PROBLEM STRUCTURING
FRAMEWORKS/TOOLS
MECE
(Mutually Exclusive and Collectively Exhaustive)
• MECE is an acronym for Mutually Exclusive,
Collectively Exhaustive.
• It's a principle used in consulting and
problem-solving to ensure that when
breaking down a complex issue into smaller
parts, those parts are both separate
(mutually exclusive) and cover all
possibilities (collectively exhaustive).
Examples
of MECE
• Profitability Case Example
• The breakdown of profits into revenues and costs is
MECE analysis.
• Every component of profitability is being considered
and there is no overlap between the categories.
• Breaking profitability down further:
Revenues = Price x Unit volume
Costs = Fixed + Variable
• Now, you have 4 MECE components to analyze
• MECE Is Important for Market Sizing
Source mece
:
Issue Trees
• An Issue Tree is a structured, visual
breakdown of a complex problem into
smaller, manageable components.
•Structure:
•It starts with a main problem or objective at the top (e.g., "Profits have
declined").
•Branches out into logical categories (e.g., Revenue, Costs).
•Further breaks down into specific factors affecting each category.
•Goal:
To create a clear, exhaustive, and mutually exclusive view of the problem
space for efficient analysis and decision-making
Why Use Issue Trees?
1. Brings Structure to Ambiguity
2. Encourages MECE Thinking
3. Easy to Communicate
4. Speeds Up Problem Solving
Case Study: FitPro – A Fitness App Facing Profitability
Challenges
Problem Statement:
FitPro, a popular fitness app with over 1 million downloads, has seen a 30%
drop in monthly profits over the last 6 months. The executive team wants to
understand why this is happening and how to fix it.
An Example in
Operations
ROOT CAUSE ANALYSIS
(RCA)
• The 5 WHY’s Technique!
• Five whys is an iterative interrogative
technique used to explore the cause-
and-effect relationships underlying a
particular problem.
• The primary goal of the technique is to
determine the root cause of a defect or
problem by repeating the question
"why?"
• General Example
• The Fishbone/Ishikawa Diagram
Causes are often grouped into major categories,
which are classically defined as the 6 Ms (or the 6
Ps):
•Man/Mind Power (People)
•Method (Process)
•Machines (Program)
•Materials (Product)
•Measurements (Policy)
•Milieu/Mother Nature (Place)
Problem Statement: Frequent machine breakdowns during
production, leading to decreased efficiency and increased
downtime.
Facts gathered during the preliminary investigation:
•Time of breakdown: During the second shift
•Location of breakdown: Production Line 3
•Machine involved: CNC Lathe Machine
•Operator on duty: Recently trained employee
•Maintenance history: Last serviced 6 months ago, overdue for
maintenance
With this information, the team used the fishbone diagram to better understand the
causes of the machine breakdown. The root causes identified were:
•Inadequate training, lack of experience, and poor adherence to safety
protocols by the operator handling the machine (Man)
•Overdue maintenance, wear and tear, and mechanical failure of the
CNC Lathe Machine (Machine)
•Outdated standard operating procedures, inefficient workflow, and lack
of clear guidelines for maintenance and operation (Method)
•Poor working conditions, inadequate lighting, and excessive noise or
vibration in Production Line 3 (Environment)
By addressing these root causes, the manufacturing facility can prevent
future breakdowns, improve machine reliability, and maintain production
efficiency.
Problem Statement:
The University Admissions Department is consistently exceeding its Service
Level Agreements (SLAs) by two weeks, causing delays in application
decisions and negatively impacting student experience and operational
planning.
From a stakeholder perspective, senior leadership is concerned about the
reputational risk and potential drop in enrollment rates, which could impact
funding and rankings.
As a consultant, you are tasked with identifying the root causes of these
delays, prioritizing the most critical issues, and recommending actionable
solutions to restore SLA compliance and improve overall efficiency.
• Categories
• Primary Causes
• Secondary Causes
• Tertiary Causes
• The Pareto Principle(80/20)
• The Pareto principle, also known as the
80/20 rule, suggests that approximately
80% of outcomes or effects result from
20% of causes or inputs.
• In consulting, this principle can be used
to identify the most impactful areas to
focus on when working with clients,
helping to prioritize efforts and achieve
significant results.