Batch 2

PROBLEM
SOLVING WITH
DATA
Ferry Aries K, ST, MMSI
Objective
• Able to use data as a basis for decision making
• Provide paradigms and critical thinking processes that will
support problem solving and appropriate decision making
Agenda
1. The Important of Fact, Data, and Information
2. Problem Identification & Analysis
3. Problem Solving Process
4. Decision Making Process
 The Important Fact,
Data and Information
Session 1
Data
• A collection of information or facts in the form of symbols, numbers, words, or
images, which are obtained through the process of observing or searching for
certain sources
Source: www.zonareferensi.com/pengertian-data

• Data are raw facts, observations or events in the form of numbers in the form of
special numbers or symbols.
Source: Mills (1984:17)

• Data is a record of a collection of facts. Data is

the plural form of datum, derived from Latin
which means "something that is given".

Source: id.wikipedia.org/wiki/
Data Function
• Data can serve as a reference in making decisions in problem solving.
• Data can be used as a guide or basis for research or planning.
• Data can be used as a reference in implementing an activity.
• Data be used as the basis for evaluating an activity
Data Type
• Primary Data
Original data or new data collected directly by the person conducting the
research.
• Secondary Data
Available data collected from various pre-existing sources.
Data Type

Source : Hadi.S. 2001. Metodologi Research. Jilid 3. Yogyakarta. Andi Offset.

Data Source
• Internal Data
Data obtained from internal organizations that describe the condition of the organization.
Example: number of employees, total company assets
• External Data
Data obtained from outside the organization that describes the factors that can affect the
performance of the organization.
Example: people's purchasing power during covid-19
 Data Characteristic
• Qualitative Data
A data that is expressed in verbal form, symbols or pictures.
Example: the level of customer satisfaction with the services of a company.

• Quantitative Data
A data that is expressed in numerical or numeric form.
Example: income per month, product prices

Source: http://kelliesscienceproject.weebly.com/observing.html
Data – Based on time
• Cross Section Data
The data is collected only at certain times to find out the situation at that time.
Example: Research data with a questionnaire

• Periodic Data
Data collected periodically from time to time to determine the progress of an
event in a certain period.
Example : Price of meat
Information
• Something that shows the results of a data processing process. The
results of data processing are organized and have benefits or are
useful for the recipient.
- Accounting Information System and Business Organization, Barry E. Cushing -

• The process of collecting and processing data aimed at providing

certain information or knowledge
- Burch & Strater -

• Data that has been processed, so that it can be used as a basis or

material for consideration in making the right decision
- George H. Bodnar -
Type of Information
• Factual
Information that is made based on facts and can be verified.

• Opinion
Information made based on someone's opinion about something.

• Description
Information made in a detailed explanation of something.
Why Data or Information Is Important?
1. As a source in decision making
2. Determine the types of activities to be carried out
3. Alternative / method for carrying out activities
4. How big is the scope of activities
5. Anyone or any of the activities
6. How much time is needed to complete the activity?
7. When is the right time to start activities?
8. The amount of budget needed?
9. Who is responsible for carrying out activities?
Information System
Information System is an integrated set of components for collecting, storing,
and processing data and for providing information, knowledge, and digital
products.
Source : https://www.britannica.com/topic/information-system

A formal, sociotechnical, organizational system designed to collect, process,

store, and distribute information.
Source: https://en.wikipedia.org/wiki/Information_system

A collection of multiple pieces of equipment involved in the collection,

processing, storage, and dissemination of information
Source : https://www.techopedia.com/definition/24142/information-system-is
 Management Information System
• A management information system (MIS) is an information system used
for decision-making, and for the coordination, control, analysis, and
visualization of information in an organization.

• The study of the management information systems involves people,

processes and technology in an organizational context.

• In a corporate setting, the ultimate goal of the use of a management

information system is to increase the value and profits of the business.

• This is done by providing managers with timely and appropriate information

allowing them to make effective decisions within a shorter period of time.

Source: https://en.wikipedia.org/wiki/Management_information_system
 Management Information System
The modern history of MIS can be divided into five eras

1. First Era – Mainframe and minicomputer computing

2. Second Era – Personal computers
3. Third Era – Client/server networks
4. Fourth Era – Enterprise computing
5. Fifth Era – Cloud computing

Source: Kenneth C. Laudon and Jane Laudon, Management Information Systems, Seminal Textbook
Discussion
What will you do with this?
Discussion
What will you do with this?
 Data Analysis
• Data analysis is defined as a process of cleaning, transforming, and modelling
data to discover useful information for business decision-making

• The purpose of Data Analysis is to extract useful information from data and
taking the decision based upon the data analysis.

