WHAT IS PROBLEM SOLVING? Problem-solving is the elimination of the cause of a nonconformity, potential nonconformity or other undesirable condition in order to prevent its occurrence or recurrence. ● 7 © Operational Excellence Consulting

8. PROBLEM SOLVING FUNNEL Big vague concern Breakdown Grasp the situation § Actual vs. standard § Actual vs. ideal Go See Point of cause § Time and place where events cause abnormality 5 Why Analysis Why? Root cause Countermeasures 8 Source: Adapted from Dennis © Operational Excellence Consulting

9. BENEFITS OF PROBLEM SOLVING Increased market share Faster delivery time Increased efficiency Lower costs Improved customer satisfaction Improved culture of innovation Improved employee morale Increased profitability 9 © Operational Excellence Consulting

10. PDCA CONCEPT PDCA stands for Plan-Do-Check-Act, a four-step problem-solving methodology ● The PDCA Cycle It follows a continuous cycle of improvement ● Emphasizes iterative refinement for better outcomes ● 10 © Operational Excellence Consulting

11. THE PDCA CYCLE IS THE ENGINE OF CONTINUOUS IMPROVEMENT Continuous Improvement A P D C Quality Improvement New Standard A P D C Consolidation through Standardization Current Standard Time 11 © Operational Excellence Consulting

12. PDCA PROBLEM SOLVING: PHASE DESCRIPTIONS PLAN: Plan lays the foundation. Define the issue, dig into root causes, and strategically plan countermeasures for effective solutions. ACT: Act takes necessary actions for continuous improvement and future problem prevention, creating a dynamic loop of assessment and adjustment. PDCA Problem Solving Process CHECK: Check evaluates the results. Measure outcomes, gather feedback, and assess if the problem is adequately addressed. DO: Do is action. Implement the planned solutions, execute the countermeasures developed in the Plan phase, and make practical changes to solve the problem. 12 © Operational Excellence Consulting

13. ALIGNING THE PDCA CYCLE WITH THE 5-STEP PROBLEM-SOLVING PROCESS 1 Define the Problem PLAN Analyze Root Cause 2 Develop Countermeasures 3 Implement Solutions DO 4 5 CHECK & ACT Evaluate & Follow-up 13 © Operational Excellence Consulting

14. 5 STEPS OF PROBLEM SOLVING PROCESS MODEL 14 © Operational Excellence Consulting

15. CONCEPT OF PROBLEM SOLVING TEAMS A Problem Solving Team is a group of employees performing similar or related tasks, who get together on a regular basis, to discuss a topic or theme affecting their work or workplace. 15 © Operational Excellence Consulting

16. PHILOSOPHY OF PROBLEM SOLVING TEAM People take interest and pride in their work ● Shared decision-making process ● Development of individual capabilities ● Creating a cordial atmosphere in the workplace ● Benefits both management and staff ● 16 16 © Operational Excellence Consulting © Operational Excellence Consulting. All rights reserved.

17. FUNDAMENTALS OF PROBLEM SOLVING ACTIVITIES Group based ● Participation by all members ● Continuous process ● Application of problem-solving (“QC”) tools ● Projects/themes are related to the work or the workplace ● 17 © Operational Excellence Consulting © Operational Excellence Consulting. All rights reserved.

18. TOPICS DISCUSSED BY PROBLEM SOLVING TEAMS Productivity ● Quality ● Cost ● Delivery ● Housekeeping ● Safety ● Service ● 18 © Operational Excellence Consulting

19. THE PROBLEM-SOLVING STRUCTURE PARALLELS THE FORMAL ORGANIZATIONAL STRUCTURE Steering Committee CEO Secretariat Division Managers Department Managers Facilitators Supervisors Leaders Frontliners Members Structure of a Company Structure of Problem Solving Activities 19 © Operational Excellence Consulting

