The following is a problem solving approach I developed and have found it to be very useful.
Let's take an example to show how the approach can be used in a practical scenario.
1. My school is losing money
2. School expenses are higher than school income
3. Key terms - school expenses, school income
4. School expenses - salaries, administrative expenses, interest
School income - fees, no. of students
Key People: Salaries - teachers, admin staff, transport staff; Interest - banks; Income - parents/students
5. Monthly salaries have gone by 25% in the last 12 months, administrative expenses by 8% and interest is the same. School income is flat in the period.
6. Priority - salaries, admin expenses, interest/school income
7. Salaries = staff*salary = (teaching staff + admin staff + transport staff)*salary
No. of admin staff has gone up by 20% for same amount of work
Admin expenses = facility expenses + transport expenses
Transport expenses have increased by 10% due to higher diesel expenses
8. Proposed solutions
a) Reduce admin staff by reallocating work
b) Outsource some admin work to bring efficiency and cost saving
c) Optimize transport routing using GPS
d) Switch some buses to CNG
9.
Reduce admin staff - LOW effort required, HIGH impact on key players due to increase workload and panic of losing job, HIGH as salaries are the highest priority
Outsource admin work - LOW resources required, MEDIUM impact on key players because of staff panic, HIGH as salaries are the highest priority
Optimize transport routing - MEDIUM resources required due to new GPS and routing optimization system, LOW impact on key players, MEDIUM as transport is not the highest priority
Switch some buses to CNG - HIGH resources required, LOW impact on key players, MEDIUM as transport is not the highest priority
10. Solutions proposed
a) Outsource some admin work
b) Reduce admin staff if possible after a)
c) Optimize routing for transport
d) Switch some buses to CNG
1. State the high level problem in 1 sentence
2. Quantify the problem by using metrics
3. Identify key terms in the problem statement from 2. above
4. State all factors which can affect the key terms identified in 3. above
(Based on factor identified, also identify any key people/parties involved)
5. Check trends in key factors
6. Prioritize factors (from 5.) which impact the problem statement in 2. above
7. Analyse each factor thoroughly (breakdown into smallest parts)
8. Propose solutions for different factors
9. Analyse solutions based on
a) Resources/effort required
b) Impact on key players
c) Priority of factor from 6. above
10. Prioritize solutions
a) Start with ones requiring low effort and have low impact ("picking the low hanging fruit")
b) For similar efforts & impacts, use priority as deciding factor
Let's take an example to show how the approach can be used in a practical scenario.
1. My school is losing money
2. School expenses are higher than school income
3. Key terms - school expenses, school income
4. School expenses - salaries, administrative expenses, interest
School income - fees, no. of students
Key People: Salaries - teachers, admin staff, transport staff; Interest - banks; Income - parents/students
5. Monthly salaries have gone by 25% in the last 12 months, administrative expenses by 8% and interest is the same. School income is flat in the period.
6. Priority - salaries, admin expenses, interest/school income
7. Salaries = staff*salary = (teaching staff + admin staff + transport staff)*salary
No. of admin staff has gone up by 20% for same amount of work
Admin expenses = facility expenses + transport expenses
Transport expenses have increased by 10% due to higher diesel expenses
8. Proposed solutions
a) Reduce admin staff by reallocating work
b) Outsource some admin work to bring efficiency and cost saving
c) Optimize transport routing using GPS
d) Switch some buses to CNG
9.
Reduce admin staff - LOW effort required, HIGH impact on key players due to increase workload and panic of losing job, HIGH as salaries are the highest priority
Outsource admin work - LOW resources required, MEDIUM impact on key players because of staff panic, HIGH as salaries are the highest priority
Optimize transport routing - MEDIUM resources required due to new GPS and routing optimization system, LOW impact on key players, MEDIUM as transport is not the highest priority
Switch some buses to CNG - HIGH resources required, LOW impact on key players, MEDIUM as transport is not the highest priority
10. Solutions proposed
a) Outsource some admin work
b) Reduce admin staff if possible after a)
c) Optimize routing for transport
d) Switch some buses to CNG
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