Structured Business Problem Solving by SSCG Consulting

Structured Business Problem Solving Best Practice, Tools and Methodologies

Contents           

SSCG Overview SSCG Services Across a Range of Sectors Global Megatrends Continue to Disrupt Businesses Definition The Philosophy Common Problem Solving Techniques Key Barriers to Effective Problem Solving 80/20 Problem Solving Pareto Principle Problem Solving Cycle Approaches to Problem Solving Practical Problem Solving Methodologies      

The 5 Why’s Logic Tree Principle PDCA - Deming Management Cycle The 7 Steps Six Sigma 8 Disciplines (8D)

 9 Key Takeaways  SSCG Problem Solving Consulting

3 4 6 8 9 12 13 14 15 16 19 20 21 22 23 24 26 27 28

SSCG Overview SSCG is global management consulting and professional firm. We provide advisory, consulting and operation support across the public sector, private, business services, automotive , oil and gas, and manufacturing sectors. Our solutions are designed to help our clients make distinctive transformations , drive sustainable growth with increased trust, confidence and greater collaboration. We provide informed perspective on the issues faced by our clients. The insights and quality solutions delivered to support our clients unlock new investment opportunities and drive consumer values and build confidence in the markets and economies.. Our Innovation offerings help clients develop a wide array of capabilities to achieve market-leading revenue and profitability growth. We have successfully helped many businesses develop new innovative businesses, products and services. We also help our clients build lasting internal capabilities that enable sustained, consistent results. Our unrivalled experience in delivering Innovation capabilities is underpinned by deep knowledge on how to move businesses to both optimise core product/service innovation and development levers and find new paths to growth.. Further, we help our clients define winning innovations and product strategies, optimize portfolios and balance roadmaps.

info@sscg-group.com | www.sscg-group.com 3

SSCG Services Across a Range of Sectors In todayâ&#x20AC;&#x2122;s business World, staying competitive means striking the right balance between having the right investment, managing risks and exploiting opportunities. To achieve full potential, industries need fast, easy access to the market insights, data and people that can help make the right decisions. Thatâ&#x20AC;&#x2122;s why weâ&#x20AC;&#x2122;ve invested in dedicated industries and assembled a pool of professionals with the right mix of expertise, industry-focused knowledge and experience.

Through an extensive network, we offer focused services across these industries, with unique capabilities and insights. Our commitment of time and resources means that we can anticipate market trends, identify implications and develop clear points of view on relevant industry issues. Our network of professionals and industry experts provide highly responsive advice, perspectives and capabilities to prepare our clients for the challenges and opportunities ahead, meet industry operational goals and compete more effectively.

Advisory

Financial Services

Business Services

Consulting

Automotive & Transport

Manufacturing

Operation

Energy, Oil and Gas

Consumer and Industrial Products 4

Global megatrends continue to disrupt businesses In this rapidly changing environment, every company faces challenges. A step in the wrong direction can sometimes have significant effects on performance and company value. We continue to see the ongoing effects of the megatrends and the collisions between them continue to reshape and disrupt the global economic and commercial landscape. Generating top-line and bottom-line growth lies at the heart of any company’s ability to deliver shareholder and consumer value. Leading companies today recognise that growth and competitiveness are critical to delivering consistent business results in all economic conditions. The speed of change in the new economy has reinforced the value of effective addressing market and operation challenges and complexity. To be competitive in the global marketplace, businesses need to deliver new products, services and streamlined business models to market quickly, reliably and cost effectively respond to customer needs.

• • • • • • • • • • • • • • • • • •

Demographic and social change Shift in global economy Rapid urbanisation Climate change Resource scarcity Technological breakthroughs Disruptive innovations Customer engagement Rising market competition Increasing risks Emerging markets Stringent regulatory compliance Technology advancement Supply chain complexity Global operation Talent mobility and human capital Cost reduction Data 6

Definition Problem Solving - A mental process and methodological approaches for finding solutions to problems. Problem - A deviation from an expectation or standard, a perceived gap between the existing state and a desired state Hypothetical /Possible Cause - Cause identified through process variables mapping, brainstorming, fishbone diagram or based on available knowledge or collected data that best explains the Problem Description , how a problem of Failure Mode may occur. Root Cause â&#x20AC;&#x201C; A verified cause that convincingly support and explains all facts available and thus account for the problem. Verified through various methods or tests. Corrective Action â&#x20AC;&#x201C; Solution to address or rectify deviation from standards and desired state.

