Problem Solving

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Problem Solving

  1. 1. Problem Solving Copyright © 2008 - 2012 managementstudyguide.com. All rights 1 reserved.
  2. 2. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 2
  3. 3. 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 individuals critical thinking skills.  Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 3
  4. 4. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 4
  5. 5. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 5
  6. 6. Problem Solving – Introduction (2/2) Problem identification Definition of problemSymptoms of Causes of problemproblem Alternatives for problem Consequences or impact solving of alternatives Copyright ©solution Choice of 2008 - 2012 managementstudyguide.com. All rights reserved. 6
  7. 7. 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? ? Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 7
  8. 8. 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 whats 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 8
  9. 9. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 9
  10. 10. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 10
  11. 11. 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 Copyright © 2008 - 2012 than brainstorming, are questions that require managementstudyguide.com. All rights reserved. 11
  12. 12. Brainstorming (2/2)There were 4 principles which were formed to reduce the social inhibitions among the members1 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 managementstudyguide.com. All rights reserved. 12
  13. 13. Types of brainstorming (1/2) Electronic brainstorming outperforms both regular brainstorming and nominal group brainstorming. It is a computerized version of the manual brainstorming techniqueElectronic 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 Copyright © 2008 2012 solutions that collectively create greater growth. Action is assigned individually. managementstudyguide.com. All rights reserved. 13
  14. 14. 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 mindIndividual 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 14
  15. 15. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 15
  16. 16. Process involved in SWOT analysis Vision Mission SWOT analysis Internal analysis External analysis Strengths Opportunities Weaknesses Threats Strategies and Copyright © 2008 - 2012 tactics managementstudyguide.com. All rights reserved. 16
  17. 17. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 17
  18. 18. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 18
  19. 19. Recognizing the company’sopportunities 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 19
  20. 20. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 20
  21. 21. Pareto analysis – Guidelines andchallengesGuidelines 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. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 21
  22. 22. Scientific methods of problemsolving (1/2)The value of methodThe scientific methods is a general methods for all fields. This particular method wasdeveloped, recognized by many scientists. Numerous methods are being offered by other peoplewhich are just variations of this scientific method. Still, most people do not realize that it is theuniversal method of originating reliable knowledge in all fields. This is another reason the scientificmethod 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 22
  23. 23. Scientific methods of problemsolving (2/2) • There are disagreements to what it really is. Intuitions areIntuitive spiritual, physic, psychological, scientific process but mostly they aremethod 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 stagesShort model of the scientific method of problem solving of problem solving. However, aformula for shorter formula is needed forscientific 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 mentalfor scientific activity stages. There are 3 ingredients which are considered necessary tomethod apply this method − Creative, non-logical, logical and technical methods Copyright © 2008 - 2012 − Procedural principles and theories managementstudyguide.com. All rights − Attributes and reserved. skills thinking 23
  24. 24. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 24
  25. 25. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 25
  26. 26. Problem-solving process 5 1 4 2 3 Analyze potential causes Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 26
  27. 27. 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 to4 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 27
  28. 28. Identify potential causes 5 1 • We want to take our main question and identify more specific questions • Each of these questions can be4 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 28
  29. 29. 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 sources4 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 29
  30. 30. 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 interpreted4 • 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 Copyright © 2008 - 2012 especially conflicting view points managementstudyguide.com. All rights reserved. 30
  31. 31. Make recommendations 5 1 • The data summary should be paired with the question • The main questions should be4 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 31
  32. 32. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 32
  33. 33. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 33
  34. 34. Plan-Do-Check-ActNew 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights best quality output solutions to get reserved. 34
  35. 35. Plan-Do-Check-Act – Using the toolsPlan • 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 35
  36. 36. Plan-Do-Check-Act – Using the toolsDo • 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 36
  37. 37. Plan-Do-Check-Act – Using the toolsCheck • 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 37
  38. 38. Plan-Do-Check-Act – Using the toolsAct • 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 38
  39. 39. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 39
