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PROBLEM SOLVING AND DECISION MAKING

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Title: PROBLEM SOLVING AND DECISION MAKING


1
PROBLEM SOLVING AND DECISION MAKING
2
ICE BREAKER
3
ICEBREAKER
  • What is your leisure activity?
  • Who , living or dead , do you most admire , and
    why?
  • What is your greatest achievement?
  • What are your positive qualities?
  • If you had unlimited resources , what would you
    buy which would give you most pleasure?

4
PROGRAMME OBJECTIVE
  • To clarify and define the problem.
  • To understand the usefulness of collaborative
    problem solving and decision making.
  • To examine different decision making models.
  • To utilize creativity in the problem
    solving/decision making process.
  • To plan, practice, and problem solve with making
    decisions through case studies, role playing and
    group discussions.

5
  • Please write a One Sentence Definition of
  • PROBLEM SOLVING
  • and
  • DECISION MAKING.

6
DEFINITION PROBLEM SOLVING
  • A systematic approach to defining the problem
    and creating a vast number of possible solutions
    without judging these solutions.

7
PROBLEM SOLVING
  • Problem solving is a cognitive processing
    directed at achieving a goal where no solution
    method is obvious to the problem solver.

8
Problem Solving
  • Problem Solving is ..
  • .. the art of finding ways to get from where
    you are now to where you want to be (assuming you
    do not already know how).
  • The problem, therefore, is the gap between the
    present situation and a more desirable one.
  • (Nolan 1989)

Is this Problem Solving?
9
TRIPLE CONSTRAINT PRINCIPLE
  • Something is a problem if
  • it makes you late
  • it increases costs
  • it degrades performance.

time
cost
performance
10
If none of these occur, its NOT a problem, just
a hindrance.
11
DEFINITION DECISION MAKING
  • The act of narrowing down the possibilities,
    choosing a course of action, and determining the
    actions potential consequences.

12
It's not a problem that we have a problem. It's
a problem if we don't deal with the
problem. --Mary Kay Utech
13
WHAT DOES IT INVOLVE?
14
  • Problem solving is a skill, a tool and a process.
  • It is a skill because once you have learnt it
    you can use it repeatedly, like the ability to
    ride a bicycle, add numbers or speak a language.
  • It is a tool because it can help you solve an
    immediate problem or to achieve a goal.
  • It is also a process because it involves taking a
    number of steps.

15
PROBLEM SOLVING
  • Skill
  • Process
  • Tools

16
WHAT SKILLS DO YOU USE IN PROBLEM SOLVING?
17
SKILL SETS IN PROBLEM SOLVING?
  • Making judgements
  • Analytical skills
  • Decision making
  • Collecting information
  • Planning

18
Problem Solving People?
  • Experts.
  • People who know the area of knowledge thoroughly.
    Solving problems becomes more natural.
  • People who can think of alternatives even when no
    clear solutions seems apparent.

19
Expert Problem Solvers
  • Have a better memory for relevant details in the
    problem.
  • Classify problems according to their underlying
    principles.
  • Use well-established procedures.
  • Work forwards towards a goal (rather than
    backwards).

20
Problem Solving Requirements
Domain-dependent problem-solving strategies
Self-monitoring
21
UNDERSTANDING THE PROCESS HOW TO SOLVE IT?
Engage I want to and I can
  • Read the problem (and all information)
  • Listen
  • Learn about the situation that poses the problem
  • Motivation
  • Overcome panic

22
UNDERSTANDING THE PROCESS HOW TO SOLVE IT?
Understand the problem define
  • Put in the time to define the problem
  • Discuss.
  • Ask questions.
  • Visualize.
  • Restate the problem in your own words.
  • Explain the problem to someone else.

23
UNDERSTANDING THE PROCESS HOW TO SOLVE IT?
Plan a procedure to solve the problem
  • Prior experience.
  • Data available.
  • Content knowledge.
  • Patterns.
  • Estimation.
  • Alternate solutions.
  • Feasibility.

24
UNDERSTANDING THE PROCESS HOW TO SOLVE IT
Collect data the knowledge required
  • A solution may be required based upon imperfect
    knowledge.

25
UNDERSTANDING THE PROCESS HOW TO SOLVE IT?
Select the preferred solution test, use and
evaluate
  • Check each step
  • Can you determine clearly that each step is
    correct?
  • Can you prove that each step is correct?

