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Useful Tools 
for Problem Solving 
© Operational Excellence Consulting. All rights reserved. 
© Operational Excellence Consulting. All rights reserved.
NOTE: This is a PARTIAL PREVIEW. To 
download the complete presentation, please visit: 
http://www.oeconsulting.com.sg 
© Operational Excellence Consulting. All rights reserved. 2 
Contents 
1. Flow Chart 
2. Brainstorming 
3. Gantt Chart 
4. Stratification 
5. Check Sheet 
6. Bar Chart 
7. Waterfall Chart 
8. Line Graph 
9. Pie Chart 
10. Belt Graph 
11. Radar Chart 
12. Control Chart 
13. Pareto Chart 
14. Cause & Effect Diagram 
15. 5 Whys 
16. Histogram 
17. Scatter Diagram 
18. Affinity Diagram 
19. Relations Diagram 
20. Tree Diagram 
21. Matrix Diagram 
22. Matrix Data Analysis Chart 
23. Arrow Diagram 
24. Process Decision Program Chart
© Operational Excellence Consulting. All rights reserved. 3 
Flow Chart 
• Purpose 
 To show the sequential steps in a process. 
• When to use 
 To develop understanding of how a process is 
done. 
 To study a process for improvement. 
 To communicate to others how a process is done. 
 When better communication is needed between 
people involved with the same process. 
 To document a process. 
 When planning a project.
Example of a “Swim-lane” Flow Chart 
© Operational Excellence Consulting. All rights reserved. 4
Brainstorming 
© Operational Excellence Consulting. All rights reserved. 5 
• Procedure 
1. Make sure everyone understands and is satisfied with the central 
question before you open up for ideas. 
2. You may want to give everyone a few seconds to jot down a few ideas 
before getting started. 
3. Begin by going around the table or room, giving everyone a chance to 
voice their ideas or pass. After a few rounds, open the floor. 
4. More ideas are better. Encourage radical ideas and piggybacking. 
5. Suspend judgment of all ideas. 
6. Record exactly what is said. Clarify only after everyone is out of ideas. 
7. Don't stop until ideas become sparse. Allow for late-coming ideas. 
8. Eliminate duplicates and ideas that are not relevant to the topic.
Gantt Chart Example 
Example of a Problem Solving Project Schedule 
© Operational Excellence Consulting. All rights reserved. 6 
7 
Aug 
14 
Aug 
21 
Aug 
28 
Aug 
4 
Sep 
11 
Sep 
18 
Sep 
25 
Sep 
1 
Oct 
8 
Oct 
15 
Oct 
22 
Oct 
29 
Oct 
Select the theme 
Plan the schedule 
Grasp the present situation 
Establish the target 
Implement corrective actions 
Analyze the cause and 
identify corrective action 
Implement the solutions 
Standardize and follow up
Stratification Considerations 
• Here are examples of different sources that might 
require data to be stratified: 
© Operational Excellence Consulting. All rights reserved. 7 
 Equipment 
 Shifts 
 Departments 
 Materials 
 Suppliers 
 Day of the week 
 Time of day 
 Products
Check Sheet – Example 2 
© Operational Excellence Consulting. All rights reserved. 8 
Defective 
Item 
Mon 
9/3 
Tue 
10/3 
Wed 
11/3 
Thu 
12/3 
Fri 
13/3 
Total 
Mold 
Cracked 
5 3 6 3 4 21 
Fibers 2 0 5 1 0 8 
Grit 4 2 3 5 0 14 
Pinholes 1 5 0 2 1 9 
Cracks 0 1 1 0 0 2 
Other 1 3 0 0 3 7 
Total 13 14 15 11 8 61
Bar Chart Examples 
Revenue Profit Before Tax 
30 
25 
20 
15 
10 
5 
© Operational Excellence Consulting. All rights reserved. 9 
130 
173 
192 
138 
198 
210 
250 
200 
150 
100 
50 
0 
FY 11 FY 12 FY 13 
Budget Actual 
7 
14 15 
13 
15 
28 
0 
FY 11 FY 12 FY 13 
Budget Actual
Waterfall Chart – Example 2 
Cost savings opportunity by lever 
Percent, 2007 annualized savings 
Help desk 
Deskside 
Deskside Help desk 
© Operational Excellence Consulting. All rights reserved. 10 
Implement flexible 
manpower systems 
Reduce NVA work (e.g., 
standardize operations) 
Redistribute activities 
Segment work by 
complexity 
Reduce incoming work 
Total 
10-25 
5-15 
5-10 
2-3 
0 
0 
25-45 
