Creative Problem Solving and Decision Making
Creative Problem Solving and Decision Making
Training Topics: Understanding the process of Creativity and Problem Solving Removing Blocks and Barriers to finding the best solution Looking at Problem Solving in 2 steps:
Problem Identification Problem Solving and Decision Making
SWOT Analysis
Pareto Principle Problem Re-statement (5 Whys) Problem Solving Brainstorming Cause and Effect Analysis
Learning Outcomes
After studying this chapter, you should be able to: Understand the link between problem solving and organizational success Recognize that problems are a normal part of organizational life and a sign of organizational health
Proactively apply problem finding to bring continuous improvement to the workplace To enable delegates to analyse a problem so that appropriate problem solving techniques may be applied
Because our minds cannot cope with the intricacies of complex problems, we settle for partial solutions, thus tending to oversimplify.
What is Problem-Solving?
The world is full of problems A Problem is: A situation in need of improvement A goal, intention, or desire A project or task An obstacle to be overcome
Analysis is the core element of efficient problem solving. However, human beings tend to avoid Analytic Structure as we are not taught those techniques at early ages.
What is Structuring?
Structuring is to analysis what a blueprint is to
Problem Exists whenever objectives are not being met. What is happening vs. what is wanted to happen Problem Solving The process of taking corrective action to meet objectives. Decision Making The process of selecting an alternative course of action that will solve a problem. First decision is whether to take corrective action.
Exhibit 41
Decision-Making Styles
Reflexive Style
Makes quick decisions without taking the time to get all the information that may be needed and without considering all the alternatives.
Reflective Style
Takes plenty of time to make decisions, gathering considerable information and analyzing several alternatives.
Consistent Style
Tends to make decisions without either rushing or wasting time.
Decision Structure
Programmed Decisions
Recurring or routine situations in which the decision maker should use decision rules or organizational policies and procedures to make the decision.
Nonprogrammed Decisions
Significant and nonrecurring and nonroutine situations in which the decision maker should use the decision-making model.
Programmed Decision: Nonsignificant, recurring, and routine (Shorter period of time to make decisions)
Exhibit 42
Decision-Making Conditions
Certainty Each alternatives outcome is known in advance. Risk Probabilities can be assigned to each outcome. Uncertainty Lack of information or knowledge makes the outcome of each alternative unpredictable such that no probabilities can be determined.
Decision-Making Models
Rational Model (Classical Model) The decision maker attempts to use optimizing, selecting the best possible alternative. The Bounded Rationality Model The decision maker uses satisficing, selecting the first alternative that meets the minimal criteria for solving the problem.
Exhibit 43
Potential Advantages
1. Better-quality decisions 2. More information, alternatives, creativity, and innovation 3. Better understanding of the decision 4. Greater commitment to the decision 5. Improved morale and motivation 6. Good training
Potential Disadvantages
1. Wasted time and slower 2. Satisficing 3. Domination and goal displacement 4. Conformity and groupthink
Exhibit 44
Exhibit 45
Exhibit 45 contd
Take some time before working on the problem again to gain additional insight.
Exhibit 47
Decision Tree
Exhibit 48
Control
Use checkpoints to determine whether the alternative is solving the problem. Avoid escalation of commitment to a bad alternative.
Source: Adapted from Victor H. Vroom, Leadership and the Decision-Making Process, Organizational Dynamics 28 (4), p. 87. Copyright 2000 with permission from Elsevier.
Exhibit 411a
Exhibit 411b
Development-Driven
Focus
Making effective decisions through maximum development of group members
Value
Orientation
When Is 5 Whys Most Useful? When problems involve human factors or interactions. In day-to-day business life; can be used within or without a Six Sigma project.
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.
5 Whys Examples
Problem Statement: You are on your way home from work and your car stops in the middle of the road. 1. Why did your car stop? - Because it ran out of gas. 2. Why did it run out of gas? - Because I didn't buy any gas on my way to work. 3. Why didn't you buy any gas this morning? - Because I didn't have any money. 4. Why didn't you have any money? - Because I lost it all last night in a poker game. 5. Why did you lose your money in last night's poker game? - Because I'm not very good at "bluffing" when I don't have a good hand.
In the examples the final Why leads the team to a statement (root cause) that the team can take action upon. It is much quicker to come up with a system that keeps the sales director updated on recent sales or teach a person to "bluff" a hand than it is to try to directly solve the stated problems above without further investigation
Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are usually grouped into major categories to identify these sources of variation
Description
The fishbone diagram identifies many possible causes for an effect or problem. It can be used to structure a brainstorming session. It immediately sorts ideas into useful categories.
Agree on a problem statement (effect). Write it at the center right of the flipchart or whiteboard. Draw a box around it and draw a horizontal arrow running to it. Brainstorm the major categories of causes of the problem. If this is difficult use generic headings: Methods Machines (equipment) People (manpower) Materials Measurement Environment
For example, under the heading Machines, the idea materials of construction shows four kinds of equipment and then several specific machine numbers. Note that some ideas appear in two different places. Calibration shows up under Methods as a factor in the analytical procedure, and also under Measurement as a cause of lab error. Iron tools can be considered a Methods problem when taking samples or a Manpower problem with maintenance personnel.
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group brainstorming sessions are usually enjoyable experiences, which are great for creating cohesion in a team