26
UNDERSTANDING THE PROCESS HOW TO SOLVE IT?
Reflect on the process
  • Are you certain you solved the problem?
  • Can you check the result and your argument?
  • Can use alternate solutions?
  • What did you actually do?
  • Can you explain this to another?
  • Can you use the result /or method for another
    problem?

27
PROBLEM SOLVING
  • DEFINE
  • INFORMATION/MEASURES
  • ANALYSE
  • GENERATE ALTERNATIVES
  • SELECT ALTERNATIVES/DECIDE
  • IMPLEMENT

28
STEP 1
  • DEFINE

29
DEFINING THE PROBELM
  • Collect all the relevant information.
  • Clarify background issues.
  • What are the constraints?
  • Are there sub-problems that can be dealt with
    separately?
  • Can the problem now be formulated?

30
PROBLEM/OPPORTUNITY STATEMENT WORKSHEET
What is the area of concern?
What impact this problem already had? What evidence do you have that it is really a problem worthy of attention?
What will happen if the business doesnt address this problem?
Summarize the above information in a concise statement
31
ACTIVITY 212.00 1.00
  • DEFINE PROBLEM

32
STEP 2
  • INFORMATION/MEASURES

33
ACTIVITY
  • Imagine that you were going to buy a house in a
    new area. List ten things that you would want to
    know about a house before you gave it serious
    consideration . Tick any of these things that you
    could find out from the agents information. How
    could you find out the other things?

34
  • Do we have all of the information and data we
    need?
  • Collect data and digest the information.

35
TYPES OF INFORMATION
  • QUANTITATIVE
  • QUALITATIVE

36
QUANTITATIVE
  • How much?
  • How many?
  • How frequently?
  • How likely?
  • How quickly?

37
QUALITATIVE
  • What?
  • Why?
  • How?

38
DATA SOURCES
  • PrimaryData gathered by you directly for your
    purpose
  • SecondaryGathered by others for their purpose

39
PRIMARY DATA
  • Give examples

40
SECONDARY DATA
  • Collected by other Depts
  • Reference Books
  • Databases
  • Journals
  • Published Reports
  • Govt Statistics

41
ACTIVITY 42.30 PM 3.00 PM
  • INFORMATION

42
ACTIVITY 4A
  • In a production line, the output of a particular
    machine has come down drastically. There was a
    hue and cry that the operator is intentionally
    slowing down production.
  • What all information need to be collected before
    commencing any action?

43
ACTIVITY 4B
  • First batch of Vacuum Circuit Breakers supplied
    by a Company in India in the year 1981 failed
    miserably
  • The Technical collaborators, the Manufacturers
    and the Customers were trying to resolve the
    issue
  • What all information need to be collected?

44
ACTIVITY 4C
  • On a piece of paper, draw a map of the people you
    know. Put yourself in the middle and connect the
    people you know very well in the first circle.
    Add people you know through these network in the
    next layer and connect them with spokes. Do three
    levels.

45
STEP 3
  • ANALYSE

46
Analyze the Problem
  • Do not make the mistake of assuming you know what
    is causing the problem
  • without an effort
  • to fully investigate the problem
  • you have defined. 
  • Try to view the problem from a
  • variety of viewpoints, not just how it affects
    you. 
  • Think about how the issue
  • affects others. 
  • It is essential to spend some time
  • researching the problem. 

47
Questions to Ask When Analyzing the Problem
  • What is the history of the problem?  How long has
    it existed?
  • How serious is the problem?
  • What are the causes of the problem?
  • What are the effects of the problem?
  • What are the symptoms of the problem?
  • What methods does the group already have for
    dealing with the problem?
  • What are the limitations of those methods?
  • How much freedom does the group have in gathering
    information and attempting to solve the problem?
  • What obstacles keep the group from achieving the
    goal?
  • Can the problem be divided into sub problems for
    definition and analysis

48
Making sense of numbers
  • Averages(Mean,Median,Mode)
  • Grouping of data
  • Distribution
  • Trends
  • Correlation
  • Pie charts

49
ANALYSE
  • Data Analysis
  • ExploringGenerating Theories about
    causesVerifying/eliminating causes
  • Process Analysis Exploring Generating
    Theories about causes Verifying/eliminating
    causes

