Management Tools

1. Chapter 17 Management Tools Wenning Chen

2. What Gets Measured THEOREM: Is What Gets Done

3. Tools • Why, Why • Forced Field Analysis • Normal Group Technique • Affinity Diagram • Interrelationship Digraph • Tree Diagram • Matrix Diagram (eg: QFD) • Prioritization Matrices • Process Decision Program Chart • Activity Network Diagram

4. Which Stage Do You Belong To? O = “I’ve Never Heard of These Management Tools Before” 1 = “I’ve Heard of them, But Could Not Explain them To Others” 2 = “I’ve Seen people Used them and Could Explain them To Others” 3 = “I’ve Used Them Myself” 4 = “I Can and Have Taught These”

5. Practice Tools Methods Systems Principles We Are Here!

6. 1# Why, Why • Although this is very simple, it is effective. • The procedure is to describe the problem in specific terms and then ask why. • The goal is to obtain the root cause.

7. Why, Why (Cont.) • Example: (A company missed delivery date 3 times in one week.) • Why did we miss the delivery date? • It wasn’t scheduled in time. • Why? • There are a lot of engineering changes. • Why? • Customer requested them. • Root cause: customer needs. • Solution: change the delivery date whenever engineering changes occurred due to customer needs.

8. 2# Forced Field Analysis • This analysis is used to identify the forces and factors that may influence the problem or goal. • It helps an organization to better understand driving and restraining forces so that the positives can be reinforced and the negatives can be reduced or eliminated.

9. FORCE FIELD ANALYSIS Driving Forces Restraining Forces Forced Field Analysis (Cont.) • Procedure • Understand current situation. • Define a goal. • Identify all driving forces which support the implement of the goal. Even if a force has relative lower impact on the goal achievement, it should not be omitted. • Identify all restraining forces which inhibit the positive movements in the whole process. The rule of thumb is to find as many forces as you can regardless their contribute to the change.

10. FORCE FIELD ANALYSIS Driving Forces Restraining Forces Forced Field Analysis (Cont.) • Procedure (Cont.) • List driving forces in the left column, list restraining forces in the right column. • Assign a score to each force based on its level of influence of the goal. For instance: From 1 (extremely weak) to 5 (extremely strong). Computer a sum of each column. • Assess whether goal or change is feasible or not. • If the conclusion is feasible, then develop a plan to accomplish the goal through increasing the strength of driving forces or decreasing the strength of the restraining forces. If possible, create new driving forces factors to strengthen the positive affect.

11. Forced Field Analysis (Cont.) Example: A manager in a manufacture plant is trying to decide whether the company should install new equipment or not. 1 (very weak influence), 5 (very strong influence)

12. Forced Field Analysis (Cont.) • Conclusion of the example based on the score (14:13 ): the plan of new equipment installation is feasible. • Possible solution for improving the plan: • New technique operation training (which will increase cost in restraining force column by 1 point and reduce the feeling uncomfortable item 3 points.) • Introducing new technology through employee meeting, listening to employees, and answering their questions about new equipment. (It can reduce 1 point from restraining column.) • Raising wage for those stuff who will have to use extra time to master new skill. (This can reduce 2 points from employee turnover item.) • As a result, those strategies swing the equilibrium from 14:13 to 14: 8, which indicate the possibility of success in this plan increased greatly.

13. 3# Normal Group Technique • This technique provides for issue/idea input from everyone on the team and for effective decisions.

14. Normal Group Technique (Cont.) • Procedure • Generating Ideas: Each individual in the group generates ideas and writes them down. • Recording Ideas: Group members engage in a round-robin feedback session to concisely record each idea. • Discussing Ideas: Each recorded idea is then discussed to obtain clarification and evaluation. • Voting on Ideas: Individuals vote privately on the priority of ideas, and the group decision is made based on these ratings.

15. Normal Group Technique (Cont.) • Example: what kind of final test should students have?(Don’t be serious, just for fun:)

16. 4# Affinity Diagram • Definition • A group decision-making technique designed to sort a large number of ideas, process variables, concepts, and opinions into naturally related groups. These groups are connected by a simple concept.

