Useful Tools for Problem Solving

© Operational Excellence Consulting. All rights reserved.
Useful Tools
for Problem Solving

Flow Chart
1
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© Operational Excellence Consulting. All rights reserved. 7
Flow Chart Example

Flow Chart
• Procedure (con’t)
5. When all activities are included and everyone agrees that the
sequence is correct, draw arrows to show the flow of the
process.
6. Review the flow chart with others involved in the process
(workers, supervisors, suppliers, customers) to see if they
agree that the process is drawn accurately.

Brainstorming
2

Gantt Chart
3

Stratification
4

Stratification – Example 2

Stratification Considerations
• Survey data usually benefit from stratification.
• Always consider before collecting data whether
stratification might be needed during analysis. Plan to
collect stratification information. After the data are
collected it might be too late.
• On your graph or chart, include a legend that identifies
the marks or colors used.

Check Sheet – Example 1

Check Sheet – Points to take note
1. Is the objective vague?
2. Is there any omission in checking?
3. Is the check carried out with plans?
4. Is it too late to do the check?
5. Are the entries correct?
6. Is it too time-consuming to prepare a draft for the check
sheet?
7. Is it too complicated?
8. Are there any individual differences in the checking?

Bar Chart Examples
130
173
192
138
198
210
0
50
100
150
200
250
FY 11 FY 12 FY 13
Budget Actual
7
14 15
13
15
28
0
5
10
15
20
25
30
FY 11 FY 12 FY 13
Budget Actual
Revenue Profit Before Tax

Waterfall Chart – Example 1
AddressableAddressable HC （FTE） = 47
47
6.2
5.9
74
131.9
System
O perations
(Sysops)
Server
M anagem ent -
M ainfram e (M /F)
Server
M anagem ent -
Distributed (M /R)
Infrastructure and
Resource
M anagem ent
(N/S)
Service
M anagem ent
(S/M )
W hole accountThis document is a partial preview. Full document download can be found on Flevy:

Line Graph (a.k.a. Run Chart or Trend Chart)
• Purpose
To show patterns of change in a sequence of measurements, i.e.
data points plotted in chronological order.
To visualize how a process is performing according to time.
• When to use
To show changes across time for an item that is repeatedly
measured.
To understand variation in process performance.
When measuring progress towards a goal; to show relative
improvement.

Pie Chart
9

Pie Chart – Example 2
Source: w3schools.com

Belt Graph Example
42
13
30
5
28
25
8
21
12
17
28
23
4
18
8
5
6
20
23
14
15
13
4
6
3
9
18
24
8
20
12
13
2 3
18
20
6
21
16
27
1 1 8
21
2
14
27
44
1 0
11 8
35
0
20
40
60
80
100
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8
Ranking of Service Attributes
Clear distinction in customers’ preference as the difference
between ranked 1st for the top 3 attributes is large (>10%).

Radar Chart Example
0
5
10
15
20
25
30
35
Sort
Set In Order
ShineStandardize
Sustain
Comparison of 5S Performance
Area A
Area B

Control Chart Example
Phase 1 Phase 3Phase 2
Xbar Chart
Data points outside the control limits suggest that there are
special causes to the process deviation

Control Limit Formulas for Continuous Data
X bar and S Charts
Individuals Charts
(Subgroup size = 1)
(Subgroup size = 2-9)
(Subgroup size > 9)

Creating an ImR Chart
4. Plot the data (the original data values on one chart and the
moving ranges on another)
5. After 20 or more sets of measurements, calculate control limits
for moving Range chart
6. If the Range chart is no in control, take appropriate action
7. If the Range chart is in control, calculate control limits for the
Individuals chart
8. If the Individuals chart is not in control, take appropriate action

Creating p-, np-, c- and u-Charts
• Procedure
1. Determine the appropriate sampling plan
2. Collect the sample data. Take a set of readings at each
specified interval of time.
3. Calculate the relevant metric (n, np, c or u)
4. Calculate the appropriate centerline
5. Plot the data
6. After 20 or more measurements, calculate control limits
7. If the chart is not in control, take appropriate action

Pareto Chart
• Purpose
To show relative importance of a set of measurements.
Also called the “80/20” rule.
• When to use
To identify and prioritize problems to be solved.
To differentiate the ‘vital few’ from the ‘trivial many’.
After improving a process, to show relative change in a measured
item.
Sorting a set of measurements to emphasize their relative sizes.

