Submitted by: Kishia Wen R.

Galon
Section: BSBA 2B
Submitted on: 6/27/2020

1. Critical Situation is about business problems or issues that can’t determine if it has positive or
negative outcomes. It’s sometimes urgent, unexpected or can cause threatening that can have a
huge impact in the future.

Critical situations occur in the processing industry every day. From minor interruptions to
complete disruptions of the supply chain, events are occurring on a regular basis that jeopardize
the health of the employees, the environment, and indeed the corporation. Just like what the
business industry is experiencing right now because of a pandemic, the COVID-19 outbreak, the
result can quickly escalate to emergency situations and once at an emergency level and even
more quickly accelerate to situations resulting in loss of assets up to and including loss of life.

2. 8D Approach

1. D0: PLAN – Solving the problem and determining the prerequisites.

2. D1: USE A TEAM – Select and establish a team of people with product/process
knowledge.
3. D2: DEFINE AND DESCRIBE THE PROBLEM – Specify the problem by
identifying in quantifiable terms with 5WH2 for the problem.
4. D3: DEVELOP INTERIM CONTAINMENT PLAN; IMPLEMENT AND
VERIFY INTERIM ACTIONS
– Define and implement containment actions to isolate the problem from any customer.
5. D4: DETERMINE, IDENTIFY, AND VERIFY ROOT CAUSES AND ESCAPE
POINTS – Identify all applicable causes that could explain why the problem occurred also
identify why the problem was not noticed at the time it occurred. All causes shall be verified or
proved, not determined by fuzzy brainstorming.
6. D5: CHOOSE AND VERIFY PERMANENT CORRECTIONS (PCS) FOR
PROBLEM/NONCONFORMITY - Through pre production programs, quantitatively confirm
that the selected correction will resolve the problem for the customer.
7. D6: IMPLEMENT AND VALIDATE CORRECTIVE ACTIONS - Define and
implement the best corrective actions (CA).
8. D7: TAKE PREVENTIVE MEASURES - Modify the management systems,
operation systems, practices, and procedures to prevent recurrence of this and all similar
problems.
9. D8: CONGRATULATE YOUR TEAM - Recognize the collective efforts of the team.
The team needs to be formally thanked by the organization.
Using the 8D Approach, raise your understanding of what it takes to consistently provide excellence
service amidst this NCOVID19 pandemic.
3. DO: PLAN- Organizations across the world are facing a level threat not seen since World War II.
Their leaders and board directors are experiencing enormous anxieties fueled not only by the threats to
the survival of their companies but also by the health dangers confronting customers, employees, and
themselves and their own families.The spread of the virus is impacting countries at different rates, with
each appearing to go through a similar pattern of “disease phases”. Governments around the world are
having to act quickly and decisively to protect vulnerable citizens and limit the damage to their
economies.

Example:
The World Health Organization (WHO) declared COVID-19 a pandemic on 11 March 2020. At the
time of writing, there have been more than 187,000 cases of COVID-19 worldwide, resulting in more than
7,400 deaths. The coronavirus outbreak is undoubtedly a story of human tragedy. But it will cause
significant harm to the economy, too and the true scale of this cost has only just started to emerge.

D1: USE A TEAM - Pulling in members from different functions or disciplines with varied backgrounds
and experiences will lead to the best quality inputs and most rounded solutions. Appoint a leader and
define clear roles so that the team operates smoothly from the start.

As industries emerge from the lockdown, more ‘teams’ must be formed to collaborate and solve
the problems facing our supply chains moving forward. Businesses should establish a dedicated team to
ensure a simple but well-managed set of processes that maximize the health and safety of colleagues
and customers. This team should be led by a CEO or someone at a similar senior level that is ultimately
responsible for solving the problem. The focus of the team should be broken down into five distinct
workstreams: The HR department will be the one to manage the safety of employees and their well-
being, the Finance and Accounting department to stabilize and monitor the financial performance of the
business. Marketing institutions for buying or selling commodities in the market, they will be also
responsible for supply chain monitoring.

The team should have supporting cast these are people who practically experienced the problem
and understand the pain it causes, Investors to generate income or appreciate in the future, Consulting
firms they provides professional feedback, Market research organizations they gather and analyze data,
Mergers and acquisitions departments (purchase of assets), Insurance companies (financial protection).

