Business Operational Planning and Problem Solving Tools

Precursor: Basic Seven Problem Solving Techniques

Check sheet Pareto chart Cause-and-effect diagram Control charts Histogram Scatter diagram Stratification

Usage: New Seven Planning Tools and Basic Seven Problem Solving Tools

Overview: Seven Management Planning Tools

Were conceptualised by a JUSE Team. Roots in Operations Research work done after World War II Aid in planning and managing complex projects. Help teams to be more innovative and communicate information more effectively.

1. Affinity Diagram
Devised by Jiro Kawakita in the 1960s. Used to sort ideas and data. Commonly used as starting point in project management. Large numbers of ideas are sorted into groups for review and analysis. Typically after a brainstorming exercise

How: Affinity Diagram

Create a small but effective CFT Clarify the point(issue) of meeting during brainstorming Record each idea on cards or notes No ambiguity Look for ideas that seem to be related Sort cards into groups until all cards have been used.

2. Relations Diagram
Used to clarify and understand complex relationships Shows cause-and-effect relationships. Generally, after Affinity diagram / Brainstorming . Also called as interrelationship diagram or digraph

How: Relationship Diagram

Define a Problem(Issue)Statement. Brainstorm ideas about the issue and write them on cards or notes. Place Ideas Is this idea related to any others? Does this idea cause or influence any other idea? Draw arrows from each idea to the ones it causes or influences. Repeat the question for every idea. Analyze the diagram to find Key Ideas. The number of arrows is only an indicator, not an absolute rule. Draw bold lines around the key ideas.

3. Matrix Diagram
Shows the relationship between two, three or four groups of information. Specific information about the relationship, such as its strength, the roles played by various systems. To control output performances through input performances.

How: Matrix Diagrams

Create a need based matrix Assign unique symbols to represent the strength of the relationships Arrive at evidence based Relationships

4. Prioritization Matrix
Used to compare choices relative to criteria like price, service, and ease of use. Help in achieving a group consensus Help a team to focus on the best things to do, not everything they can do.

How : Prioritization Matrix

Identify the overall objective. Gather a CFT of necessary Expertise Produce the list of items to be prioritized. Identify a list of unambiguous criteria. Approaches to identifying criteria.

How : Prioritization Matrix

Weighted Priority Advanced Stages
Multiply each score by the number allocated to the appropriate criterion to get the weighted score for each item against each criterion. For each item, add up all of the weighted scores. This gives the final prioritizing score for each item. The final list of prioritized items may be made clearer for communication and decision making by sorting it into priority order.

5. Tree Diagram
Starts with one item (problem/issue) statement that branches into two or more items, and so on. It looks like a tree, with trunk and multiple branches. Each move takes a step towards specifics from generalities. Decision trees are commonly used in operation research to help identify a strategy most likely to reach a goal.

How: Tree Diagram

Vertical Tree or Horizontal Tree. Define and Brainstorm all possible answers. Show links between the tiers with arrows. Do a necessary and sufficient check. Each of the new idea statements now becomes the sub goal. Do not stop until you reach fundamental elements.

6. Process Decision Program Chart

Systematically identifies what might go wrong in a plan under development. Countermeasures are developed to prevent or offset those problems. FMEA correlation with PDPC and Prioritization matrix

How: PDPC
Obtain or develop a tree diagram of the proposed plan. For each task on the fundamental level, brainstorm what could go wrong. Review all the potential problems and eliminate any that are improbable or whose consequences would be insignificant. For each potential problem, brainstorm possible countermeasures. Decide how practical each countermeasure is.

7. Arrow Diagram or CPM

CPM helps you to plan all tasks that must be completed as part of a project. It acts as the basis both for preparation of a schedule, and of resource planning. During management of a project, It allows you to monitor achievement of project goals.

How: Arrow Diagram or CPM

List all the necessary tasks in the project or process. Determine the correct sequence of the tasks. Diagram the network of tasks. Time flow, Events & Dummies When the network is correct, label all events in sequence with event numbers in the circles.

How: Arrow Diagram or CPM

Detailed CPM: Determine task times (the best estimate of the time in std units). Determine the critical path. The longest path from the beginning to the end of the project.
Mark the critical path with a bold line or colour. Calculate the length of the critical path: the sum of all the task times on the path.

Calculate the earliest and latest times for each task. Calculate slack times for each task.

Exercise on CPM
S.No 1 2 3 4 5 6 7 Time in Activity Predecessors Days A 2 B 3 C A, B 5 D A 2 E D 1 F C 2 G B 5

Keys to Success of 7 M Planning Tools

Mental Attitudes - Keen awareness to the actual problem - Eagerness to solve the problem - Be highly motivated for the challenge Four Specific Keys Understand the problem Select the right tool for the job Obtain appropriate verbal data Interpret and Act for results

Benefits of 7 M Planning Tools

Provide Training in Thinking Raise Peoples Problem Solving Confidence Pictorial Representation of Data