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• Module overview
• 1. Introduction to planning
  • 1.1 Types of plans
    • 1.1.1 Some definitions
    • 1.1.2 Domains of planning
    • 1.1.3 Users and levels of planning
  • 1.2 Completing a planning cycle
    • 1.2.1 A planning process
    • 1.2.2 Tactical and operational planning
    • 1.2.3 A participative planning process
    • 1.2.4 When to complete business planning
  • 1.3 Implementing an operational plan
    • 1.3.1 Define the plan's purpose
    • 1.3.2 Setting the planning period and scope
    • 1.3.3 Why plans fail - The strategic level
    • 1.3.4 Why plans fail - The operational or project level
  • 1.4 SMART goals
    • 1.4.1 S.M.A.R.T. Goal statements
  • 1.5 Contingency plans
    • 1.5.1 Why contingency plan?
    • 1.5.2 Contingency plans and risk
    • 1.5.3 Contingency planning actions

• 2. Plan and manage resources

  • 2.1 Plan and manage human resources
    • 2.1.1 Recruitment
    • 2.1.2 Selection
    • 2.1.3 Induction
  • 2.2 Enterprise Resource Planning (ERP)
  • 2.3 Purchasing resources
    • 2.3.1 Tangible and intangible assets
    • 2.3.2 Acquisition costs
    • 2.3.3 Depreciation costs
    • 2.3.4 Planning resource acquisition and utilisation
    • 2.3.5 Estimating resource needs
  • 2.4 Manage Capacity
    • 2.4.1. Planning capacity
    • 2.4.2. Measuring capacity
    • 2.4.3. Matching operations plans with capacity
    • 2.4.4. Capacity analysis and economies of scale
    • 2.4.5. Capacity and performance effectiveness
    • 2.4.6. Determinants of capacity
  • 2.5 Aggregate and Master Planning
    • 2.5.1 Master Schedule
    • 2.5.2 Operational control and resource planning
    • 2.5.3 Demand and scheduling control

• 3. Risk Management

  • 3.1 Risk Management
    • 3.1.1 Potential benefits from an effective risk management
    • 3.1.2 Classifying risk
    • 3.1.3 Risk and ANZS4360:2004
    • 3.1.4 Risk analysis
  • 3.2 Estimate the risk attached to a corrective action
    • 3.2.1 Risk analysis categories
    • 3.2.2 Prioritising risks

• 4. Planning projects

  • 4.1 Planning the project
    • 4.1.1 Setting the project plan
    • 4.1.2 Setting achievable outcomes
  • 4.2 Controlling Projects
    • 4.2.1 Personnel resources
    • 4.2.2 Managing project costs
    • 4.2.3 Value of managing project costs
    • 4.2.4 Estimates
    • 4.2.5 Cost Coding
    • 4.2.6 The time factor
  • 4.3 Scheduling project tasks and activities
    • 4.3.1 Project timelines and deliverables
    • 4.3.2 Critical Path Analysis (CPA)
    • 4.3.3 PERT
    • 4.3.4 Seven steps to project scheduling
    • 4.3.5 Completing project schedule activities

• 5. Problem solving and decision making

  • 5.1 Problem solving
    • 5.1.1 The problem solving process
    • 5.1.2 Solutions search
    • 5.1.3 Removing root causes
    • 5.1.4 Solutions implementation through inclusive communication processes
  • 5.2 Decision making
    • 5.2.1 Decision making model and leadership styles
  • 5.3 Decision making approaches
    • 5.3.1 The logical systems
    • 5.3.2 Contingency approach
    • 5.3.3 Quantitative - schematic and mathematical approaches
    • 5.3.4 Critical Path Analysis
    • 5.3.5 PERT
    • 5.3.6 Group quantitative approaches
    • 5.3.7 A qualitative approach
  • 5.4 Context and the influence on the decision processes
    • 5.4.1 Factors in decision making
    • 5.4.2 Rational decision making
    • 5.4.3 Creative decision making
  • 5.5 Scenarios for team decision making and problem solving
    • Problem scenario number 1 - Lost in the bush
    • Problem scenario number 2 - Toothpaste blues
    • Analysis of personal behaviour in groups

5.3.7 A qualitative approach

To understand the persuasive requirement of managers to be problem seekers and problem solvers, an appreciation of quality improvement theory and methodology is required because nowhere is the role of the manager as a decision maker and facilitator such an imperative as in quality management.