Pool resources 
11-14 
0 
4 
5 
0 
14-30 
0-15
Line Graph Example 
© Operational Excellence Consulting. All rights reserved. 11 
1000000 
900000 
800000 
700000 
600000 
500000 
400000 
300000 
200000 
100000 
0 
1999 2000 2001 2002 
Prevention 
Appraisal 
Internal Failure 
External Failure 
Total COQ 
Cost of Quality
Pie Chart – Example 1 
Employee Profile (by Age Group) 
7% 
34% 
© Operational Excellence Consulting. All rights reserved. 12 
20% 
> 40 
< 26 
30-34 
26-29 
35-39 
10% 29% 
Total employees = 1700
Belt Graph Example 
Ranking of Service Attributes 
© Operational Excellence Consulting. All rights reserved. 13 
42 
13 
30 
5 
28 
25 
8 
21 
12 
17 
28 
23 
4 
18 
8 
5 
6 
20 
23 
14 
15 
13 
4 
6 
3 
9 
18 
24 
8 
20 
12 
13 
2 3 
18 
20 
6 
21 
16 
27 
1 1 8 
21 
2 
14 
27 
44 
1 0 
11 8 
35 
100 
80 
60 
40 
20 
0 
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 
Clear distinction in customers’ preference as the difference 
between ranked 1st for the top 3 attributes is large (>10%).
Radar Chart Example 
35 
30 
25 
20 
15 
10 
5 
0 
Sort 
Set In Order 
Standardize Shine 
© Operational Excellence Consulting. All rights reserved. 14 
Sustain 
Comparison of 5S Performance 
Area A 
Area B
Control Chart 
© Operational Excellence Consulting. All rights reserved. 15 
• Purpose 
 To identify dynamic or special causes of variation in a repeating 
process. 
• When to use 
 To determine if a process is in a state of statistical control. 
 To differentiate between special and common causes of variation. 
 To detect statistical trends in measurements. 
 When regular measurements of a process can be made.
Control Chart Selection 
TYPE OF DATA 
Attribute Data 
Count Classification 
Defects Defectives 
Variable Data 
© Operational Excellence Consulting. All rights reserved. 16 
Equal 
subgroup 
size 
Different (or 
same) 
subgroup size 
Equal 
subgroup 
size 
Different (or 
same) 
subgroup size 
c-Chart u-Chart np-Chart p-Chart 
Subgroup 
size of 1 
Subgroup 
size 2-9 
Subgroup 
size >9 
ImR Xbar & R Xbar & S 
Poisson distribution Binomial distribution Normal distribution/ 
Central Limit Theorem
Example: Use of Pareto Chart to compare ‘Before’ 
and ‘After’ a process improvement 
Restaurant Complaints 
Before After 
33% Reduction 
in Wait Time 
© Operational Excellence Consulting. All rights reserved. 17
Cause & Effect Diagram (Manufacturing) 
Causes Effect 
Problem 
Statement 
Manpower 
cause 
Machines 
Methods 
Measurements Materials 
© Operational Excellence Consulting. All rights reserved. 18 
Mother Nature 
(Environment)
5 Whys Example 
Why? Answer 
© Operational Excellence Consulting. All rights reserved. 19 
1 
Why is there oil on the 
floor? 
Oil leaks from the cylinder rod 
when activated. 
2 Why did oil leak? The O-ring was cut. 
3 Why was the O-ring cut? The rod was flawed. 
4 Why was the rod flawed? Dirt in the oil abrades the rod. 
5 Why did dirt get in the oil? 
There are holes and gaps on the 
upper plate of the tank.
© Operational Excellence Consulting. All rights reserved. 20 
Histogram 
• Purpose 
 To show the frequency distribution of a set of measurements 
(Note: Not to be confused with a Bar Chart.) 
• When to use 
 When the data are numerical. 
 When you want to see the shape of the data’s distribution, 
especially when determining whether the output of a process is 
distributed approximately normally. 
 When analyzing whether a process can meet the customer’s 
requirements. 
 When analyzing what the output from a supplier’s process looks 
like.
Relations Diagram Example 
© Operational Excellence Consulting. All rights reserved. 21 
Source: ASQ
Tree Diagram – Example 1 
© Operational Excellence Consulting. All rights reserved. 22
Matrix Diagram 
© Operational Excellence Consulting. All rights reserved. 23 
• Purpose 
 To show the relationship between two, three or four groups of 
information. 