50

DATA ANALYSIS PROCESS ANALYSIS
EXPLORING Examine data to discover clues TOOLS Pareto Charts, Run Charts, Histograms Understand what actually happens in the process TOOLS Basic flowchart,Depolyment flow charts
GENERATING HYPOTHESIS Generate ideas about the causes TOOLS Brainstorming,Cause and Effect Diagram Use the process maps to identify areas TOOLS Brainstorming, Value Analysis
VERIFYING CAUSES Gather additional data to verify hypothesis TOOLS Scatter Diagram, Stratification Quantify delays/lost time in various process steps Experiment with changes TOOLS Process maps
51
Use Pareto Charts to find the Vital few
52
Use run/trend charts to find patterns over time
53
CAUSE AND EFFECT DIAGRAM
54
When should a fishbone diagram be used?
  • Need to study a problem/issue to determine the
    root cause?
  • Want to study all the possible reasons why a
    process is beginning to have difficulties,
    problems, or breakdowns?
  • Need to identify areas for data collection?
  • Want to study why a process is not performing
    properly or producing the desired results

55
How is a fishbone diagram constructed?
  • Draw the fishbone diagram....
  • List the problem/issue to be studied in the "head
    of the fish".
  • Label each ""bone" of the "fish". The major
    categories typically utilized are
  • The 4 Ms
  • Methods, Machines, Materials, Manpower
  • The 4 Ps
  • Place, Procedure, People, Policies
  • The 4 Ss
  • Surroundings, Suppliers, Systems, Skills
  • Note You may use one of the four categories
    suggested, combine them in any fashion or make up
    your own. The categories are to help you organize
    your ideas.

56
How To Complete The 5 Whys
  • 1. Write down the specific problem. Writing the
    issue helps you formalize the problem and
    describe it completely. It also helps a team
    focus on the same problem.2. Ask Why the problem
    happens and write the answer down below the
    problem.3. If the answer you just provided
    doesn't identify the root cause of the problem
    that you wrote down in step 1, ask Why again and
    write that answer down.4. Loop back to step 3
    until the team is in agreement that the problem's
    root cause is identified. Again, this may take
    fewer or more times than five Whys.

57
5 Whys Examples
  • Problem Statement Customers are unhappy because
    they are being shipped products that don't meet
    their specifications.
  • 1. Why are customers being shipped bad
    products?  - Because manufacturing built the
    products to a specification that is different
    from what the customer and the sales person
    agreed to.2. Why did manufacturing build the
    products to a different specification than that
    of sales?  - Because the sales person expedites
    work on the shop floor by calling the head of
    manufacturing directly to begin work. An error
    happened when the specifications were being
    communicated or written down.3. Why does the
    sales person call the head of manufacturing
    directly to start work instead of following the
    procedure established in the company?  - Because
    the "start work" form requires the sales
    director's approval before work can begin and
    slows the manufacturing process (or stops it when
    the director is out of the office).4. Why does
    the form contain an approval for the sales
    director?  - Because the sales director needs to
    be continually updated on sales for discussions
    with the CEO.

58
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59
Verifying Causes
  • Correlation
  • Stratification
  • Pilot Testing

60
Types of Flow Charts
  • Linear Flowchart
  • Deployment Flowchart
  • Opportunity Flowchart

61
Linear Flowchart
Start
Collect inputs
Draft Circular
Type rough
Retype
Submit to A
No
OK?
Yes
Distribute
Sign(A)
Make Copies
Type smooth
End
62
Deployment Flowchart
A B C

Collect Input
Type rough
Submit to C
Draft
Accept?
NO
Retype
Yes
Type smooth
Make Copies
Sign
Distribute
63
PROCESS MAP
64
                         
      Value and Cycle Time Worksheet Value and Cycle Time Worksheet Value and Cycle Time Worksheet Value and Cycle Time Worksheet Value and Cycle Time Worksheet Value and Cycle Time Worksheet Value and Cycle Time Worksheet      
Process Step 1 2 3 4 5 6 7 8 9 10 Total Percentage
VALUE                        
Value added                        
Value enabled                        
Non value added                        
TIME                        
Work time                        
Wait time                        
Total Time                        
            Total Value added time Total Value added time Total Value added time Total Value added time      
            Percentage value added time Percentage value added time Percentage value added time Percentage value added time Percentage value added time    
65
Correlation Analysis
66
Past Experience Future Problems
  • Have we ever encountered a problem like this
    before?
  • Do we have all of the information and data we
    need?
  • Is there any pattern to what we know?
  • Can we construct a table or a picture?
  • What might the solution be?
  • What would assist us in getting to a solution?

