Decisiontechniques Mgt350


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  • As problems are identified they are analyzed to determine the root cause. Suspected symptoms are investigated to determine if removal of the symptom solves the problem. If the problem can’t be solved by removing the symptom, further analysis is performed until the root cause of the problem is identified and remedied.
  • The root cause analysis can be done by a single person or include a large group of people and viewpoints when searching for the cause of a problem. Proper root cause analysis ensures that no time, money, or effort are wasted attending to a symptom rather than the root of a problem. While root cause analysis can be a useful tool in determining the root of a problem, symptoms may be mistaken for the actual problem if analysis is not implemented properly. Root cause analysis may not provide a quick decision as the investigation process must be done carefully thoroughly. The root cause method of problem identification strives for a solution of the root of the problem and may not take into account cost versus benefit.
  • This statement identifies to stakeholders the need to solve the bearing failure by identifying the underlying root cause of the failure. Simple replacement of the bearings may be a temporary cure but until the root cause of the failure is identified, future failures should be expected.
  • When a problem arises and a decision needs to be made there are several steps that must be done in order to correctly use this tool. One must define the objectives, identify possible options, analyze the information and compare options.
  • There are many strengths in using the cost benefit analysis tool. Options are easily compared side by side and data with data that is easily quantifiable, making the right decision will be less problematic. Some of the weaknesses to this tool is that results can be easily skewed if data has been left out or data that is not correctly quantified will change the results. With complex problems that have many issues to them, it is difficult to accurately use this tool. When using this tool it can be hard to put a dollar amount on some data for instance a human life or the environment when deciding whether to build on a wetland for instance.
  • Both tools can be used in a variety of applications and can be performed by an individual or within a group. Both tools are also very time consuming. Cost benefit can be time consuming due to all the data entry involved and Root Cause has to differentiate between symptoms and problems which are not always easily identifiable.
  • While Cost Benefit looks at data from a quantifiable standpoint, Root Cause does not. Root Cause allows the user to identify and separate symptoms from problems, where Cost Benefit does not. Cost Benefit also allows the user to compare options side by side to make a decision where Root Cause there is one option by deduction
  • An example of a cost benefit problem statement for BP would be in response to the disasters at the refinery in Texas City and the leak in the Prudhoe Bay pipeline in Alaska. The statement example would be as follows: Due to potential liabilities that exceed the company’s established thresholds, including fines, penalties, litigation expenses, and reputational cost, and the history of safety lapses, BP should implement a strategic safety and inspection policy for refineries and pipelines.
  • Process Mapping is used with complex issues with multiple decision makers. This is being used in centralizing several SBU’s from around the country to one location with several people performing the same duties. Mapping provides a visual aid of that interconnects causes and effects. This process can be used with a variety of problems and situations.
  • Process Mapping provides the ability to visualize the number of departments and processes being performed by multiple people. Process mapping provides accurate information for administrators to define roles, processes and procedures that best fit centralization and each department.
  • Process mapping is used to identify workflow processes. Map the steps needed to performs jobs, visualize the number of people performing the same processes. Mapping will also identify weakness in the process and were problems are. Can give clarity to problems and offer solutions. A weakness of Process Mapping is gathering all the information needed to crate the map. Gathering documented, concise, timely information.
  • Kerry’s mission is to bring One Kerry to the customer not only with their products but with service. Centralization will put all customer service and accounting under one roof. Customers will no longer need to contact more than one customer service person to order all their products from different divisions. In that same line, Kerry wants only one person from sales, customer service and accounting to supply all the information and product needed by the customer. Kerry needs to make sure processes are not being duplicated and all the needs are being meet.
  • Sub-goal Analysis is an excellent problem solving technique where an overwhelming issue is broken up into smaller tasks. Leaders can appoint competent individuals to meet the needs of each objective.
  • Educators must be prepared to be effective within the classroom environment. Experience and effective class management strategies will allow the teacher to fulfill the student’s needs while dissolving difficulties that arise.
