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1.7: Organisational Planning Tools (Decision Tree (Construction (from left…
1.7: Organisational Planning Tools
Organisational Planning
process of identifying objectives & formulating strategies to achieve them
prepare for new proyects
Four Basic Elements
Resources
people
equipment
materials
Time
timed activities
work out overall project duration
Money
budget
expected profit
Scope
overall size & scale of project
especific objectives set
project management
: using modern techniques to plan, carry our & complete a project
The Fishbone Diagram
cause & effect diagram
Ishikawa diagram
used to analyse a problem
identify main potential causes
6Ms
Methods
Machines
Manpower
Materials
Measurement
Mother nature (environment)
Steps
Agree on problem statement
Brainstorm main categories of causes (6Ms)
Brainstorm detailed reasons under each heading
Analyse findings
Evaluation
simple & easy-to-understand approach
aids discution & resolution of problems
Limitations
simplicity can be a weakness
difficult to represent interrelated nature of problems
uneffective to illustrate complex problems
Decision Tree
considers value of options available & chances of them occuring
Four Main Features
all options open to manager
different possible outcomes
chances of outcomes occurring
economic returns from outcomes
Construction
from left to right
each branch represents an option along with consequences/outcomes & the chances of occurance
decision nodes
: decision points denoted by square
chance node
: circle shows range of outcomes from a decision
probabilities alongside of outcomes; numerical values of event occuring
pay-offs
: economic returns, ecpected financial gain or loss of ourcome
Expected Values
the likely financial result of an outcome
obtained by multiplying the probability by the forecast economic return
purpose is to show option that gives most beneficial expected value
it forces the decision-maker to consider all options & variables
easy-to-follow diagram
allows numerical considerations of risk & economic returns
allows logical thinking & discussion
allows visual representation of decisions & posible outcomes
Limitations
accuracy of the data used
based on forecasts of market demans & "guestimates"
circumstances may change
Lewin's Force-Field Analysis
analytical process used to map opposing forces within an environment
look at factors (forces) that influence change
driving forces for change
: help company towards goal
restaining forces against change
: prevent company from reaching its goal
Steps
Outline proposal for change (insert in the middle)
List forces for change (one column) & forces against change (other column)
Assign estimated score for each force (1 weak -> 5 strong)
Usefulness
helps managers weight importance of forces
helps identify people most likely to be affected by change
encourages examination of how to strenghten forces supporting & reduce forces opposed
Limitations
full participation of everyone involved to provide accurate information
the analysis may not result in a consensus among the group
may cause a division in the group
dependant on the skill level of the group
based on assumptions
Gantt Charts
used in project management
visual representation of project schedule
horizontal lines show the amount of work planned in periods of time
allows manager to see:
main activities
start & end periods
how long each activity lasts
where activities overlap
start & end date of project
Steps
Identify important activities
Identify relationships between activities
sequential/linear tasks
: dependent activities
parallel/simultaneous tasks
: can be done at the same time as other tasks
Input activities into software/ template
Advantages
assign responsibilities
work out duration
assess potential problems
helps ensure schedule is achievable
most efficient order
keep employers & customers informed of developments
Limitations
projects with many tasks, chart becomes complicated
requires frequent updates
work breakdown structure
: list of activities & interrelations has to be complete & accurate
not good solution when dealing with triple constraints of time, cost & scope
main focus is time
Cecilia Martínez A01197738