Question

1. What are some criteria that may be used to help an organization effectively select issues or problems for improvement?

Answer 1

Certain criteria which can help organizations effectively select issues or problems for improvement are as follows:

1. The Pareto rule can be the 80-20 problem which says that 80% of the problem is caused by 20% of the issues.

2. The ABC analysis which says that we should not devote much time in controlling the products which come under C category.

3. Further, they should decide on the cost-benefit analysis for selecting issues.

4. They should be far-sighted and anticipate issues which can create a problem in the future and have a contingency plan for them.

5. They should understand the fact that control of all would lead to none, hence they should focus on vital areas and not on trivial issues.

6. They can even look at the fishbone diagram to understand the root cause of the problem.