Problem Solving: Approaches, Tools, and Implementations in Consulting & Management

In consulting & management, problem solving is a standardized and systematic methodological approach to identifying and resolving the root causes of a problem and preventing its recurrence. This approach is based on facts, techniques, and data and applies to both simple and complex problems. Correctly identifying the problem and understanding its origin is essential for adopting the most effective solutions.

A problem occurs when there is a discrepancy between what should happen and what actually happens. This difference has to be significant enough to justify corrective action. The problem is solved when at least one solution can close the gap. But solving the problem means posing it. Problem setting is the art of posing problems.

‘To define a problem well is to a large extent to have solved it’ (Benedetto Croce).

Problem setting is the responsibility of Top Management, Problem Solving is the responsibility of Middle Management, and all the resources involved in the problem.

Generally, when we refer to methods and techniques for solving problems, we talk about “problem solving”, perhaps because we prefer to emphasise the moment of resolution that frees us from the stress of the problem.

However, solving comes after setting, and is also less critical from a hierarchical point of view. Those who pose problems generally have more power than those who have to solve them.

The Importance of Problem Solving in Consulting & Management: Optimization and Continuous Improvement

Problem solving is a process that has the following components, helping to address issues effectively while incorporating expertise from consulting & management perspectives:

• Problem finding: highlighting the problem.
• Problem setting: defining the problem. 
• Problem analysis: breaking down the main problem into secondary problems, Work Breakdown Structure (WBS)

• Problem solving: eliminating the causes and answering the questions posed by the problem 
• Decision making: deciding how to act based on the answers obtained 
• Decision taking: taking action

The key concepts related to Problem Solving include:

1. Symptom (from the Greek σύμπτωμα: fortuitous event, accident, something that can happen). The symptom is a revealing condition, a clue to a phenomenon that highlights an anomalous condition that has occurred or is about to occur.
2. Problem: question, query or statement whose solution, answer or justification is not immediately available, but must be sought in some way, through an executable and finite solution strategy [source: Encyclopaedia of Mathematics]
3. Cause: Fact or event that generates a specific effect, that is the origin or occasion of another fact
4. Solution: (from the Latin solvĕre: to dissolve) Overcoming a difficulty, resolving a problem

Cause-and-effect relationships regulate our daily work. To excel, we must fully understand these relationships.

To reach the correct solution or effect it is necessary to understand the problem, but before even solving a problem, it is difficult to define it well and establish a hierarchy of problems based on certain indicators:

· Frequency (from time to time or regular)

· Complexity

· Time necessary for resolution

· Number of people to involve

· Type of tools& techniques to be implemented

Key Methodologies for Problem Solving

Two key problem-solving methodologies in consulting and management are the Deming cycle and the DMAIC method.

The Deming Cycle (or PDCA cycle, acronym for Plan–Do–Check–Act)

It is an iterative approach that leads to the process of continuous improvement. It is based on the four phases of the so-called Deming wheel, named after its inventor William Edwards Deming.

The phases

1. PLAN: The problem is clarified, its causes are analysed, and potential solutions are proposed. The reccomanded steps:

a. Observing the process and outlining the problem. This means answering 6 questions: Who? What? Where? How? When? Why?

b. Measuring the current state

c. Defining the to-be state and the goals to be achieved

d. Highlighting the root causes of the problem

e. Identifying the possible countermeasures

f. Validating the actions to be taken

This is the problem setting phase. It is a key phase because the way the problem is set has impact on the set of options for the solution

A correct outline of the problem allows you to:

· Taking actions effectively to resolve it through the correct identification and subsequent elimination of its causes

· Highlighting the key aspects to focus attention

· Decreasing the waste of energy for activities that are not coherent with the nature of the problem

· Contributing to the definition of the KPIs for the effectiveness of the solutions

2. DO: Implementing the corrective actions (through tests or pilot projects). The problem-solving approach is part of this phase. When defining the corrective action to be implemented, it is essential to consider: 

• The reason and how the suggested solution will develop the current state towards the set goal.
• The impacts of the action taken. In practice if the recommended action, in addition to solving the cause of the problem, is technically valid (in terms of costs, implementation time, reliability of the solution, efficiency of the solution, and acceptable to the people who will have to dedicate time, energy and effort to it)

3. CHECK: This is the phase in which the solutions’ effectiveness is verified by comparing them with the expected goals and collecting and assessing results. It is important to carefully collect data and information to test the effect of the corrective action introduction on the process.

If the check is positive, it is possible to move on to the ACT phase; otherwise, a new PDCA cycle is launched. The elements acquired in the test or pilot projects will enrich the original description of the problem.

4. ACT: Standardising practical solutions and repeating the cycle if necessary. The steps to be taken:

a. Standardising the best improvement initiatives. To do this, the necessary changes must be made to Procedures, instructions, workflows, plants, and equipment. If the tested approaches have brought significant benefits, it is recommended that they be extended to similar processes.

a. Ensuring that all resources implement the standards. It is suggested to define and launch regular audit plans

The DMAIC Method (Defining, Measuring, Analysing, Improving and Controlling)

The DMAIC approach was developed within the Six Sigma framework. Its main goal is to solve problems related to defects or failures, deviations from a standard, excessive costs, wasted time, etc. The DMAIC methodology is structured in 5 sequential phases, based mainly on implementing statistics for process analysis in consulting and management. The first 3 phases outline the problem, while the last 2 focus on implementing solutions and optimizing processes in the field of consulting and management.