The Philosophy • Every day we have to solve various problems in different spheres of life. Effectiveness and quality of our decisions depend on how conscious and structured our approach to problem solving is. • Dealing with obstacles and challenges is a regular part of working life, and overcoming them isn't always easy. To improve products, services, communications, and interpersonal skills, and for organisation to excel, they need to encourage creative thinking and find innovative solutions that work. • Although every organisation has unique business problems, they also contend with common challenges as they strive for profitable growth in an increasingly complex environment. These challenges may deal with how to integrate evolving technologies, reduce cost, improve quality , optimise process effectiveness or how to ensure talent for the future, or how to best support strategic ambitions, among many others. • Problem solving should occur at all levels of the organisation. At every level, from top to bottom, problems occur. Everyone is an expert in the problems that occur in his or her own area and should address these problems. Problem solving is a part of everyone's job.

The Philosophy • All problems should not be addressed with the same approach. There are some problems that are easily and suitably tackled alone. Not all decisions need to be made by teams nor do all problems need to be solved by groups. However, groups of people help to break mental sets (i.e., figuring out new ways of doing things). In addition, people are more committed to figuring out and implementing a solution to a problem if they are involved in the problem solving. • Problems are normal. Problems occur in every organisation. In excellent companies people constantly work on solving problems as they occur. Problems are opportunities to make things better and should be viewed as such. • Be hard on the problem and soft on the people involved. When working on a problem, we should focus on solving the problem, not on whose fault the problem is. We should avoid personalizing the problem and blaming others. • People should address the problems in their own areas. Everyone has problems associated with their work area, and they should take ownership for trying to solve these problems instead of waiting for their supervisors or another team to tell them what to do.

If you see a problem from a different perspective, youâ&#x20AC;&#x2122;ll be able to innovate a robust solution. Leveraging diverse perspectives drive creativity, collaboration and data driven decision making.

Common Problem Solving Techniques

Assumption reversal

Analogy

Trial and error

Divide and conquer

TRIZ GROW Model

Brainstorming

Techniques

Focal objects Lateral thinking

Delegation

Incubation

Hill climbing strategy

Root Cause Analysis

Means end analysis

Hypothesis testing

Mind mapping

Key Barriers to Effective Problem Solving

Team attitudes: complacency, lack of accountability, ridiculing others ideas, dysfunctions, fear of change, lack of trust and doubts

Failure to communicate corrective actions and response that resolved the issue

Failure to consider consequences

Failure to recognise the problem

Failure to understand the problem clearly and communicate what is possible

Conceiving the problem too narrowly and making hasty choices or responses

Failure to consider the feasibility of the solution 13

80/20 Problem Solving Pareto Principle Pareto Analysis is a simple technique for prioritizing problemsolving work so that the first piece of work you do resolved the greatest number of problems. The technique is based on the Pareto Principle (also known as the 80/20 Rule) â&#x20AC;&#x201C; the idea that 80 percent of problems may be caused by as few as 20 percent of causes. With this tool, we're trying to find the 20 percent of work that will generate 80 percent of the results that doing all of the work would deliver.

20%

80%

To use Pareto Analysis, identify and list problems and their causes. Then score each problem and group them together by their cause. Then add up the score for each group. Finally, work on finding a solution to the cause of the problems in group with the highest score. Pareto Analysis not only shows you the most important problem to solve, it also gives you a score showing how severe the problem is.

