• defining problems by solutions This is really a form of jumping to conclusions. The decrease in profits is due to our poor product quality
• identifying symptoms as problems "Our problem is a 32 percent decline in orders". While it is certainly true that orders have declined, the decline is actually only a symptom of the real problem.
The first step in identifying the problem is discovering how the problem occurred. Ask yourself the following questions:
1. Did something go wrong?
2. Did something breakdown?
3. Were there unexpected results or outcome?
4. Is something that once worked no longer working? Second, you need to know the nature of the problem:
1. Is it people, operational, operational, technical, etc.?
2. Is it with a particular department, product or service, etc.?
3. Is it something tangible or intangible?
4. Is it an external or internal problem?
Third, you need to decide how significant the problem is.
Based on the level of significance, you may choose to deal with the problem or not to deal with it. Sometimes what you think is a small problem, when analysed, proves to be a major problem. The reverse is also true. To determine this, you should ask yourself the following types of questions:
1. Is it disrupting operations?
2. Is it hampering sales?
3. Is it causing conflict among people?
4. Is it an everyday occurrence or is it infrequent?
5. Is it affecting personnel and their productivity?
6. Is it common or unusual?
7. Is it affecting goals, and if yes, which ones?
8. Is it affecting customers, vendors, and any other external people? Fourth, you should narrow down the type of problem:
1. Is it basically a problem which occurred in the past and the main concern is to make certain that it doesn't occur again?
2. Is it a problem, which currently exists, and the main concern is to clear up the situation?
3. Is it a problem, which might occur in the future and the basic concern is planning and taking action before the problem arises? The answer to all of the above questions will help you focus on the true problem. You cannot effectively research the causes of a problem until you have a clear understanding of what the problem is. Sometimes, people spend many hours on what they perceive as a problem only to find out, after seeking the causes, that something else was really the problem.
2. Defining the Objectives
When stating the problem you should define the objectives. What are the objectives of the study? Which objectives are the most critical? Objectives usually are stated by an action verb like to reduce, to increase, or to improve. Dealing with the customer order problem, the major objectives would be: 1) to increase the percentage of orders filled correctly, and 2) to reduce the time it takes to process an order. A subobjective could include to simplify and streamline the order filling process.
3. Collecting and Analysing the Data
In order to appropriately identify the problem and its causes, you must do some research. To do this, simply list all the previous questions in checklist form, and keeping the checklist handy, go about gathering as much information as you possibly can. Keep in mind the relative importance and urgency of the problem, as well as you won time limitations. Then interview the people involved with the problem, asking them the questions on your checklist. Raw data are then tabulated and organised to facilitate analyse. Tables, charts, graphs, indexes and matrices are some of the standard ways to organise raw data. Analysis is the critical prerequisite of sound business decision making.
After you've gathered the information and analysed it, you will have a pretty clear understanding of the problem and what the major causes of the problem are. Now, you should summarise the problem as briefly as possible, list all the causes you have identified, and list all the areas the problem seems to be affecting.
4. Developing (Generating) Alternatives
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