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Every organisation faces problems along the way. Regardless of the industry or scale of the business, effective problem solving is key to business success. So how do you do it effectively? In this article, we will outline the best methods and tools to help you effectively manage problems in your business.
What is a problem in the organisation?
We can define a problem in a company as an unacceptable difference between the desired target state and the current situation. Typical examples include:
- too low a production efficiency,
- frequent breakdowns or downtime,
- high operating costs,
- unsatisfactory quality of products or services.
In order to manage problems effectively, it is necessary to clearly define indicators that determine which deviations are acceptable to us and which require immediate intervention. This will help us avoid subjective judgements and take action based on concrete data.
Why is a systems approach to problem solving key?
A problem in many companies is the lack of a systemic approach to process management. This often amounts to 'firefighting', i.e. ad hoc responses to current difficulties, without a broader view and root cause analysis. Such a strategy does not produce sustainable results in the long run.
A much better solution is to implement proven methods that allow problems to be dealt with in an orderly and effective manner and prevent recurrence.
The PDCA cycle - the foundation for successful problem solving
The basis of most process improvement methods is the PDCA cycle, also known as the Deming wheel. The acronym PDCA comes from the English words:
- Plan- problem definition, root cause analysis, development of an action plan.
- Do (Perform)- implementation of planned activities.
- Check- evaluation of the effects of implemented solutions, analysis of effectiveness.
- Act- standardising effective solutions, introducing preventive measures.
The use of the PDCA cycle helps to effectively eliminate problems and minimises the risk of recurrence.
The most common methods of problem solving in a company
Based on the PDCA cycle, a number of effective methods and tools have been developed that are worth knowing and using depending on the specific problem:
The A3 report - simplicity and effectiveness
The A3 report method originated at Toyota and gets its name from the format of a sheet of paper (A3) on which all relevant information should fit:
- problem description,
- root cause analysis,
- proposed solutions,
- action plan and implementation,
- evaluation of effects and standardisation.
The A3 report is characterised by simplicity and brevity - there is no room for unnecessary detail. This method works best for smaller or medium-sized problems that can be solved quickly and efficiently.
2. 8D report - a popular standard in the automotive industry
The 8D (Eight Disciplines) method was developed by the US Department of Defence and is now widely used in the automotive industry. It includes eight steps:
- Team formation.
- Describing the problem.
- Taking interim action.
- Root cause analysis.
- Selection and implementation of corrective actions.
- Verification of the effectiveness of implemented measures.
- Preventing a recurrence of the problem.
- Summarising the effects and appreciating the team.
The 8D form is particularly effective for recurring quality problems.
3. DMAIC (Six Sigma) - for complex business problems
The DMAIC method is a key element of the Six Sigma approach developed by Motorola. DMAIC stands for, in turn:
- Define- a clear definition of the problem and the project objectives.
- Measure- data collection and analysis of the current situation.
- Analyze- detailed root cause analysis.
- Improve- design and implementation of solutions.
- Control- monitoring the effects and standardising improvements.
Six Sigma is particularly recommended for solving complex, intricate problems that require advanced data analysis and statistical testing. These projects can take up to several months to complete.
How do you choose the right problem-solving method?
Choosing the right method depends on several factors:
- the scale and complexity of the problem,
- available resources (time, people, competences),
- industry and company specifics.
In practice, it is a good idea to start with simple tools (e.g. an A3 report or a whiteboard and marker) to engage the team quickly and not discourage them with complicated procedures. As competence develops, more advanced methods such as DMAIC can be implemented.
Bottom line - effectiveness lies in regularity and commitment
Successful problem solving in a company is all about a systematic approach and the ability to involve the team. Regardless of the method chosen, it is crucial to apply the PDCA cycle, root cause analysis and consistent implementation and standardisation of solutions.
We encourage you to try the methods and tools described - you will see how quickly your organisation will start to achieve better results!
And you, which method do you use most often? Share your experiences in the comments!
