Quality Management for Organizational Excellence Lecture/Presentation NotesSixteen: Problem Solving and Decision MakingSixteen: Problem Solving and Decision Making (Continued)Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.1Quality Managementfor Organizational ExcellenceLecture/Presentation NotesBy:Dr. David L. Goetsch and Stanley DavisBased on the book Quality Management for Organizational Excellence (Sixth Edition)2Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision MakingMAJOR TOPICSProblem Solving for Total QualityTwo Models for Solving and Preventing ProblemsSolving and Preventing ProblemsProblem-Solving and Decision-Making toolsDecision-Making for Total QualityThe Decision-Making Process3Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Objective versus Subjective Decision-MakingScientific Decision-Making and Problem SolvingEmployee Involvement in Decision-MakingRole of Information in Decision-MakingUsing Management Information Systems (MIS)Creativity in Decision-MakingMajor Topics Continued4Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Decision Making is the process of selecting one course of action from among two or more alternatives. Decisions should be evaluated not just by results but also by the process used to make them.A problem is a situation in which what exists does not match what is desired or, put another way, the discrepancy between the current and the desired state of affairs. Problem solving in a total quality setting is not about putting out fires. It is about continual improvement. Two effective problem-solving models are the Deming Cycle and the Toyota Practical Problem-Solving Process.5Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Securing reliable information is an important part of problem solving and decision making. W. Edward Deming recommends the use of the following tools: Cause-and-effect diagramsFlowchartsPareto chartsRun chartsHistogramsControl chartsScatter diagrams6Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)The decision-making process is a logically sequenced series of activities through which decisions are made. These activities include identifying or anticipating the problem; gathering relevant facts; considering alternative solutions; choosing the best alternative; and implementing, monitoring, and adjusting. All approaches to decision making are objective, subjective, or a combination of the two.7Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Scientific decision-making means making decisions based on data rather than on hunches. Complexity in scientific decision making means nonproductive, unnecessary work that results when organizations try to improve processes in a haphazard, nonscientific way. The different types of complexity include errors and defaults, breakdowns and delays, inefficiencies, and variation.8Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)There are advantages and disadvantages to employee involvement. Techniques to enhance group decision-making are brainstorming, NGT, and quality circles. Managers should be prepared to counteract groupshift and groupthink.9Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Information is data that have been converted into a usable format that is relevant to the decision-making process. Decision makers are receivers of information who base decisions in whole or in part on what they receive. Technological developments have introduced the potential for information overload, or the condition that exists when people receive more information than they can process in a timely manner.10Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)A management information system (MIS) is a system used to collect, store, process, and present information. Such a system has three components: hardware, software, and people. A management information system can do an outstanding job of providing information about predictable and routine matters. However, many decisions that managers have to make concern problems that are not predictable for which no data are tracked.11Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Creativity is an approach to problem solving and decision-making that is imaginative, original, and innovative. The creative process proceeds in four stages: PreparationIncubationInsightVerification.12Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Sixteen:Problem Solving and Decision Making(Continued)Factors that inhibit creativity include:Looking for just one right answerBeing too logicalAvoiding ambiguityAvoiding riskForgetting how to playFearing rejectionSaying “I’m not creative.” ●Three strategies for helping people think creatively are Idea vendingListeningIdea
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