PROBLEM SOLVING

& CREATIVE DECISION

MAKING
JULY 9, 2021
HOUSE RULES
▪ Keep your phones in silent mode
▪ Ask questions
▪ Listen with an open mind
▪ Participate
▪ Attack the problem, not the person
▪ Have Fun!
 C OURSE O UTLINE
Time Period Topic/Agenda

Morning ▪ The Problem: What, Why and How

▪ Traditional and Lean Problem Solving
▪ The Problem Solving Process
▪ Root Cause Analysis

Noon ▪ Lunch Break

Afternoon ▪ Root Cause Analysis (continuation)

▪ Taking Action
▪ The Problem Solving Culture
▪ Surprise Gift!!!
OPENING ACTIVITY
Opening Activity
Choose a partner and exchange information and
ideas as listed below.
1. Name
2. No. of years with ICI
3. Name one thing about yourself that others
don’t know about yet.
4. What do you think is the reason the titanic
sank?

Be ready to introduce your partner and share

his/her thoughts regarding the questions (3 &
4) above.
PRE-TRAINING SURVEY
Experience in PS Tools
Brainstorming
12
5 Whys 6
Cause and Effect Diagram 3
Fishbone Diagram 3
Pareto Analysis 2
Hypothesis Testing 1
Cause Mapping 1
DMAIC 1
Six Thinking Hats 1
WHAT IS A
PROBLEM?
Any deviation from Gap between actual & Unfulfilled
the standard desired conditions customer need
TOYOTA 3M
MODEL
 The 8
Wastes

DEFECTS OVERPRODUCTION WAITING NON-USE OF TALENT

TRANSPORTATIO INVENTORY MOTION EXTRA-PROCESSING

N
WHY DO WE NEED TO SOLVE
PROBLEMS?
Quality Delivery
Cost
 Group yourselves into 5-6 members per group
do the following:
and
1. Select a team leader who will facilitate the
discussion.
2. Brainstorm examples of problems or “wastes”
WORKSHOP found in your area/section.
3. Write them down on the flip charts provided
wherein they are grouped according to the
type of waste.
4. Present the team’s output to the other
participants.
GROUPING
Group 1 Group 2 Group 3 Group 4

Agnes Joana Omi Jannen

Tata Joy Owen Christy
Jerrum Sheila Michael Janelle
Mercy Reslie Rowen Gina
Elisea Mitch Swanie Lou
Richel Janet Ian Mary Ann
HOW DO WE NORMALLY SOLVE
PROBLEMS?
Traditional vs Lean Problem Solving
TRADITIONAL PROBLEM
•SFocus
OLVINGon Solutions
Speed is more important than facts.
• Focus on individual supervisors/managers solving/dictating
solution
Operators look to the Supervisor/Manager to tell them what to
do.
TRIAL AND ERROR PROBLEM
SOLVING
1. Problem arises.
2. Jump to a solution before the cause of the problem is identified.
3. No time is spent assessing the solution to see if it fixes the
problem.
4. This solution might actually cause another problem.
USUAL
APPROACH Problem
Identified
Firefighting!
Immediate Containment
Problem Re-occurs
elsewhere
Action Implemented

PREFERRED LEAN APPROACH

Firefighting!
Problem Immediate Defined Root Solutions Solutions are applied
Identified Containment Cause Analysis validated with across company and
Action Process data never return
Implemented
BASIC STEPS TO
PROBLEM
SOLVING
BASIC PRINCIPLE
7. Adjust and standardize 1. Identify the Team
success, 2. Define the problem
learn from failures 3. Root Cause Analysis
4. Develop Action Plan
ACT PLAN
6. Evaluate both results 5. Implement Action Plan
and process
CHECK DO
 BASIC PRINCIPLE

Typical quick Longer time

planning to resolve

PLAN DO CHECK ACT

Enough time Rapid problem
for planning resolution

Lead Time
If I had an hour to solve a
problem, I’d spend 55
minutes thinking about the
problem and 5 minutes
thinking about solutions.