The team leader must generate a list defining the team structure in order to ensure that a team
was actually formed for the 8D project. This list is also useful to define the function/role each team
member will play in the 8D project. The team leader must schedule meetings periodically to review
progress of the 8D project and discuss action items in order to meet all expectations. The team leader
must maintain minutes of the meeting documenting all that happened in the meeting. Meeting minutes
may include team progress, key decisions reached in the meeting, Planned versus actual completion
dates for all actions, Who needs to take what action? When? Where? How? team leaders may change
any member’s roles and responsibilities once the problem statement is further refined and understood.
Team members must complete their actions and report back to the team leader.

D2: DEFINE AND DESCRIBE THE PROBLEM-

Describing the problem starts with a well-thought-out problem statement. The problem statement
will: Communicate the scope of the problem that the team is working on and get the team focused.
Provide information relevant to the problem: data and information on what the problem is and what the
problem isn’t. Clarify the role the team should play (determine root causes and implement or recommend
a solution), specify the deadline and include monetary limits for the team. Lays down expectations from
the team and deliverables that will be measured. Be the output of a process used to amplify the problem
statement in terms of Who, What, Why, Where, When, and How Big (how much, how many, how often -
level of pain).

Example of D2: DEFINE AND DESCRIBE THE PROBLEM

The outbreak of pandemic Covid-19 all over the world has disturbed the political, social,
economic, religious and financial structures of the whole world. World’s topmost economies such as the
US, China, UK, Germany, France, Italy, Japan and many others are at the verge of collapse. Besides,
Stock Markets around the world have been pounded and oil prices have fallen off a cliff.

In the Philippines, with more than 400 economic zones under lock-down, approximately 700
factories have been shut down displacing hundreds of workers. The problem first occurred when the
lockdown or ECQ extended in May 15 especially in Central Luzon and other areas where there are lots of
well-known business companies. The duration of a normal business is generally a shorter duration of
disruption that is less than a week, changes to extended and more long lasting and can last up to several
months because of the pandemic that’s why businesses also provide deliveries to provide the needs of
the customers. In total, given the simultaneous adverse effects on the supply and the demand side of the
economy, we expect a cumulative loss of PHP428.7 to PHP1, 355.6 billion in gross value added (in
current prices), equivalent to 2.1 to 6.6 percent of nominal GDP in 2020. Without mitigating measures,
this would imply a reduction in the Philippine’s real GDP growth to -0.6 to 4.3 percent in 2020.

The Philippines government is a stimulus package of approximately 200 billion pesos ($3.93bn) to
protect the citizens and businesses from the impact of the coronavirus outbreak. The funds are expected
to be drawn from non-budgetary sources. The central bank announced its decision to reduce interest rate
on reverse repurchase (RRP) facility by 25 basis points to 3.75% on 06 February 2020. The interest rate
on overnight lending and deposit facilities was also cut to 4.25% and 3.25%, respectively. The interest
rate on RRP was further reduced by 50 basis points to 3.25% on 17 March. The projected gross
domestic growth rate of 6.5%-7.5% for 2020, however, has not been revised.

The Philippines has announced that it will direct P200bn ($20bn) in emergency subsidies to 18
million poor households. Families will be provided P5,000 ($99) to P8,000 ($110) for two months based
on the minimum daily wage rates in their respective regions. The Bangko Sentral ng Pilipinas
Department of Economic Research has approved a P300bn ($6m) bond repurchase deal to provide the
government with funds to fight the COVID-19 pandemic. The Asian Development Bank provided $3m in
aid to the country and is also planning to provide another assistance package.

On the other hand the impact on tourism, Philippine tourism officials expected to attract four
million Chinese tourists by 2022, before the outbreak happened. The tourism industry, however, is
expected to witness a major impact as the country closed its borders with China and other countries due
to the coronavirus infection, Philippine Finance Secretary Carlos Dominguez noted. Dominguez added
that the exact economic impact of the outbreak is too early to be estimated but remained optimistic that
the country can sustain its economic growth.