67
END OF DAY 1
68
DAY 2
69
STEP 4
  • GENERATE ALTERNATIVES

70
Good decisions emerge from a set of feasible
alternatives
71
Tips for Generating Alternatives
  • Brainstorm
  • Involve outsiders
  • External Benchmarking
  • Encourage members to step out of their
    traditional roles
  • Ask probing questions
  • Be willing to consider views differing from yours
  • Revisit abandoned alternatives

72
  • Vertical Thinking
  • Lateral Thinking

73
 WHAT IS VERTICLE THINKING?
  • Basing our thought process on prior knowledge
    and experience.
  • Using logic that relates only to our immediate
    experience.
  • Constraining our creativity and ability to solve
    problems.

74
WHAT IS LATERAL THINKING?
  • Changing orientation and perception.
  • Generating new ideas and visions.
  • Exploring multiple possibilities and approaches.

75
  • Vertical Thinking is selective
  • One may reach a conclusion by a valid series of
    steps
  • Lateral Thinking is generative
  • Vertical Thinking develops the ideas generated by
    Lateral Thinking

76
How would you divide a square into four equal
piecesGive at least 6 alternatives
  • Time 15 minutes
  • EXERCISE

77
  • Make a square out of this
  • 10
  • minutes
  • Exercise

78
(No Transcript)
79
The Dog, the Goose and the Bag of Corn
The farmer takes the goose across and leaves the
dog with the corn. The farmer then goes back
across the stream and gets the corn. He takes
the goose back across with him because he cannot
leave it with the corn. He then gets the dog and
takes it across leaving it on the other side with
the corn. He then goes back across once again,
gets the goose and returns to the other side of
the stream with all safely across and not eaten!
80
Exercise5 minutes
  • You have a pile of 24 coins. 23 of them have the
    same weight. But one of them is heavier than the
    rest. You are given a scale but no weights. Your
    task is t identify the heavy coin in no more than
    three uses of the scale.

81
Exercise3 minutes
  • A conference room contains three separate
    wall-mounted spotlights - right, left and front
    of stage. Each is controlled by its own on-off
    switch. These three switches are numbered 1, 2
    and 3, but they are in a back-room which has no
    sight of the the spotlights or the conference
    room (and there are no reflections or shadows or
    mirrors, and you are alone). How do you identify
    each switch correctly - right, left, front - if
    you can only enter the back-room once

82
Exercise 5 minutes
  • Four men, one of whom was known to have committed
    murder, made the following statements to the
    police.
  • Arun Dave did itDave Tony did itGeorge I did
    not do itTony Dave lied when he said I did
    itIf only one of these four statements is true,
    who was the guilty man?

83
Exercise5 minutes
  • You are the treasurer in charge of the Royal
    mint, which produces a single type coin, the
    grote. There are ten machines producing grotes,
    one machine is producing grotes weighing one gram
    less than they should, each coin should weigh 10
    grams. You have a set of broken scales which can
    be fixed to provide one single weigh of a single
    amount (no weight changes are allowed). Using the
    scales once you must identify the single faulty
    machine.
  • How do you do it?

84
STEP 5
  • SELECT ALTERNATIVES/DECISION MAKING

85
Types
  • Strategic Decision
  • Business Decision
  • Operational Decision

86
ACTIVITY 5
  • List three personal decisions youve made in the
    last one or two years.
  • List three decisions you need to take in the next
    one year in your personal life.
  • Classify them into Strategic , Business and
    Operational

87
How are decisions madein organizations?
  • Decision making.
  • The process of choosing a course of action for
    dealing with a problem or opportunity.

88
DECISION MAKING
  • ENVIRONMENT
  • DECISION MAKING MODELS
  • DECISION MAKING REALITIES
  • AUTHORITIES IN DECISION MAKING
  • INFLUENCING FACTORS IN DECISION MAKING
  • 7 Cs

89
ENVIRONMENT
90
How are decisions madein organizations?
  • Decision environments include
  • Certain environments.
  • Risk environments.
  • Uncertain environments.

91
How are decisions madein organizations?
  • Certain environments.
  • Exist when information is sufficient to predict
    the results of each alternative in advance of
    implementation.
  • Certainty is the ideal problem solving and
    decision making environment.

92
How are decisions madein organizations?
  • Risk environments.
  • Exist when decision makers lack complete
    certainty regarding the outcomes of various
    courses of action, but they can assign
    probabilities of occurrence.
  • Probabilities can be assigned through objective
    statistical procedures or personal intuition.