• Whenever we take any decision in our day-to-day life is by thinking about

what happened last time or what will happen by choosing that particular
decision

Source: https://www.guru99.com/what-is-data-analysis.html
Types of Data Analysis
1. Descriptive Data Analysis

The definition of descriptive data analysis is the analysis technique used in

analyzing data by creating a description of the collected data.

Some of descriptive data analysis techniques, for example presenting data in

the form of:
• Chart
• Table
• Presentation
• Frequency
• Diagram
Types of Data Analysis
1. Descriptive Data Analysis
Types of Data Analysis
2. Inferential Data Analysis

The definition of inferential data analysis is a data analysis technique

using statistics by making general conclusions.

Inferential analysis uses certain statistical formulas.

The results of the calculation of the formula will be the basis for
generalizing the sample to the population.
Types of Data Analysis
Inferential Data Analysis
Data Analysis Process
The Data Analysis Process is nothing but gathering information by using a
proper application or tool which allows you to explore the data and find a
pattern in it. Based on that information and data, you can make decisions,
or you can get ultimate conclusions.

Data Analysis consists of the following phases:

1. Data Requirement Gathering

2. Data Collection
3. Data Cleaning
4. Data Analysis
5. Data Interpretation
6. Data Visualization
Data Driven Action
 Definition of Data Driven
Data driven means that data is useful for determining the decision-
making process in other words, data driven takes the most important role
in the company.

The benefit of this data driven company is that companies can find out
whether the decisions they make are successful in answering problems or
not. Data driven company will help companies to analyze data until they
find the right decision.

Source: https://www.walkme.com/glossary/data-driven/
 Data Driven vs Data Informed
Data Driven

• Using data absolutely to make decisions.

• Decisions based entirely on data. Decision makers place certain data as
the main factor or the only basis for decision making.

Data Informed

• Using data as part of the decision-making process, by considering matters

or other relevant factors, outside of the data.
• The decision-making process only uses data as a determining factor for
decisions.

Source : Dave Martin, data-informed-vs-data-driven

Problem Identification
& Analysis
Session 2
Critical Thinking
Critical Thinking is an active intellectual
thinking process and includes
conceptualization, application, analysis,
synthesis, and / or evaluation of information
collected from, or generated by observation,
experience, reflection, reasoning, or
communication as a guide for beliefs and
actions.

- Michael Scriven & Richard Paul, the 8th Annual

International Conference on Critical Thinking and
Education Reform, Summer 1987 -
 6 Critical Thinking Skills
1. Identification
Identify the situation / problem and the factors that might influence it -
what is happening and why?
2. Research
When comparing arguments against an issue, it is important to do
independent research - do the facts come from valid / reliable sources?
3. Identifying biases
Understand the biases / deviation, which side will gain / lose?
Strong critical thinkers do their best to evaluate information objectively

- Will Erstad, 6 Critical Thinking Skills You Need to Master Now, 2018 -
 6 Critical Thinking Skills
4. Inference
Get conclusions from the information provided - really depends on the
quantity and quality of information
5. Determining relevance
Not all information is equally important - prioritize important and
relevant information
6. Curiosity
Foster curiosity by asking "why" questions about the things that happen
on a daily basis

- Will Erstad, 6 Critical Thinking Skills You Need to Master Now, 2018 -
Exercise - Fact / Fiction?
Simak bacaan berikut ini dan identifikasi pernyataan-pernyataan
dibawah sebagai “fakta” atau “rekaan”

Eka, Manajer Pemasaran Binus Executive Education, diundang untuk

menghadiri pertemuan marketing pada pk. 08:00 di kantor Indra
untuk membicarakan strategi tahun anggaran mendatang. Dalam
perjalanan menuju tempat pertemuan, manajer itu tertabrak
sehingga luka-luka. Ketika Indra diberitahu mengenai kejadian
tersebut, ambulans sedang dalam perjalanan ke RSCM untuk
membawa korban. Indra menghubungi rumah sakit untuk mencari
informasi lebih lanjut, tetapi tidak ada seorangpun yang mengetahui
mengenai Eka. Ada kemungkinan, ia menelepon ke rumah sakit yang
salah.
Problem or Decision
What is the Difference between Problem &
Decision?
Problem vs Decision

Problem Decision
•Expectations / ideal
conditions (targets, targets, •Choose from several options /
etc.) are not achieved options available
•The root cause / cause is not •Establish selection criteria
known •Consider the consequences /
risks of choice
From Problems To Decisions
Problem

