Hello!

I am Ms. Riche Justine

Duran
I am here because I love my students.
You can find me at:
SorSU LMS

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 Module 2
Problem Identification in
Entrepreneurship: Strategies and Case
Studies
 In this module, we will
discuss:
DEFINING AND ARTICULATING PROBLEMS IN AN ENTREPRENEURIAL
CONTEXT

TECHNIQUES FOR PROBLEM ANALYSIS AND ROOT CAUSE

IDENTIFICATION

CASE STUDIES ON SUCCESSFUL PROBLEM IDENTIFICATION IN

ENTREPRENEURSHIP

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The Statement of the Problem serves as the
foundation for problem-solving efforts. It
involves clearly articulating the specific
challenge or obstacle that the entrepreneur is
facing.

This statement should be concise, focused, and

actionable, providing a clear direction for
problem-solving endeavors.
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 It's essential to provide Relevant Facts or
Background Information to contextualize the
situation. This may include data, statistics, market
research findings, or anecdotal evidence that sheds
light on the factors contributing to the problem.

Understanding the background of the case helps in

analyzing the problem comprehensively and
identifying its root causes.
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 Entrepreneurs often have multiple options for
addressing a problem, and it's crucial to consider
Alternative Courses of Action before deciding on a
solution.

These alternatives represent different approaches or

strategies for tackling the problem and achieving
desired outcomes. Each alternative should be carefully
evaluated based on its feasibility, potential impact, and
alignment with the entrepreneur's goals and resources.
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After considering the alternative courses of action, the
entrepreneur selects the most viable and promising
approach to address the problem.

This Chosen Alternative represents the preferred

strategy for resolving the issue and moving the venture
forward.

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 An Action Plan outlines the specific steps, tasks, and
timelines required to implement the chosen alternative
effectively. It includes details such as resources
needed, responsible parties, milestones, and evaluation
criteria to track progress and measure success.

By following the action plan, the entrepreneur aims to

implement the chosen alternative successfully and
achieve the desired outcomes.
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“

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TECHNIQUES FOR PROBLEM ANALYSIS AND ROOT
CAUSE IDENTIFICATION

Root cause analysis tools play a crucial role in supporting quality

management within organizations. By delving into the underlying
causes of problems, these tools facilitate problem-solving and
decision-making processes. They provide insights into why certain
issues persist, allowing businesses to address them effectively.

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 Root Cause Analysis
Tools
With robust root cause analysis tools, organizations can gain a deeper understanding of their operations,
identifying common defects and errors that hinder efficiency and productivity. However, with the plethora of
tools available in the market, choosing the right one can be daunting.

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Pareto
Pareto Charts are bar graphs in most
Charts cases, and they show the ordered
frequency of counts of data.
This means that the charts can be used
to show which areas need your
attention first for improvement
purposes.

So, by looking at this chart, you can

immediately see what needs your
attention first and balance where you
spend your time and money.

Looking at the Pareto chart, the length of the bars stands for the cost or frequency (money or time).
The longest bars usually are arranged at the left and go down as you move forward across the graph.

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Failure Mode and Effect
Analysis
The Failure Mode and Effect Analysis ( FMEA) focuses on failures that happen
within a particular system Designing, Implementation, Planning and/or Inspection.

With Failure Mode, what you’re looking With Effect Analysis, you’d look at both
at is identifying the ways in which Failure Modes to determine the possible
something can fail. effects.

For example, an automated teller For a machine dispensing too much

machine (ATM) needs to dispense cash money, the bank could lose too much
when a customer requests it. A failure money or have errors in accounting later
could be dispensing too much money or on. For machines that don’t pay out
failing to dispense anything. enough, customers could become
dissatisfied and leave the bank.

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Failure Mode and Effect
Analysis
FMEA is a technique used to identify process and product problems before they
occur. It focuses on how and when a system will fail, not if it will fail. In this model,
each failure mode is assessed for: Severity (S) – intensity and seriousness of failure,
Occurrence (O)- likelihood of occurrence, & Detection (D)- failure going unnoticed.

