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