Problem Solving Process Need

Root Cause Selection

Producing Solutions Process Selection Decision Making Process

Daniel R. Jenie, 2013 The best choice

Three processes…
• Problem Solving Process:
• Input : Problem Statement
• Output : Root Cause

• Producing Solutions Process:

• Input : Root Cause
• Output : Alternative Solution or Option

• Decision Making Process:

• Input : Alternative Solution or Option
• Output : Solution or The Best Choice
Quiz – Problem or Decision?
• Procurement of company operational vehicles
• High employee turnover
• Selection of competent employees
• Long queue
Categorizing Initiative Types
Need
Have large Quick Win /
Start Solution? Yes No Just Do IT
resource
s?

yes
No

Problem Solving
Project
Methodology
Management

- Thibodeau, Pamela, The relation between problem categorization and

problem solving among experts and novices, September 1989 -
Quick Win Criteria
Criteria Description
Easy to implement Improvement opportunities do not require complex coordination and
planning
Quick to Implement It doesn't take long

Low cost to implement Does not require large funds, human resources, and sophisticated
technology
Within the scope of Does not require large funds, human resources, and sophisticated
teamwork technology
Easy to return If the solution is not as expected, the process can be returned to normal
immediately
Problem Solving
Process
Session 3
Classification / Type of Problem
Fred Nickols stated that there are 3 (three) problem solving
approaches :
• Repair
• Improve
• Engineer

- Fred Nickols, Choosing The Right Problem Solving Approach – http://www.nickols.us -

Repair

Expectation / Goal

Deviation
Change

Past Present

"It used to be good / function properly, suddenly dropped / broken"

(expectations / ideal conditions have been achieved)
Improve

Expectation / Goal

Improvement

Past
+
Present

”Expect for better performance"

(expectations / ideal conditions have never been achieved)
Repair vs Improve

Repair Improve

• Returns to its original condition • Improve current performance

• The expectations / ideal • The expectations / ideal
conditions have been achieved conditions have never been
• "Our fridge broke down achieved
suddenly, previously it was • "Currently, the custom
functioning properly" clearance process is 7 days, I
want to speed it up to 6 days"
Engineer
• Referring to Michael Hammer & James Champy's Re-
Engineering
• The goal is a drastic increase in performance
• Reengineering new processes by ignoring existing processes /
processes that are currently running
• Currently refers to innovation
Quiz – Repair or Improve?
• The transaction process was interrupted because the computer
/ network was offline
• The actual processing time for credit applications is 3 (three)
days
• Average package delivery is 2 (two) days from the customer's
expectation of 1 (one) day
Repair Type Problem
Solving Process
 Kepner-Tregoe Problem Analysis
• The best methodology for finding the cause of a Repair
type problem
• Narrow down & find possible causes by:
• Comparing with similar objects is not problematic
• Asking questions What, Where, When & Extent
• Test the hypothesis to find the true cause

- Charles H. Kepner & Benjamin B. Tregoe, The New Rational Manager – An Updated Edition for a
New World, Princeton Research Press, 2006 -
Troubleshooting Steps

Detail data /
Set Develop Determine Confirmation
facts into the
Problem possible the most /cause
IS & IS NOT
Statement causes likely cause verification
Matrix
Problem statement
• Create a deviation / deviation statement that will find the root
of the problem
• Ask the following questions :
• What object is deviated?
• What deviations occurred?
• What we see, hear, etc. (with five senses) which states that there is a
deviation
• Make a short statement with one object and one deviation
• Example :
“Prepaid registration failure (object) exceeded 3% (deviation)”
“NPL (object) exceeds 5% (deviation)
4 Area Is & Is Not
IS NOT

What

IS NOT Extent IS Where IS NOT

When

IS NOT
Matriks IS & IS NOT

Is Is Not Distinctions Changes

What

Where

When

Extent
Evaluation of Possible Causes
• Use your knowledge & experience to develop possible
causes
• Test your hypothesis with the question: if… is a cause…,
how does that explain IS and IS NOT information?
• Determine the most probable cause
• Confirm cause by verifying assumptions, observing,
experimenting & trying + observing
Exercise – Metro Mini Problem
As a public transportation, Metromini often causes traffic
jammed, because it stops not at its place (Bus Stop). Why?