The Plan, Do, Check, Act quality decision making model

W. Edwards Deming is regarded as the father of quality management. Although he worked on statistical control methodologies in the US prior to and during World War II, his theories were applied and developed while part of an industry aid contingency sent to Japan in the 1950s. The Japanese adopted Deming's methodologies to their considerable economic advantage and the Deming Award is Japan 's most prestigious business award. Quality improvement does not stop once the improvement is made. When one impediment is removed, the improvement process begins again and the process to produce the watch is re-examined until another reduction factor is found. Therefore decision making to resolve real or anticipated problems in an ongoing cycle.

If the manager is to continuously improve the processes to deliver good and services at a required standard to the customer, it follows that the manager but continuously be seeking new ways to jig the process. This means the manager is a problem seeker. Acknowledging its origins as the Shewhart Cycle, a major contribution of Deming to management has been the P-D-C-A qualitative decision-making cycle.

Figure 7 Shewhart-Deming PDCA Cycle

The Deming Cycle is commonly referred to as the P-D-C-A cycle. It epitomises quality management thinking about problem solving.

PLAN

Beginning with the Planning Phase, management is required to develop a measurable process to provide the problem solution. Planning , then, is the most significant phase because if the plan is not delineated properly, the ability to check the outcomes will be diminished and therefore the manager may never know whether the plan in fact works. Mangers today spend a large percentage of their time attending planning meetings trying to plot a process to overcome the identified problem. The aim of the plan is to implement what is needed to eradicate the problem. Sometimes multiple problems exist and so a Pareto Analysis is undertaken to prioritise the most pressing problems. Pareto Analysis is explained in the Measuring quaity topic.

DO

Doing is undertaken on a small-scale experimental basis. This involves exploring the problems and trying to identify possible causes. Possible causes then need to be investigated to determine which ones are actually causing the problem.

CHECK

Having identified possible causes to the problem, it is essential to validate that the eradication of these causes will solve the problem. In other words, valid measures must exist in the checking phase and not just "gut-feel" solutions.

ACT

If the check reveals the problem remains, abandon your ideas and begin a new plan. If the check reveals the problem is solved, then implement the solution on a wide scale throughout the organisation. If a new procedure is adopted in consequence, standardise it to make it part of the culture.

The Deming Cycle is commonly referred to as the P-D-C-A cycle. It epitomises quality management thinking and decision making for continuous improvement. When the P-D-C-A Cycle is completed, the manager begins again in a never ending cycle of continuous improvement. In this sense, the manager is a problem-seeker looking for new ways to achieve the quality outcomes as well as a decision maker or facilitator, planning and measuring solutions to overcome the impediments to process outcomes.

Activity 5

PDCA Qualitative Approach to Decision Making

Apply the P-D-C-A Cycle to the following decision scenarios, state what is involved in each stage:

1. Finding the best means to reduce costs in delivering a service to customers.
   P
   D
   C
   A
   
2. A current decision impacting you in the workplace.
   P
   D
   C
   A

Without accurate measures the manager is really flying-blind when it comes to determining the effectiveness of decisions made. In such cases, problem solving often resorts to blaming particular personnel or machinery and to making solutions based on "gut-feel". (It is amazing how many western managers know but cannot explain why a particular solution to a problem is the appropriate one!) In an environment of open management and increased accountability the manager's "gut-feelings" are difficult to justify to ministers and customers that perceive the situation from their own viewpoints. The manager is responsible for accurate data upon which to make decisions and select solutions to problems.

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