Analysis of Business Problems vs Some Problem-Solving Concept.

On the second day of my orientation programme into Executive Masters in Business Administration (EMBA) at Lagos Business School, one of our lecturers, Segun Shogbammu introduced us to ‘Analysis of Business Problems’. When he started with the steps in problem solving, I said to myself, ‘hurray, this is it, as I will be applying all those problem-solving concepts, I learnt from ABI University, while working with ABinBev. He explained that we will be analysing every business problem through a Case Method.

Let me give you a little detail of the problem-solving concept I learnt from ABI University. This concept is applied at a workplace in finding root cause of problems and deviations to Key Performance Indicators (KPI). There are different degrees in the use of this problem-solving concept from Level 4 to Level 1 (bottom-up) grade.

1. 5 Why Analysis: This process is mainly used by the shopfloor Operators (Level 4) to investigate root causes failures during operations. This is a method of asking ‘why’ repeatedly, by eliminating the symptoms of the problem before arriving at the root cause. Then, an action plan is raised to fix the problem. But when the deviation persists on three consecutive days, the next level of solution is introduced, which is the Abnormality Report.
2. Abnormality Report: This process advanced from the Operators to the Supervisors (Level 3) to investigate the corrective actions and quick fix routines (QFR) applied at the Operators level. It monitors the deviations within 5 business days of event and introduces a fishbone diagram to understand the cause and effects of the problems, if it is a problem of Man, Method, Machine, Measurement and Material. If the problem resurfaces at a later time after the AB Report has been done, then a more systematic approach is employed, which is the ‘Plan Do Check Act (PDCA)’.
3. Plan Do Check Act (PDCA): At this stage the Head of Department will set up a PDCA team comprising of the Managers, Supervisors, the Operators and all needed stakeholders to address the problem with a systemic approach. The PDCA will deep dive into the problem examining all processes; Problem Statement, 5 Why, Abnormality Report, Daily Routines, Service Level Agreements, Process Maps, KPI Tree, KPI Trend, Standard Operating Procedures, Operators Checklist, Good Operating Practices (GOP) and Benchmarks. At this level the root cause will be obvious and action plans to finally fix the problem is initiated.

Now, back to the ‘Analysis of Business Problems’ in EMBA class, Mr. Shogbammu presented a business case of DIMA Nigeria Limited, a department store, operating groceries and frozen foods, which is experiencing loss in business. Mr. Shogbammu introduced a problem-solving concept to analysing a business problem. I tried to compare the technique with the problem-solving concept I learnt from ABI University. As we proceed we would see if there’s a difference and similarities between them. This concept from ‘Analysis of Business Problems’ class, include:

(a) Understanding the problem, (b) Define the problem, (c) Define the objective, (d) Determine the criteria; priority and weight, (e) Generate alternatives, (f) Analyse the alternative using the developed criteria, (g) Make a decision, (h) Create and action plan.

To be continued…

James Nwachuya #EMBA28