Problem Formulation and Identification

Although problems are typically easy to spot, the formulation and identification of the problem, its effect on the organization, and potential resolutions are more complicated. It is important to understand that any problem presented may not be the actual problem that needs to be addressed. Often an identified problem is merely a symptom of a greater problem that requires a decision. However, the examination of smaller problems or symptoms can largely assist in determining the overarching issues that needs attention. The earliest example of a technique my organization is using is producing Pareto Charts.
Pareto Analysis
Pareto is a tool or technique that displays information identifying the causes or instances which fall outside of established performance standards. This is typically illustrated in a simple bar chart that provides an easy to read format showing the causes of failures and the number of times the failure was identified. This is organized by the greatest number of instances to the least thus establishing a priority for those problems that will have the greatest opportunity for improvements. The organization measures its performance over a period of time to identify a running monthly performance. This allows the opportunity to more efficiently focus a Pareto analysis where results are going to be more effective.
The Problem
The supply and logistics business primarily consists of electronic transactions in automated systems as well as the actual performance of moving material and equipment to and from the shipping and receiving area. Although supervisors and managers on site have operational control of tactical execution of their processes and procedures, it is very difficult for them to perceiving their own sections performance as part of the big picture in support of the strategic goals of the