Process Driven Problem Solving

Definition

Diagram of three main tools Process driven problem solving is the use of a formal process as your main approach to solving problems. The main advantages are:

The process can much more easily be executed by a team of problem solvers. This makes the approach scalable.

Since the process is formally defined it can be continuously improved. Over time the process can evolve to be so powerful it's your most important asset, as it is for many of the world's largest companies like Toyota, Intel, and Exxon, and for all of science via the Scientific Method.

Process driven problem solving is the second of the three main tools in our toolkit for solving difficult social problems. The diagram explains how doing a root cause analysis well requires process driven problem solving. The process thus serves as a wrapper for the root cause analysis approach you wish to take.

The three steps of process driven problem solving are:

1. Identify the problem.

2. Choose or develop a suitable process for solving this type of problem.

3. Execute the process, which must include continuous improvement.

Activism is currently struggling in step 2.

Examples of process driven problem solving

Example 1

The Cycle of EvolutionA process is a reusable series of steps to achieve a goal. The most successful process in the world is the three step process of the evolutionary algorithm: replication, mutation, and survival of the fittest (selection). In only 3.5 billion years this process produced you and me.

The real kicker is The Cycle of Evolution is random. It's not intelligent. Nature never asks "Given this situation, what would be a good mutation to try in the next cycle of replication?"

But humans can ask that question. In fact, this website asks that question as directly as possible: "Given the sustainability problem, what would be a good approach to take in our next generation of solutions?" We've concluded the answer is the System Improvement Process. It's the heart of our approach.

Example 2

The oldest, most studied book in the world on military or business strategy is Sun Tzu's The Art of War. This two thousand year old book takes a process driven approach to problem solving. Its main strategy is to use this process:

Sun Tzu's Five Things Process

Therefore measure in terms of five things, use these assessments to make comparisons, and thus find out what conditions are. The five things are the way, the weather, the terrain, the leadership, and discipline. 1

Example 3

Toyota became the world's largest auto manufacturer in 2007. It got there by using the "14 Toyota Way Principles," its company wide process. These have been much studied and emulated. So that you can see how powerful they are and how they might be used in your process, here are the principles. The justification of this very complex approach is this: "The right process will produce the right results." 2

Executive Summary of the 14 Toyota Way Principles

Section I: Long-Term Philosophy

Principle 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

Section II: The Right Process Will Produce the Right Results

Principle 2. Create a continuous process flow to bring problems to the surface.

Principle 3. Use “pull” systems to avoid overproduction.

Principle 4. Level out the workload (heijunka). (Work like the tortoise, not the hare.)

Principle 5. Build a culture of stopping to fix problems, to get quality right the first time.

Principle 6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.

Principle 7. Use visual control so no problems are hidden.

Principle 8. Use only reliable, thoroughly tested technology that serves your people and processes.

Section III: Add Value to the Organization by Developing Your People

Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

Principle 10. Develop exceptional people and teams who follow your company’s philosophy.

Principle 11. Respect your extended network of partners and suppliers by challenging them and helping them improve.

Section IV: Continuously Solving Root Problems Drives Organizational Learning

Principle 12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).

Principle 13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).

Principle 14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).

Taken one at a time, the principles each make plenty of sense. But one could just as easily provide a different set of principles. So what makes these so special? Why do they work so well?

Because they are the result of decades of continuous process improvement. They are integrated and self-reinforcing in hundreds of subtle ways that escape casual examination. The power of the 14 Toyota Way Principles comes from emergent behavior.

 

(1) Source: The Illustrated Art of War, by Sun Tzu, translated by Thomas Cleary, 1998, Strategic Assessments, item two.

(2) The Toyota Way Principles may be read here, which offers a little more explanation of each principle.

 

Suggested Reading List

It's impossible to fully grasp the paradigm of process driven problem solving without studying the exemplars (Toyota and Japan) that proved the concept not only works, but can achieve the most extraordinary results possible. The following short reading list of four books should provide you with hours of insight, inspiration, and crucial education.

 

 

The Machine that Changed the World: The Story of Lean Production - How Japan's Secret Weapon in the Global Auto Wars Will Revolutionize Western Industry (1990)

Book cover

This is the book to start with, since it describes the history of the Toyota Production System (TPS), studying and then copying TPS to produce lean, and Deming's crucial role.

The title claim ("How Japan's secret weapon... will revolutionize Western industry") is not an overstatement. Japan's secret weapon, root cause analysis-driven continuous process improvement, was so superior to anything else in the world that out of the ashes of World War Two, Japan became the world's second largest economy in 1968, a position held for 42 years until passed by China in 2010.

How did Japan do it? Root cause analysis (RCA) was invented by Sakichi Toyoda, whose son founded Toyota and began applying RCA there. Use of RCA spread in Japan and received an enormous boost from W. Edwards Deming in 1947. Deming introduced the PDCA Cycle (Plan, Do, Check, Act), which included statistical quality control, and showed how it could be combined with RCA, which occurred mainly in the Plan step.

