Kepner-Tregoe Methodology Skorkovský Department of business economy 1 KT was Developed by Charles H. Kepner and Benjamin B. Tregoe 2 The formulation of a problem is far more essential than its solution, which may be merely a matter of mathematical or experimental skill” - Albert Einstein Apollo 13 – Houston, Houston, do you read me ? We have a big problem….! The Apollo 13 team is famous for bringing back the astronauts stranded in space by solving difficult and complex problems. The teams solving the problems has used the Kepner-Tregoe (KT) methodology! 3 Appolo 13 – description (problem and solution) 4 https://spectrum.ieee.org/tech-history/space-age/apollo-13-we-have-a-solution https://prezi.com/_ohiqi4xzcxt/tier-v-problems-and-solutions-on-apollo-13/ Appolo 13 – description (problem and solution) 5 What is it K-T methodology ? Kepner -Tregoe is used for decision making (finding best possible choice) It is a structured methodology for evaluating , gathering & prioritizing information. It is a detailed and complex method applicable in many areas, which is much broader than just idea selection. It is also called a root cause analysis and decision-making method. It is a step-by-step approach for systematically solving problems, making decisions, and analyzing potential risks. 6 Time Incident Detection Diagnosis Way of remedy Repair Remedy) Solved incident Restore CRT K-T Ishikawa + Pareto Kepner-Tregoe spheres 7 Other possible problem analysis Decision analysis 1. Assessment (appraisal) – priorities assigned to current situation 2. Existing Problem analysis – to find the root problem (cause) 3. Decision analysis – to select a way to react (remedy action ) 4. Future (other related) problem analysis - e.g. risk analysis Existing problem analysis Assessment (Appraisal) Source : Kepner-Tregoe methodology Appraisal=review= assessment=evaluation CRT-Ishikawa 8 12 1 2 3 7 4 6 1 2 3 7 4 6 1 2 3 4 6 7 John 8 7 4 3 5 6 Caroline 9 5 7 8 5 6 Mean 8,5 6 5,5 5,5 5 6 1 = Nature (see, forest, mountains, jungle, river,..) 2 = Hotel type 3 = Amenities (pool, golf course, wellness,.. ) 4 = Period (spring, summer, fall, winter). 12 1 2 3 4 1 R1 R2 Prerequisite Requirement P1 P2 Conflict Alternative 1 Alternative 2 Alternative means how to solve problem and what kind of pay-off you will get Access situation - situation appraisal •Identify concerns (problems) by listing them (detection stage) •Separate the level of concern (importance, magnitude, and level of influence) related to listed problems. •Set the priority level =importance to measure the seriousness of impacts (influence), urgency and growth potential •Decide what action to take next (step by step approach) •Plan for who is involved, what they will be doing, where they will be involved, when it happened and the extent of involvement (magnitude) • 9 Used terminology •Importance=magnitude=level of influence •Priority levels (https://asana.com/resources/priority-matrix ) •Step-by-step approach •Questions: –Who –What –Where –When –Extent – – • • 10 Importance •Is it important ? •Who is concerned ? •Which core process does it restrict ? •Is it possible to find a temporary solution to work it around (not solve) the problem ? 11 Step-by-Step Approach 8-step •8-Step Problem Solving Process (one possibility) 1.Step 1: Define the Problem. What is the problem? ... 2.Step 2: Clarify the Problem. ... 3.Step 3: Define the Goals. ... 4.Step 4: Identify Root Cause of the Problem. ... 5.Step 5: Develop Action Plan. ... 6.Step 6: Execute Action Plan. ... 7.Step 7: Evaluate the Results. ... 8.Step 8: Continuously Improve •Similar to Deming cycle (see OM intro) 12 Step-by-Step Approach 5 Whys-method I. 13 Here is a set of the first five questions, followed by the next question to find the root cause Step-by-Step Approach 5 Whys-method II. 14 1st question Graphical representation of the process 15 At the end of this KT presentation is a link to the presentation you will view as homework Questions and the fabulous world of the vampires 16 To keep this very unusual economic comparisons in your mind WHO WHAT WHEN WHERE EXTENT 17 The mysterious castle of Prince Dracula in the Romanian Carpathians The Vampire of Nosferatu arrives in Hamburg on an old Romanian sailing ship More potential victims of a greedy vampire A vampire always attacks under cover of night Reverse blood transfusion Making decision (A choice between two or more alternatives) •Identify what is being decided (quality, used Operation Management methods) •Establish and classify objectives (main ones, minor ones,..) - goals •Separate the objectives into must (must to have) and want (nice to have) categories (we have to assign importance factors from 1-10, where 10 is the most important want objective) and assign criterion rating (weights) •Generate the alternatives - we can do it that way or we can take another way as well •Evaluate the alternatives by scoring the wants against the main (must)objective – see next slides •Review adverse (harmful) consequences of your corrective steps (risk evaluation, risk assessment,risk mitigation) •Make the best possible choice what to do • 18 The million dollars question Concise overview of the previous text •Must-to-have •Nice-to-have •Importance factor =score (10-1)=satisfaction score –10 = the highest importance – 1 = the lowest importance •Risks –Importance factor could be also e.g. 100-1 19 One of the key issues in the implementation of ERP systems Some statement of underestimation of Information Technology •I think there is a world market for maybe five computers (IBM chairman statement from the year 1943) • •There is no reason anyone would want a computer in his or her home (President of Digital Equipment 1977) • •I can assure you that data processing is a fad (craze),that won´t last out the year (Editor Prentice-Hall 1957) • •Document management is nice-to-have, not must-to-have (Director of the company still burdened in manual business process) • 20 Criteria rating See similar example on the next slide 21 Importance can be understood as a Satisfaction score, meaning desirable but not essential. Criteria rating is related to want criteria and every car property Which car to buy ? 22 Criterion rating Importance score, meaning desirable but not essential 23 Step 1 Problem: Pick a replacement vehicle for the motor pool fleet The definition of the problem dictates the requirements. As the vehicle is for a motor pool, the requirements will differ from those for a family car, for example. Step 2 Requirements: 1. Vehicle shall be made in U. S. A. 2. Vehicle shall seat at least four adults, but no more than six adults 3. Vehicle shall cost no more than $28,000 4. Vehicle shall be new and the current model year Another similar problem to be solved 24 Min Max Max 28000 USD New car (current model) 25 Step 3 and Step 4 Step 3 Goals: · Maximize passenger comfort · Maximize passenger safety · Maximize fuel-efficiency · Maximize reliability of the car · Minimize investment cost Step 4 Alternatives: There are many alternatives but the requirements eliminate the consideration of a number of them: Requirement 1 eliminates the products not manufactured in the USA Requirement 2 eliminates vans, buses, and sports cars (Ferrari no !!!!) Requirement 3 eliminates high-end luxury cars Requirement 4 eliminates used vehicles 26 Step 5 Criteria: “Maximize comfort” will be based on the combined rear seat leg and shoulder room. (Note: front seat passenger leg and shoulder room was found to be too nearly the same to discriminate among the alternatives.) 5 “Maximize safety” will be based on the total number of stars awarded by the National Highway Traffic Safety Administration for head-on and side impact. 10 “Maximize fuel efficiency” will be based on the EPA fuel consumption for city driving. 7 “Maximize reliability” will be based on the reliability rating given each vehicle by a consumer product testing company. 9 “Minimize Cost” will be based on the purchase price. 10 Step 5 Weighted criteria vector C(5,10,7,9,10) are values assigned by decision makers !!!! 27 Kepner-Tregoe table (for 4 cars : Arrow, Baton, Carefree and Dash) 28 Last Step Validate Solution: The totals of the weighted scores show that the Dash most nearly meets the wants/goals (or put another way, has the most “benefits”). Dash meets all the requirements and solves the problem !!! Last step – Validation (check) Uncover and handle problems (problem analysis) – see step-by –step approach •State the problem (definition and description of the problem) •Specify the problem by asking what is and what is not, who is and who is not… •Develop possible causes of the problem (similar to CRT or Ishikawa FBD approaches) - > (problem detection) •Test and verify possible causes •Determine the most probable cause (root cause) •Verify any assumptions •Try the best possible solution and monitor what will be a situation after applied correctives step 29 Problem description Problem 1 Problem N Description Causes Priority (urgency) Description Causes Priority (urgency) Solution (corrective action) 1 Solution (corrective action) X Solution (corrective action) 1 Solution (corrective action) Y Problem 1´ Problem N´ Situation Situation Oválný popisek: Who What WhereWhenExtent Who What WhereWhenExtent Oválný popisek: Who What WhereWhenExtent Who What WhereWhenExtent 30 Oválný popisek: WHERE and WHERE NOT WHERE and WHERE NOT Oválný popisek: WHERE and WHERE NOT WHERE and WHERE NOT Decomposition, priorities and causes Problem 1 Sub-problem 1 Sub-problem N Priority1 Priority N Problem 1 Problem 2 Sub-problem 1 Sub-problem N Cause 1 Cause N Problem 2 31 Example of problem manifestation (decrease of performance) Performance (KPI) time Planned performance Real performance Unfavourable deviation (differences) What do we see, hear, feel, taste, or smell that tells us there is a deviation? Difference between Shoud and Is Final effect of the = PROBLEM (e.g. server crashed, hard disk with database crashed) Then we have to ask: Who, What, Where, When, How and to what Extent –Size (how much, how many)? 