Techniques That solve Business problems Grid Analysis

1. Techniques That solve Business problemsGrid Analysis Presented By: Greg Winicki, Samuel Yeung, Carmen Visconti, Jordan Vosylius

2. What is a grid analysis? • Making a choice when many factors and alternatives need to be considered and assessed • It is the heart of the decision making process for alternatives • It’s a tool that allows specific decisions to be weighted • It contains a list of values in rows and columns that allows businesses to systematically identify, analyze, and rate the performance of decisions between sets of values

3. Grid analysis/decision matrix analysis A quick and easy example Concept B would be the better decision because it’s weighted score is the highest

4. Here’s a quick 2.5 minute video to explain further http://www.youtube.com/watch?v=WpLXbV0jm9c

5. How to create a Grid analysis • #1- List options on rows (i.e. laptop), list factors on columns (i.e. cost, memory) • #2- Work your way down the columns scoring each option by how well it fits the factor. Score criteria is 0-5 • #3- Work out relative importance of factors. Weighing factors from 0-5 • #4- Multiply the scores for each option by the relative importance of the factors • #5- Add weighted scores for each option. Highest score is the best decision

6. Grid Analysis in a real life scenario Windsurfer in need of a new car

7. Why do businesses need this tool • To evaluate and prioritize options • Help in making a definitive decision when lots of factors are present • Provide an explanation and reasoning behind a decision • Determine the direction of the business and understand what is important and what is not • To understand potential scenarios and analyze them further to arrive at a conclusion about a particular aspect of the business • Become more involved with thoughts and opinions of others • To collect data based on various criteria

8. When do businesses need this tool • When looking at large masses of decision factors • When there isn’t a clear and obvious preferred option • When businesses want to handle decisions confidently and rationally • When only one new product can be developed • When only one solution or problem-solving approach can be implemented • When one improvement opportunity or problem must be selected to work on

9. Using Grid analysis • Best used to summarize data that was collected • In some cases the un-weighted scores are tallied and both scores are studied to guide the business toward a decision • If different people assign different ratings to options a discussion should be encouraged to arrive at a consensus • Some guessing is involved with assigning ratings so the rating is only as good as the assumption • Option criteria usually fall under categories of effectiveness, feasibility, capability, time required, and support

10. Case work

11. Group work • Please work with your assigned group to arrive at a decision by using the grid analysis technique and the handouts

12. Benefitting from this technique • Takes into account all the possible options • Allows businesses to assess and make an informed decision according to the research and analysis that was done • Reduces the chances of businesses overlooking opportunities or risks • Helps businesses accurately decide on an option that is beneficial in all aspects

13. That’s all folks!!!!Thank-you!

14. Sources Used • "Decision Matrix." ASQ. American Society For Quality. Web. 13 Mar 2014. <http://asq.org/learn-about-quality/decision-making-tools/overview/decision-matrix.html>. • "Grid Analysis." Mindtools. Mind Tools Ltd., 21 Nov 2011. Web. 13 Mar 2014. <http://depts.washington.edu/oei/resources/toolsTemplates/grid_analysis.pdf>.