Problem Solving Cycle Define

Continuous Improvement

Analysis

• Problem • Identify goals • SMART description • List concerns • Strategy • Team

• Problem/Situation/condition • Solution requirements • Specification • Evaluate criteria and Constraints • Differences in state • Formulate and prove hypothesis/causes

Evaluate

Develop and Innovate

• Progress • Outcomes • Benefits • Strategy • Methodology

• Solutions • Improvements • Corrective actions • Desirable actions

Control and Manage

Transform, change and Re-engineer

• Change • Quality

• Process • Service • Product

Approaches to Problem Solving Process Optimisation

Product or Service Oriented

Problem

Design Thinking

Idea/Opportunity

Solution Innovation

Client

Engineering

System

Innovation is the art of identifying solutions to business and client’s problems to drive value, growth and profitability It is about: • Invention • Finding solutions to problems • Generating differentiated business values • Building new business models, platforms and experiences

SSCG is continually seeking better ways of working with clients to help them solve their complex industry issues, unlock new growth opportunities and protect their businesses.

Practical Problem Solving Methodologies Problem-solving methodologies are bit challenging, but there are not so many differences between these methodologies, as one could expect. All differences are depending only on the type of problem, which has to be solved. There are various problem-solving approaches, most common techniques are, PDCA, DMAIC, A3, 8D/PSP and most OEM have their own propriety forms and format. What problemsolving technique should be deployed? it all depends and can be sorted problem scope: Is it a small, medium or large sized problem you want to solve? Problem-solving strategy for external "Corrective Action Request" from 1st, 2nd or 3rd party auditor or a customer complaint? (This could be a written complaint in the form of NC, NCR, CAR) "Continuous Improvement" (in pursuit of perfection!), problem-solving strategy. All these approaches have in common, that they follow a scientific and methodic way to solve the problem. In addition to that, the different phases of each methodology can be mapped to the phases of the other ones. Kaizen

5 Whys

PDCA

Hypothesis Logic Tree

7 steps

8D/PSP

Six Sigma

Charter

Why?

Plan

Problem statement

Clarify problem

Define problem

Create team

Define

Process walk

Why?

Issue hypothesis

Break down problem

Analyse problem

Describe problem

Identify root cause

Why?

Sub issue

Set targets

Generate potential solutions

Define containment actions

Measure

Improve

Why?

Define root cause

Analyse root cause

Select and plan solution

Analyse root cause

Analyse

Sustain/Audit

Why?

Solution

Develop counter measure

Implement solution

Define possible corrective actions

Improve

Check

See countermeasures

Evaluate solution

Implement corrective actions

Act

Evaluate results and processes

Standardise

Define actions to avoid recurrence

Report success

Standardise success

Control

Congratulate team

The 5 Whyâ&#x20AC;&#x2122;s The 5 Whyâ&#x20AC;&#x2122;s Analysis helps to identify the problem statement or in some cases even the root cause. It helps to distinguish between the symptoms of a problem and the problem itself and encourages the team to reach an answer that is fundamental and actionable. .

Problem Why? Why? Why? Why? Why? Root Cause

Logic Tree Principle A logic tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. Help to display an algorithm that only contains conditional control statements. Sub-issue

Are commonly used in operations , specifically in decision analysis, to help identify a strategy most likely to reach a goal.

Issue/Hypothesis 1 Sub-issue

A flowchart-like structure in which each internal node represents a "test" on an attribute , each branch represents the outcome of the test, and each leaf node represents a class label. The paths from root to leaf represent classification rules. In decision analysis, a logic tree and the closely related influence diagram are used as a visual and analytical decision support tool, where the expected values of competing alternatives are calculated. A decision tree should be paralleled by a probability model as a best choice model or selection model algorithm. Why logic tree used: • Facilitate problem structuring • Provide focus and transparency • Build common understanding and build teamwork • Focus the use of organisation framework and theories • Decision on problem tools

Sub-issue Problem Statement

Issue/Hypothesis 2 Sub-issue

Sub-issue Issue/Hypothesis 3 Sub-issue

PDCA - Deming Management Cycle The PDCA Deming-Cycle, is a problem-solving approach in a Lean environment.

INPUTS Identify and select problem and opportunities

PDCA is used for medium sized problems and the Act-phase implies that the PDCA-Cycle should start again in the sense of a continuous improvement process.

Plan • Clarify and define the problem

The Plan-phase should be done very carefully and therefore should consume at least 50% of the total time of the PDCA.