• When to Use 
 Provide information about the relationship, such as its strength, 
the roles played by various individuals, or measurements.
Matrix Diagram – Example 2 
Evaluation Chart for Employee Suggestions 
© Operational Excellence Consulting. All rights reserved. 24
Matrix Data Analysis Chart (MDAC) 
© Operational Excellence Consulting. All rights reserved. 25 
• Purpose 
 Matrix data is arranged for easy visualization and comparisons. 
Relationships between data variables shown on both axes are 
identified using symbols for importance or numerical values for 
evaluations. 
 To decide between several options, where you need to take many 
different factors into account. 
• When to Use 
 To identify clusters of related items within a larger group. 
 When decisions are based on approximate or subjective data.
MDAC – Example 3 
MABA Analysis 
Business attractiveness 
Relative small, but 
attractive opportunity 
Medium sized, quite 
attractive market in 
which the company 
holds a 35% market 
share 
Large market, yet not 
a very attractive 
opportunity 
© Operational Excellence Consulting. All rights reserved. 26 
Market attractiveness 
High MA, but low BA 
Least attractive 
Highly attractive 
High BA, but low MA 
Average 
Note: By using a bubble instead of a dot, one may indicate the (relative) size of the market. 
Additionally or alternatively, a slice of the pie could indicate the market share of the company. 
Source: Kotler, 2000
Arrow Diagram 
© Operational Excellence Consulting. All rights reserved. 27 
• Purpose 
 To show the required order of tasks in a project or process, the 
best schedule for the entire project, and potential scheduling and 
resource problems and their solutions. 
• When to Use 
 When scheduling and monitoring tasks within a complex project 
or process with interrelated tasks and resources. 
 When you know the steps of the project or process, their 
sequence and how long each step takes, and. 
 When project schedule is critical, with serious consequences for 
completing the project late or significant advantage to completing 
the project early.
Arrow Diagram – Example 1 
© Operational Excellence Consulting. All rights reserved. 28
Process Decision Program Chart (PDPC) 
© Operational Excellence Consulting. All rights reserved. 29 
• Purpose 
 To systematically identify what might go wrong in a plan under 
development. 
• When to Use 
 Before implementing a plan, especially when the plan is large and 
complex. 
 When the plan must be completed on schedule. 
 When the price of failure is high.
PDPC – Example 1 
© Operational Excellence Consulting. All rights reserved. 30
© Operational Excellence Consulting. All rights reserved. 
About 
Operational Excellence 
Consulting
About Operational Excellence 
Consulting 
• Operational Excellence Consulting is a management 
training and consulting firm that assists organizations in 
improving business performance and effectiveness. 
• The firm’s mission is to create business value for 
organizations through innovative operational excellence 
management training and consulting solutions. 
• OEC takes a unique “beyond the tools” approach to enable 
clients develop internal capabilities and cultural 
transformation to achieve sustainable world-class excellence 
and competitive advantage. For more information, please visit 
www.oeconsulting.com.sg 
© Operational Excellence Consulting. All rights reserved. 32
END OF PARTIAL PREVIEW 
To download this presentation, 
please visit us at: 
www.oeconsulting.com.sg 
© Operational Excellence Consulting. All rights reserved.

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Useful Tools for Problem Solving by Operational Excellence Consulting

  • 1. Useful Tools for Problem Solving © Operational Excellence Consulting. All rights reserved. © Operational Excellence Consulting. All rights reserved.
  • 2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg © Operational Excellence Consulting. All rights reserved. 2 Contents 1. Flow Chart 2. Brainstorming 3. Gantt Chart 4. Stratification 5. Check Sheet 6. Bar Chart 7. Waterfall Chart 8. Line Graph 9. Pie Chart 10. Belt Graph 11. Radar Chart 12. Control Chart 13. Pareto Chart 14. Cause & Effect Diagram 15. 5 Whys 16. Histogram 17. Scatter Diagram 18. Affinity Diagram 19. Relations Diagram 20. Tree Diagram 21. Matrix Diagram 22. Matrix Data Analysis Chart 23. Arrow Diagram 24. Process Decision Program Chart
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Flow Chart • Purpose  To show the sequential steps in a process. • When to use  To develop understanding of how a process is done.  To study a process for improvement.  To communicate to others how a process is done.  When better communication is needed between people involved with the same process.  To document a process.  When planning a project.