- Albert Einstein
1. IDENTIFY THE TEAM
KEY IDEAS FOR TEAM
SUCCESS
▪ Should consist of small group of people (4-10) with knowledge
and expertise in the domain and authority to correct the problem
▪ If dealing with problems encompassing other sections, a cross-
functional team (CFT) is needed
▪ With defined roles and responsibilities:
Champion: Mentor, guide and serves as bridge to upper
management
Leader: day-to-day authority, calls meetings, facilitates the team,
reports to Champion
Record Keeper: Writes and publishes minutes
Participants: Respect all ideas, keep an open mind
2. IDENTIFY AND DEFINE THE PROBLEM
Clearly state the problem the team is to solve. Teams should refer
back
to the problem statement toproblem?
getting off track.
5W 1. WHAT is the
2. WHY is it a problem? Highlight the “pain”
3. WHERE do we observe the problem?
4. WHO is impacted?
5. WHEN did we first observe the problem?

2H 1. HOW did we observe the problem?

2. HOW huge is the problem
EXAMPLES OF PROBLEM
STATEMENTS
Instead of saying,
Inventory variance of 5%
Question to ask Answer

What is the problem? Inventory Variance

How huge is the problem? 5%

Where did we observe the problem? All ICI Warehouses

When did we observe the problem? June 30, 2021

Who is impacted? ICI

Why is this a problem? P1M unaccounted costs

How did we observe the problem From the physical inventory count
EXAMPLES OF PROBLEM
STATEMENTS
Instead of saying,
Inventory variance of 5%

A more accurate problem statement would be

There is an inventory variance of 5% in all warehouses during the

physical inventory count last June 30, 2021, which resulted to
P1M unaccounted costs.
EXAMPLES OF PROBLEM
STATEMENTS
Instead of saying,
High rejection rate in final QA.
Question to ask Answer

What is the problem? High rejection rate

How huge is the problem? 15%

Where did we observe the problem? In Final QA

When did we observe the problem? June 2021

Who is impacted? Customers

Why is this a problem? 30% Late deliveries

How did we observe the problem Quality monitoring reports

EXAMPLES OF PROBLEM
STATEMENTS
Instead of saying,

High rejection rate in final QA.

A more accurate problem statement would be

There is a high rejection rate of 15% in final QA last June 2021 based
on the quality monitoring reports, which resulted to 30% late
deliveries to customers.
COMMON
PITFALLS
1. The problem statement should not address more than one
problem.
2. The problem statement should not assign a cause.
3. The problem statement should not assign blame.
4. The problem statement should not offer a solution.
IMPORTANT NOTE: USE
DATA

You cannot improve

what
you cannot measure.

- Peter Drucker
A3 PROBLEM SOLVING
REPORT
▪ A3 Reports are one-page reports used for
documenting the necessary information needed
for progress reporting and decision-making.
▪ The report is broken into different sections,
each
clearly labeled and arranged in a logical flow.
▪ Highly visual – graphics, charts, maps, etc.
▪ Stimulates data-driven decisions
A3 PROBLEM SOLVING
REPORT
A3 PROBLEM SOLVING
REPORT
Team Name: Recommendations:

Team Members
• Team Leader Implementation Plan:
• Members

Problem Statement:
Cost Benefit Analysis:
Root Causes Analysis:

Results:
A3 PROBLEM SOLVING
REPORT
Team Name: Recommendations:

Team Members
• Team Leader Implementation Plan:
• Members

Problem Statement:
Cost Benefit Analysis:
Root Causes Analysis:

Results:
 In your predetermined group:
1. Name your team
2. Formulate a good problem statement based
on the pre-assigned problem overview. Use
the 5W2H method.
WORKSHOP 3. Choose a leader to facilitate discussion.
4. Present your problem statement to the rest of
the participants.
5. Teams are given 10 minutes to formulate the
problem statement
GROUPING
Group 1 Group 2 Group 3 Group 4 Group 5
ROOT CAUSE ANALYSIS
BASIC PRINCIPLE

The Symptom
“The Weed”
Above the Surface
(Obvious)

