Chapter 14 Seven New Management Tools
Group 6
Submitted to:
Mr. Bobby Testa MGT433 TTH 9:15-10:45 F506
Submitted by:
Chezee Let Camara Hanna Beau Martines Mk Kevin Blanco Stephanie Tui Kevin Von Lemen
Tool 5 . Process Decision Program Chart (PDPC)
The process decision program chart 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.
When to Use 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.
PDPC Procedure
1. Obtain or develop a tree diagram of the proposed plan. This should be a highlevel diagram showing the objective, a second level of main activities and a third level of broadly defined tasks to accomplish the main activities. 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. Show the problems as a fourth level linked to the tasks. 4. For each potential problem, brainstorm possible countermeasures. These might be actions or changes to the plan that would prevent the problem, or actions that would remedy it once it occurred. Show the countermeasures as a fifth level, outlined in clouds or jagged lines. 5. Decide how practical each countermeasure is. Use criteria such as cost, time required, ease of implementation and effectiveness. Mark impractical countermeasures with an X and practical ones with an O.
Example of PDPC
Tool 6. Activity Network Diagram
An Activity Network Diagram (AND) is also called an Arrow Diagram (because the pictorial display has arrows in it) or a PERT (Program Evaluation Review Technique) Diagram, and it is used for identifying time sequences of events which are pivotal to objectives. An Activity Network Diagram helps to find out the most efficient sequence of events needed to complete any project. It enables you to create a realistic project schedule by graphically showing: the total amount of time needed to complete the project the sequence in which tasks must be carried out which tasks can be carried out at the same time Which are the critical tasks that you need to keep an eye on.
Example of Activity Network Diagram A project is composed of a set of actions or tasks which usually have some kind of interdependency. For example, before an axle can be turned, it must first be designed, the metal must be purchased, etc. This type of complex system is much easier to understand through the use of diagrams than through textual description, as actual interconnections between tasks can be shown. You can draw the activity network diagram easily with Edraw software
The Activity Network diagram displays interdependencies between tasks through the use of boxes and arrows. Arrows pointing into a task box come from its predecessor tasks, which must be completed before the task can start. Arrows pointing out of a task box go to its successor tasks, which cannot start until at least this task is complete.
Tool 7. Prioritization Matrix
provides a way of sorting a diverse set of items into an order of importance. It also enables their relative importance to be identified by deriving a numerical value of the importance of each item. used during brainstorming to evaluate a number of issues based upon certain criteria and arrive at a prioritized list of items. It helps to consider the opinion of everyone in a brainstorming session, as well as give due weightage to various criteria and prioritize pressing problems over others. This helps determine which problems need to be solved first in order to meet project / organizational objectives.
People, Place and Purpose for using a Prioritization Matrix People: This represents the entire team or the problem solving project group which is trying to arrive at a consensus. Place: This represents the brainstorming session. Purpose: The purpose behind using the Prioritization Matrix is to identify which are the more pressing issues which need to be addressed first.
Steps Involved in creating a Prioritization Matrix
Brainstorm Identify the problems which need to be addressed. Create a list of problems to be discussed. Identify the key criteria on the basis of which these problems are to be evaluated. Also, determine the relative weightage given to each criteria. Draw the Prioritization Matrix Chart (as indicated in the sample given below) In the first column, lists down the problems which have been identified in the brainstorming session. From the 2nd column onwards, list down the criteria for evaluation along with their weightage (if any). Ranking the Problems Make all the participants rank each of the problems on a pre-determined scale against each of the evaluation criteria. Repeat this process if required obtaining multiple votes from each participant. Total the results Compute the total ranking for each problem. This helps obtain a prioritized list of problems to work upon.
Example The personnel department of a major manufacturer had a number of problems highlighted in a company motivation survey. They decided to work as a team on improving the survey score. To select aspects on which to focus, they decided to use a Prioritization Matrix with the top eight motivational problems and three selection criteria. The figure below shows the Prioritization Matrix. Pay and work overload, as the highest scoring motivational problems, were selected for carrying forward for further investigation. As a result of consequent work in the project, the pay structure for certain grades was revised and training on job scheduling was introduced. In the following year, the survey improved in these areas by 2 and 3 points, respectively.
Other examples
In a project to increase revenue, a sales team finds a direct correlation between the time spent in front of customers and sales totals. They identify multiple causes which prevent them from getting in front of the customer, and consequently use a Prioritization Matrix to help identify the causes which have the most effect on 'customer-facing' time. As this is a critical item, they employ the Full Analytical Criteria method and spend time gathering actual data for use in the matrix. An automobile manufacturer's stores manager uses a Prioritization Matrix to help decide which items to put closer to the store's counter. Criteria include 'weight' and 'request frequency'. A small taxi company wants to identify a way of deciding whether to accept calls. The owner and a group of his senior drivers brainstorm a list of possible criteria, writing them down on cards, then used a Bubble Sort to find the priority order, using the criteria of 'secure' and 'profitable'.