SxOxD

ATM Cash Too much Bank incur System glitch 2 3 60

10
Dispense dispense losses
ATM Cash Fail to Dissatisfied 2 System glitch 5 5 50
Dispense dispense customers

A combination of the three scores produces a risk priority number (RPN). The RPN is
then provided a ranking system to prioritize which problem must gain more attention
first. Severity (S) –Assign a score from 1 to 10 with 10 being the most severe
Occurrence (O)- Assign a score from 1 to 10 with 10 being the highest occurrence
Detection (D)- Assign a score from 1 to 10 with 10 indicating the lowest likelihood of detection

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5 Whys
The 5 Whys is an investigative method.
This method helps you get down to the
bottom of a problem by fully
investigating it. You just have to keep
asking, “why?”

You can also combine this tool with

others, like the Pareto chart, to really dig
into an area that needs more attention.
Here’s an example.

You may have a product with a defect.

You should ask several “why” questions
to figure out the cause.

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5 Whys
The product has a crack in the outer
plastic.

Why?
There is too much pressure on the plastic
during manufacturing.

Why?
The press needs to be firm to press down
on the piece.

Why?
The pieces need to interlock correctly.

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Ishikawa Fishbone
Diagram
In school, you may have used a fishbone diagram to break down problems into
subcategories. This diagram looks at a big problem and figures out all the possible
causes. Then, it breaks them down into subcategories that link back to the main
issue being investigated. A fishbone diagram is used when there is no known root
cause and major brainstorming has to take place.

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Ishikawa Fishbone
Diagram
For instance, you might say, “the plastic on this product is cracked.” Each part of the
fishbone diagram would break down the potential causes. Then, potential causes
would be investigated within those categories until a resolution could be found.
For instance, you might say, “the plastic on this product is potential causes into
categories like:

-Material
-Method
-Machine
-Medium
-Man/Mind
Power

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Fault Tree Analysis
Fault tree analysis is another kind of graph you can build to investigate how a top
fault (also known as an abnormal condition or failure) happened.

For instance, if a toxin leeched out of

a container, you would want to start
looking at the possible causes and
solutions to prevent issues from
arising again in the future.

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Fault Tree Analysis
Fault tree analysis is broken down into parts including four major steps:
Scoping to define the event and determine the
👤 scope.
Developing the tree with relevant causes and
👤 items.
Validating the tree with qualitative or quantitative
👤 information, supply chain information or other
data.
Verifying the information with qualitative or
👤 quantitative data.
Overall, fault tree analysis is used to promote reliability, maintainability, and safety
analyses.

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8D Report Template
Checklist
The 8D report template checklist is a comprehensive list that documents root-cause
analysis using the eight disciplines of problem-solving. The 8D method uses eight
steps to deal with issues that come up. The following steps are used, in order, to come
up with a resolution.
• Establish a team.
• Define what the problem is.
• Contain any problems that arise.
• Find the root cause.
• Define the appropriate corrective measures.
• Track all progress.
• Establish preventative measures for the future.
• Recognize the team.
Ideally, an 8D report is finalized within eight days. This isn’t always possible, but it can be a goal for companies attempting to use
it. 21
Affinity Diagram
Also known as KJ Diagram, this model is used to represent the structure of big and
complex factors that impact a problem or a situation.

It divides these factors

into small classifications
according to their
similarity to assist in
identifying the major
causes of the problem.

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Scatter Diagram
A scatter diagram also known as a scatter plot is a graph in which the values of two
variables are plotted along two axes, the pattern of the resulting points revealing any
correlation present.

To use scatter plots in root cause

analysis, an independent variable or
suspected cause is plotted on the x-axis
and the dependent variable (the effect)
is plotted on the y-axis. If the pattern
reflects a clear curve or line, it means
they are correlated. If required, more
sophisticated correlation analyses can be
continued.

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 Case Analysis
Select a case study you want to analyze and use the format given to complete the task.

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Assessment and Rubric

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Assessment and Rubric

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 Thank You!
Any Questions?
You can find me at:
Justine Paras (Messenger)
Riche Justine Duran (SorSU LMS)
 References

Compliance Online. 7 Powerful Problem-Solving Root Cause Analysis Tools.

Retrieved from https://www.complianceonline.com/resources/7-powerful-problem-
solving-root-cause-analysis-tools.html

Rock Content (March 6, 2022). The Top 8 Root Cause Analysis Tools for
Troubleshooting. Retrieved from https://rockcontent.com/blog/root-cause-analysis-
tools/

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