Problem Solving

Lesson Structure
1. Introduction
2. Structured problem solving – why?
3. The problem solving method
3.1 PDCA Cycle
3.2 Structured Problem Solving
i) Definition
ii) Observation
iii) Analysis
iv) Action
v) Check
vi) Standardization
vii) Conclusion
4. Success Factors in problem solving
5. Problem Solving and QC Story
6. Overview of Problem Solving Process

1. Introduction

The essence of continual improvement is the ability to solve problems effectively.

When an actual—or potential—problem crops up, its root cause is first identified, and
action is taken to eliminate it. If an organization progressively seeks out and
eliminates problems in this way, continual improvement results. It’s that simple.

Theorizing about problem solving as a cornerstone of continual improvement may be

easy, but making it happen in a systematic and effective manner is much more
difficult. Problem-solving skills rarely come naturally; they must be refined and
practiced daily. But these skills can be developed by most organizations.

2. Structured problem-solving – Why?

Although most people consider problem-solving methods as given, many

organizations still use ad hoc methods for addressing problems. In other words, they
select the most obvious explanation for a problem and believe that they’ve
addressed its root cause. Which actually may not be so.

An effective problem-solving method is simply a step-by-step road map for

developing solutions. The numerous reasons for using a formal method are very
convincing. Here are just a few:

• Prevents problem solvers from jumping to conclusions. It’s always tempting to

propose solutions before a problem is properly defined and its root cause identified.
A structured problem-solving method prevents the process from short-circuiting and
ensures the critical, preliminary step of truly understanding the problem and its
variables.
• Ensures root cause analysis. An inability—or unwillingness—to identify the root
cause is probably the single biggest obstacle to problem solving. However, when one
of the explicit steps of a structured problem-solving method is identifying the root
cause, it’s much harder to ignore.
• Demystifies the problem-solving process. When each step of the problem-solving
method is understood and agreed upon by all participants, the process gives
everyone an opportunity to contribute and drives a team-oriented style of problem
solving.
• Prescribes which analytical tools to use and when. The sheer number of analytical
tools available to problem solvers is mind-boggling, and it’s not always clear when
the use of a certain one is appropriate. A structured problem-solving method offers
guidance on when and how to use the proper tools.

3. The Problem Solving Method

Along with the numerous analytical tools available, there are many structured
problem-solving methods. Some are copyrighted, some are public domain, some are
very intricate and others are quite simple. Typically, they range in complexity from
four to eight steps, but all the methods share the same basic themes normally based
on Deming’s PDCA cycle. Therefore, it’s less important which problem-solving
method you choose than actually picking one and using it. You can even make up
your own method.

3.1 PDCA Cycle

PDCA stands for PLAN, DO, CHECK and ACT

PLAN - First make the objective, problem area or improvement opportunity clear
and set up the means to achieve the same.
DO - Put the plan into Practice.
CHECK - Observe the results to see if the desired objective is achieved.
ACT - If there is progress, standardize the plan otherwise review the plan.

Continuous rotation of PDCA Cycle progressively brings about improvement in

processes. As effective processes are standardized, problem does not surface again.
This brings about improvement in Quality.

3.2 Structured Problem Solving

Based on PDCA methodology, we introduce you to a seven step structured method of

problem solving as outlined below:

PLAN 1. DEFINITION
2. Observation

3. Analysis

DO 4. ACTION
CHECK 5. Check
ACT 6. Standardization
7. Conclusion
The details about the above steps for problem solving are given in the subsequent
paragraphs.

i) Definition

First step in Problem Solving is the Identification of a Problem. The workplace has
many problems and the group normally brainstorms and identifies a list of problems.
It is also possible to identify the problems through:

 Dept. Indicators
 Survey of internal/external customers
 Interviewing of individuals from the work area
 Review of process records, data & related trends

The next step is to select a priority problem based on the importance and urgency.
The extent of control the group members can have on the problem can also be a
criterion. This can be done with the help of the criteria rating tool.

Finally the problem is quantified with the help of a Quality Indicator which
quantifies the undesirable effect. This will help in making the problem measurable
and in deciding on the improvement levels needed, etc.

(Appropriate tools for this step include brainstorming, Pareto charts, run charts, pie
charts, flowcharts and voting).

ii) Observation

This step is designed to understand and describe the problem fully. The problem
statement should be specific and not generic e.g. stating “customer states that the
parts won’t run right” is not a specific problem statement.

Basic objective of this step is to investigate the time, place, type and symptom of
the problem. This requires careful collection and analysis of the data related to
the quality indicator selected in the previous step. The efforts should be to convert
opinions into indisputable facts.

Other important points to be considered at this stage are:

 Identify the current level of quality indicator (or standard)
 Determine in which process the problem lies
 How much improvement is needed
 Avoid trying to solve the problem without data

(Appropriate tools include brainstorming, flowcharts, Pareto charts, check sheets and
histograms).

iii) Analysis

This step is to identify the factors which influence the problem and to identify the
root causes. Cause Effect relationship for the problem is analyzed through a Cause
Effect diagram with the collective wisdom of the group members and other
concerned people. Sometimes it is necessary to verify and isolate significant
causes for further analysis.