  • Process mapping is beneficial in the traditional business setting. Interestingly, Process mapping has benefits within the classroom as well. In fact, subgoal analysis and process mapping share some positive points to which can be used to generate an efficient learning environment.
  • Subgoal Analysis is far more beneficial in the school setting. Issues must be resolved quickly. Lesson plans cover a great deal of material in a short period of time. Process mapping is far too time consuming to be used within the school.
  • When responsibilities are too weighty for a small team of managers and leaders to handle, subgoal analysis allows organizations to delegate facets of the overall job to teams. This allows many individuals to play a vital role in the organization, by contributing to the success of the company.
  • Decisiontechniques Mgt350

    1. 1. Problem Formulation and Identification Ryan Scalmanini, Nanci Derone, Nicholas McElwee, Ryan Anderson, and Heather Sanchez University of Phoenix
    2. 2. Root Cause Analysis <ul><li>Problem identification tool most used at Pioneer. </li></ul><ul><li>Problems are traced from discovery back to the source. </li></ul><ul><li>Symptoms of the problem are eliminated until the root cause is identified. </li></ul>
    3. 3. Root Cause Analysis <ul><li>Strengths </li></ul><ul><li>Incorporates knowledge and of several stakeholders. </li></ul><ul><li>Can be performed by a group of people. </li></ul><ul><li>Can be performed individually. </li></ul><ul><li>Ensures symptoms are not mistaken for the actual problem. </li></ul><ul><li>Weaknesses </li></ul><ul><li>Symptoms can be mistaken for the root cause if not implemented properly. </li></ul><ul><li>Can be time consuming and may not provide an immediate decision. </li></ul><ul><li>Does not take into account cost benefit comparison. </li></ul>
    4. 4. Root Cause Problem Statement <ul><li>If the root cause of the bearing failure on machine number four is not identified and corrected, we will continue to experience costly downtime for repairs resulting in lost production and failure to meet quarterly goals. </li></ul>
    5. 5. Cost Benefit Analysis <ul><li>Uses quantifiable data to assess problem. </li></ul><ul><li>Side by side comparison of options </li></ul><ul><li>This tool will show which option will have the greatest monetary benefit. </li></ul><ul><li>Involves of data entry and organization. </li></ul>
    6. 6. Cost Benefit Analysis <ul><li>Strengths </li></ul><ul><li>Understanding the value of a given option. </li></ul><ul><li>Comparing Alternatives. </li></ul><ul><li>Making informed Choices. </li></ul><ul><li>Identifying new alternatives. </li></ul><ul><li>Weaknesses </li></ul><ul><li>Sometimes data cant be quantified into a dollar amount. </li></ul><ul><li>With complex problems some issues will not be addressed. </li></ul><ul><li>Data can be easily skewed if information is left out. </li></ul>
    7. 7. Cost Benefit/Root Cause Comparison <ul><li>Both techniques can be used in many different applications. </li></ul><ul><li>Both methods can be completed individually or within a group. </li></ul><ul><li>They can be very time consuming. </li></ul>
    8. 8. Cost Benefit/Root Cause Contrast <ul><li>Cost Benefit </li></ul><ul><li>Does not take into consideration experience and knowledge of stakeholders. </li></ul><ul><li>Designed to look at problems with a dollar sign. </li></ul><ul><li>Root Cause </li></ul><ul><li>Can lead to the cause of a problem easier. </li></ul><ul><li>Much more simple and does not need as much data. </li></ul><ul><li>Adds more dimensions to finding problems. </li></ul><ul><li>Differentiates problems from symptoms easier. </li></ul>
    9. 9. Cost Benefit Problem Statement for BP <ul><li>Due to potential liabilities that exceed the company’s established thresholds, including fines, penalties, litigation expenses, and reputation costs, and the history of safety lapses, BP should implement a strategic safety and inspection policy for refineries and pipelines. </li></ul>