Source picture : https://www.liputan6.com

Improvement Type
Problem Solving
Process
7 Basic Quality Tools
1. Flowchart
2. Check Sheet
3. Histogram
4. Cause-and-Effect Diagram/Fishbone
5. Pareto Diagram
6. Scatter Diagram
7. Control Chart
Analysis Techniques
• Cause/Effect analysis
• Force-Field analysis Scheduling
Sending
department
notified

• Flowcharting Technician
Patient
transported
Patient
records
notified and X-Rays

• Mind Mapping X-Ray

taken

• Lotus Blossom Film

developed
Billing
department
notified

Root Cause 1

New system does Same teachers get

not maintain history
of allocation
picked continuously
for exam duty
Effect = ISSUE

Perceptible Cause
Complaints from
In existing manual staff
system these aspects
are addressed, but
the new system does
not
Root Cause 2
New system does
Teachers are
not maintain
allocated to schools
preferred school
in inconvenient
location for
locations
teachers
Examples of Fishbone & Check Sheet
• Problem :
The timeliness of the plane's departure was not reached
– On Time Performance (OTP) 83.5% below Target 85%
• Possible causes :
• The pilot is late
• Passenger is late
• Take-off or landing queues
• Baggage is late on board
• Aircraft engine failure
Examples of Fishbone & Check Sheet
• Fishbone Diagram :
• Place the result as the fish head
• Enter possible causes into one of the areas / categories (fish
bones)
• Checksheet :
• Gather quantitative data / facts regarding possible causes
 Fishbone Diagram

The pilot is late

Baggage is
Passenger is late late on board

Take-off
or
Aircraft engine failure
landing queues
Checksheet

Possible Causes January 2019 February 2019 March 2019

The pilot is late I I

I II
Passenger is late

Take-off or IIIII IIII IIIII II

landing queues
Baggage is late on I I
board
Aircraft engine I
failure
Process Mapping Steps
1. Set title & process boundaries (initial & end activities)
2. Determine the process & input / output of the process before
(supplier & input) & after (customer & output)
3. Describe activities between start & end activities, including
decision making & delay / waiting
Process Mapping Example

Start
Waiting
N
In in annual Request Board of
Create Request
Budget? Directors' Approval

Y
Y
Create Purchase Order Approve?

T
Send PO to Supplier End

End
Process Performance Improvement Steps
1. Put a label / description on each activity :
▪ Real Value Added (RVA) : activities that provide added value
▪ Organizational/Business Value Added (OVA) : activities that do
not directly add real value, but are necessary, for example
planning or inspection activities
▪ Non-Value Added (NVA) : non-value added activities, such as
waiting
2. Determine the root of the problem that causes NVA, so
that NVA can be eliminated / eliminated
Process Mapping Example

Start OVA
OVA Waiting
N
In in annual Request Board of
Create Request
Budget? Directors' Approval

RVA Y
Y
RVA Create Purchase Order Approve?

T
RVA Send PO to Supplier End

End
Decision Making
Process
Session 4
Decision-making
• Have goals to be achieved
• Have to choose from several alternatives available
• Must establish selection criteria
• Must consider the negative impact / consequence of
choice
• Kepner-Tregoe Decision Analysis Method
Absolute vs Relative Criteria

Absolute Relative

• Quantitative / measurable •Qualitative

• If not fulfilled then the •Weighting based on level of
alternative choice must be importance
discarded (must be fulfilled)
•"The house near the office is
• "The maximum house purchase
more important than near
budget is Rp. 200 million "
the children's school"
Decision Making Process
• Set goals to be achieved
• Develop & agree on absolute and relative criteria
• Evaluate the alternatives / options available & set provisional
options
• Evaluate provisional options for negative impacts /
consequences & make final choices
Case Example – House Purchasing

Criteria House A House B

Absolute Criteria

≤ Rp. 300 mio Rp. 280 mio Rp. 290 mio

Relative Weight x Weight x

Weight Score Score
Criteria Score Score
Near the
9 8 72 5 45
office

Near School 7 5 35 8 56

Total Weight x Score 107 101

 Case Example – House Purchasing

Kriteria Rumah A Rumah B

Total Weight x Score 107 101

Consequenc Level x Level x

Level Possibility Possibility
es Possibility Possibility

Theft 1 8 8 3 3

Road
9 2 18 1 9
widening

Total Level x Possibility 26 12

Final Score 81 89
 Sales Pitch
(Socialize Ideas)
Sales Pitch (Socialize Ideas)

B ACKGROUND – Situation Overview

O PPORTUNITY – What is the issue /

need / opportunity?

I MPACT – Implications if not solved

S OLUTION - Proposal

A CTION – Call to Action and Expectations

B ENEFITS – Value of a solution