The typical obstacle at this step is mistaking a symptom for the root cause. Often,
people tend to define "root causes" that are nothing more than a restatement of the
problem definition. Before team members are asked to participate in problem
solving, they should receive training in how to distinguish symptoms from root
causes.

(Appropriate tools for root cause determination include 5-why analysis, interviewing,
brainstorming, cause-and-effect diagrams, FMEA, Pareto analysis, etc.)

iv) Action

After analysis, it is required to work on remedies (or counter-measures) necessary

for removing the root causes. It is also necessary to work on a plan of action to
implement all the required counter-measures. In this step, we identify corrective
measures, workout their feasibility, chalk out a time schedule and finally assign the
responsibility for implementation.

a) Selecting Counter-measures

While identifying countermeasures or solutions, many alternative solutions should be

generated before evaluating any of them. A common mistake in problem solving is
that alternatives are evaluated as they are proposed, so the first acceptable solution
is chosen, even if it’s not the best fit. If we focus on trying to get the results we
want, we miss the potential for learning something new that will allow for real
improvement.

The trick is to cast a wide net, then narrow the possibilities to those solutions that
satisfy the following criteria:
 They have a strong chance of being successfully implemented,
 They will be accepted by all relevant stakeholders, and
 They truly address the root cause identified in the previous step.

Then agree upon a solution, either by group consensus or through executive decree.

(Appropriate tools include brainstorming, Pareto charts and voting, criteria rating,
etc.)

b) Planning & Implementation

Even the best solution is doomed to fail if its implementation isn’t carefully planned
and executed. This process typically consists of two distinct phases:
 selling the solution to key stakeholders in order to get buy-in, and
 a methodical project planning to ensure the solution is executed correctly.

It’s also helpful to notify the organization’s customers who will be affected by the
solution. This reinforces the idea that the organization is dedicated to customer
satisfaction and problem resolution.

(Appropriate tools include project planning, effective presentation skills, selling skills
and pilot runs).

v) Check

After the Implementation, we must check the results to monitor the extent of
improvement. For this, we take observations and compare them against the
target set earlier for the improvements. Besides checking the results, it is also
necessary to check the new process that has been implemented so that it has no
adverse side effects elsewhere. In case satisfactory results are not demonstrated, we
may need to work on additional counter measures.

(Appropriate tools include auditing, interviewing, brainstorming, flowcharts, Pareto

charts, check sheets and histograms).

vi) Standardization

To hold the gains and to ensure that improvement is a part of the job, it is necessary
to standardize the improvement. Standards and procedures have to be updated,
the people need to be trained in the revised methods and the changes need to be
communicated to all concerned. Effectiveness of the improvement should be
continuously tried by establishing the audit procedures.

(Appropriate tools include control plans, procedures/standards, training, etc.)

vii) Conclusion

In this step, the complete project is reviewed for assessing the benefits derived.
People/teams who successfully contributed to problem-solving efforts should be
recognized for their work. We also review the entire Problem Solving Process
to see how the process itself can be improved while solving the next problem.
Finally, in this step we identify the next problem.

(Appropriate tools include empathy, effective communication, brainstorming, action

plan, etc.)

4. Success Factors in problem solving

Although the timeless quandaries of society might elude a structured problem-

solving method, the majority of predicaments facing business organizations won’t.
Select a problem-solving method and commit to using it at all levels of your
organization. Then train everyone in the method and make it an institution. A tool of
this sort gets stronger with regular use, so exploit every opportunity for applying it.

Each of the following fundamentals could be considered components of the problem-

solving method we just explored, but they’re still important enough to look at
individually.

i) Assign ownership of the problem

Even if your organization uses a team approach to problem solving, every problem
should be assigned to a specific individual. Confirm that this person accepts the
ownership. The owner is simply the project manager for solving the problem. Make
sure he or she understands that being selected as "problem owner" in no way
indicates accusation or blame. In fact, it’s a vote of confidence in the person’s ability
as a leader and manager.

In a perfect world, problems assigned to committees would always get solved. This
might even happen in our world occasionally. However, individuals who are
accountable for projects lead the vast majority of successful problem-solving
projects. Ownership can make remarkable things happen; don’t neglect it.
ii) Involve people familiar with the problem

Those most familiar with the variables surrounding a problem should be involved in
the problem-solving process. Often, these aren’t managers and supervisors but
people taking orders, writing software, operating machines, driving forklifts and
performing repairs. An organization’s culture must allow all personnel to contribute
actively to the process, regardless of their level within the organization.

One of the project manager’s most important tasks will be to select the right people
for the problem-solving team. Participants should be told why they’ve been included
(e.g., their technical expertise, familiarity with processes in question or experience in
the department). It’s important that individuals are motivated and enthusiastic about
being involved.

iii) Apply project management techniques

Project management is a very basic concept. It simply means assigning

responsibilities, timeframes, milestones and reviews—and then tracking them to
completion. Following through on a complex initiative without project management
becomes strictly a matter of luck; something that wise people won’t count on in a
pinch.