20. PROBLEM SOLVING – ORGANIZATIONAL ROLES Role Description Facilitator Is a manager or executive who motivates, helps, trains and guides Problem Solving leaders and members. Team Leader Guides and leads the Problem Solving team. Team Member Is a member who together with colleagues form the Problem Solving team. 20 © Operational Excellence Consulting

21. “ systems and processes… rather than the employee.” 85% of the reasons for failure to meet customer expectations are related to deficiencies in W. EDWARDS DEMING 21 © Operational Excellence Consulting

22. STEP 1: DEFINE THE PROBLEM Clearly identify and articulate the issue or challenge at hand. ● This step involves understanding the symptoms, determining the scope of the problem, and setting a clear objective for the problem-solving process. ● 22 © Operational Excellence Consulting

23. STEP 1: DEFINE THE PROBLEM PURPOSE: To articulate and clarify the issue at hand, providing a clear understanding of the problem’s scope and impact. 23 © Operational Excellence Consulting

24. STEP 1: DEFINE THE PROBLEM Articulate The Issue Determine Scope Set Objective 24 © Operational Excellence Consulting

25. ARTICULATE THE ISSUE Express Problem Clearly Communicate Nature Clearly Use Common Language Ensure straightforward expression, avoiding unnecessary complexity. Clearly and succinctly communicate the issue's nature. Use easily comprehensible language for diverse audiences. 25 © Operational Excellence Consulting

26. EXAMPLE: IDENTIFYING THE SPECIFIC PROBLEM ILLUSTRATIVE 1. Corporate Goals 2023 Not meeting goal for 2023! § Increase global market share Overall Scrap % § Improve quality and service 3.2 § Increase corporate profits 3 2.7 2.6 2.3% Goal 2 2. Manufacturing Goals 2023 § Reduce cost by 5% § Reduce scrap by 15% 1 § Improve productivity by 7% § Improve HSE index by 10% 2021 2022 2023 (YTD) 26 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

27. EXAMPLES OF PROBLEM STATEMENTS Customers in the Northern region are dissatisfied with the ordering service. Errors have increased by 23% during the last 3 months. The unexpected downtime in our manufacturing line has led to a 15% decrease in production output. Recurring outages, reaching a 25% occurrence in recent instances, negatively impact customer satisfaction. Since the rationalization of the patient registration services, complaints of long waiting times have increased by 35%. 27 © Operational Excellence Consulting

28. EXAMPLE: ESTABLISHING THE TARGET ILLUSTRATIVE Grinding Machine Scrap % 8.7 Gap from target 8 By December 2024: 7 6 § Reduce scrap in rough grinding from 3.7% to less than 2%. 5 4 3.7 3 § Reduce scrap in final grinding from 8.7% to less than 2%. 2.0 2 1 Final grind Rough grind Target level 28 © Operational Excellence Consulting Source: Adapted from Sobek & Smalley

29. ACTIVITY: PROBLEM STATEMENT ACTION! Instructions: Time: 10 mins 1. Brainstorming Session: Identify up to 5 workplace problems affecting daily operations or team productivity. 2. Define Selection Criteria: Establish criteria for selecting a problem (e.g., relevance, impact, feasibility). 3. Problem Selection: Choose one problem collectively based on the defined criteria. 4. Problem Statement: Clearly define the problem statement for the selected issue. 29 © Operational Excellence Consulting

30. CAUSE & EFFECT DIAGRAM: PURPOSES Identify Causes Visualize Relationships Problem Solving Systematically identify potential causes of a specific issue. Support collaborative problem-solving and analysis. Visually represent the relationships between causes and effects. 30 © Operational Excellence Consulting

31. RELATIONSHIP OF PROBLEMS, SYMPTOMS AND CAUSES ILLUSTRATIVE Alternate Illustration SYMPTOMS § Result or outcome of the problem § What you see as a problem (Obvious) SYMPTOMS Aches and fever PROBLEM PROBLEM § Gap from goal or standard Don’t feel well ROOT CAUSES § System below the surface, bringing about the problem (Not obvious) Infection CAUSES 31 © Operational Excellence Consulting

