Problem Solving: integrated methodologies, tools and applications in Lean consulting

Traditional techniques and new approaches to solving problems

As part of the lean consulting shows how the approach to the Problem Solving is critical to improving the efficiency and effectiveness of business processes. The lean consulting focuses in fact on eliminating waste and optimizing resources, while Problem Solving becomes a key tool for identifying and solving the root causes of problems. This standardized and systematic methodological approach is based on facts, logic and data, and is applicable to both simple and complex problems. Correctly identifying the problem and understanding its origin is essential to adopt the most effective and sustainable solutions over time.

A problem occurs when there is a discrepancy between what should happen and what actually happens. This discrepancy must be significant enough to warrant corrective action. The problem is considered solved when there is at least one solution that can close the gap. However, to solve a problem, it is essential to first clearly define it. Problem setting, or the art of correctly formulating problems, is a crucial step in the effective application of Problem Solving and lean consulting, ensuring that the solutions adopted are aligned with the organization's continuous improvement goals.

"To define a problem well is largely to have solved it" (Benedetto Croce). 

The problem setting is up to top management, the Problem Solving to Middle Management and to all the resources involved in the problem.

Generally when we refer to problem-solving methods and techniques we talk about "problem solving," perhaps because we prefer to emphasize the solving moment that frees us from the stress of the problem. 

However, solving comes after setting, and is also less important hierarchically. Those who pose the problems generally have greater power than those who must solve them.

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

Problem solving, called "problem solving" for short, is a process that has these components:

  • Problem finding: Realize the discomfort.
  • Problem setting: define the problem. 
  • Problem analysis: Decompose the main problem into secondary problems Work Breakdown Structure (WBS)
  • Problem solving: Eliminate the causes and answer the questions posed by the problem 
  • Decision making: Decide how to act based on the responses obtained 
  • Decision making: take action

Key concepts related to Problem Solving include:

  1. Symptom (from Greek σύμπτωμα: fortuitous occurrence, accident, what can happen). The symptom is a revealing condition, an indication of a phenomenon that evidences an abnormal condition that has occurred or is about to occur
  2. Problem: issue, question or assertion whose solution, answer or justification is not immediately available, but it somehow goes wanted, through an executable and finite solution strategy [source Encyclopedia of Mathematics].
  3. Cause: Fact or event that causes a certain effect, which is the origin or occasion of another fact
  4. Solution: (from Latin solvĕre: dissolve) Overcoming a difficulty, solving a problem

The way we work on a daily basis is governed by cause and effect relationships. If we want to excel in our daily work, we must understand these relationships.

In order to reach the correct solution or effect, it is necessary to go through understanding the problem, but even before a problem is solved, it is difficult to define it well and establish a hierarchy of problems based on certain indicators:

  • Frequency (sporadic vs. chronic)
  • Complexity
  • Time required for resolution
  • Number of people to be involved
  • Type of tools to be used

Key Methodologies for Problem Solving

Two key methodologies for Problem Solving are. The Deming cycle And the DMAIC method.

The Deming cycle (or PDCA cycle, an acronym from the English Plan-Do-Check-Act, in Italian "Pianificare - Fare - Verificare - Agire"

E' an iterative methodology that guides the continuous improvement process through a cyclic action of sequential reiteration of the 4 phases that constitute the so-called Deming wheel, named after the inventor William Edwards Deming.

The steps

PHASE 1 - PLAN
Step where the problem is clarified, its causes are analyzed, and potential solutions are proposed. Operational Steps:

a. Observe the process and frame the problem. It means answering 6 questions: Who? What? Where? How? When? Why?

b. Measure the current state

c. Define the future state and goals to be achieved

d. Define the causes Of the problemIdentify possible corrective actions.

e. Identify possible corrective actions

f. Validate corrective actions

This is the problem setting phase. It is a key stage because how the problem is defined influences the set of alternatives for the solution

A precise definition of the problem makes it possible to:

  • Act effectively to its resolution through the proper identification and subsequent elimination of its causes
  • Highlight the crucial aspects on which to focus attention
  • Reduce wasted energy devoted to activities inconsistent with the nature of the problem
  • Contribute to the definition of criteria for the effectiveness of solutions

PHASE 2 - DO
Solution implementation and corrective action implementation phase (through testing or pilot projects). Problem Solving fits into this phase.

  • In defining the corrective action to be implemented, it is important to ask:
    why and how the proposed solution will change the situation toward the goal.
  • consequences to the action taken, basically whether the proposed action in addition to solving the cause of the problem, is technically sound (in terms of cost, time of implementation, reliability of the solution, efficiency of the solution, and acceptable to the people who will have to devote time , energy and effort to it

STEP 3 - CHECK
Phase of verifying the effectiveness of the adopted solutions by comparing them with the expected objectives through the collection and evaluation of results. It is important to carefully collect data and information to verify the effect of introducing the corrective action on the process.

If the check was positive, one can enter the ACT phase, otherwise a new PDCA circle will be resumed. The elements gained from experimentation will add to the original problem description.

