SEVEN NEW MANAGEMENTTOOLS AND PLANNING

REPORTED BY: JOSE JOHN F. MENDEZ

PHED 556 EDUCATIONAL PLANNINGAND DECISION MAKING

In 1976, the union of Japanese Scientist and Engineers (JUSE) saw the needs for tools to promote innovation, communicate information and sucessfully plan the major projects.

1. Affinity Diagram

• Affinity means likeness based on relationship or casual connection (Merriam and Webster)

• Also called: affinity chart, K–J method Variation: thematic analysis

• Organizes a large number of ideas into their natural relationships.

USES:

• When you are confronted with many facts or ideas in apparent chaos

• When issues seem too large and complex to grasp

• When group consensus is necessaryTypical situations are:• After a brainstorming exercise• When analyzing verbal data, such as

survey results.

MATERIALS

• sticky notes or cards, • marking pens, • large work surface (wall, table,

or floor).

PROCEDURE

1. During a brainstorming session, write directly onto sticky notes or cards if you suspect you will be following the brainstorm with an affinity diagram.

2. Look for ideas that seem to be related in some way. Place them side by side.

It is very important that no one talk during this step.

3.You can talk now. Participants can discuss the shape of the chart, any surprising patterns, and especially reasons for moving controversial notes.

4.Combine groups into “supergroups” if appropriate.

Brainstorming for Affinity Diagram Example

Affinity Diagram Example

2. RELATIONS DIAGRAM

• shows cause-and-effect relationships and helps you analyze the natural links between different aspects of a complex situation.

• Also called: interrelationship diagram or digraph, network diagram

•When trying to understand links between ideas or cause–and–effect relationships, such as when trying to identify an area of greatest impact for improvement.•When a complex issue is being analyzed for causes.•When a complex solution is being implemented.•After generating an affinity diagram, cause–and–effect diagram or tree diagram, to more completely explore the relations of ideas.

MATERIALS• Sticky notes or cards,

• large paper surface (newsprint or two flipchart pages taped together),

•marking pens,

• tape.

PROCEDURES

1. Write a statement defining the issue that the relations diagram will explore.

2. Brainstorm ideas about the issue and write them on cards or notes.

3. Place one idea at a time on the work surface and ask: “Is this idea related to any others?” Place ideas that are related near the first.

4. For each idea, ask, “Does this idea cause or influence any other idea?” Draw arrows from each idea

5. Analyze the diagram:

RELATIONSHIP DIAGRAM EXAMPLE

3. TREE DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

-breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.-Also called: systematic diagram, tree analysis, analytical tree, hierarchy diagram

 

USES

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

-When an issue is known or being addressed in broad generalities and you must move to specific details, such as -when developing logical steps to achieve an objective.When developing actions to carry out a solution or other plan.-When analyzing processes in detail.-When probing for the root cause of a problem.-When evaluating implementation issues for several potential solutions.-After an affinity diagram or relations diagram has uncovered key issues.-As a communication tool, to explain details to others.

 

PROCEDURE1. Develop a statement of the goal, project,

plan, problem or whatever is being studied. Write it at the top

2. Ask a question that will lead you to the next level of detail.

3. Do a “necessary and sufficient” check. Are all the items at this level necessary for the one on the level above?

4. Each of the new idea statements now becomes the subject: a goal, objective or problem statement.

5. Continue to turn each new idea into a subject statement and ask the question.

Tree Diagram Example

4. MATRIX DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

- shows the relationship between two, three or four groups of information and can give information about the relationship, such as its strength, the roles played by various individuals, or measurements.

- Also called: matrix, matrix chart- Six differently shaped matrices are possible: L, T,

Y, X, C and roof–shaped, depending on how many groups must be compared.

 

USES OF EACH MATRIX DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

An L–shaped matrix relates two groups of items to each other (or one group to itself).A T–shaped matrix relates three groups of items: groups B and C are each related to A. Groups B and C are not related to each other.A Y–shaped matrix relates three groups of items. Each group is related to the other two in a circular fashion.A C–shaped matrix relates three groups of items all together simultaneously, in 3-D.An X–shaped matrix relates four groups of items. Each group is related to two others in a circular fashion.A roof–shaped matrix relates one group of items to itself. It is usually used along with an L – or T–shaped matrix.

 

L

L-SHAPED MATRIX

DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

 Customer

DCustomer

MCustomer

RCustomer

T

Purity % > 99.2 > 99.2 > 99.4 > 99.0

Trace metals (ppm) < 5 — < 10 < 25

Water (ppm) < 10 < 5 < 10 —

Viscosity (cp) 20-35 20-30 10-50 15-35

Color < 10 < 10 < 15 < 10

Drum      

Truck     

Railcar      

 Customer Requirements

T

T-SHAPED MATRIX

DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. Customer Requirements

Y

Y-SHAPED MATRIX

DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. Customer Requirements

C

C-SHAPED MATRIX

DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. Customer Requirements

X

X-SHAPED MATRIX

DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. Customer Requirements

ROOF-SHAPED MATRIX

DIAGRAM

•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. Customer Requirements

5. MATRIX DATA ANALYSIS•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

 Customer Requirements

a complex mathematical technique for analyzing matrices, often replaced in this list by the similar prioritization matrix. One of the most rigorous, careful and time-consuming of decision-making tools, a prioritization matrix is an L-shaped matrix that uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s).

 

6. ARROW DIAGRAM•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

 Customer Requirements

- shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions.

- Also called: activity network diagram, network diagram, activity chart, node diagram, CPM (critical path method) chart

- The arrow diagram shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions. The arrow diagram lets you calculate the “critical path” of the project.