  40. 40. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 40
  41. 41. 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 wellImplementationphase – requires lot Dream ‘What Mightof planning and be’ and take positivespreparation ensuring you identifieddream (vision) is the Brainstorm creativefocus point. It should and innovative ideassupport and sustain that team couldthe dream accomplish Look at the practicalities needed to support the vision. Start focusing on processes and Design Phase strategies Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 41
  42. 42. 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 Copyright © 2008 - 2012 brings managementstudyguide.com. All rights reserved. 42
  43. 43. The Simplex ProcessA Robust Creative Problem-Solving ProcessSimplex Process is powerful step-by-step tool helps identify and solve problems creatively andeffectively. It helps in business where you can skip important steps in problem-solving process andmiss good solutions to the issue Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 43
  44. 44. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 44
  45. 45. 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 youll put into solving it• Effective fact-finding confirms the view of the situation and ensure future problem solving has accurate view and reality Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 45
  46. 46. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 46
  47. 47. 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 Donts• 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 47
  48. 48. The Simplex Process – Selection andevaluation• 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 48
  49. 49. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 49
  50. 50. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 50
  51. 51. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 51
  52. 52. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 52
  53. 53. The Simplex Process key pointsSimplex is a powerful approach to creative problem-solving. It can be used for projects andorganizations of almost any scaleThe process follows an eight-stage cycle. Upon completion of the eight stages you start itagain 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 solutionsavailable to you. So, this process can help you2008 - 2012 Copyright © to be intensely creative managementstudyguide.com. All rights reserved. 53
  54. 54. The Straw Man concept Build it up, Knock it down and create a solid final solutionStraw 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 54
  55. 55. Few lines on Straw Man ideaWorking 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 55 55
  56. 56. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 56 56
  57. 57. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 57
  58. 58. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 58
  59. 59. 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 1 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 59 59
  60. 60. Root Cause Analysis – the interrelationRCA assumes that system and events are interrelated. An actionin one area impacts another area and another . . . and so on. Bylooking 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 Copyright © 2008 - 2012 filled the oil managementstudyguide.com. All rights reserved. 60 60
  61. 61. 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 managementstudyguide.com. All rights reserved. 61 61
  62. 62. 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 1 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 62 62
  63. 63. 5 WhysWHY WHY WHY WHYQuickly 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 63 63
  64. 64. 5 Whys – ExampleWHY WHY WHY WHY5 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? Copyright © 2008 - 2012 − Because we are running behind other projects managementstudyguide.com. All rights reserved. 64 64
  65. 65. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 65 65
  66. 66. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 66
  67. 67. 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 Copyright © 2008 - 2012 a process is not working managementstudyguide.com. All rights reserved. 67 67
  68. 68. Cause and Effect analysis – the process1 2 3 4 Look at the Identify Analyze yourIdentify 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 managementstudyguide.com. All rights reserved. 68 68
  69. 69. 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 Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 69 69
  70. 70. 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 70
  71. 71. 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 Copyright © process control 2008 - 2012 managementstudyguide.com. All rights reserved. 71 71
  72. 72. Problem Solving and decision makingBoth for corporate and personal life problem-solving and decision-making are consideredas important skills. Problem-solving often involves decision-making and decisionmaking is important for leadership and management. Decision making is more naturalfor few people in management and the only thing they have to learn is the quality of thedecisions taken. People that are less natural decision-makers are often able to makequality assessments, but then need to be more decisive in acting upon the assessmentsmade. Problem-solving and decision-making are closely linked, and each requirescreativity in identifying and developing optionsVarious 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 © 2008 - 2012 managementstudyguide.com. All rights reserved. 72
  73. 73. Common biases limit our ability tosolve 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 managementstudyguide.com. or outcomes that are unrelated reserved. 73
  74. 74. ManagementStudyGuide.com - Premium MembershipLearning Made Easier – ”Interactive trainings that make learning a real lifeexperience, 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: http://www.managementstudyguide.com/powerpoint-presentations.htm There is a Continuous Addition of Presentations every week. Copyright © 2008 - 2012 managementstudyguide.com. All rights reserved. 74

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