Problem Statement

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  A problem statement describes what, where, how big and when the problem occurs.  The statement is intended to be very clear and concise, focusing only on the issue or opportunity that was initially discovered.

The statement should be neutral and not suggest any type of solutions or assumed causes.  The objective of the statement is to define clearly what the problem is (symptoms) and quantify in some way their effects on the organization.​
Example:

• Our cash to cash cycle at the accounting process has not been meeting the standard of 30 days. As a result of this our funds are invested in inventory 50% longer than we expect.  It is crucial that we improve this because we are not getting a return on our investments quick enough.

Sample Format:

• Our (category of problem) at the (where is the problem) have not been meeting (what is the problem).  As a result of this (connect a metric with the magnitude/impact of the problem). It is crucial that we (correct or improve) this because (why it is important).

Challenge:

• Using the sample format shown above, draft and post your own problem statement.  Share your answer in the comments section below and receive a coupon to one of Lean Strategies International LLC's courses.

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