17. Affinity Diagram (Cont.) • When to Use • When you are confronted with many facts or ideas in apparent chaos. • When issues seem too large and complex to handle. • When group consensus is necessary.

18. Affinity Diagram (Cont.) • Procedure + Example Step 1. Describe the problem or issue. Customer service is substandard. Step 2. Generate ideas by brainstorming. Write each idea on a separate sticky note and put these on a wall or flip chart.

20. Affinity Diagram (Cont.) Step 3.Sort ideas into natural themes by asking: • What ideas are similar? • Is this idea connected to any of the others? If you’re working in a team: • Separate into smaller groups of 3 to 4 people • Sort the ideas IN SILENCE so that no one is influenced by anyone else’s comments • Keep moving the cards around until consensus is reached

21. Affinity Diagram (Cont.) Step 4. Create total group consensus • Discuss the shared meaning of each of the sorted groups • Continue until consensus is reached • If some ideas do not fit into any theme, separate them as “stand-alone” ideas • If some ideas fit into more than one theme, create a duplicate card and put it in the proper group • Try to limit the total number of themes to between five and nine

23. Affinity Diagram (Cont.) Step 5. Create theme cards (also called affinity cards or header cards) • Create a short 3-5 word description for the relationship • Write this theme/header on a blank card and place at the top of the group it describes • Create a “super-headers” where necessary to group themes • Use a “sub-header” card where necessary as well

24. Affinity Diagram (Cont.) Step 6. Continue to group the themes/headers until you have reached the broadest, but still meaningful, categories. • Draw lines connecting the super-headers, themes/headers, and sub-headers. • You’ll end up with a hierarchical structure that shows, where the relationships are.

26. 5# Interrelationship Diagraph • The interrelationship digraph allows a team to systematically identify, analyze and classify the cause and effect relationships that exist among all critical issues so that keydrivers or outcomes can become the heart of an effective solution.

27. Interrelationship Diagraph (Cont.) • Procedure & Example: • Step 1: Agree on the issue/problem statement.Example: What are the issues related to reducing litter? • Step 2: Assemble the right team. Interrelationship diagraph requires more intimate knowledge of the subject under discussion than is needed for the Affinity diagram. This is important if the final cause and effect patterns are to be credible. The ideal team size is generally four to six people.

28. Interrelationship Diagraph (Cont.) • Procedure (Cont.): • Step 3: Lay out all of the ideas/issue cards that have either been brought from other tools or brainstormed.

29. Interrelationship Diagraph (Cont.) • Procedure (Cont.): • Step 4: Look for cause/influence relationships between all of the ideas and draw relationship arrows. Choose any of the ideas as a starting point. Ask of each combination: • Is there a cause/influence relationship? • If yes, which direction of cause/influence is stronger?

30. Interrelationship Diagraph (Cont.)

31. Interrelationship Diagraph (Cont.) • Procedure (Cont.): • Step 5: Tally the number of outgoing and incoming arrows and select key items for further planning. Record and clearly mark next to each issue the number of arrows going in and out of it. Find the items with the highest number of outgoing arrows and the items with the highest number of incoming arrows.

32. Interrelationship Diagraph (Cont.)

33. Interrelationship Diagraph (Cont.) • Procedure (Cont.): • Outgoing Arrows A high number of outgoing arrows indicates an item that is a root cause or driver. • Incoming Arrows A high number of incoming arrows indicates an item that is a key outcome.

34. 6# Tree Diagram • The tree diagram starts with one item that branches into two or more, each of which branch into two or more, and so on. It looks like a tree, with trunk and multiple branches. • It is used to break down broad categories into finer and finer levels of detail. Developing the tree diagram helps you move your thinking step by step from generalities to specifics.

35. 6# Tree Diagram • Example: Assume we are hotel restaurant managers. We want to use tree diagram to find out what affect the satisfaction of our customers. # Good food # # Satisfied customers # # # # #

36. 6# Tree Diagram • To test the result, a selection of customers will be asked to review the diagram, and it will be revised accordingly.

37. 6# Tree Diagram

38. What's One Thing You Will Apply By Next Week?

39. Thank you!