32. EXAMPLE: IDENTIFYING ROOT CAUSES USING THE 5 WHYS ANALYSIS ILLUSTRATIVE 1st Why Symptom: The machine stopped! 2nd Why Causes: 1. The circuit overload tripped 3rd Why 2. The shaft wore down and seized up 4th Why 3. Metal cutting chips penetrated the area 5th Why 4. Chips passed through the lubrication system 5. There was no strainer on the inlet pipe from the tank 32 © Operational Excellence Consulting

33. “ seven fundamental quantitative tools.” As much as 95% of quality related problems in the factory can be solved with DR. KAORU ISHUKAWA 33 © Operational Excellence Consulting

34. WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING? Phase Problem Solving Steps Applicable Tools Brainstorming / Matrix Diagram / Selection Criteria / Team Consensus 1. Select the Theme 2. Plan the Schedule Gantt Chart Data Collection / Stratification / Flowcharting / Pie Chart / Check Sheet / Pareto Diagram / Bar Chart / Histogram 3. Grasp the Present Situation PLAN 4. Set the Target Pareto Analysis / Conduct Experiments / Check Past Trends 5. Analyze the Cause & Identify Corrective Action Brainstorming / Cause & Effect Diagram / 5 Whys / Tree Diagram / Control Chart / Scatter Diagram / Alternative Solutions DO 6. Implement Corrective Action Arrow Diagram / Process Flowchart / Pictures / Diagrams Collect New Data / Check Sheet / Pareto Comparison / Bar Chart Comparison / Radar Chart / Target Variance CHECK 7. Evaluate the Result In the standardization plan, document the new procedures. Display on notice board or intranet or conduct briefings. Show the follow-up actions using the PDPC. ACT 8. Standardize & Follow Up 34 © Operational Excellence Consulting

35. EXAMPLE 2: STRATIFICATION BY MACHINE 40 35 30 Defect Quantity 25 Machine A 20 Machine B 15 Machine C 10 5 0 1 2 3 4 5 6 Month 35 © Operational Excellence Consulting

36. EXAMPLE: COMPARING 5S PERFORMANCE ILLUSTRATIVE Sort 35 30 25 20 15 Sustain Set In Order 10 5 Area A Area B 0 Standardize Shine 36 © Operational Excellence Consulting

37. PARETO’S PRINCIPLE (80/20 RULE) Examples: Effort Result 80% of your net income comes from 20% of your customers ● 20% 80% 80% of your sales are generated by 20% of your products ● 80% 20% 80% of your emotions are created by 20% of your thoughts ● Important Not Important 80% of your work results from 20% of your effort ● 37 © Operational Excellence Consulting

38. EXAMPLE: PARETO CHART Pareto Chart of Pizza Defects 35 120% 30 100% 25 Cumulative Percent 80% Occurrences 20 60% 15 40% 10 20% 5 - 0% Forgot Breadstic ks 7 90% 6% Driver Had No Change 4 93% 3% Wrong Toppings Pizza Cold Pizza Late Wrong Crust Tastes Bad Wrong Price Driver Rude Smashed in Box 3 96% 3% All other Quantity Cum % % of Total 29 25% 25% 25 46% 21% 22 64% 19% 13 75% 11% 10 84% 8% 2 1 2 97% 2% 98% 1% 100% 2% 38 © Operational Excellence Consulting

39. EXAMPLE 1: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF BARCODE LABELS” ILLUSTRATIVE MAN MACHINE Smear Improper training Illegible Torn Machine Breakdown Printwheel Dirty Handling HIGH Wrinkled Worn Ribbon SCRAP OF BARCODE LABELS Ineffective adhesive Design of label Improper storage Improper storage Damage Wrong orientation Size of label Poor printing Process changes Process changes MATERIAL METHOD © Operational Excellence Consulting

40. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting