Week 2: Pepsi Case, Trigger Words, Root Cause (5 Why's)

Question 1

When looking at a case, you should be spending _____ of your time on analysis

Answer 1

2/3

So if you have 3 hours, two hours should just be reading and understanding the material

Question 2

If a case has one clear cut question, it is not a case, just a ________

Answer 2

Question

A case should always have multiple solutions fam

Question 3

Coke and Pepsi Case Following these slides

Answer 3

Title: The Shifting Landscape of the Carbonated Soft Drink Industry

Question 4

CSD

Answer 4

carbonated soft drink (CSD)

Question 5

The largest costs for CSD manufacturers, including Coca-Cola and Pepsi, were

Answer 5

advertising, promotional materials, market research, and support for bottlers, including local advertising and negotiating with the bottler’s raw material suppliers and their primary customers, retail stores

Question 6

Fountain accounts

Answer 6

companies that distributed CSD products through fountains (mixing concentrate and carbonated water on the spot) rather than in cans or bottles.

Restaurant chains, such as McDonald’s or Burger King, were important fountain customers

Question 7

For the majority of Coca-Cola and Pepsi’s histories, independently owned,__________ were the companies’ primary source of distribution and sales

Answer 7

franchised bottlers

Question 8

The strong rivalry between Coca-Cola and Pepsi throughout the twentieth century became known as the ________

Answer 8

cola wars

Question 9

The 5 Whys Slide’s beyond this

Answer 9

The 5 Whys Slide’s beyond this

Question 10

Brief overview

Answer 10

The 5 Whys is a technique that can help you to find the root cause of a problem.

By understanding the root cause of the problem, you can solve it in such a way that it doesn’t reoccur.

Question 11

The 5 Why’s outline

Answer 11

1) Define the problem
2) Why is it happening
3) Why is that
4) Why is that?
5) Why is that?
6) Why is that -> Root Cause

Question 12

Who invented the 5 WHys

Answer 12

The 5 Whys Technique was developed within the Toyota Motor Corporation in the 1930s

Question 13

The 5 Whys outline example

Answer 13

Let’s take a look at what might have caused your website to go down

Problem: Website went down.
Why did it happen? It ran out of memory.
Why? Because it was incorrectly configured.
Why? Because the site admin made a mistake.
Why? Because development hadn’t provided adequate instructions.
Why? Because they assumed it was obvious

Question 14

Countermeasure

Answer 14

The corrective action you take to the problem

Question 15

Countermeasure to the 5 Whys Website down example

Answer 15

Cause 1: The website ran out of memory.
Countermeasure: Get the site up and running again.

Cause 2: Incorrect configuration.
Countermeasure: Create a Standard Operating
Procedure to verify configuration before every update.

Cause 3: Site admin made a mistake.
Countermeasure: Make sure site admin knows how to run the new verification test.

Cause 4: Development hadn’t provided adequate instructions.
Countermeasure: Train dev team to provide sufficient instructions.

Cause 5: Assumed it was obvious.
Countermeasure: Have a word with dev team manager to ensure they speak to their team about the importance of being precise no matter how obvious it seems.

Question 16

Rule of Thumb

Answer 16

Asking why five times is a rule of thumb. You may have to ask “Why?” just three times or even ten times to get to the real root cause of the issue you’re investigating.

Question 17

How to Run a 5 Whys Meeting

Answer 17

Step 1: Organize a 5 Whys Meeting
Step 2: Define the Problem Statement
Step 3: Ask the First “Why?”
Step 4: Ask “Why?” Four More Times
Step 5: Determine your Countermeasures
Step 6: Assign Responsibilities
Step 7: Monitor Progress
Step 8: Close the Meeting

Question 18

Step 1: Organize a 5 Whys Meeting

Answer 18

Organize for everyone who might be affected by the problem or have input to its solution to attend a 5 Whys Meeting

If you are not leading the session then make sure that someone is. It is the session leaders responsibility to lead the 5 Whys process and assign people as being responsible for countermeasures.

Question 19

Step 2: Define the Problem Statement

Answer 19

At the start of the session, you should define the problem you are trying to solve. Write the problem on a whiteboard if you can

It’s essential to keep the problem statement focused only on the problem. Do not state any possible reasons for the problem or make any assumptions

Question 20

Step 3: Ask the First “Why?”

Answer 20

Ask your assembled team why the problem is occurring.

Try to avoid entertaining answers that are guesses – stick to facts. If there is more than one reason given for the problem, then ask your team to vote on the most likely cause

Question 21

Step 4: Ask “Why?” Four More Times

Answer 21

Ask why another four times, each time using the previous answer to base your question on. Once you have done this, you will have five reasons, one for each “why?” question.

As previously mentioned, you may need to ask why more times than five if you haven’t got to the root of the problem.

Question 22

Step 5: Determine your Countermeasures

Answer 22

Agree what countermeasures you will take to address each of your five reasons that are now on the whiteboard.

Question 23

Step 6: Assign Responsibilities

Answer 23

For each countermeasure, agree who is responsible for it and how they will measure the success of that countermeasure

Question 24

Step 7: Monitor Progress

Answer 24

Agree how progress will be monitored. Usually, this will involve a follow-up session in a few hours, days, or weeks.

During your follow-up meeting, you may need to adjust your countermeasures, or even create new ones, depending upon how successful the previously agreed countermeasures have been.

Question 25

Step 8: Close the Meeting

Answer 25

Now that you have determined all the causes of your problem including the root cause, determined countermeasures, and how you will monitor progress, its time to bring your meeting to a close.

Question 26

The advantages of the 5 Whys include that it:

Answer 26

Allows you to identify the cause of your problem, not just its symptoms.

Is simple and easy to use.

Helps you avoid taking immediate action without considering if you’ve identified the real root cause of the problem.

Helps you build a culture that embraces continuous improvement.

Question 27

The disadvantages of the 5 Whys technique include:

Answer 27

Different people may get different answers as to the cause of the same problem. This raises a question about the reliability of the technique.

The method can only be as good as the knowledge and experience of the people using it.

You may not dive deep enough to uncover the root cause of the problem entirely

Question 28

Cautious Diplomacy

Answer 28

Confident but not in your face (ego)

Question 29

Opportunities

Answer 29

ways of taking advantage of conditions in

the environment to become more profitable

Question 30

Threats

Answer 30

conditions in the competitive environment that endanger the profitability of the firm

Question 31

Use of any guide to case analysis required practice and good judgement

Answer 31

True

Question 32

The order of the general case analysis process recommended by Richardson is _____

Answer 32

1) gather information
2) Identify issues
3) Prioritize issues
4) Generate alternatives
5) Evaluate consequences
6) Provide a recommendation
7) Discuss implementation issues

Question 33

A good case analysis will provide evidence that you have

Answer 33

Made a reasoned recommendation, supported y a reasonable set of alternatives, for which solid critical thinking and analytical skills have been applied

Question 34

Sometimes the information you need to successfully analyze a case is not explicitly included in the case but rather is implied by the circumstances

Answer 34

True

Question 35

If two people analyze the same case but come to completely opposite recommendations, both could be recognized as having provided a good answer

Answer 35

True

Question 36

According to Richardson, your case analysis should be all of the following, expect not necessarily

Answer 36

Correct

Question 37

Which of the following statements is more accurate regarding use of case facts in your analysis

Answer 37

Your analysis should refer to case facts that are relevant only if they move your analysis forward

Question 38

The 5 Whys technique is relatively new technique used as a performance evaluation tool

Answer 38

False

Question 39

Using the 5 Whys technique, you may have to ask “why?” more than 5 times to get to real root cause of the issue you are investigating

