Chapter 5: Managerial Problem Solving and Decision Making

Problem Identification

-Process emphasizes the detailed analysis of the problem BEFORE discussion of solutions and a systematic evaluation of alternatives. - A problem exists when there is a discrepancy between what one would like to happen and what is actually happening.

Organizations usually establish performance indicators in what four categories?

1). Cost effectiveness 2). Staff Productivity 3). Process Efficiency 4). Cycle Time

What are the 5 LEAN Techniques

1). Identify value 2). Map the value steam 3). Create Flow 4). Establish Pull 5). Seek perfection

What are the steps of the Shewhart Cycle (PDCA)

1). Plan 2)Set 3). Check 4). Act

Steps in Problem Solving

1). Problem Identification 2). Problem Analysis 3). Criteria Establishment 4). Alternative Development and Decision making 5). Problem Solution

What are the five workplaces practices?

1). Sort 2). Set ( Simplify) 3). Shine 4). Standardize 5). Sustain ( or Self- discipline)

What are the 4 Criteria Establishments?

1). What the decision has to accomplish 2). What minimum goals must be attained 3). What objective(s) the decision has to read 4). What condition it has to satisfy.

Steps in Problem Solving

Problems can be structured or unstructured -Problem Identification -Problem Analysis - Criteria Establishment - Alternative Development and Decision Making - Problem Solution Feedback

Define Decision Making?

Process by which managers respond to opportunities and threats by analyzing options and making decisions about goals and course of action.

Occurs when managers are overly cautious or prudent in forecasting?

Prudence Trap- Adjusting forecasts or estimates " just to be on the safe side".

What is the Shewhart Cycle of Management ?

SPC Aids in making scientific, efficient, economical decisions

Consultative

Suggestions and ideas from the team members are obtained; however, the decision made may or may not reflect their input.

T or F? When faced with high-stakes decisions, managers tend to adjust their estimates or forecasts "just to be on the safe side."

TRUE!

Define plan?

Team identifies the real problem and spends time defining and analyzing the nature of the problem

Delegation

The decision or problem is turned over to the group without the involvement of the manager/leader.

Sunk-Cost Trap?

The escalation of commitment because of an individual's past decisions -Manager is on a certain course and does not want to turn back, even though goals may no longer be valid -Admits mistakes in choices and changing course.

Define Decision making?

The process of choosing among several alternative. -may or may not be the result of an immediate problem, but is usually very goal directed

Define Problem Solving

The process of identifying and defining the problem; determining what happened to cause it, and what steps or possible solution will be necessary to solve.

How can managers avoid the status-quo trap?

They avoid this by thinking about their objectives and goals when preparing to make a decision

How would managers try to avoid the confirming evidence trap?

They should have someone play devils advocate, or build counterarguments against themselves.

What is Problem Analysis?

This step in the procedure is a matter of evaluating the data that has been collected in step one and the sources from which that data comes

T or F- A frame can establish the status-quo, introduce an anchor, lead a manager to justify past actions, or highlight confirming evidence.

True

T or F- The idea of brainstorming is to generate, clarify, and evaluate a sizable list of ideas, problems, or issues.

True

True or False ? PMI stands for plus/minus/interesting

True

True or False- Each alternative can be ranked based on its advantages and disadvantages, weaknesses and strength, and how well it meets the objectives.

True

T or F - LEAN is a descriptive process that uses less of everything—space, time, investment in equipment, inventory, and staffing resources

True!

T or F- Feedback must be built into the decision to provide a continuous testing against the actual experience and the expectations that underlie the decision.

True!

Visual Workplace

Visual cues reduce the amount of wasted time that is spent searching, looking, and waiting

Anchoring Trap?

When information is given UP FRONT that later affects the decision that is made. -The mind gives disproportionate weight to the first information it receives. -Impression, estimates, or other data anchor subsequent thoughts and judgments

Cause-and-effect?

diagrams are used to display the relationships between a given effect and its potential causes.

