If you have multiple problems tackle the biggest problem first, and if there are multiple causes of a problem, tackle the biggest cause first. There will be 80% of the cost coming from 20% of the problems, so tackle that key 20% first—it's not 4x as powerful; it's actually 16! This applies to costs, waste, breakdowns, customer service issues, lateness and sickness, cost of stock, time wasters, and virtually everthing.
- Now there's another big name in the world…of problem-solving and that's Vilfredo Pareto.…Most people have heard of the 80/20 principle,…which is also known as the Pareto Principle,…which started with the observation that 80%…of the land in Italy was owned by 20% of the people.…And this 80/20 rule applies to a lot of other things…due to some math that we won't go into here.…For example, 80% of your problems…probably come from 20% of your customers and 80%…of your problems will come from 20% of the causes.…
In other words, there are a few underlying causes…that are causing most of your problems.…But what's the use of knowing this?…Well the point is that if you focus on…eradicating just 20% of your problems,…you'll save 80% of the cost, 80% of the time…and money that they are costing you.…So the first step is to work out what they are.…You make a list of all your problems and work out…the cost of each and then tackle the top ones.…Examples of this will be to log…all the reasons that machines in a factory have to stop…
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- Identifying the real problem
- Generating possible solutions
- Boosting your creativity
- Using your intuition and logic
- Selecting the best solution
- Considering implementation