• Analyse problem • Root Cause Analysis • Develop improvements • Implement improvement and transform

Act

• Standardised and lesson learnt

Check • Evaluate • Results and processes

OUTPUTS Outcomes

The 7 Steps The 7-S model is a structured problem solving approach that can be used in a wide variety of situations where an alignment perspective is useful. The 7-S model make use of logical tools at each step, can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas for analysis.

Client problem

Define problem Develop recommendations

Synthesise findings

Structure problem

Prioritise issues

Conduct analysis

Plan analysis and actions

Six Sigma (6Ď&#x192;) Six Sigma is a management methodology designed to drive process improvements through reduction of variation. It is rapidly becoming a cornerstone philosophy among an increasing number of companies and organisations. When applied effectively, Six Sigma empowers companies to drastically improve their bottom line by designing and monitoring everyday business activities in ways that minimize waste and resources while increasing customer satisfaction. DMAIC is a six sigma problem-solving approach. It is a 5-Step PDCA used for large problems where typically a huge amount of data is available. DMAIC is often related with statistic tools. The duration of a DMAIC project dependent on the complexity of the problem and process to be improved.

6Ď&#x192; Analysis in Manufacturing DFSS Prevent defects in product development

Problem or Issues

Six Sigma Eliminate defects in production

Solutions Define

Measure Production

Characterise design and DoE

Analyse Problem

Optimise design

Validate design DFMEA

Robust design or product

Direction to improve manufacturing capability

Reduce product sensitivity and production noise

Improve Eliminate causes Control SPC and control plan PFMEA Cost savings Efficiency Effectiveness Good quality 25

8 Disciplines (8D) The eight disciplines (8D) model is a problem-solving approach, typically employed by quality engineers or other professionals and most commonly used by the Aerospace and automotive industry. The approach establishes a permanent corrective action based on statistical analysis of the problem and focuses on the origin of the problem by determining its root causes The 8D/PSP Problem Solving Process is an 8-step PDCA with the focus on fast reaction to customer complaints (e.g. a delivered component or product failed at the customer or in the field). The method aim to ensure that the first three steps should be accomplished and reported to the customer in three days. Why 8D? • Special cause • Non conformances • Cause (s) unknown • Recurring issues • Engineering problems • Cross functional approach required • Prevent recurrence • Customer complaints

Preliminary problem data

Team establishment

Problem definition

Interim Containment Action(s) (ICA)

Identify Root Cause (RC)

Identify Permanent Corrective Actions (PCA)

Validate PCA

Prevent Recurrence (PR)

Closure and congratulate team

9 Key Takeaways Every business is faced with problem daily. Problem solving is a continuous business initiative to identify improvement opportunities.

Businesses need to solve problems efficiently effective and prevent recurrence if they are to drive sustainable growth and competitiveness.

In problem solving, it is just as important to understand the problem as to seek solutions.

Determining the requirement for the solution is essential before solutions can be sought.

Problem is determined by the customer's requirement, not necessarily by the solverâ&#x20AC;&#x2122;s view of the issue.

There are several effective methods for devising solutions depending on the context. No method fit for all.

The degree of complexity and difficulty will determine the most effective problem solving method.

Many problems can be solved quickly by utilising simple methods such as 5 Whyâ&#x20AC;&#x2122;s and Root Cause Analysis.

Working efficiently in groups can formalise and guide structured problem solving. 27

SSCG Problem Solving Consulting We help clients solve business problems using hypothesis based problem solving method. 28

SSCG Consultancy Delivery Framework (SCDF) Client Needs • Identify needs • Validate business needs • Requirements confirmation

• • • • • •

Vision Goals Ambitions Targets Complexity Strategic objectives • Policies

Diagnosis • • • • •

Strategy

Situation analysis Due diligent Understand current state Validate area of concern Reality check

• Business climate analysis • Capability analysis • Market and industry competitiveness • Value proposition • Opportunities and threats • Data analysis • Management analysis • Process mapping • Procedure diagnosis • Model evaluation • Strategy study • System assessment

• • • • •

Identify improvements Map future state Formulate solutions Determine activities Prioritise