    10. 10. Root Cause Analysis at Kerry <ul><li>Process Mapping is one tool of Root Cause Analysis used at Kerry. </li></ul><ul><li>It is used with complex issues. </li></ul><ul><li>Used when it is resource intensive (time, resources). </li></ul><ul><li>Is seen as having a potential savings/growth impact on the business. </li></ul>
    11. 11. Root Cause Analysis Method <ul><li>All administrative superiors are in one meeting. </li></ul><ul><li>Processes are discussed with post-its used as mapping lines. </li></ul><ul><li>Different colored post-its indicate each division giving clarity to duplication of same or similar processes. </li></ul><ul><li>Mapping lines also show missed or ambiguity in certain steps or decision. </li></ul><ul><li>To create a new organization structure that beets their needs. </li></ul>
    12. 12. Process Mapping Analysis <ul><li>Strengths </li></ul><ul><li>Analyze multiple steps with people and positions. </li></ul><ul><li>Clarify role ambiguity. </li></ul><ul><li>Creates the whole picture to understand the work flows. </li></ul><ul><li>Analyze bottlenecks, black holes and sources of delays. </li></ul><ul><li>Clarity and Accountability. </li></ul><ul><li>Weaknesses </li></ul><ul><li>Needs input from several departments. </li></ul><ul><li>Needs data and procedures specific to departments. </li></ul><ul><li>Time and resource intense. </li></ul>
    13. 13. Process Mapping Statement <ul><li>Kerry needs to streamline processes, procedures and manpower. Process mapping was able to identify areas where work can be taken out, simplified or consolidated. If Kerry does not identify all the processes performed and by whom, Kerry will be paying wages for duplicated functions and not addressing time, value and quality of work. </li></ul>
    14. 14. Sub-goal Analysis at Curtis <ul><li>Divides an overwhelming task into controllable branches. </li></ul><ul><li>This technique is convenient to resolve difficulties. </li></ul><ul><li>Each employer will be able to give a meaningful contribution. </li></ul>
    15. 15. Sub-goal Analysis <ul><li>Strengths </li></ul><ul><li>The load is shared. </li></ul><ul><li>Generates leadership qualities in workers. </li></ul><ul><li>The student’s difficulties and needs are satisfied. </li></ul><ul><li>Weaknesses </li></ul><ul><li>Teachers do not have a team to rely on during class-time. </li></ul><ul><li>Weaknesses in classroom management will be exposed. </li></ul>
    16. 16. Sub-goal/Process Mapping Comparison <ul><li>Both techniques are used to clarify role ambiguity. </li></ul><ul><li>Both styles correct the cause of problems. </li></ul><ul><li>Complex issues are dissolved through both methods. </li></ul>
    17. 17. Sub-goal Analysis/Process Mapping Contrast <ul><li>Sub-goal Analysis </li></ul><ul><li>A great deal of responsibility is shouldered by one person. </li></ul><ul><li>The reward is shared with the entire school while punishment is directed to one person. </li></ul><ul><li>Process Mapping </li></ul><ul><li>Too many departments. </li></ul><ul><li>Numerous steps used to solve problems. </li></ul><ul><li>Too time consum ing. </li></ul>
    18. 18. Sub-goal Analysis Problem Statement <ul><li>Curtis Elementary is responsible for educating over 500 students. Teaching them is a daunting task. Sub-goal Analysis allows companies to divide weighty tasks into many manageable objectives. The school must appoint teachers to oversee roughly 25 students. All students will be educated in this system. </li></ul>
    19. 19. References <ul><li>Goodpaster, J. & Kirby, J. (2007). Thinking: An Interdisciplinary Approach to Critical and Creative Thought. [University of Phoenix Custom Edition e-text]. New York: Prentice Hall. Retrieved January 27, 2009, from University of Phoenix, Resource, MGT350-Critical Thinking: Strategies in Decision Making Web site. </li></ul>