Impact on businesses, Airline operators have impacted by the coronavirus due to grounding of
flights. They have requested the government to provide assistance in the form of handouts, emergency
credit lines and the exemption from navigation and airport fees. Mining operations of two mining
companies in the Surigao del Norte province, which is home to the majority of the country’s nickel mines,
will be suspended from 01 April 1 to prevent the spread of the coronavirus. The Philippines is an
alternative source of nickel for China, which sources the ore from Indonesia. Following the ban of export
of unprocessed ore imposed by Indonesia, the Philippines serves as the main supplier. The two mining
companies, Nickel Asia Corp and Global Ferronickel Holdings, account for the majority of the country’s
nickel ore output. The suspension is expected to impact the scheduled ore shipments of the companies.

D3: DEVELOP INTERIM CONTAINMENT PLAN; IMPLEMENT AND VERIFY

INTERIM ACTIONS

An interim containment action means that a “band-aid” is put in place to prevent the effect of the
problem or to prevent the full effect from impacting customers and/or employees while a permanent
solution is being developed and implemented. Developing an interim containment plan can then help to
free up resources for addressing the main problem. This is where we are at the moment with Covid-19.
Hygiene measures, social distancing and the lockdown have all been containment actions aimed at
helping reduce infection rates. Such measures are necessary, and we’re beginning to see the ‘flattening
of the infection curve’ across many countries in Europe as a result. On the other hand, we must also
make preventive actions to save our businesses:

1. Protect your employees

The Centers for Disease Control and Prevention (CDC) and the WHO are updating their
guidelines frequently. Businesses should ensure these are followed and that staff are aware of them. It’s
also a good idea to restrict contact and non-essential travel where possible.

2. Set up a cross-functional response team

Form a team that has specific goals to maintain and stabilize the company each goal should be
outlined for each of these workstreams on a 48-hour and one-week rolling schedule. Minimum viable
products should be established, with a calendar of events and milestones that constantly look six weeks
ahead.

3. Test for stress, ensure liquidity and build a contingency plan

Defining scenarios can be difficult, but businesses are advised to try to identify trigger variables
that will affect revenue and cost. These triggers can then be applied to established scenarios so that
cash flow, profit and loss and balance sheets can be modelled.

Contingency plans can then be drafted for varying outcomes, such as portfolio optimization
through divestments, cost reduction etc.

4. Stabilize the supply chain

Geographic areas experiencing high levels of community transition should be established,

factoring in suppliers and inventory levels. In order to immediately stabilize the supply chain, businesses
should then turn their attention to pre-booking rail and air freight capacity and using after-sales stock as a
bridge.
 For longer-term stabilization, businesses should seek to plan for consumer demand more
thoroughly and make their supply network more resilient.

5. Stay “close” to customers

Businesses will need to make a concerted effort to keep customers engaged and reassured in the
short term. Inventory planning, discounts and special offers will all help to incentivize current customers.
For longer-term stability, firms should start assessing and targeting other market segments and identify
opportunities for growth.

6. Engage in table-top “practice planning”

The research also advises that the response team get together for regular “table-top meetings” to
play out various scenarios. Define activation protocols for different phases of the response. Key decision
makers and workstream owners should also be identified.

7. Demonstrate purpose

Businesses of all shapes and sizes should endeavour to support efforts to contain the spread of
the virus wherever possible. Demonstrating this sense of purpose will have a positive knock-on effect to
colleagues, clients and the wider business community.

D4: DETERMINE, IDENTIFY, AND VERIFY ROOT CAUSES AND ESCAPE

POINTS

Defining the root causes of a problem is the core of the 8D problem-solving process. This is
normally the toughest aspect of the problem-solving process; if the root causes of the problem were
obvious, then the problem would have been solved already. There are usually two families of causes at
work when we know there is a problem: The first, the causes that appear to be the problem, are
frequently symptoms, not root causes. The second, the specific causes that allowed the apparent
symptoms to occur, are the root causes and often buried deep in the process. Tools to be used: Pareto
Charts, Affinity Diagram, Brainstorming Session, 5-Whys Process, Fishbone Diagram, Fault Tree
Analysis, Statistical Analysis, ANOVA ,DOE ,Regression Analysis,Hypothesis Testing, GR&R, Flow
Charts, Audits, FMEA.

