1. What is Problem? 2. What is problem solving?

3. Steps to Problem 4. Techniques of Problem

Solving Solving
5. Case Study on USP 6. Case Study on Value Chain
Tool. Tool.
• Introduction to Case. • Introduction to Case.
• Introduction to USP • Introduction to value Chain
Tool. Tool.
• implementation of • Implementation of Tool.
Tool.
7. Case Study on • Conclusion.
•Appreciation
Conclusion.
Tool.
“Most people rush to find
solution before knowing the
real problem.”

unknown
 Problem is a chance for you to do your
best.

A problem is the difference between

the actual state and desired state.

A problem is an opportunity for

improvement.
“Most people spend more time and
energy going around problems
than in trying to solve them.”

Henry Ford
Problem solving is a tool, a skill
and a process.

 Itis a tool because it can help you to

solve an immediate problem or to
achieve a goal.
 Itis a skill because once you have
learnt it you can use it repeatedly, like
the ability to ride a bicycle, add
numbers or speak a language.

 Itis also a process because it involves

a number of steps.
STEPS:

1.Identify the problem

 Involves identifying the problem in
order to find an appropriate solution.

2.Explore the problem

 Looking at the problem from different
angles. Such as:
 ‘How is this problem affecting ?’
3.Set goals
 After having thought about the
problem from different angles one can
identify their goals.

4.Look at Alternatives
 Involves brain-storming for ideas to
collect a list of possibilities.
5.Select a possible solution
 Choosing the most relevant and
manageable alternative.

6.Implement a possible solution

 Putting the chosen solution in action.

7.Evaluate
 Examining the possible solution for it’s
effectiveness. For e.g.:
 ‘How effective was that solution?’
 Appreciation - Extracting maximum
information from facts.

 Drill-Down- Breaking problems

down into manageable parts.

 Cause & Effect Diagrams -

Identifying likely causes of problems.
 Systems Diagrams -
Understanding how factors affect
each other.

 SWOT - Analyzing strengths,

weaknesses, opportunities and
threats.

 Cash Flow Forecasting with

Spreadsheets - Analyzing whether
an idea is financially viable.
 Risk Analysis Porter's Five Forces -
Understanding the balance of power in
a situation.

 PEST Analysis - Understanding "big

picture" forces of change.

 Value Chain Analysis - Achieving

excellence in the things that matter.

 USP Analysis - Finding competitive

edge  
 DanJackson, the new CEO of LPC Office
Supplies.

 He was confused by the situation he'd

inherited, and felt that the company was
drifting.

 He was worried that the company had no

distinctive market position (no
competitive edge)

 He decided to use USP Analysis.

 It's your "Competitive Edge". It’s the
reason why customers buy from you
and you alone.

Process :
1. Understand the Characteristics that
Customers Value.
2. Rank Yourself and Your Competitors By
These Criteria.
3. Identify Where You Rank Well.
1. Understand the Characteristics that
Customers Value.
After talking to the company's biggest customers,

Dan has identified the following criteria as

important:
- Price
- Quality of merchandise
- Range
- Catalog quality
- Website appearance and navigation
- Ease of ordering
- Speed of delivery
- Reliability of delivery.
 LPC BARNWICK ROSKAN HTX
SUPPLIES SMITH GROUP SUPPLIES

PRICE 7 9 6 6
QUALITY 7 7 7 7
RANGE 9 6 5 9
CATALOGUE 9 7 6 9
QUALITY
WEBSITE 9 7 6 8
EASE OF 7 7 7 6
ORDERING
SPEED OF 6 7 9 9
DELIVERY
RELIABILITY 7 7 9 9
 Dan is sure that LPC can compete effectively
against these competitors by emphasizing
the breadth of its range and the quality of its
catalog.

 Dan decides to invest in LPC's website and its

customer service systems, with a view to
opening up a clear gap between itself and
HTX.

 And he then launches a marketing campaign

stressing LPC's USP.
• Appreciation is a technique used by
military planners, so we will take a
military example:
Fact: It rained heavily last night

• So What?
• The ground will be wet
• So What?
• It will turn into mud quickly
• So What?
• If many troops and vehicles pass over the
same ground,
• movement will be progressively slower
• and more difficult as the ground gets
muddier and more difficult.

• So What?
• Where possible, stick to paved roads.
• Otherwise expect movement to be much
slower than normal.
 While it would be possible to reach
this conclusion without the use of a
formal technique,

 Appreciationprovides a framework
within which you can extract
information quickly, effectively and
reliably.
 Lakshmi is a software development manager for
a software house.

 She and her team handle short software

enhancements for many clients.

 Complaints regarding product & service quality.

 Demand has fallen.

 She plans to use Value Chain Analysis to deliver

excellent service to their clients.
 Value Chain Analysis helps you identify
the ways in which you create value for
your customers,

 And then helps you think through how

you can maximize this value:

 Whether through superb products, great

services, or jobs well done.
1.Activity Analysis:

 Identify the activities to undertake to

deliver your product or service.
 Include marketing of your products or
services; sales and order-taking;
operational processes; delivery;
support.
2.Value Analysis:
 For each activity, you think through what
you would do to add the greatest value
for your customer.
 E.g. A telephone order-taking process,
your customer will value a quick answer
to his or her call.

3.Evaluation and Planning:

 Thirdly you evaluate whether it is worth
making changes, and then plan for action.
 During the Activity Analysis :
She identifies the following Primary
Activities that create value for clients:
 Order taking
 Enhancement specification
 Scheduling
 Software development
 Programmer testing
 Secondary testing
 Delivery
 Lakshmialso identifies the following
Support Activities as being
important:

 Recruitment: Choosing people who

will work well with the team.

 Training:
Helping new team
members to become effective.
 Giving
a quick answer to incoming
phone calls;
(order
taking)

 Havinga good knowledge of the

customer’s business, situation and
system, so that they do not waste the
customer’s time with unnecessary
explanation;
 Askingall the right questions, and
getting a full and accurate
understanding of the customer’s
needs;

(scheduling)

 Explainingthe development process

to the customer and managing his or
her expectations as to the likely
timetable for delivery.