CHAPTER 16:

PROBLEM SOLVING AND DECISION MAKING

1. Explain the 4 steps of the PCDA Cycle
Plan: Before any corrective action is taken on the problem at hand,
several activities should be undertaken. The problem must be
defined, relevant information gathered, the root cause of the problem
identified, possible solutions developed and considered, and the best
alternative selected for implementation.
Do: Implement the solution chosen as best.
Check: Monitor the implemented solution and gather data relevant to
the original problem and any other areas of concern.
Adjust: If the Check step confirmed that the problem has been
eliminated and that it is not likely to recur, then the job is done. If,
however, it was found that the solution has not accomplish the
intended result or that there is still a possibility of recurrence, then it
will be necessary to adjust the implemented solution.
2. Explain all the steps of the Toyotas Practical Problem-Solving
Process

3. Explain the Juran`s 85/15 rule for success in total

quality management.
Jurans 85/15 Rule
There is a widely-held belief that an organization would
have few, if any, problems if only workers would do their
jobs correctly. As Dr. Joseph M. Juran pointed out years
ago, this belief is incorrect. In fact, the potential to
eliminate mistakes and errors lies mostly in improving the
systems through which work is done, not in changing the
workers. This observation has evolved into the rule of
thumb that at least 85% of problems can only be
corrected by changing systems (which are largely
determined by management) and less than 15% are
under a workers controland the split may lean even
more toward the system.
4. Mention the advantages and disadvantages of
employee involvement in problem solving and the
decision-making process.
Advantage: Employees who participate in the decisionmaking or problem-solving process are more likely to
understand and accept the decision or solution and have
a personal stake in making sure the alternative selected succeeds
Disadvantage: potential difficulties are that it takes employees away
from their jobs and that it can result in conflict among team
members.
5. Name the factors that inhibits creativity in the decisionmaking process
Looking for just one right answer: Seldom is there just one right
solution to a problem
Focusing too intently on being logical: Creative solutions sometimes
defy logic and conventional wisdom
Avoiding ambiguity: Ambiguity is a normal part of the creative
process.
Avoiding risk: When organizations dont seem to be able to find a
solution to a problem, it often means decision makers are unwilling to
give an idea a chance.

Forgetting how to play: Adults sometimes become so serious they

forget how to play.
Fearing rejection or looking foolish: Nobody likes to look foolish or feel
rejection. This fear can cause people to hold back what might be
creative solutions
Saying Im not creative: People who decide they are uncreative will
be. Any person can think creatively and can learn to be even more
creative.