PRIORITIZE- CHOOSE WHAT PROBLEM TO SOLVE

PROBLEM SOLVING EDUCATION SERIES-PART 2

 A recap, in part one of our Problem-Solving Series, we shared a systematic framework to find solutions to a problem. We promised to dive into the process. Before we dive into the process, there is a very important question that need to be answered.
      Problem Solving:-How to prioritize and choose a problem to be resolved?
A case of too many problems to fix. 
We are probably familiar with the following statements from managers and executives.
           “I do not have much time, we are fire fighting?”
           “We have a number of issues seeking our attentions?”
           “Our resources are spread thin handling a number of issues?”
If we were to ask which of the issues are important, the likely response is all of them. If we dig further the basis, chances are the decision is based on opinion and assumptions rather than fact-based.
Are all problems of equal importance?
Yes, if we do not have a system that evaluates each problem on a sound basis or criteria that is important to the business. Application of criteria to evaluate problems will eventually shows the difference in importance of each problem.
                    “Some problems are more important and critical than others”
Prioritize- Choose to work on a problem, based on facts.
The following method provides a simple guideline to choose a problem to be solved.

1. Establish criteria to select a problem to be worked on. To ensure effectiveness, include all relevant stakeholders. It will be meaningful if voice of customer is considered in selection of criteria.

Example of criteria can be: -

• Quality: Product Failure
• Cost: High cost of product rejects, reworks, disposal
• Cost: High Downtime and Repair cost
• Delivery: Delay in delivery
• Service: Cannot meet contract requirements
• Safety: High risk to employees.
• Overall: Possible contract termination

Criteria need to detail to ensure everyone have same understanding
    2. We recommend choosing 5 criteria.
    3. Assign weightage for each criterion (Between 1 to 10): 10 is high weightage.
    4. Develop importance rating as below: -

• 9    Very High
• 6     High
• 3     Low
• 0     Very Low

   5. Construct a matrix table to accommodate the criteria’s in Horizontal and      Issues in vertical. And Rate each issue against the criteria.​

​6. Choose the issue with highest total as a important and critical problem to be solved.
7. The above method is called prioritization matrix.
Challenges in using Prioritization Matrix.

• Identifying criteria
• Establishing weightage
• Establishing risk rating

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