A well-designed corrective and preventive action system embodies the basics of

project management. If your system is user-friendly and streamlined, then it’s
perfectly suited as a project-management tool for problem solving. If it’s not, then it
should be redesigned—and fast. Complexity isn’t a positive attribute for corrective
and preventive action systems. Benchmark systems from other organizations and
don’t be afraid to borrow best practices where you find them.

iv) Aggressively pursue the root cause

An explicit step of nearly all problem-solving models is identifying the root cause. But
just because it’s explicit doesn’t mean it will happen. Identifying a problem’s true
root cause must be encouraged, and it’s the project manager’s responsibility to see
that this is done.

Identifying a root cause isn’t easy; it usually takes some serious investigation and
intellectual tenacity. Keep in mind that a root cause is rarely the first thing that
comes to mind.

Consider these supposed root causes:

• Employee error. It’s possible that employee error may have been a cause of a
problem at hand, but is it the root cause? Why exactly did the employee make the
error? Why is the task prone to error? Most likely, employee error isn’t the true root
cause, and any corrective action directed at this mistaken assumption won’t make
the problem go away.
• Failure to follow procedure. Why didn’t the employee follow procedure? Did he
or she know that a procedure existed? Are there other forces at play, such as an
incentive that discourages adhering to the procedure? The corrective action for
"failure to follow procedure" is usually the old standby, "reprimand employee." Does
anyone really believe that reprimands drive continual improvement? Not in any
organization I’d want to be a part of.
• Employee not properly trained. If a training program exists, why was the
employee not properly trained? The only reasonable corrective action for "employee
not properly trained" is "conduct training." If the system is inherently flawed,
however, no amount of training will remedy it. In fact, training in a flawed work
method only reinforces the flawed method, guaranteeing more problems in the
future.

The examples above illustrate the elusive nature of root causes. Once you think
you’ve identified the root cause, ask "why" one more time. You might be surprised to
discover one more layer to the problematic onion.

v) Communicate, communicate, communicate

Make problem-solving success stories a frequent subject within your organization. If

a customer complaint gets addressed effectively, tell the tale in the company
newsletter. If a group of employees succeeds in reducing the error rate, send
everyone an e-mail trumpeting the achievement. If the quality assurance
department assists a supplier in improving the consistency of its output, ask the local
newspaper to cover the story. Get the word out any time your organization succeeds
in solving or preventing problems. The more often employees hear about successes,
the more they’ll want to be involved. And the more they become involved, the more
successful your company will become.

Dignified public recognition is, of course, a form of communication, one that delivers
an astronomical return on investment. The message underlying public recognition is
"The company appreciates your team’s fine efforts, and we sincerely hope others will
follow your example." Who wouldn’t want to follow their example and be recognized,
too?

5. Problem Solving and QC Story

The logical connection from one step to the next step in the above process makes it
run almost like a story. In Japan, therefore, this is called a QC Story.

They make all their presentations on the QC Story format. This enables the
participants to get a clear and concise picture of the entire Problem Solving Process.
Many organizations have devised a One Sheet Format which brings all the steps of
Problem Solving graphically with minimum writing. Instead of presentations, they
use One Page Charts for providing opportunities for the teams and other participants
to share the experience of Quality Improvement and Problem Solving.
6. Overview of Problem Solving Process

DEMING STEP PURPOSE KEY ACTIVITIES HELPFUL TOOLS/

CYCLE TECHNIQUES

Plan 1. Definition To identify a problem  Search problems  Brainstorming

/theme (improvement  Customer feedback
area) & the reason for  Employee
working on it interviews
 Process records
 Prioritize problem  Criteria rating
 Pareto chart
 Select a performance  Performance
indicator Scorecards

2. Observation To assess the current  Collect data  Check sheet

situation through  Analyze data  Histogram
collected data & set  Find gap (with indicator)
target for improvement
 Define problem What, when, where,
who & how

3. Analysis To identify all factors  Identify root causes  Brainstorming

which influence the  Cause effect
problem and find out diagram
the root causes  5-why analysis
 Select significant root  Pareto chart
cause(s)
 Verify causes(s)  Histogram
 Scatter diagram
 Stratification
Do 4. Action To determine counter  Identify corrective actions  Brainstorming
measures and plan &  Structure tree
implement them to  Criteria rating
eliminate causes  Cost-impact
analysis
 Prepare action plan  Gantt Chart
 Implement plan  Check list
 Flowchart
 Arrow diagram
Check 5. Check To check that the  Collect data  Check sheet
problem & its root  Analyze data  Histogram
cause(s) have been  Compare with target (use
decreased & the target same indicator)
for improvement has  Decide additional counter  Brainstorming
been met measures, if required  Structure tree
 Criteria rating

Act 6. Standardization To make the  Amend documents &  Control plan

improvements a part of standards  Operational
the job and ensure that standards
gains obtained do not  Procedures
slide back  Training QI story

Act 7. Conclusion To plan what is to be  Assessing benefits  Pareto chart

done about any  Rewarding people  Brainstorming
remaining problems,  Reviewing problem  Flowchart
and to evaluate team’s solving process  Empathy &
effectiveness.  Deciding on new problems communication