In this meetup we are going to look at a number of business problems, discuss the type of solutions that we would decide to implement, and then see how those problems were solved. All of the cases are based on real world business problems. As it is a Sydney Limited WIP Society tradition, this will be a highly interactive and discussion based meetup.

1. The Art of Problem SolvingTJ Gokcen | @tjgokcen

2. The Art
Why is the wheelbarrow designed this way?

3. The Art
Evolution of wheelbarrow

4. The Art
Why is the wheelbarrow designed this way?

5. Balance Scale
What is the minimum number of weights required to weigh objects of any
number of kg from one to forty?

6. Balance Scale
1
2
4
8
16
32
Is this correct?

7. Balance Scale
1 3 9 27
The correct answer is 4

8. Problem Solving Components
• Decision Makers
• The ones faced with the problem

9. Problem Solving Components
• Decision Makers
• The ones faced with the problem
• Controllable Variables
• Aspects of the problem decision maker can control

10. Problem Solving Components
• Decision Makers
• The ones faced with the problem
• Controllable Variables
• Aspects of the problem decision maker can control
• Uncontrolled Variables
• Aspects of the problem decision maker cannot control

11. Problem Solving Components
• Decision Makers
• The ones faced with the problem
• Controllable Variables
• Aspects of the problem decision maker can control
• Uncontrolled Variables
• Aspects of the problem decision maker cannot control
• Constraints
• Imposed from within or without on the possible values of the controlled and
uncontrolled variables

12. Problem Solving Components
• Decision Makers
• The ones faced with the problem
• Controllable Variables
• Aspects of the problem decision maker can control
• Uncontrolled Variables
• Aspects of the problem decision maker cannot control
• Constraints
• Imposed from within or without on the possible values of the controlled and
uncontrolled variables
• Possible Outcomes
• Produced jointly by the decision maker’s choice and the uncontrolled
variables

13. Choice
• Choice exists only when
• The action of the decision maker makes a difference in the value of the
outcome.

14. Optimize vs Satisfice
• Decision maker tries to select a course of action
• One that is efficient relative to the desired outcome.
• This is what the decision maker values.

15. Optimize vs Satisfice
• Decision maker tries to select a course of action
• One that is efficient relative to the desired outcome.
• This is what the decision maker values.
• Effectiveness is the product of efficiency an value.

16. Optimize vs Satisfice
• Decision maker tries to select a course of action
• One that is efficient relative to the desired outcome.
• This is what the decision maker values.
• Effectiveness is the product of efficiency an value.
• One who seeks the best, the most effective, course of action is said to
optimize

17. Optimize vs Satisfice
• Decision maker tries to select a course of action
• One that is efficient relative to the desired outcome.
• This is what the decision maker values.
• Effectiveness is the product of efficiency an value.
• One who seeks the best, the most effective, course of action is said to
optimize
• One who seeks a solution that is good enough is said to satisfice

18. Our Problems
• Many of our problems derive from our dissatisfaction with the
current state

19. Our Problems
• Many of our problems derive from our dissatisfaction with the
current state
• Problem solving is focused more on getting rid of what we do not
want

20. Our Problems
• Many of our problems derive from our dissatisfaction with the
current state
• Problem solving is focused more on getting rid of what we do not
want
• The effort to get rid of what we do not want isreactive

21. Our Problems
• Many of our problems derive from our dissatisfaction with the
current state
• Problem solving is focused more on getting rid of what we do not
want
• The effort to get rid of what we do not want isreactive
• The effort to obtain what we want is proactive

22. Reactive Problem Solving

23. Reactive Problem Solving

24. Reactive Problem Solving

25. Reactive Problem Solving

26. Reactive Problem Solving

27. Proactive Problem Solving: Idealized Design
• We specify where we want to go and we try to get there

28. Proactive Problem Solving: Idealized Design
• We specify where we want to go and we try to get there
• Always imbedded in a planning process
• Constraints:
• Technological feasibility
• Operational Viability

29. Proactive Problem Solving: Idealized Design
• We specify where we want to go and we try to get there
• Always imbedded in a planning process
• Constraints:
• Technological feasibility
• Operational Viability
• Bounded rationality

30. Idealized Design: An Example
• Planning backwards from where one wants to be simplifies planning
• Consider a tennis tournament:
• If 64 players enter a tennis tournament
• How many matches must be played to determine the winner?

