Problems Problems

By R. Henry MiglioreBy R. Henry Migliore

MajorMajor

MinorMinor

ProblemProblem

AnalysisAnalysis

ProductionProduction MarketingMarketing Human Human

ResourceResource

R & DR & D FinancialFinancial

Usually threeUsually three

Feasibility Feasibility studystudy

AlternativesAlternatives

RecommendationsRecommendations

Best course of action under circumstancesBest course of action under circumstances

Pheasant Hunt ExamplePheasant Hunt Example

SymptomsSymptoms FeverFever WeakWeak ClammyClammy

Real ProblemReal Problem LaptosplaosisLaptosplaosis

Major PointMajor Point Attack real problem, not Attack real problem, not

symptomssymptoms

If you have the fluIf you have the flu

SymptomsSymptoms What is likely the problemWhat is likely the problem

HeadachesHeadaches VirusVirus

FeverFever

Sore MusclesSore Muscles

In an unhappy marriageIn an unhappy marriage

SymptomsSymptoms What is likely the problemWhat is likely the problem

ArgumentsArguments Communication/TimeCommunication/Time

Unfaithful Unfaithful partnerpartner

AbuseAbuse

An unruly child in K-5An unruly child in K-5

SymptomsSymptoms What is likely the problemWhat is likely the problem

Lack of Lack of attention on attention on assignmentsassignments

Lack of attention at homeLack of attention at home

Making noiseMaking noise

Starting Starting fightsfights

An unhappy/unproductive employeeAn unhappy/unproductive employee

SymptomsSymptoms What is likely the problemWhat is likely the problem

LazyLazy No recognition, lack of self-No recognition, lack of self-esteemesteemMissed Missed

days/tardydays/tardy

InjuriesInjuries

Business is Losing MoneyBusiness is Losing Money

SymptomsSymptoms What is likely the What is likely the problemproblem

Loss of market shareLoss of market share Lack of strategic Lack of strategic directiondirection Lost track of customer Lost track of customer needsneeds Wrong size in industryWrong size in industry Not operating bottom Not operating bottom of long run cost curveof long run cost curve Not aimed at right Not aimed at right market nichemarket niche

Poor quality/servicePoor quality/service

Drop revenueDrop revenue

Poor public imagePoor public image

Turnover of Turnover of employeesemployees

High cost sportageHigh cost sportage

Business is Losing MoneyBusiness is Losing Money

SymptomsSymptoms What is likely the What is likely the problemproblem

Unhappy people/lack Unhappy people/lack of prideof pride

Not using firm’s Not using firm’s competitive competitive advantage/strengthsadvantage/strengths Lack of driving Lack of driving force/strength of force/strength of companycompany Improper merger Improper merger business partnersbusiness partners External factors/new External factors/new lawslaws

Facilities run downFacilities run down

Poor cash positionPoor cash position

High inventoryHigh inventory

Running at less plant Running at less plant capacitycapacity

Company Expanding and ProfitableCompany Expanding and Profitable

SymptomsSymptoms What is likely the What is likely the problemproblem

Overworked Overworked ExecutivesExecutives

Poor organization Poor organization chartchart Growth with no planGrowth with no plan Chasing the marketChasing the market Lack in trainingLack in training

Confusion at all levelsConfusion at all levels

Lack of coordinationLack of coordination

Poor communicationPoor communication

Plan not in writingPlan not in writing

Constant Constant reorganizationreorganization

Company staying at same sizeCompany staying at same size

SymptomsSymptoms What is likely the What is likely the problemproblem

Lack of excitement in Lack of excitement in cultureculture

Could get left behind Could get left behind industry changeindustry change

Losing market shareLosing market share

Low profits compared Low profits compared to industryto industry

Take-over from Take-over from unfriendly buyerunfriendly buyer

SymptomsSymptoms Perceived Perceived ProblemProblem

Why 1) Rush jobs, too many Why 1) Rush jobs, too many change overschange overs

Late delivery Late delivery to customer, to customer, low low productivity, productivity, quality quality problems, problems, machine machine repair costs repair costs high confusionhigh confusion

Why 2) Why rush jobs/change Why 2) Why rush jobs/change oversovers

Why 3) Not enough timeWhy 3) Not enough time

Why 4) Take 7-14 days to get Why 4) Take 7-14 days to get customer orders into customer orders into production control from production control from marketingmarketing

Real ProblemReal Problem Why it takes 7-14 days for sales Why it takes 7-14 days for sales

paperwork to get order into plant paperwork to get order into plant and/or production scheduleand/or production schedule

AlternativesAlternatives1.1. Leave as isLeave as is

2.2. Buy lap-top computers, train sales Buy lap-top computers, train sales peoplepeople

3.3. Go 100% to manufacturing Go 100% to manufacturing representativerepresentative

SolutionSolution Alt #2 computer entry of orders from Alt #2 computer entry of orders from

field/train marketing sales people field/train marketing sales people (normal/traditional problems; people (normal/traditional problems; people don’t work, need training).don’t work, need training).

ResultsResults Increased manufacturing experienceIncreased manufacturing experience

Better qualityBetter quality Higher moraleHigher morale Foster throughoutFoster throughout

““Sophisticated solutions do Sophisticated solutions do not work. The more complex not work. The more complex the problem, the simpler the the problem, the simpler the

solution must be.” solution must be.”

Eliyahu M. GoldrattEliyahu M. Goldratt