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This product is similar to other products which are selling nicely, but it is underperforming and is costing the company money at this point.So, at first blush, the immediate reaction might be to simply take the product off the market and cut losses.To better explain this concept and how it can work in practical application, let’s walk through a basic example that could be relevant to a number of businesses.
After all, if it isn’t selling and other similar products are selling nicely, there must be a problem with the product that makes it unattractive to consumers.
However, instead of just taking that decision for what it is, the ‘5 Why Analysis’ method could be applied to look for the root cause of the poor sales figures.
It's used by improvement individuals OR teams to brainstorm and logically organise potential causes. So armed with my new information, I drew up a cause and effect diagram, organised a quick observation of the process and continued my quest.
It helps you summarise potential high level causes. That’s why in the FREE bonus section I give you some pretty cool ways of getting the same information by using different Why strategies So if you don’t want to come across abrupt but still want to be hugely effective in your Q&A techniques then download the bonus section here. You might know that one of the key categories in cause and effect Fishbone Diagram is ‘Information’ (or lack of it).
5Y is a problem solving technique widely adopted in root cause analysis (RCA) as a part of the Problem Management module in ITIL.5Y is rather 5 Why's and involves framing questions beginning with Why to arrive at a root cause from the actual problem statement.
There are other problem solving techniques apart from 5Y that can be used for similar purpose like the Fishbone diagram, Cause-effect analysis etc.5 Why's is the most common of these methods as it has a step by step approach to arrive at the actual root cause , which in turn aids the RCA process. Fishbone can be used when a more detailed analysis is required for a specific problem. This simple change saved £000’s of pounds by not having to go to a 3 party supplier to have new system functionality developed for processing documents efficiently. If you’re brainstorming with others they’ll quickly know what it’s about. Major Factors List 5 of the major factors involved Here are the traditional ‘fishbone’ major factors: But you don’t necessarily have to stick to these. Get your thinking cap on and brainstorm around each heading to place ideas or issues around the relevant header Drill down into the issues (maybe using 5 why’s ) Group them into relevant subcategories Keep going until you have a diagram showing all the possible causes. And you will have something that looks a little bit like this: Step 5.Here’s the bottom line: If you use the 5 Why’s technique in conjunction with the Cause and Effect (or Fishbone) Diagram. You could come up with your own depending on earlier research. Boning Out Make the bones of your fish and add these as headings for each bone. Analyse the Fish’s bone(s) Look for causes that appear more than once.In this case, we only went through three levels of ‘whys’, and we were able to get down to the heart of the matter.It won’t always be that easy, but following the whys is usually going to lead to a solution at one point or another. But wait, there’s more: By reading and implementing this post, you will have virtually conquered the 8 Business Analyst habit – Problem Solver – as described in my ever-popular post: Business Analysts 37 Habits: And what you can do NOW – have a read here if you haven’t already. Whether you're working as a manager, you're at home or even at school.Solving problems on a superficial level can be a major mistake in business.You might think you are doing the right thing by solving a problem as soon as it pops up, but you may only be taking care of the top-level of a problem that runs much deeper.’ with regard to a problem until you get deep down to the root of the issue that you are facing.While the number five is used in the title of this problem solving technique, it will often be the case that more or less whys are needed before the problem in solved.