Topic 6 Review (Answer) - TQM

TOTAL QUALITY MANAGEMENT
TOPIC REVIEW 6
(Problem Solving and Decision Making)
1. Contrast problem solving with decision making.
a. Decision making is concerned more with selecting options that can affect the
organization in some significant and tangible way.
b. Problem solving is concerned with reacting to a certain situation that has just
presented itself and must be deal with now.
c. Hence, decision making is typically more concerned with the future and
d. Problem solving is more concerned with the here and now.
2. Define decision making as it relates to total equality.
Decision making is the process of selecting one course of action from

among two or morealternatives.
3. Explain how to evaluate decisions in a total quality environment.
There are two ways to evaluate decisions.
a. The first is to examine the results. In every case when a decision

must be made1there is a corresponding result. That result should advance
an organization toward theaccomplishment of its goals. To the extent it
does, the decision is usually considereda good decision. Managers have
traditionally had their decisions evaluated based onresults.
b. Regardless of results, however, it is wise to also evaluate the process

used in makinga decision. Positive results can cause a manager to
overlook the fact that a faultyprocess was used, and, in the long run, a
faulty process will lead to negative resultsmore frequently than to positive.
4. Describe the PDCA Cycle.
a. Phase 1 Identify the Opportunity : Define the problem or potential

problem and Collect or gather information or data.
b. Phase 2 Analyze the process : Identify the root/potential causes
c. Phase 3 Develop the optimal solutions : Develop alternatives solutions

and choose the best solution.
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d. Phase 4 Implementation : Implement the planned solution
e. Phase 5 Study the results : Monitor the implemented solution, and

gather and analyze data
f. Phase 6 Standardize the solution : If the result is positive, fix the

standard and implement it.
g. Phase 7 Plan for the future : If the result negative, determine the
adjustment or change and Restart again.
5. Describe the Toyota method for problem solving.
a. Perceive the initial problem.

b. Clarify the problem.
c. Determine the actual point of cause (POC).
d. Determine the root cause.
e. Develop and implement a countermeasure.
f. Evaluate the countermeasure’s effectiveness in solving the problems.
g. Change the standard.
6. Name and describe three problem-solving tools.
Deming Cycle (PDCA), Toyota Practical Problem-Solving Process and

decision making.
7. Define the decision making process and explain each step in it.
Decision making is the process of making choices by identifying a decision,

gathering information, and assessing alternative resolutions
a. Step 1 : Identify or Anticipate the situation - Anticipate the situation by

looking, listening, asking and sensing. Do not assume anything. A
manager who know their employees, technology, products and process
will have better position to anticipate their troublesome situation.
b. Step 2 : Gather The Facts - The most perceptive manager will be

unable to anticipate all situation or understand intuitively what was
happening. It is important to find out the facts or the cause s of the
problem by looking to policies, processes, tools, training, personnel
assignment, personal matter, regulatory requirements, market and
economic influences, etc
3. Step 3 : Consider Alternatives - Considering alternatives involves List
all the various alternatives available and Evaluate each alternative in light
of the facts. Link both steps with the desired result and cost involved.
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4. Step 4 : Choose the Best Alternative, Implement, Monitor and Adjust -
Select one of the alternatives that has been listed. Implement and monitor
the result. Make some adjustments if result is not encouraging. Manager
should avoid falling into the ownership trap if the decision had made was
not working.
8. Contrast and compare objective and subjective decision making.
The goal of TQM is to maximize the objective decision and minimize the
subjective decision. Objective decision is logical, orderly, complete,
accurate info. The approach most likely to result is quality decision is the
objective approach.
9. What is Juran's 85/15 rule? State the rule.
Dr. Juran, an early pioneer in the field of Quality Improvement, described the
power of focusing on the process in his 85/15 rule. That is,
85% of the problems in our work lay within the process itself and are under the
control of management.
15% (or less) of process problems are under the control of employees,
This rule helped managers to think in terms of process problems and ask "how" it
happened and not "who" did it.
10. Describe the scientific approach to decision making and problem

solving.
Systematic approach to collecting facts and applying logical decision making

techniques, instead of generalizing from experience, intuition (guessing), or
trial and error.
11. Explain four types of complexity in the scientific approach.
a. Errors and defect

b. Breakdown and delay.
c. inefficiency
d.Variation
12. What are the advantages and disadvantages of employee involvement

in decision making?
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a. ADVANTAGES, Employees who participate in the decision making
process are more likely to understand and accept the decision and have a
personal stake in making sure the alternative selected succeeds.
b. DISADVANTAGES : Employee involvement can lead to democratic

compromises that do not necessarily represent the best decision.
13. Explain three techniques for increasing the effectiveness of group

involvement.
a. Brainstorming
b. Nominal Group Technique (NGT)
c. Teams
14. What is the role of information in decision making?
The importance for firms to process information to do with its business

environment on issues such as, market trends, events, competitors, and
technological innovations relevant to their success is prevalent in the
management and IS literature.
15. Explain creativity as a concept and the role it can play in decision
making.
Creativity can be viewed as an approach to problem solving and decision

making that is imaginative, original, and innovative. The creative process
proceeds in four stages; Preparation, Incubation, Insight and Verification.

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TOTAL QUALITY MANAGEMENT

1. Contrast problem solving with decision making.

2. Define decision making as it relates to total equality.

Decision making is the process of selecting one course of action from

3. Explain how to evaluate decisions in a total quality environment.

There are two ways to evaluate decisions.

a. The first is to examine the results. In every case when a decision

b. Regardless of results, however, it is wise to also evaluate the process

4. Describe the PDCA Cycle.

a. Phase 1 Identify the Opportunity : Define the problem or potential

b. Phase 2 Analyze the process : Identify the root/potential causes

c. Phase 3 Develop the optimal solutions : Develop alternatives solutions

e. Phase 5 Study the results : Monitor the implemented solution, and

f. Phase 6 Standardize the solution : If the result is positive, fix the

5. Describe the Toyota method for problem solving.

a. Perceive the initial problem.

6. Name and describe three problem-solving tools.

Deming Cycle (PDCA), Toyota Practical Problem-Solving Process and

Decision making is the process of making choices by identifying a decision,

a. Step 1 : Identify or Anticipate the situation - Anticipate the situation by

b. Step 2 : Gather The Facts - The most perceptive manager will be

8. Contrast and compare objective and subjective decision making.

9. What is Juran's 85/15 rule? State the rule.

10. Describe the scientific approach to decision making and problem

Systematic approach to collecting facts and applying logical decision making

11. Explain four types of complexity in the scientific approach.

a. Errors and defect

12. What are the advantages and disadvantages of employee involvement

b. DISADVANTAGES : Employee involvement can lead to democratic

13. Explain three techniques for increasing the effectiveness of group

14. What is the role of information in decision making?

The importance for firms to process information to do with its business

Creativity can be viewed as an approach to problem solving and decision

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