The combination of RCA and PDCA became known as modern process control. The process instantly served as the critical component of Japan's post-war economic miracle, as Japan began flooding the world with products (especially cars and electronics) with superior quality at lower prices.

Finally in 1981 Ford Motor Company, reeling from loss of market share to Toyota and other Japanese auto manufacturers, engaged Deming to learn modern process control. Ford applied the process so well that Ford went from the brink of bankruptcy in 1980 to being "hailed as the model of American management" in 1989. (The Man Who Discovered Quality, p4, summarized below).

Modern process control is also known as lean production, an elaborate copy of TPS. The book tells the story of how this was done in such a manner that the process can be applied by any company who becomes obsessed with driving everything they do with lean. Lean is arguably the most advanced and successful example of process driven problem solving in the world. Use of modern process control as the basis for all important processes has since spread to all large-scale industries, in the form of Total Quality Management, Lean Production, ISO 9000, Six Sigma, and more.

 

 

The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer (2004)

Book coverWe've already listed the 14 principles above. But the book goes much further than a mere list with one chapter per principle. It brings alive why The Toyota Way, aka TPS, works so well.

Be sure to read chapter 6 on how Toyota invented a new approach to new car development in order to create the Prius, which became the global leader in hybrids.

Also be sure to study Figure 20-3 on page 256, which illustrates "Toyota's practical problem solving process." This diagram is better than the one in later editions and is shown below. We have slightly modified the diagram to improve it, using the book's text.

Diagram

Note the emphasis on finding "the real problem" to solve. Social force diagrams handle this in a structured manner by organizing analysis into the superficial and fundamental layers of the problem. The real problem to solve is the lowest intermediate cause rather than the much more obvious problem symptoms (the apparent problem). This is a key principle.

Also study Figure 2 on page 6, "The 4 P model of The Toyota Way," as shown below. This illustrates how deeply embedded into an organization's culture TPS must be for it to work. This is very difficult for other companies to replicate, but can be done if management is as fully committed as Ford was.

Pyramid

 

 

The Elegant Solution: Toyota's Formula for Mastering Innovation (2007)

Book cover This book is loaded with gripping highly educational stories of how time after time, TPS allowed Toyota to trounce the competition due to better innovation.

See pages 43 to 47 for how Toyota created the Lexus LS400 in six years: "When the LS400 made its debut in 1989, it stunned the automotive world and set a new luxury standard. The facts made history. In every category rated by Car and Driver, the LS400 trumped the best of the best: the BMW 735i and the Mercedes 420SEL. The Lexus LS400 was five decibels quieter, 120 pounds lighter, 17 mph faster, got 4 more miles per gallon, and retailed for $30,000 less than the BMW 735i." This was impossible for anyone but Toyota.

A few quotes:

At the heart of all remarkable innovations in any realm lies a rigorous routine, a disciplined methodology. And the learning cycle is at the core of that process. By codifying it, applying it, teaching it, and adopting it as your official modus operandi, you gain enormous benefits. p75

Embed the the kaizen ethic. Kaizen (ky-zen), the Japanese word for continuous improvement, is all about idea submission, not acceptance. The de facto incubator for consistent business innovation, it's the practice that fosters a strong ethos of lab-like curiosity in companies like Toyota. ... Kaizen has three steps: First, create a standard. Second, follow it. Third, find a better way. Repeat endlessly. p167

 

 

The Man Who Discovered Quality: How W. Edwards Deming Brought the Quality Revolution to America - The Stories of Ford, Xerox, and GM (1990)

Book cover The title is apt. The quality revolution started in Japan, not America.

Deming first tried to interest American industry in quality process control, but they were not interested. However, Japan was. Deming introduced Japanese industry to what is now known as modern process control, as described above in The Machine that Changed the World. That caused Japan's post-war economic miracle, which in turn caused Ford Motor Company to engage Deming, which is what "brought the quality revolution to America." See p47-58 in the chapter on The Statistical Foundation of Demingism.

A few enlightening quotes:

Deming rejects the model of the modern American manager, who can "manage anything" based on a company's balance sheet. Instead, he advocates a process-obsessed management culture that is capable of harnessing the know-how and natural initiative of its employees and fine-tuning the entire organization to higher and higher standards of excellence and innovation. p7

Deming calls on management to stop depending on inspection. "Routine 100% inspection to improve quality is equivalent to planning for defects, acknowledgment that the process has not the capability required for specifications. ... Deming advocates working toward the virtual elimination of inspection in all but a few critical cases...." p28

 

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Over the past decade, we have learned a great deal by applying Conservation by Design. By stepping back and assessing biodiversity and threats over broad areas of land and water, we are better able to set priorities. By more systematically analyzing threats and their root causes, we can design more effective strategies.