Cost-Benefit Analysis

refers to the several approaches for determining and comparing the forward looking, incremental costs, benefits, and values of solution alternatives.

Continual process of improvement?

to deliver quality patient laboratory results, at the lowest cost, within the shortest time frame while maintaining client satisfaction

Define Six Sigma DMAIC Methodology

-Data-driven quality strategy for improving processes -Roadmap for problem solving and product/process improvement.

Standard Work Chart/ Spaghetti Diagram

-Describes the actual activities, distance from the last step, estimated task time, observations, and return rate -Tracking, on paper, the path of the person or persons performing the process tasks

Confirming-Evidence Trap?

Mental bias that leads managers to seek out information to support their existing point view while avoiding information that contradicts it.

Define work cell specimen processing

Physical or logical layout of all testing and processing equipment, technicians, machines, and materials through which a specimen flows

Define Step 4: Act

- Implement: standardize and document all actions with the intention of making thechanges permanent -Monitor: ensure that the root cause does not reoccur and to examine other opportunities for improvement

what are the four tactics that are essential to removing thewaste and establishing a LEAN laboratory?

- Value stream mapping -5s Workplace organization -Visual workplace -Work cell specimen processing

Define Step 3: Check

-Data is collected and analyzed, results studied to see if the process was improved -Team members can evaluate and examine any variables present in the process -Collect new data and compare against old data

What does work Cell Specimen Processing do?

Minimizes movement, reduce batch sizes, decrease set-up time for testing, improve lab safety, and standardize work processes with visual cues

Structured problems?

More routine and recurring problem, and involves almost automatic process. Have high degree of certainty in regards to outcome.

Unstructured Problems

Non-routine, non recurrent and have an uncertain outcome in and require new and unique solutions

Fishbone/ Honeycomb

A diagram that systematically analyzes cause and effect relationships and identifies potential root causes of a problem.

How to avoid the framing trap?

A manager should find ways to restate the problem or situation presented to them in their way, and take the opportunity to see it from different sides in order to envision various outcomes

Fish bone Diagram

A pictorial list of the factors with branches representing the main categories of potential causes of problems.

Pareto Chart

A type of scatter diagram that helps to identify major factors and distinguish betweenthe "vital few" causes and the potentially less significant ones. They are used to rank order causes from most to least significant.

Define Benchmarking?

An organization can determine a measure of its processes against those of recognized leaders in the field, and how it measures up to the standard set by those leaders

Decision Making Strategies & Tools

Benchmarking Brainstorming Scatter Diagrams Pareto Charts PMI (Plus/ Minus/ Interesting) Decision Trees Fish Bone/ Honeycomb Cause and Effect Cost-Benefit Analy

Autocratic

Decisions that are made without consulting with others.

Status-Quo Trap?

Decisions which involve the least change.

What does six sigma DMAIC stand for?

Define, measure, analyze, improve, control

Alternative Development and Decision Making ?

Defined as the appropriate solutions and alternatives developed.

Joint

Democratic style, involves sharing the of decision making in an attempt to reach consensus on a decision.

Value Stream Mapping?

Direct observation of the laboratory process and identification of where waste is found in the process Future-state " maps are developed to show how the operation would look , if staff only did that which was necessary to complete the work based on high-quality standards

LEAN?

Eliminating waste and improving flow

5S Workplace Organization?

Emphasizes the maintenance of an orderly workplace.

T or F- Managers do not see too narrow of a range of possibilities?

FALSE!- Manager set too narrow of a range of possibilities

Six Sigma ?

Focused on reducing variation and improving process capability

Define framing Trap?

How you view your choice or how you frame the questions around the problem

What is the Framing Trap?

How you view your choices or how you frame the questions around the problem?

Define Step 2: Do

Individuals responsible for implementation need to know what the goal of this change is, how they impact the implementation process, and receive training in the process. - Planned using a small-scale test , Then test the hypothesis

Recallability Trap

Managers get caught up in the past and predict the future based upon past experiences which left a strong impression.