The Underlying
Causes
“The Root”
Below the
Surface
(Not Obvious)
WHAT IS A ROOT
? or contributing factor that, if corrected through
• The causal
CAUSE
process
improvement, would prevent recurrence of the identified problem
• The “true” reason that contributed to the creation of a problem,
defect or nonconformance

ROOT CAUSE ANALYSIS

• An approach to identify the underlying causes of why an incident
occurred.
BY ELIMINATING THE ROOT
CAUSE… You save time and money!
• Problems are not repeated
– Reduce rework, retest, re-inspect, poor quality costs,
etc…

• Problems are prevented in other areas

• Communication improves between groups
• Process cycle times improve (no rework loops)
• Secure long term company performance and profits
TOOLS TO USE IN ROOT
CAUSE ANALYSIS
 BRAINSTORMING
*
Four Primary Rules:
1. No negative feedback
2. Build on the ideas of others
3. Hold one conversation at a
time
4. Stay focused on the topic
5. Encourage wild ideas

* Advertising executive Alex F. Osborn is considered the father of brainstorming. He introduced the idea, and the
basic
rules of the process, in his 1953 book Applied Imagination.
ISHIKAWA DIAGRAM OR FISHBONE DIAGRAM
• First developed by Kaoru Ishikawa in the
1960s
• Identifies and organizes the potential causes
of a problem
• The head represents the problem
• Causes are grouped together into categories
STEPS IN CREATING A FISHBONE DIAGRAM

1. State the problem

2. Define the categories
(e.g. 6Ms)
3. Brainstorm each
category
 CREATING

A
FISHBONE D IAGRAM
 This activity will be done individually.
1. Identify a problem within your section/area.
2. Analyze the causes of that problem and classify
them accordingly based on the Fishbone
Diagram format.
WORKSHOP 3. You may choose your own category that is not
a
6M.
4. You are given 10mins to complete the activity.
5-WHY
A simple technique used to analyze any
problem by repeatedly asking the question
“Why”, which leads to the root cause of a
problem.
5-WHY
The 5 Why technique was originally developed by Toyota
founder Sakichi Toyoda and was later used within Toyota
Motor Corp. during the development of the Toyota
Product System (TPS).

The architect of the Toyota Production System, Taiichi

Ohno, described the 5 Whys as “… the basis of Toyota’s
scientific approach.
5-WHY TIPS AND BEST PRACTICES
• Never do root cause alone
• Ensure there is a consensus of the team members while drafting the problem
statement
• Don’t stop at only 5 Whys
• The technique should also be used in conjunction with other techniques
where
the findings of 5 Whys can be validated by quantitative data
• It’s the process that should be evaluated and not the people.
5-WHY EXAMPLE
5-WHY EXAMPLE
ROOT CAUSE OF WHY THE TITANIC
SANK
Titanic Sank Ship Hit
Iceberg

Titanic Sank Water Opening in Ship Hit

Filled Hull Iceberg
Hull
ROOT CAUSE OF WHY THE TITANIC
SANK
Titanic Sank Water
Filled
Opening in
Hull
Ship Hit
Iceberg
Ship didn’t
turn quickly
Lookouts
identified
Hull enough iceberg
Operations
late

Titanic Sank Water Filled Opening in Ship Hit Ship didn’t Speed of
Hull Hull Iceberg turn quickly ship Management
enough

Titanic Sank Water Filled Opening in Steel plates Strength of Strength of

Hull Hull pulled apart overlapping rivets Design
on hull joints
ROOT CAUSE OF WHY THE TITANIC
SANK
Lookouts
identified
iceberg
Operations
late
Titanic Sank Water Opening in Ship Hit Ship didn’t
Filled Hull Iceberg turn quickly
Hull enough

Speed of
ship Management
ROOT CAUSE OF WHY THE TITANIC
SANK Steel plates Strength of Strength of
pulled apart overlapping rivets Design
on hull joints

Titanic Sank Water Opening in

Filled Hull
Hull Lookouts
identified
iceberg
Operations
late
Ship Hit Ship didn’t
Iceberg turn quickly
enough

Speed of
ship
Management
5-WHY EXAMPLE
Problem Statement The lathe machine suddenly stopped while
processing foot gliders in Metal Section

Why did the machine suddenly stopped? The circuit board is overloaded, causing
Why 1: the fuse to blow.