  • 4. Example of a “Swim-lane” Flow Chart © Operational Excellence Consulting. All rights reserved. 4
  • 5. Brainstorming © Operational Excellence Consulting. All rights reserved. 5 • Procedure 1. Make sure everyone understands and is satisfied with the central question before you open up for ideas. 2. You may want to give everyone a few seconds to jot down a few ideas before getting started. 3. Begin by going around the table or room, giving everyone a chance to voice their ideas or pass. After a few rounds, open the floor. 4. More ideas are better. Encourage radical ideas and piggybacking. 5. Suspend judgment of all ideas. 6. Record exactly what is said. Clarify only after everyone is out of ideas. 7. Don't stop until ideas become sparse. Allow for late-coming ideas. 8. Eliminate duplicates and ideas that are not relevant to the topic.
  • 6. Gantt Chart Example Example of a Problem Solving Project Schedule © Operational Excellence Consulting. All rights reserved. 6 7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 1 Oct 8 Oct 15 Oct 22 Oct 29 Oct Select the theme Plan the schedule Grasp the present situation Establish the target Implement corrective actions Analyze the cause and identify corrective action Implement the solutions Standardize and follow up
  • 7. Stratification Considerations • Here are examples of different sources that might require data to be stratified: © Operational Excellence Consulting. All rights reserved. 7  Equipment  Shifts  Departments  Materials  Suppliers  Day of the week  Time of day  Products
  • 8. Check Sheet – Example 2 © Operational Excellence Consulting. All rights reserved. 8 Defective Item Mon 9/3 Tue 10/3 Wed 11/3 Thu 12/3 Fri 13/3 Total Mold Cracked 5 3 6 3 4 21 Fibers 2 0 5 1 0 8 Grit 4 2 3 5 0 14 Pinholes 1 5 0 2 1 9 Cracks 0 1 1 0 0 2 Other 1 3 0 0 3 7 Total 13 14 15 11 8 61
  • 9. Bar Chart Examples Revenue Profit Before Tax 30 25 20 15 10 5 © Operational Excellence Consulting. All rights reserved. 9 130 173 192 138 198 210 250 200 150 100 50 0 FY 11 FY 12 FY 13 Budget Actual 7 14 15 13 15 28 0 FY 11 FY 12 FY 13 Budget Actual
  • 10. Waterfall Chart – Example 2 Cost savings opportunity by lever Percent, 2007 annualized savings Help desk Deskside Deskside Help desk © Operational Excellence Consulting. All rights reserved. 10 Implement flexible manpower systems Reduce NVA work (e.g., standardize operations) Redistribute activities Segment work by complexity Reduce incoming work Total 10-25 5-15 5-10 2-3 0 0 25-45 Pool resources 11-14 0 4 5 0 14-30 0-15
  • 11. Line Graph Example © Operational Excellence Consulting. All rights reserved. 11 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 1999 2000 2001 2002 Prevention Appraisal Internal Failure External Failure Total COQ Cost of Quality
  • 12. Pie Chart – Example 1 Employee Profile (by Age Group) 7% 34% © Operational Excellence Consulting. All rights reserved. 12 20% > 40 < 26 30-34 26-29 35-39 10% 29% Total employees = 1700
  • 13. Belt Graph Example Ranking of Service Attributes © Operational Excellence Consulting. All rights reserved. 13 42 13 30 5 28 25 8 21 12 17 28 23 4 18 8 5 6 20 23 14 15 13 4 6 3 9 18 24 8 20 12 13 2 3 18 20 6 21 16 27 1 1 8 21 2 14 27 44 1 0 11 8 35 100 80 60 40 20 0 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Clear distinction in customers’ preference as the difference between ranked 1st for the top 3 attributes is large (>10%).
  • 14. Radar Chart Example 35 30 25 20 15 10 5 0 Sort Set In Order Standardize Shine © Operational Excellence Consulting. All rights reserved. 14 Sustain Comparison of 5S Performance Area A Area B
  • 15. Control Chart © Operational Excellence Consulting. All rights reserved. 15 • Purpose  To identify dynamic or special causes of variation in a repeating process. • When to use  To determine if a process is in a state of statistical control.  To differentiate between special and common causes of variation.  To detect statistical trends in measurements.  When regular measurements of a process can be made.