32 Past Present Should Should It Is reality Deviation analysis - questions related to WHAT 33 The questions : WHEN It is WHERE It is WHO It was HOW It happened & WHEN WHERE WHO HOW are similar in content, so we do not include them here for sake of simlicity Is Not It is Server crashed !!!! (home study !!!) •Server crashed (this is a very poor and not clear problem definition) •The e-mail system crashed after the 3rd shift support engineer applied hot-fix XYZ to Exchange Server 123 (better definition of the problem) •Comment : WHO is not mentioned here but could be : Different staff (3 shift) – see table • History (and best practice) says that the root cause of the problem is probably due to some recent change. WHAT, WHERE, WHEN and EXTENT will be shown on next slides 34 Test the Most Probable Cause (home study !!!) Clarifying problem Analysis (example) We have to ask (where Qi =QUESTION i) : Question IS IS NOT What (identify) Q1 Q2 Where (locate) Q3 Q4 When (timing) Q5 Q6 Extent (magnitude) Q7 Q8 35 Problem Analysis - What •What specific object(s) has the deviation? • •What is the specific deviation? • Is Is Not nWhat similar object(s) could have the deviation, but does not? (It did not happen) nWhat other deviations could be reasonably observed, but are not? (It did not happen) Example for Is : 1. What specific object IS related to the defect? Inventory Valuation Objects in database A 2. What specifically is the defect (deviation)? Inventory Adjustment does not work 1-> see setup of the database and see differences 2->see algorithm used for calculation and parameter used. You can see , that in production calculation related algorithm is not functional Example for Is Not : 1. What specific object IS NOT related to the defect? Inventory Valuation Objects in database B 2. What specifically is not the defect (deviation)? Adjustment is working – good setup in database B 1 -> Setup has another parameter ON 2-> Algorithm is also used for production where not error occurs 1. 36 See two MS Dynamics NAV setup screens (related to the problem specified recently) 37 Apology- we go back to strange individual habits of vampires 38 To keep this very unusual economic comparisons in mind Back to vampires: Problem Analysis - What •What specific object(s) has the deviation? • • •What is the specific deviation? - bites on the neck • Is Is Not nWhat similar object(s) could have the deviation, but does not? (It did not happen) n n What could the specific deviation? but does not? (It did not happen) – bites, anemia Example for Is : 1. Nice young girl´s neck and strange look of anemic person 1.Girl with garlic in her hands 2. No bites 3. Healthy 39 Example of Is Not : Another example for What IS and What IS NOT as well as Where IS and Where IS NOT IS girl Sarah visited Dracula lower castle without a bunch of garlic, but IS NOT not the one (Emily) having a bunch of garlic and visiting Špilberk castle in Brno Transylvanian Alps in Romania (castle of Count Dracula) Sarah (What IS) Emily (What IS NOT) Dracula Castle (Where IS) Špilberk Brno (Where IS NOT) garlic Problem Analysis - Where •Where is the object when the deviation is observed? (geographically) • •Where is the deviation on the object? • nWhere else could the object be when the deviation is observed, but is not? nWhere else could the deviation be located on the object, but is not? Is Is Not Example for IS: 1.The old castle in the mountains (Romania) Where IS: Romanian Carpathian mountains where it is very easy to meet many vampires there Example for IS NOT: 1. Brno Špilberk Castle Where IS NOT possible to meet vampires (only lovers and children and seniors) 41 Let’s Look At Some Problems! 42 Systematic Problem Solving and Decision making Overview 43 Planning the Next Steps •Problem Analysis •Do we have a deviation? •Is the cause unknown? •Is it important to know the cause to take effective action? • •If the answer is YES to ALL three listed problems above, than you have a big problem, Huston! 44 Problem analysis table template (Home study ->the most important issue) 45 Problem description (example) •On a new model of airplane, flight attendants develop rash on arms, hands, face (only those places). It only occurs on flights over water. • •Usually disappears after 24 hours. No problems on old planes over those routes. • •Does not affect all attendants on these flights, but same •number of attendants get it on each flight. Those who get rash have no other ill effects. • •No measurable chemicals, etc., in cabin air. Rash arm -> 46 Problem analysis real table Distinction=Difference 47 Comment: specification is very simplified-> all aircraft use life jackets regardless Of the type of fly (over water or over land ) 48 Results Only a part of the cabin crew shows how a life jacket is worn over their heads. In new airplanes, the life jackets were treated with powder chemicals that cause a rash on contact with the skin. Moreover, the deployment of life jackets is not presented on-air routes outside the oceans and seas. 49 50 Example of analysis (only as an interesting example) 51 52 Image result for Examples Kepner-tregoe" Example of K-T problem analysis https://www.youtube.com/watch?v=dUtoOUWnJY0 https://www.youtube.com/watch?v=TEc_FZhRoro 53 https://www.youtube.com/watch?v=S5fQrE0-kGg 37453A1 54 (103) Problem Solving Techniques: 5-Why-Method, Flowchart, Mind-Map - YouTube In the Ishikawa presentation, I briefly mentioned the 5 Whys methodology. Here is an excellent example of how to analyze a selected process using this method. Thanks for Your attention 55