Why is the circuit overloaded? There was insufficient lubrication on the

Why 2: bearings, so they locked up.

Why was there insufficient lubrication on The oil pump in the machine is not
Why 3: the bearings? circulating sufficient oil.

Why is the pump not circulating sufficient The pump intake is clogged with metal
Why 4: oil? shavings.

Why is the intake clogged with Because there is no filter on the pump.
Why 5: metal shavings?
5-WHY EXAMPLE
Problem Statement There is an inventory variance of 100
meters of electrical cords in Main
Warehouse last June 30

Why is there an inventory variance? Warehouse personnel forgot to transact

Why 1: the issuance in the system

Why did the personnel forgot? Warehouse personnel did not

Why 2: immediately transact the issuance upon
releasing to production clerk

Why wasn’t it transacted immediately? Warehouse transactions are not required to

Why 3: be performed real time

Why is it not required? There’s no clear and established standard

Why 4: procedure in the releasing of raw materials
ELEMENTS OF AN EFFECTIVE 5-WHYS RCA
• Identify the requirement or standard that was not
met

• Proceed with analysis on the basis of evidence

Fail to
upload No Evidence Do not Proceed
immediately
Wrong Report Poor
Concentration No Evidence Do not Proceed

Double handling of date

With Evidence Proceed
ELEMENTS OF AN EFFECTIVE 5-WHYS RCA
• Ask why at least 5 times to reach
deep enough to the root of the
problem

• When do you stop?

• When you reached a LATENT CAUSE
• When digging deeper becomes trivial
LATENT CAUSE
Are spoken admissions made by the people
that contributed to the incident and answer the
question:
"What is it about the way I am that
contributed
to this incident?"
PARETO
A•NALYSIS
Originated in 1897 when an Italian economist named Vilfredo
Pareto
created a formula representing the uneven distribution of wealth
• Also referred to as the 80-20 rule
• States that 80% of the problems or effects come from 20% of the
causes
• Focuses on identifying the “vital few”
and the “trivial many”
• Helps focusing on what really matters
REAL WORLD EXAMPLES OF THE PARETO PRINCIPLE
• There are approximately 4,200 religions all around the world. However,
just Christianity (33%), Islam (24.1%) and Hinduism (15%) represent 72% of
the world’s religious population.
• In 1896, Vilfredo Pareto showed that around 80% of the land in Italy was
owned by just 20% of population.
• A 2002 report from Microsoft found that “80 percent of the errors and
crashes in Windows and Office are caused by 20 percent of the entire pool of
bugs detected.”
• 20% of the world’s population controls 82.7% of the world’s income
• 20% of patients use 80% of healthcare resources
 Qty