 

 

USES•breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

 Customer Requirements

- When scheduling and monitoring tasks within a complex project or process with interrelated tasks and resources.

-When you know the steps of the project or process, their sequence and how long each step takes, and.

-When project schedule is critical, with serious consequences for completing the project late or significant advantage to completing the project early.

 

 

MATERIALS:Sticky notes or cards,

marking pens,

large writing surface (newsprint or flipchart pages)

PROCEDURE

1. List all the necessary tasks in the project or process.

2. Determine the correct sequence of the tasks. Do this by asking three questions for each task.

3. Diagram the network of tasks.

4. Between each two tasks, draw circles for “events.”

5. Look for three common problem situations and redraw them using “dummies” or extra events:

PDPC

Systematically identifies what might go wrong in a plan under development. Countermeasures are developed to prevent or offset those problems. By using PDPC, you can either revise the plan to avoid the problems or be ready with the best response when a problem occurs.

6. PROCESS DECISION PROGRAM CHART (PDPC)

- Before implementing a plan, especially when the plan is large and complex.- When the plan must be completed on schedule.- When the price of failure is high.

USES

PROCEDURE

1. Obtain or develop a tree diagram of the proposed plan.

2. For each task on the third level, brainstorm what could go wrong.

3. Review all the potential problems and eliminate any that are improbable or whose consequences would be insignificant.

4. For each potential problem, brainstorm possible countermeasures.

5. Decide how practical each countermeasure is

PDPC CHART EXAMPLE

PPBS

PLANNING PROGRAMMING

BUDGETING SYSTEM

PPBS

a management tool to provide a better analytical basis for decisionmaking and for putting such decisions into operation. A PPBS is constituted, basically, of five elements: (1) a program structure — a classification of the courses of action open to an organization for attaining its objectives; (2) an approved program document that includes precise, quantitative data on needs, resource inputs, and program outputs extending a number of years into the future; (3) a decisionmaking process that establishes the functions, rules, and timetables for the actions required by the PPBS; (4) an analysis process for measuring effectiveness and for weighing alternatives; and (5) an information system that supplies the data required to implement the system.

PPBS is a system which integrates the functions of planning, programming, budgeting and evaluation. The PPB System is designed so that there is a logical sequence to these functions and their interrelationships are explicitly defined. The most outstanding feature of PPBS is the necessity of focusing very sharply on what should be accomplished by an organization.

The PPBS is a formal, systematic structure for making decisions on policy, strategy, and the development of forces and capabilities to accomplish anticipated missions.  The PPBS is a cyclic process containing three distinct but interrelated phases

PPBS are about how resources are going to be achieve the various objectives of the organization for example, the care of the elderly, once the objectives have been established programs are identified to meet those objectives and the cost/benefits of alternative programs are assessed.

Planning, programming and budgeting system (PPBS) is a middle type of budget between the traditional character and object budget, on the one hand, and the performance budget on the other. The major contribution of PPBS lies in the planning process, i.e- the process of making program policy decisions that lead to a specific budget and specific multi-year plans.

PPBS in practice are both "time and labor" intensive but it does link fiscal discussion directly to the planning processes and program implementations processes of the institution. Effective PPBS systems rely on agreed upon goals and objectives for the institution and the unit and achievement of goals is directly related to funding.

LINEAR

PROGRAMMING

BASIC ASSUMPTION

useful method for analyzing and solving certain types of management decision problems.

proven to be an adept tool for solving problems encountered in a number of business, engineering, financial, and scientific applications. In a practical sense, typically encountered constrained optimization problems seldom have a simple rule-of-thumb solution.

BASIC ASSUMPTION

handles such constraint inequalities easily, making it a useful technique for finding theoptimal solution to many management decision problems.

linear programming can be applied only in situations in which the relevant objective function and constraint conditions are linear. Typical managerial decision problems that can be solved using the linear programming method involve revenue and cost functions and their composite, the profit function.

BASIC ASSUMPTION

REQUIRING LIMITED RESOURCES TO PRODUCE A NUMBER OF OUTPUT MIXES.

USES

Many practical problems in operations research can be expressed as linear programming problems. Certain special cases of linear programming, such as network flow problems and multicommodity flow problems are considered important enough to have generated much research on specialized algorithms for their solution. 

EXAMPLE

BREAK EVEN

ANALYSIS

CONCEPT

One of the common challenges in business planning is that one often has a better handle on predicting expenses than revenues.  It doesn’t mean you’re 100% sure about what your costs are going to be, but for many folks, when they start looking at sales, it’s a crap shoot.  As a result, many business plans tend to “make up” revenue numbers to show a profit, confident that they’ll somehow get there.  

CONCEPT

METHOD OF DETERMINING THE RELATIONSHIP BETWEEN TOTAL COST REVENUES AT VARIOUS LEVEL OF PRODUCTION OR SALES ACTIVITY.

TELLS THE MANAGER THE POINT AT WHICH IT IS PROFITABLE TO GO AHEAD WITH A NEW VENTURE.

USES

all you need are two numbers: estimated annual fixed costs (that one’s often pretty straightforward), and something called unit contribution.  Fixed costs reflect those expenses that you’ll incur regardless of sales levels.  It normally includes things like salaries and benefits, space, technology costs, accounting/legal/marketing, and so on.  Unit contribution, on the other hand, represents how much of each unit or dollar of sales you get to keep — after subtracting all variable costs required to produce that unit, typically accounted for as cost of goods sold.

USES

MANAGER USE THIS ANALYSIS BECAUSE BEFORE ADDING NEW PRODUCTS; EQUIPMENT OR HUMAN RESOURCES THEY WANT TO BE SURE THAT THE CHANGE WILL PAY OFF.

EXAMPLE

FOR LISTENING