How to define “Business Problem”
§A problem statement describes the unfavorable condition that prevents the goal or objective from being achieved
§Quote by Albert Einstein
“If I had an hour to solve a problem I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.”
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§Questions to be Answered when defining “Business Problem”
§Who is affected
§Whatare the negative impacts
§Whereis it happening ?
§When does it happen
§Note : We should not look for answers for below question :
§Whyis it happening
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At minimum, a business problem statement should include :
§Whatis problem or defect
§Magnitudeof the problem ( events , how often )
§Whereis the problem ?
§Whyis it important to work on this problem
§Note: Problem Statement should have impact
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Writing the Business Problem Statement
§Describe the current unsatisfactory condition
§Keep it Simple
§Ensure it has impact
§Make it understandable
§Compose wording that is engaging
§Formatted as a bulleted list or paragraph
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Examples – Paragraph or Bulleted list
Paragraph
Assembly Line #1 is producing defects at the rate of 4.5% of production (based on the number of returns we are receiving from customers). Reducing defects is critical to improving customer satisfaction.
Bulleted List
•What is problem : High rate of defects
•Magnitude of the problem : 4.5% of production
•Where is the problem : Assembly Line #1
•Why is it important : Reducing defects is critical to improving customer satisfaction