31. Idealized Design: An Example
• Planning backwards from where one wants to be simplifies planning
• Consider a tennis tournament:
• If 64 players enter a tennis tournament
• How many matches must be played to determine the winner?
• 32: 1st round
• 16: 2nd round
• 8: 3rd round
• 4: Quarter finals
• 2: Semi final
• 1: final
• 63 games

32. Idealized Design: An Example
• Planning backwards from where one wants to be simplifies planning
• Consider a tennis tournament:
• If 64 players enter a tennis tournament
• How many matches must be played to determine the winner?
• How many losers would there have to be?
• 63.

33. Idealized Design: An Example
• A more complicated example
• Consider a tournament:
• If 97 players enter a tennis tournament
• How many matches must be played to determine the winner?
• How many losers would there have to be?
• 96.

34. Problem: Reading Books
• Primary School – low income area
• Illiteracy problem
• Programs developed failed

35. Problem: Reading Books
• Primary School – low income area
• Illiteracy problem
• Programs developed failed
• Parents do not read, so the children follow their parents

36. Solution: Reading Books
• Introduced silent movies
• Movies the kids love
• No sound, subtitles
• Promoted reading

37. Problem: A Fish Story
• Frozen fish – new product
• The company has its own fleet
• Own chain fish markets
• Installed freezing and packaging
at its dockside plants
• Vigorous marketing
• Sales was high initially but
then dropped off sharply
• Research showed the taste was
not as good as fresh fish

38. Problem: A Fish Story
• Chemists went to work
• Blamed chemical changes after fish is caught
• Recommended fish to be frozen on board
• Or fish to be kept alive until they are brought back

39. Problem: A Fish Story
• Chemists went to work
• Blamed chemical changes after fish is caught
• Recommended fish to be frozen on board
• Or fish to be kept alive until they are brought back
• Installed pools on the boats with fish nets
• Again, the initial trial sales numbers were high but dropped off sharply after a
while

40. Problem: A Fish Story
• More research has been done
• Found out that inactivity in fish caused again a chemical reaction that affected
the taste
• Installed bigger pools with lots of space
• But no movement
• What would we do?

41. Solution: A Fish Story
A predator was put in the pool

42. Problem: For Whom The Bridge Tolls
• The Port Authority has been
reducing rates
• This resulted in increased
traffic and congestion
• City complained
• PA, does not want to increase
tolls
• Most cars coming into the city
has 1 or 2 passengers
• What would we do?

43. Problem: For Whom The Bridge Tolls
Express Lanes with no tolls

44. Problem: Dishwasher
• A major house appliances
company in the mid-50’s
• Through research they find
that the housework that
makes everybody unhappy the
most is the dishwashing
• So, they bring out a
dishwasher
• But the sales are not good

45. Solution: Dishwasher
Installed trays

46. Problem: Banking
• A projection of paper work
performed by Federal Reserve
Bank of Cleveland in 70’s
• At the time, cheques were
used heavily
• It was determined that by
2000, the amount of space is
not going to be enough to do
the amount of work
• More than all of Cleveland
• What would we do?

47. Solution: Banking
EFT

48. Problem: The Smart Donkey
• Mexico, university academics
• Working with “backward”
farmers
• Trying to improve themselves
and their lot
• Irrigate the fields by digging
ditches
• They needed to determine the
level paths over the hilly fields

49. Solution: The Smart Donkey
There is a lot of wisdom in the old
ways, do not be too quick to dismiss it