• • • • • • • •

SMART Actions Plan Business model Operation Model Processes Procedure Leadership Management practice

Transformation • • • • •

Deployment Integration Operation Optimisation Application

• Process re engineering (BPR) • Process Improvement (BPI) • Process transformation (BPT) • Process optimisation • TOM innovation and design • System improvement • Automation and digitisation

Evaluation • • • • •

Benefit realisation ROI Value added Business impact Learn

• KPIs • Targets • Financial indicators • Market share • Customer satisfaction • Product quality • Effectiveness • Balanced scorecard

Capabilities People

Processes

Insights

Technology

How we help clients achieve strategic goals

Reality Check

Critical Enablers

Resources People

What should be leveraged Capabilities Product/services People Processes Technology

Intended Outcomes Prioritised based on benefits, impact and urgency

Financial capability Insights and data

Innovation Where to create new value

Challenges What complexities must be overcome?

Optimum Strategy

Technology Systems

How do we get there

Integrated Planning

SSCG Problem Solving Framework (SPSF) SSCG problem-solving model, incorporates an effective set of skills into a step-by-step process. The model combines the use of statistical tools, such as control charts and process flow diagrams, with group problem-solving skills, such as brainstorming and consensus decisionmaking. The statistical tools help us make data-based decisions at various points throughout the model. The group problem-solving skills help us draw on the benefits of working as a team.

Client Problem

Solution Define and frame problem, ideas

Control, review effectiveness and improve continuously

Implement /transform

Develop recommendations and desired capabilities

Disaggregate and structure problem

People Processes Methodology Insights Learning Innovation Technology

Synthesise findings to identify opportunities

Prioritisation of actions

Plan analysis

Conduct review and due diligence 32

SSCG Approach to Problem Solving Leadership • Vision • Inspiration • Ambition

Management • Team • Clients • Stakeholders

Business Needs • Competitiveness • Company structure • Capital and financial • Operation resources

Problem

Analysis • Problem framing • Solution innovation • Data gathering • Interpretation

Intuition Data

Solution

Transformation • Implementation • Dedication • Change • Control • Iteration • Improvement

Presentation and buy-in • Proposal • Recommendations

How we can help you solve business process, improve service and product quality issues With diverse experience servicing businesses, industry and governments worldwide, SSCG has developed a unique methodology and approach to problem solving and decision making consulting. If you have a business problem that needs solving? Contact us about problem solving consulting today. We can help solve your problems in following ways.

Identify process bottlenecks and optimise operation for excellence.

Address service and product quality issues. Innovate new market leading solutions.

Become a more customercentric and a profitable enterprise.

Manage Six Sigma projects efficiently effective

Resolve production and manufacturing performance issues.

Streamline support functions and transform operating and service delivery model. 34

There are plenty of theories address business issues. Theories are great, but making it real is critical to success. At SSCG, our business is of reality. We address clients issues with expertise from professionals who have worked extensively in the industry. They go beyond theory to find viable, real-world ways to take clients in new directions. At SSCG, we continually seek better ways of working as we collaborate with clients to help them solve complex industry issues and capitalize on opportunities to grow, optimize and protect their businesses. We are a diverse team of consultants and industry professionals with a global mindset and a collaborative culture. SSCG consulting services use SCDF and SPSF methods in a deliberate, step-by step process that organises information, judgment and experience to break down the complexities of business problems into manageable elements. Our frameworks incorporates current advances in learning technology and still has the flexibility to respond instantly to changes in business circumstances. 35

Eugene Nizeyimana CEO, SSCG Consulting and Advisory Phone: +44 7879150562/+44 1902 752758 Email: Eugene.Nizeyimana@sscg-group.com

Advisory | Consulting | Operation About SSCG SSCG is global management consulting and professional firm. We provide engineering and management advisory across business services, automotive, industrial manufacturing and emerging markets sectors. We provide informed perspective on the issues faced by our clients. The insights and quality solutions delivered to support our clients to build trust and confidence in the markets and in economies. We combines our multidisciplinary approach with deep, practical industry knowledge to support our clients meet market dynamic challenges and respond to opportunities.

info@sscg-group.com www.sscg-group.com

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