93
How are decisions madein organizations?
  • Uncertain environments.
  • Exist when managers have so little information
    that they cannot even assign probabilities to
    various alternatives and possible outcomes.
  • Uncertainty forces decision makers to rely on
    individual and group creativity to succeed in
    problem solving.

94
How are decisions madein organizations?
  • Uncertain environments cont.
  • Also characterized by rapidly changing
  • External conditions.
  • Information technology requirements.
  • Personnel influencing problem and choice
    definitions.
  • These rapid changes are also called organized
    anarchy.

95
DECISION MAKING MODELS
96
  • Classical decision theory
  • Behavioural decision theory

97
What are the usefuldecision making models?
  • Classical decision theory.
  • Views the decision maker as acting in a world of
    complete certainty.
  • Behavioral decision theory.
  • Accepts a world with bounded rationality and
    views the decision maker as acting only in terms
    of what he/she perceives about a given situation.

98
What are the usefuldecision making models?
  • Behavioral decision theory.
  • Recognizes that human beings operate with
  • Cognitive limitations.
  • Bounded rationality.
  • The behavioral decision maker
  • Faces a problem that is not clearly defined.
  • Has limited knowledge of possible action
    alternatives and their consequences.
  • Chooses a satisfactory alternative.

99
What are the usefuldecision making models?
  • Classical decision theory.
  • The classical decision maker
  • Faces a clearly defined problem.
  • Knows all possible action alternatives and their
    consequences.
  • Chooses the optimum alternative.
  • Is often used as a model of how managers should
    make decisions.

100
What are the usefuldecision making models?
  • Classical decision theory
  • May not fit well in a chaotic world.
  • Can be used toward the bottom of many firms, even
    most high-tech firms.
  • Behavioral decision theory
  • Fits with a chaotic world of uncertain conditions
    and limited information.
  • Encourages satisficing decision making.

101
LUNCH1.00 PM 2.00 PM
102
DECISION MAKING REALITIES
103
Decision making realities
  • Most decision making in organizations goes beyond
    step-by-step rational choice.
  • Most decision making in organizations falls
    somewhere between the highly rational and the
    highly chaotic.
  • Decisions must be made under risk and uncertainty.

104
Decision making realities
  • Decisions must be made to solve non-routine
    problems.
  • Decisions must be made under time pressures and
    information limitations.
  • Decisions should be ethical.

105
How do intuition, judgment, and creativity affect
decision making?
  • Intuition.
  • The ability to know or recognize quickly and
    readily the possibilities of a given situation.
  • A key element of decision making under risk and
    uncertainty.

106
How do intuition, judgment, and creativity affect
decision making?
  • Judgment
  • Simplifying strategies or rules of thumb used
    to make decisions.
  • Makes it easier to to deal with uncertainty and
    limited information.
  • Can lead to systematic errors that affect the
    quality and/or ethics of decisions.

107
ACTIVITY 62.30 PM 2.45 PM
108
ACTIVITY 6
  • Imagine that you are driving across country to an
    important meeting that will start in an hours
    time, along a route you have travelled several
    times before. You are thirty miles from your
    destination and the road is clear ahead of you.
    You see a signpost pointing up to a narrow side
    road that you have not noticed on earlier
    journeys. It indicates 20 miles to your
    destination.

109
ACTIVITY 6
  1. Would you turn into the side road without further
    thoughts?
  2. Ignore the side road and continue on your
    existing route?
  3. Stop the vehicle, consult a map and then decide
    whether to drive up the side road? Why?

110
AUTHORITIES IN DECISION MAKING
111
AUTHORITY IN DECISION MAKING
  • Deciding who should participate.
  • Authority decisions.
  • Made by the manager or team leader without
    involving other people and by using information
    that he/she possesses.
  • Consultative decisions.
  • Made by one individual after seeking input from
    group members.
  • Group decisions.
  • Made by all members of the group.

112
ACTIVITY 73.00PM 3.15 PM
113
ACTIVITY
  • Give three examples of decisions that you would
    refer to a senior manager in your organisation.
  • Do these decisions have anything in common?

114
TEA3.15 PM 3.30 PM
115
INFLUENCING FACTORS IN DECISION MAKING
116
  • Technology
  • Culture
  • Ethics

117
How do technology, culture, and ethics influence
decision making?
  • Increasingly complex problems and opportunities
    face decision makers in organizations due to
    various workplace trends.
  • These workplace trends are changing the who,
    when, where, and how of decision making.

