Our previous few posts have focused on identifying waste.
After an area of waste or an opportunity for improvement is identified, the next step is to define the specific problem. Few decisions have a greater impact on the likelihood of success of an improvement project than the definition of the problem.
For example, Stephen Covey says that the way we see the problem is the problem. Albert Einstein warns that we cannot solve problems at the same level of thinking with which we created them. The way we define and communicate the problem the team is expected to solve will greatly influence the speed and efficiency with which a team will complete its work, the degree of satisfaction between the team and the project sponsor, and the efficacy with which an organization prioritizes and sequences the problems to devote resources to.
Consider these different approaches to defining the same problematic situation:
- Order fulfillment is too slow and is costing us a lot of business.
- Our lost sale rate has increased from an average of 125 per month over the previous six quarters to 190 per month this quarter.
- Our Order-to-Delivery timeline has increased to 60 days due to a bottleneck in packaging.
- Profits are down.
- Sales has missed their target for the past three months.
- Packaging is too slow due to old equipment.
- Order-to-Delivery time from the Mid-western plant in Q3 increased by 15 days over the same quarter prior year, and was cited as the cause of 42 lost sales in Q3 impacting revenue by $270,000 in the quarter.
Some of these are statements of fact, while others are judgments. Some are very broad and others are very specific.
They may ALL be valid observations about the same situation, yet the problem solving efforts they would guide would differ greatly in urgency, efficiency, and efficacy. Developing a good problem statement at the start will help you define and lead an improvement project that most efficiently arrives at better results.
In our next post we’ll share four best practices for defining problems.