STEP 4 - ACT
Standardization of effective solutions and repeating the cycle if necessary. Operational Steps:

a. Standardize the best improvement initiatives. This requires making necessary changes to: Procedures, instructions and work cycles, Plant, and equipment. It is If the tried-and-tested methodologies have brought important benefits it is suggested that they be extended to similar processes.

b. Making sure that the standards are implemented by everyone. It is suggested that regular audit plans be established and launched

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

The DMAIC approach originated in the Six Sigma, which in the context of lean consulting has the main objective of solving a problem related to defects or failures, deviations from a goal, excessive costs or wasted time, etc.

The DMAIC methodology is structured in 5 sequential stages based mainly on the application of statistics for process analysis. The first 3 stages characterize the problem, while the last 2 focus on solution implementation and process optimization

Steps:

Define: Identification of the problem and objectives.
In detail, this phase consists of several steps:

  • Operational sizing
  • Economic sizing
  • Identification of the ring or perimeter of intervention
  • Construction of the Working Team
  • Team goal setting
  • Intervention planning

Measure: Data collection and evaluation of current performance.

Operational steps:

  • Data collection 
  • Statistical analysis of data
  • Process capability calculation 
  • AS-IS process performance definition

Analyze: Root cause identification.
Operational steps:

  • Root cause research
  • Quantitative verification of cause-and-effect relationships
  • Supporting statistical analysis

Improve: Development and implementation of solutions.
Operational steps:

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

Control: Monitoring to ensure sustainability of solutions.
Operational steps:

  • Construction of a control and audit system
  • Validation of solutions based on the results obtained

It is crucial to celebrate achievements to foster engagement and strengthen team spirit.
These steps make it possible to:

  1. Identify In a clear and shared way the boundaries and competencies of the project
  2. Quantify Operational improvements (measured in DPMO, PPM) and the resulting savings 
  3. Gradually maturing A more analytical understanding of the process
  4. Consolidate Data analyses geared toward defining the crucial elements (Critical Few) to improve the process
  5. Identify The possible quick-wins and implement effective solutions in a timely manner
  6. Check That the improvements are "structural," that is, statistically significant and not achieved by chance

The Tools of Problem Solving in Lean Consulting

I 5W+1H

This method, developed by Sakichi Toyoda and later implemented in the Toyota Motor Corporation, aims to explore cause-and-effect relationships to identify root causes of problems or defects.

It is an acronym that summarizes the "Why?" to be asked repeatedly until the root cause of a problem is identified.

  • Who (Who?)
  • What (What?)
  • Where (Where?)
  • When (When?)
  • Why (Why?)
  • How (How?).

Control Cards

They are diagrams for studying and controlling the progress of any business activity over time, reporting the lower and upper control limits, the average reference value (nominal value) and the values of a significant sample of measurements.

The activity under consideration is considered to be in the control state when all points are within the limits and are randomly distributed around the center line (statistical control state).

Pareto Diagram

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

The tool is used to immediately and visually assess which elements are relevant and their impact

Layering

It is the statistical process of grouping or subdividing data on the basis of attributes or characteristics deemed significant for analysis. The purpose is to reorganize the information so that the area in which the causes of the variations (problems) examined reside with high probability can be identified.

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

Two-dimensional graph used to study the possible relationships between two variables and, in particular, the possible dependence of one on the other. It is mainly used when one wants to look for a relationship between a given condition and its possible causes. Depending on the placement of the points, which correspond to the data values, a direct or inverse relationship can be identified.

The information provided by such a diagram is exclusively qualitative, while regression techniques must be used to obtain quantitative data.

Cause-and-effect diagram - Ishikawa

A tool used to identify and represent, for a given effect, its potential causes. These are organized into categories (generally in the manufacturing area, the four M's are used: man, materials, machines and methods) and subcategories, identified using the brainstorming technique.

Relationship diagram

A tool to represent on a visual map a given phenomenon, all possible factors influencing it and their mutual relationships. 

Force field analysis- Force diagram

An analysis methodology that, using a graphical tool such as a force diagram, allows the selection, from among all the proposals put forward for solving a problem, of the actions that are likely to have the greatest impact. The causes of a problem are first weighed, through a weighted voting system, and then represented on a graph in the form of arrows of length proportional to the weight given to them. The actions that could lead to the resolution of the problem are also represented by arrows facing those representing the causes. Their length is determined by the sum of the lengths of the arrows representing the causes that they succeed in solving. In this way, the actions that will solve the most causes, or those with the most weight, will be represented by longer arrows, and it will be easy to select among all the actions those to be perpetrated first.

Conclusions

Problem solving is an essential skill for dealing with phases of Change Management or to solve everyday problems. Indeed, it is important to focus on eliminating causes even if the urgency of the situation leads one to focus on plugging the effects. Methodologies such as PDCA and DMAIC, along with root cause analysis tools such as the Ishikawa diagram, the 5 Whys, and the Pareto diagram that enable systematic problem analysis and effective solutions. A structured approach can lead to concrete improvements in production processes and customer satisfaction.

 We invite you to discover the Lean Problem Solving course, organized by Bonfiglioli Consulting, to learn effective methods and techniques in this area.