  • 16. Control Chart Selection TYPE OF DATA Attribute Data Count Classification Defects Defectives Variable Data © Operational Excellence Consulting. All rights reserved. 16 Equal subgroup size Different (or same) subgroup size Equal subgroup size Different (or same) subgroup size c-Chart u-Chart np-Chart p-Chart Subgroup size of 1 Subgroup size 2-9 Subgroup size >9 ImR Xbar & R Xbar & S Poisson distribution Binomial distribution Normal distribution/ Central Limit Theorem
  • 17. Example: Use of Pareto Chart to compare ‘Before’ and ‘After’ a process improvement Restaurant Complaints Before After 33% Reduction in Wait Time © Operational Excellence Consulting. All rights reserved. 17
  • 18. Cause & Effect Diagram (Manufacturing) Causes Effect Problem Statement Manpower cause Machines Methods Measurements Materials © Operational Excellence Consulting. All rights reserved. 18 Mother Nature (Environment)
  • 19. 5 Whys Example Why? Answer © Operational Excellence Consulting. All rights reserved. 19 1 Why is there oil on the floor? Oil leaks from the cylinder rod when activated. 2 Why did oil leak? The O-ring was cut. 3 Why was the O-ring cut? The rod was flawed. 4 Why was the rod flawed? Dirt in the oil abrades the rod. 5 Why did dirt get in the oil? There are holes and gaps on the upper plate of the tank.
  • 20. © Operational Excellence Consulting. All rights reserved. 20 Histogram • Purpose  To show the frequency distribution of a set of measurements (Note: Not to be confused with a Bar Chart.) • When to use  When the data are numerical.  When you want to see the shape of the data’s distribution, especially when determining whether the output of a process is distributed approximately normally.  When analyzing whether a process can meet the customer’s requirements.  When analyzing what the output from a supplier’s process looks like.
  • 21. Relations Diagram Example © Operational Excellence Consulting. All rights reserved. 21 Source: ASQ
  • 22. Tree Diagram – Example 1 © Operational Excellence Consulting. All rights reserved. 22
  • 23. Matrix Diagram © Operational Excellence Consulting. All rights reserved. 23 • Purpose  To show the relationship between two, three or four groups of information. • When to Use  Provide information about the relationship, such as its strength, the roles played by various individuals, or measurements.
  • 24. Matrix Diagram – Example 2 Evaluation Chart for Employee Suggestions © Operational Excellence Consulting. All rights reserved. 24
  • 25. Matrix Data Analysis Chart (MDAC) © Operational Excellence Consulting. All rights reserved. 25 • Purpose  Matrix data is arranged for easy visualization and comparisons. Relationships between data variables shown on both axes are identified using symbols for importance or numerical values for evaluations.  To decide between several options, where you need to take many different factors into account. • When to Use  To identify clusters of related items within a larger group.  When decisions are based on approximate or subjective data.
  • 26. MDAC – Example 3 MABA Analysis Business attractiveness Relative small, but attractive opportunity Medium sized, quite attractive market in which the company holds a 35% market share Large market, yet not a very attractive opportunity © Operational Excellence Consulting. All rights reserved. 26 Market attractiveness High MA, but low BA Least attractive Highly attractive High BA, but low MA Average Note: By using a bubble instead of a dot, one may indicate the (relative) size of the market. Additionally or alternatively, a slice of the pie could indicate the market share of the company. Source: Kotler, 2000
  • 27. Arrow Diagram © Operational Excellence Consulting. All rights reserved. 27 • Purpose  To show the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions. • When to Use  When scheduling and monitoring tasks within a complex project or process with interrelated tasks and resources.  When you know the steps of the project or process, their sequence and how long each step takes, and.  When project schedule is critical, with serious consequences for completing the project late or significant advantage to completing the project early.
  • 28. Arrow Diagram – Example 1 © Operational Excellence Consulting. All rights reserved. 28
  • 29. Process Decision Program Chart (PDPC) © Operational Excellence Consulting. All rights reserved. 29 • Purpose  To systematically identify what might go wrong in a plan under development. • When to Use  Before implementing a plan, especially when the plan is large and complex.  When the plan must be completed on schedule.  When the price of failure is high.
  • 30. PDPC – Example 1 © Operational Excellence Consulting. All rights reserved. 30
  • 31. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  • 32. About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. • OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting. All rights reserved. 32
  • 33. END OF PARTIAL PREVIEW To download this presentation, please visit us at: www.oeconsulting.com.sg © Operational Excellence Consulting. All rights reserved.

Editor's Notes

  1. 5