Pareto Chart Example
Wrong
Toppings
Pizza
Cold
Pizza
Late
Wrong
Crust
Tastes
Bad
Forgot
Breadstic
ks
Driver
Had No
Change
Smashed
in Box
Wrong
Price
Driver
Rude
All other
Quantity 29 25 22 13 10 7 4 3 2 1 2
Cum % 25% 46% 64% 75% 84% 90% 93% 96% 97% 98% 100%
% of Total 25% 21% 19% 11% 8% 6% 3% 3% 2% 1% 2%
0%
20%
40%
60%
80%
100%
120%
-
5
10
15
20
25
30
35
CumulativePercent
Occurences
Pizza Defects
Pareto Chart
January-02Time Period:

Pareto Chart
4. In the order of the most data, from the left, draw in the bar
graphs. Keep all the bars in the same width. (Note: You may
use Excel to generate the bar graphs.)
5. Using the cumulative figure, draw the cumulative curve.
From the bar graph column’s right corner, extend the line to
the end, joining with a broken line graph.
6. Draw a line from the end of the bar graph to the vertical axis.
Where it intersects the cumulative curve, it is taken as 100%.
Put in the scales for the cumulative percentage.
7. Lastly, write in the title for the Pareto Chart, the period the data
was collected, the total number of data, the authors, etc.

Pareto Chart – Key points to note
• Get as much information as possible from Pareto chart.
Collect various viewpoints and classification.
• Draw a Pareto chart based on cause, not symptoms.
• If possible, use the vertical axis to represent monetary
units.
• Do not have too many or too few items on the horizontal
axis. Recommended items = 6 to 10.
• Shade the items (e.g. oblique lines) that are taken up.
• Write the legend for the Pareto chart clearly.
• Item under “others” should not be too many.

Cause & Effect Diagram (Manufacturing)
EffectCauses
Problem
Statement
cause
Machines
Measurements Materials
Methods
Mother Nature
Manpower
(Environment)

Example 2: Cause and effect diagram used in solving
the problem of “Late Payment of Invoices”
Computer
System
Internal Mail
System
Staff
Finance
Policy
Documentation
Older System
Downtime
Excess
Demand
Access Limitations
Low Priority
Manual Sort
ProcessNew
Maintenance
Contractor
Excess
Demand
Cost-Reduction Program
One Pick-Up Daily
Workspace Equipment
Lost&Misplaced Mail
Turnover
Inexperienced Staff
Manual
Files
Crowded
Space
Resigned
No Limit Manager
Missing Documentation
Branch Offices
Forward Payments Weekly
Reorganization
of Purchase Org.
Centralized
Payment
Authorization
Audit Recommendation
for Tighter Control
Missing
Purchase Orders
Maximize
Cash
Payment
Delays
Increased
Workload
Turnover
Hiring
Freeze
Access Limitations
Low Priority
Morale
Paycuts
Overtime
Reduced
Productivity
Deadlines
Suspected
root causes
Legend
Late
Payment
of
Invoices

5 Whys
15

5 Whys
• Procedure
1. Write down the specific problem. Writing the issue helps you
formalize the problem and describe it completely. It also helps a
team focus on the same problem.
2. Ask Why the problem happens and write the answer down
below the problem.
3. If the answer you just provided doesn’t identify the root cause of
the problem that you wrote down in Step 1, ask Why again and
write that answer down.
4. Loop back to step 3 until the team is in agreement that the
problem’s root cause is identified. Again, this may take fewer or
more times than five Whys.

Histogram
16

Histogram Examples
Final Test Scores
Scores
NumberofStudents

Scatter Diagram
• Purpose
To show the type and degree of any causal relationship between
two factors.
To see patterns in data.
Helps create or refine hypotheses.
• When to use
To show any correlation between two factors.
When suspected that any one item may be causing another.
When both items can be measured together, in pairs.

Scatter Diagram

Scatter Diagram Considerations
• If the diagram shows no relationship, consider whether
the independent (x-axis) variable has been varied widely.
Sometimes a relationship is not apparent because the
data don’t cover a wide enough range.
• Think creatively about how to use scatter diagrams to
discover a root cause.
• Drawing a scatter diagram is the first step in looking for a
relationship between variables.