The DMAIC methodology is structured in 5 sequential phases, based mainly on implementing statistics for process analysis in consulting & management. The first 3 phases outline the problem, while the last 2 focus on implementing solutions and optimizing processes.

The phases:

Define: Identification of the problem and goals

In detail, this phase consists of various steps:

Operational dimensioning

• Operational dimensioning
• Economic dimensioning
• Setting scope 
• Team Building
• Setting Teams goals
• Actions planning

Measure: Data collection and assessing current performance

The steps:

• Data collection
• Statistical analysis of the data
• Estimation of process capability
• Defining AS-IS process performance

Analyze: Identification of the root causes

The steps:

• Search for the root cause
• Quantitative assessment of cause-effect relationships
• Statistical analyses as support in the decision making process

Improve: Development and implementation of solutions

The steps:

• Planning of field based audits
• Consolidation of shared solutions
• Implementation plan

Control: Monitoring to ensure sustainability of recommended solutions

The steps:

• Setting of a control and audit system
• Validation of recommended solutions based on the results achieved

A key success factor is celebrating the results achieved to boost engagement and strengthen Team spirit.

Thanks to these steps , itis possible to:

1. Clearly and jointly setting project scope and responsibilities
2. Quantify improvements (measured in DPMO, PPM) and the consequent savings
3. Progressively develop a more in-depth knowledge of the process
4. Consolidate data analysis aimed at defining the Critical Few elements to improve the process
5. Identify possible quick-wins and promptly implement practical solutions;
6. Check that the improvements are built-in, i.e., statistically significant and not achieved by chance.

Problem Solving Tools

The 5W+1H

Sakichi Toyoda developed these tools and subsequently implemented them in the Toyota Motor Corporation to understand cause-effect relationships and thus determine the root causes of problems or defects.

It is an acronym that summarizes the ‘Why?’ questions to be asked repeatedly until the leading cause of a problem is identified.

Who?

• What?
• Where?
• When?
• Why?
• How?

Control Charts

These charts are diagrams implemented to highlight and control an activity’s progress over time. They show the upper and lower control limits, the average reference value (nominal value), and the values of a significant sample of measurements.

The activity in question is considered to be in a state of control when all the points are within the limits and are randomly distributed around the centre line (state of statistical control).

Pareto Chart

A bar chart in which the measured variables are arranged in descending order of frequency and the values are expressed in absolute terms (left axis); the line representing the cumulative percentages is then superimposed on the chart (right axis).

The tool immediately and visually assesses which elements are relevant and their impact.

Stratification

This is the statistical process of grouping or subdividing data based on attributes or features considered significant for the analysis scope. The aim is to reorganize the information to identify the area in which the causes of the variations (problems) examined most likely lie.

The categories resulting from the stratification can then be used for plotting (one for each feature taken as a reference) histograms, correlation diagrams, Pareto and Control Charts.

Correlation diagram

A two-dimensional chart was developed to study the possible relationships between two variables, particularly the possible dependence of one on the other. It is mainly implemented to research a relationship between a specific condition and its possible causes. Depending on the positioning of the points, which correspond to the data values, one can identify a direct or inverse relationship.

This diagram provides exclusively qualitative information, while regression techniques are necessary to obtain quantitative data.

Cause-effect diagram – Ishikawa

A diagram was implemented to identify and represent the potential causes of a given effect. These are grouped into categories (generally in the manufacturing area, the four Ms are used: man, materials, machines, and methods) and sub-categories, identified by the brainstorming technique.

Relationship diagram

A tool to represent a particular phenomenon, all the possible factors that influence it and their reciprocal relationships on a visual map.

Force field analysis – Force diagram

An analysis method uses a graphic tool, such as a diagram of force fields, to select the actions that could have the most significant impact from all the suggested solutions to a problem. A weighted voting system first identifies the causes of a problem, and then shows them on a graph in the form of arrows whose length is proportional to the weight assigned to them. The actions that could lead to the resolution of the problem are also represented by arrows that face those representing the causes. Their length is determined by the sum of the lengths of the arrows representing the causes they can solve. In this way, the actions that will solve the most significant number of causes, or those with the most excellent weight, will be represented by longer arrows, and it will be easy to select which actions to carry out first.

Conclusions

Problem-solving is key for managing Change Management projects and addressing everyday consulting and management challenges. It’s crucial to focus on eliminating root causes, even when the urgency of a situation tempts us to prioritize mitigating symptoms. Methodologies such as PDCA and DMAIC, along with root cause analysis tools like the Ishikawa Diagram, the 5 Whys, and the Pareto Diagram, enable a systematic analysis of problems and the implementation of practical solutions. Organizations can enhance manufacturing processes and improve customer satisfaction by adopting a structured approach, particularly in a consulting & management context.  If you want to optimize your business performance and effectively tackle challenges, connect with us at Bonfiglioli Consulting. Let’s work together to achieve your company’s goals.