118
How do technology, culture, and ethics influence
decision making?
  • Information technology and decision making.
  • Artificial intelligence.
  • The study of how computers can be programmed to
    think like human beings.
  • Will allow computers to displace many decision
    makers.
  • Expert systems that support decision making by
    following either-or rules to make deductions.

119
How do technology, culture, and ethics influence
decision making?
  • Information technology and decision making
    cont.
  • Fuzzy logic and neural networks that reason
    inductively.
  • Computer support for decision making.
  • The Internet.
  • Company intranets.
  • Decision support software to facilitate virtual
    teamwork.

120
How do technology, culture, and ethics influence
decision making?
  • Cultural factors and decision making.
  • Culture is the way in which a group of people
    solves problems.
  • North American culture stresses decisiveness,
    speed, and the individual selection of
    alternatives.
  • Other cultures place less emphasis on individual
    choice than on developing implementations that
    work.
  • The most important impact of culture on decision
    making concerns which issues are elevated to the
    status of problems solvable with the firm.

121
How do technology, culture, and ethics influence
decision making?
  • Ethical issues and decision making.
  • Ethical dilemma.
  • A situation in which a person must decide whether
    or not to do something that, although personally
    or organizationally beneficial, may be considered
    unethical and perhaps illegal.
  • Ethical dilemmas are often associated with
  • Risk and uncertainty.
  • Nonroutine problem situations.

122
How do technology, culture, and ethics influence
decision making?
  • Ethical decision-making checklist.
  • Is my action legal?
  • Is it right?
  • Is it beneficial?
  • How would I feel if my family found out about
    this?
  • How would I feel if my decision were printed in
    the local newspaper?

123
How do technology, culture, and ethics influence
decision making?
  • Suggestions for integrating ethical decision
    making into the firm.
  • Develop a code of ethics and follow it.
  • Establish procedures for reporting violations.
  • Involve employees in identifying ethical issues.
  • Monitor ethical performance.
  • Reward ethical behavior.
  • Publicize ethical efforts.

124
How do technology, culture, and ethics influence
decision making?
  • Implications of ethics for decision making.
  • Morality is involved in
  • Choosing problems.
  • Deciding who should be involved in making
    decisions.
  • Estimating the impacts of decision alternatives.
  • Selecting an alternative for implementation.
  • Moral conduct does not arise from after-the-fact
    embarrassment.

125
ACTIVITY 84.00 PM 4.15 PM
126
ACTIVITY 8
  • One of the best performing employees under you
    was caught carrying one stapler belonging to the
    company at the gate.

127
6 Cs OF DECISION MAKING
128
Six C's of Decision Making
  • Construct
  • Compile.
  • Collect.
  • Compare.
  • Consider.
  • Commit.

129
Decision Making (Six C's)
  • Construct a clear picture of precisely what must
    be decided.
  • Compile a list of requirements that must be met.
  • Collect information on alternatives that meet the
    requirements.

130
Decision Making (Six C's)
  • Compare alternatives that meet the requirements.
  • Consider the "what might go wrong" factor with
    each alternative.
  • Commit to a decision and stick to it.

131
Inherent Personal Traps
  • Trying too hard to play it safe.
  • Letting fears and biases tilt your thinking and
    analysis.
  • Getting lost in the minutia.
  • Craving unanimous approval.
  • Trying to make decisions which are outside your
    realm of authority.

132
Inherent System Traps
  • Willing to begin with too little, inaccurate, or
    wrong information.
  • Overlooking viable alternatives or wasting time
    considering alternatives which have no realistic
    prospects.
  • Not following the six C's.
  • Failing to clearly define the results you expect
    to achieve.
  • Worst of all, failing to reach a decision.

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FINANCIAL TOOLS FOR EVALUATING ALTERNATIVES
  • ROI
  • Payback
  • Net present value
  • Internal rate of return
  • Breakeven analysis
  • Sensitivity analysis

134
ACTIVITY 9
135
ACTIVITY
  • List four or five decisions you made at work/home
    regardless of their size or importance . For
    each decision, consider whether you really needed
    to make it or whether the decision could have
    been handled in some other way. Perhaps it could
    have been dealt with by someone else. Or perhaps
    there was not a decision to make at all.

136
STEP 6
  • IMPLEMENT

137
IMPLEMENT
  • Communicate
  • Train
  • Execute
  • Review

138
  • PLAN
  • DO
  • CHECK
  • ACT
  • PDCA CYCLE

139
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