Answer 39

True

Question 40

The 5 Whys technique is only as good as the knowledge and expertise of the people using it

Answer 40

True

Question 41

The 5 Whys technique allows you to identify the cause of your problems, not just its symptoms

Answer 41

True

Question 42

The 5 Whys technique involves analyzing the root cause of the problem before taking action

Answer 42

True

Question 43

For the 5 Whys technique to be effective you need to take corrective action at every level of the 5 Whys

Answer 43

True

Question 44

For the 5 Whys technique to be effect, you only need to take corrective action at the level of the 5th Why

Answer 44

False

Question 45

Often what at first glance appears to be a technical problem turns out to be a human or process problem at its root

Answer 45

True

Question 46

Week 2 slides

Answer 46

Week 2 Slides

Question 47

Guide to Case Analysis

Answer 47

Major points
- there is no correct answer
-A lack of correct answer does not mean that better or worse answers exist
-two people looking at the same case can come to completely different answers and both be right
-Required practice and good judgment
-There is no ideal model for case analysis
-

Question 48

There is no “ideal” model for case analysis. However, in any case analysis you
MUST:

Answer 48

1. demonstrate sound analytical skills using “correct” / logical information
2. consider and discuss a reasonable set of alternatives
3. arrive at well-supported conclusions
4. make well-supported, reasoned recommendations
5. ensure that your recommendations / conclusions are clearly and logically supported by your analysis

Question 49

Information Gathering

Answer 49

Read to:
Understand your role
Identify key facts and issues
Identify the decision(s) to be made
Identify key stakeholders and their objectives
Identify / anticipate constraints (i.e. any factors that may limit the range of alternatives that can be considered)

Question 50

Issue Identification

Answer 50

Remember: “In a management decision context, issues are any choices
management must make regarding how to allocate resources,
coordinate action, or evaluate and reward performance.”
•“It is important to use your own judgement …”

Question 51

Issue Prioritization

Answer 51

•Remember: “The importance of various issues depends on the objectives
of the decision maker in the case and the consequences of the issues.”
•“Be careful also to differentiate between symptoms and root causes.”
•“Before trying to provide a solution, be sure you understand the issues.”

Question 52

Alternative Generation

Answer 52

Consider (and address):
•“… how difficult or costly it would be to implement”
•“… how many of the issues in the case it would address”
•“… what conflicts it might generate”

Question 53

Consequence Evaluation

Answer 53

•“… compare the consequences of each alternative and determine which
one best meets the objectives of the decision maker.”
•“… consider both quantitative and qualitative outcomes.”

Question 54

Recommendation

Answer 54

•“Once you have decided on the best alternative, you must present your
recommendation to the decision maker.”
•“Your recommendation must be fully justified in terms of that person’s
objectives and capabilities.”

Important: “This is not the time to add additional reasons or details!
Your recommendation is a summary of your analysis, not another step in
the analysis.”

Question 55

Implementation Issues

Answer 55

• “… specify what will need to be done to implement your recommendations.”
• E.g. “… consultation with various parties or changes in operations may be necessary to ensure success.”

Question 56

DO NOT simply repeat case facts in your analysis

Answer 56

• “Your analysis need only mention those facts that are relevant.”
• “Any time case facts are mentioned in your case write-up, they should
  move your analysis forward.”
• “The important facts are the ones that help you identify issues and
  evaluate alternatives.”
• “… tell the reader why those facts are important to your analysis.”

Question 57

A good case analysis:

Answer 57

 “… is sensitive to the facts of the case”
 “ … interprets those facts using sound knowledge”
 “… identifies and prioritizes the issues facing the decision maker”
 “… creatively constructs and justifies alternatives”
 “… provides a recommendation based on a careful assessment of the
costs and benefits of each alternative”
 “… provides guidance for implementing the recommendation”
 “… provides evidence of the analysis process that you followed”
 “… is written clearly and persuasively”