Make sure the cause identified is not just a symptom but is the actual root cause. Do not cure the
symptom, as this may be the reason for the problem to recur. Ask the Root Cause Question: “Do these
causes explain all that is known about what the problem is, as well as all that is known about what the
problem isn’t?” This is really a two-part question: make sure the root causes found fit both the “is” and the
“isn’t” sections of the question. If the causes being tested don’t fit both, then they are probably not the
root causes. Have the root causes identified been verified? Verification may require a series of
confirmation runs. Can you induce the failure? (turn the failure mode on/off) How did it happen? How did
it get out?

D5: CHOOSE AND VERIFY PERMANENT CORRECTIONS (PCS) FOR

PROBLEM/NONCONFORMITY
 Often the solution or solutions become obvious once the root causes are known. However,
sometimes, a systematic approach is needed to use the root cause analysis to develop a solution. If the
solution is obvious, select the best solution or mix of solutions that will lead to a robust, yet cost-effective,
resolution. If solutions are not yet evident, follow the data trail. When solutions are not obvious, often the
root cause has not been found.

Criteria for choosing the best solution: Practical - The 8D team should be able to implement the
solution practically.
● Feasible - The solution must be feasible.
● Cost effective - Implementing and using the solution must be cost effective.
● Robust - The solution shouldn’t fail when used in production. Robustness of the solution is an
essential characteristic (error proofing, impact-effort matrix)
● Team Champion must have full buy-in to Permanent Corrective Actions and facilitate their
implementation.

Example:
Starting a relief fund for workers and accepting online donations to help hourly and low-wage
workers. Businesses can also offer take-out and delivery. Also flights are being moved for the safety of
the people. When it comes to business about airlines a 100 percent decline in foreign tourists and airline
revenues for one month due to the ECQ in Luzon, will result in a loss of gross value added of PHP77.5 to
PHP156.9 billion, equivalent to 0.4 to 0.8 percent10 of GDP in 2020. Likewise, the slowdown in economic
activities may reduce employment by about 33,800 to 56,600.

D6: IMPLEMENT AND VALIDATE CORRECTIVE ACTIONS

Once the solution and its implementation are approved, the next step is to create an Action Plan.
The Action Plan outlines what steps are needed to implement the solution, who will do them, and when
they will be completed. A Simple Action Plan merely documents what needs to be done, who will do it,
and when will it be done by. A complex solution needs more thorough planning and documentation.

Check points: Is a Simple Action Plan (who will do what by when) adequate or will a Complex
Action Plan be needed? If a Complex Action Plan is needed, have Activity Plans, Gantt Charts and
PERT Charts been developed? Part of implementing a solution is to document new procedures or
changes to procedures as well as any changes that relate to the organization’s quality system; has this
been done? Has training to support the new system (s) been developed and provided? After people use
the new or revised process a few times, they most likely will have some improvement ideas. Have the
suggestions been assessed, and have corresponding adjustments been made to the process, has the
documentation been updated, and has retraining been provided?

D7: TAKE PREVENTIVE MEASURES

The job of a problem-solving team is not complete once the solution is implemented. Preventing
recurrence is an important part of a problem’s solution. To prevent recurrence of the problem, the team
must verify that the outcome of their Action Plan works and they must validate that the outcome is on-
target. Verification is testing that the solution produces the desired outcome; validation is ensuring that
the outcome really solves the problem.
To prevent the problem business companies should provide work place rules and full training for
staff. The picture below shows an example of control charts in preventing the virus to spread in the
workplace area and also outside the workplace.
D8: CONGRATULATE YOUR TEAM

Once a team has completed implementing the solution and ensured that the solution works, all
team members deserve to be congratulated. Team members need to know that their efforts are
appreciated and that the organization knows about their accomplishments

References:

Retrieved from: (https://hbr.org/2020/04/executives-and-boards-avoid-these-missteps-in-a-crisis.)

Retrieved from:(https://www.themanufacturer.com/articles/does-eight-disciplines-problem-solving-hold-
the-secret-to-overcoming-covid-19/)
Retrieved from: (https://www.weforum.org/agenda/2020/03/mckinsey-business-response-to-coronavirus/)
Retrieved from:(https://www.planetizen.com/blogs/108868-planners-and-pandemics-identifying-problems-
and-providing-solutions)