How to Create an Affinity Diagram
• Step 1 – Generate Ideas
Use the Brainstorming tool to generate a list of ideas.
The rest of the steps in the Affinity process will be easier if these
ideas are written on Post-Its.
• Step 2 - Display the ideas
Post the ideas on a whiteboard, a wall, or a table in a random
manner.

How to Create an Affinity Diagram
• Step 5 – Draw the finished Affinity Diagram
Write a problem statement at the top of the diagram.
Place header and superheader cards above the groups of ideas.
Review and clarify the ideas and groupings.
Document the finished Affinity Diagram

Relations Diagram Example
Source: ASQ

Tree Diagram
20

Tree Diagram – Example 1
Overall Equipment
Effectiveness
Availability
Breakdowns
Setups &
Adjustments
Performance
Reduced Speed
Minor Stops &
Idling
Quality
Defects &
Rework
Startup &
Yield Loss
Six Big Losses

Tree Diagram
3. Brainstorm all possible answers. If an affinity diagram or
relationship diagram has been done previously, ideas may be
taken from there. Write each idea in a line below (for a vertical
tree) or to the right of (for a horizontal tree) the first statement.
Show links between the tiers with arrows.
4. Do a “necessary and sufficient” check. Are all the items at this
level necessary for the one on the level above? If all the items
at this level were present or accomplished, would they be
sufficient for the one on the level above?

Matrix Diagram
• Purpose
To show the relationship between two, three or four groups of
information.
• When to Use
Provide information about the relationship, such as its strength,
the roles played by various individuals, or measurements.

Matrix Diagram – Example 3

MDAC – Example 1
Countermeasures M1 M2 M3 M4 M5 Total Score
Countermeasure #1 2 8 6 4 2 22
Examples of Selection Criteria:
M1 = Easy to Implement
M2 = Feasible
M3 = Cost Effective
M4 = Robust
M5 = Risk
Selection Criteria (1=Bad, 10=Good)
Countermeasures Selection Matrix

MDAC – Example 4
EaseofImplementation
Difficult
Low
Anticipated Benefit
High
Priority
Action
Eliminate
Easy
Consider
Prioritization Chart

How to Create a MDAC
6. Interpret the chart and act on the results. Typical activities
include the investigation into and subsequent action on:
Why items which might be expected to group closely do not.
Why items unexpectedly form clusters.
Why individual items are not positioned where they were
expected to be on the chart.

Arrow Diagram – Example 1

Arrow Diagram
3. Diagram the network of tasks. If you are using notes or cards,
arrange them in sequence on a large piece of paper. Time
should flow from left to right and concurrent tasks should be
vertically aligned. Leave space between the cards.
4. Between each two tasks, draw circles for “events.” An event
marks the beginning or end of a task. Thus, events are nodes
that separate tasks.
5. Look for three common problem situations and redraw them
using “dummies” or extra events. A dummy is an arrow drawn
with dotted lines used to separate tasks that would otherwise
start and stop with the same events or to show logical
sequence. Dummies are not real tasks.

PDPC – Example 1

PDPC
4. For each potential problem, brainstorm possible
countermeasures. These might be actions or changes to the
plan that would prevent the problem, or actions that would
remedy it once it occurred. Show the countermeasures as a fifth
level, outlined in clouds or jagged lines.
5. Decide how practical each countermeasure is. Use criteria such
as cost, time required, ease of implementation and
effectiveness. Mark impractical countermeasures with an X and
practical ones with an O.

About
Operational Excellence
Consulting

Appendix I -
Exercises

Exercise: Construct a C&E Diagram
based on the report below.
Time: 20 mins

X and R Chart Example
In-class Exercise
• The following collection of data (see next
slide)represents samples of the amount of force applied
in a gluing process.
• Determine if the process is in control by calculating the
appropriate upper and lower control limits of the X-bar
and R charts.

Example of X-bar and R charts:
Step 2. Determine Control Limit Formulas and Necessary
Tabled Values
x Chart Control Limits
UCL = x + A R
LCL = x - A R
2
2
R Chart Control Limits
UCL = D R
LCL = D R
4
3
n A2 D3 D4
2 1.88 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74

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