0
400

500
1000
1500
2000
2500
3000
3500

0
MULEH
KC GMBH
KC Portugal
MOVE.ORG
KC Manila
KE-ZU
KC Cebu
Client

Design Diff
Weylandts

Sum of Qty
t
Shenzhen
Thunderbird

Clien
Sen Yuan

%
OVO
ICI Order Qty per

ICI
Adora
May Time

Commulative
JUVA
Salone
Ayala
Tom Dixon
Others
%

0%
100

10%
20%
30%
40%
50%
60%
70%
80%
90%
ICI EXAMPLES – ACTUAL DATA

Cumulative %

Count of CC
2
1

0
2
4
6
8
10
14

muleh
shenzen
kc manila
maytime
Received

cebu landmasters
ellen comedido
jun marie dosdos
real reggie
kc gmbh
Client

meridith lichangco
crimson
ovo
zyrene valencia
No. of Customer Complaints

ricardo barba
luisa lim
juva
eih limited
leo lacbo
%
60

0%
20%
40%
80%
100%
120%

Cumulative %
PARETO CHART OBJECTIVES
• Separate the few major problems from the
many possible problems so you can focus
your improvement efforts.
• Arrange data according to priority or importance.
• Determine which problems are most important
using
data, not perceptions.
• Shows where to focus efforts.
• Allows better use of limited resources.
 H OW TO
D O PARETO
A NALYSIS IN M S
EXCEL?
OTHER PROBLEM SOLVING
TOOLS
FLOWCHARTS
▪ Is a type of diagram that represents an
algorithm, workflow or process, showing the
steps as boxes of various kinds, and their
order by connecting them with arrows.
▪ Flowcharts are used in analyzing, designing,
documenting or managing a process or
program in various fields
FLOWCHART SYMBOLS
Process/Activity Directional Flow Connector

Decision Document
Delay
Box

Pre-defined
Process
Multiple
Terminato Documents
r
(Start/End)
 This activity will be done individually.
1. Choose a process or activity within your
area/section.
2. Create a flowchart on how this process or
activity is completed.
WORKSHOP 3. Write it down on the paper provided
4. You are given 10mins to complete the
activity.
8D PROBLEM SOLVING

D1 – Establish the team

D2 – Describe the problem
D3 – Contain the Problem
D4 – Identify, Define, and
Verify the Root Cause
D5 – Choose corrective
action
D6 – Implement and
validate the corrective
actions
D7 – Take preventive
FAILURE MODE AND EFFECTS ANALYSIS (FMEA)
Is a step-by-step approach for identifying all possible failures in a design, a
manufacturing or assembly process, or a product or service
• Failure modes – means the ways, or modes, in which something might
fail. Failures are any errors or defects, especially ones that affect the
customer, and can be potential or actual.
• Effects analysis – refers to studying the consequences of those failures.

The process for conducting an FMEA is typically developed in thre main phases:
▪ Severity
▪ Occurrence
▪ Detection
FMEA EXAMPLE
ELEMENTS OF AN EFFECTIVE
RCA
ELEMENTS OF AN EFFECTIVE RCA
▪ Be specific
▪ Cost beneficial
▪ Consider only those causes which the Organization has
control
or influence
▪ Follow the evidence
▪ Actions and recommendations should address the identified
causes
 In your predetermined
group:
1. Brainstorm on the problem assigned to your team
2. Conduct a Root Cause Analysis to identify the root
cause/s of the problem.
3. The team leader shall facilitate the RCA while the
members will participate.
4. Write down the RCA in the flipcharts provided.
WORKSHOP 5. Present your analysis and be ready for questions.

Another group shall comment and/or ask questions.

Their comments may be:
• What was done right.
• What needs to be improved.

Advisers may also give input.

WHY SOME RCAs
FAIL
WHY SOME RCAS FAIL
1. We only see and treat the 2. Jumping into conclusions
symptom
WHY SOME RCAS FAIL
3. My favorite solution mindset 4. We pursue too many underlying
causes
WHY SOME RCAS FAIL
5. Hiding the real problem
TAKING
ACTION
SELECTING AN ACTION PLAN
1. Decide on the solutions to take
▪ Can be implemented within an
acceptable
timeframe?
▪ Is cost effective, reliable and realistic?
▪ Its risks are manageable?
▪ Will benefit the organization?
2. Specify who will take action.
3. Specify how the solution will be implemented
4. Specify when the solution will be implemented
3 TYPES OF ACTION
1. Immediate or Interim Action
- The action taken to quickly fix the impact of the problem so the
“customer” is not further impacted
2. Corrective Action
- The action taken to eliminate the error on the affected process
or product
3. Preventive Action
- The action taken to prevent the error from recurring on any
process or product
MERITS OF TEAM VERSUS INDIVIDUAL PROBLEM SOLVING

▪ Workers involved in
understanding the problem.
▪ None of us is as smart as all of us.
▪ There must be mutual TRUST
amongst the team.
We cannot solve our
problems with the same
THINKING WE USED when we
created them.

- Albert Einstein