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Problem Analysis Techniques for Decision-Making

The document discusses various problem analysis techniques and decision-making methodologies, emphasizing the importance of distinguishing between symptoms and underlying problems. It outlines a structured approach to problem-solving, including steps such as information gathering, problem analysis, generating alternatives, and selecting the best solution. Additionally, it presents specific techniques for analyzing problems and evaluating alternatives, such as Contrast Analysis, Iceberg Analysis, Cause-Effect Analysis, Cost-Benefit Matrix, Weighted Criteria Matrix, and Decision Trees.

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0% found this document useful (0 votes)
15 views10 pages

Problem Analysis Techniques for Decision-Making

The document discusses various problem analysis techniques and decision-making methodologies, emphasizing the importance of distinguishing between symptoms and underlying problems. It outlines a structured approach to problem-solving, including steps such as information gathering, problem analysis, generating alternatives, and selecting the best solution. Additionally, it presents specific techniques for analyzing problems and evaluating alternatives, such as Contrast Analysis, Iceberg Analysis, Cause-Effect Analysis, Cost-Benefit Matrix, Weighted Criteria Matrix, and Decision Trees.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Problem analysis techniques

Introduction

One of the issues that occupies the human mind seeking benefits.
for society, the economy, the government, science, etc. it is precisely power
efficiently solve problems and make the most accurate decisions.

Many times the difficulty begins when trying to define the problem, this is why
There are different methodologies that help differentiate a symptom from a problem.
One reason is that often determining the best solution is what is complicated.

Symptom: it is the visible manifestation or reaction of a system to a specific stimulus.


that is to say, it is the manifestation through which many times one can appreciate that something
It is happening, even when it is not known what it is.

Cause: it is the variable or set of them that is provoking or obstructing that


obtain the expected result. In this aspect, the Pareto theory applies, where
defines that the smallest percentage of causes (20%) have the greatest impact on the solution of
problem (80%)

According to W.H. Weiss (“Practical Guide for Decision Making” Edit. Norma, Colombia 1987),
A problem arises when something gets in the way of achieving a goal. It is the
the gap that exists between what is and what should be, like a deviation or a mismatch
the desired path to reach an end. Visually, we can represent it like this:

The solution, that is, the decision that must be made, is the reestablishment of the path.
expected to reach that predetermined end. While human intuition allows us to
quickly identify solutions to simple problems, this is not the case with
complicated situations or those of greater impact, which require a deep analysis,
not only about the problem, but also about deciding which is the best solution.
Toma de Decisiones:

W.H. Weiss also states that the solution to a problem is nothing more than taking a
decision regarding which is the best alternative to follow to solve a problem. This
it implies the existence of various possibilities or alternatives of action among which it must be
select the most convenient one, for which there are different procedures of the
which are some of the most outstanding.

Problem analysis and decision-making process

There are authors, such as Kepner & Tregoe, Lebow, and Simon, who establish an entire methodology.
of several steps for the process of problem analysis and decision making. Lebow and
Simon, in particular, argues that decision-making should be more assertive,
considering these five steps:

Obtain information Collection of relevant information related to


with the problem, to define the facts in which
the existence of the problem is based. It is important
define what the desired goal is and what is needed
to achieve it or what prevents it from being achieved. Try
to answer the question What do we need
know? Define what information is most important
relevance regarding the consequences of
problem and the objective to be achieved.

Analyze the problem. It is a key step, where it is identified with the


greater clarity of the problem background, above
of the symptoms or the apparent causes of the
essential deviation.

Obtain different Normally problems have several


alternatives. solutions and this step is a divergent process
creative in which the goal is to have the greatest amount
of viable alternatives to solve the problem,
since decision-making will be based on the
selection of the best alternative to solve a
problem.

Choose the best alternative. With several solution alternatives at hand,


Now it is necessary to choose the best, that is, the one
which better balances cost/benefit, viability,
risks, effects, etc.

Actuary to follow up. In addition to putting the decision made into practice,
it is necessary to carry out a measurement to
obtain progress indicators that facilitate
reorient the course when necessary and know
when the final goal has been reached. To achieve this,
It is necessary for the leader or supervisor to be aware.
of the actions taken, as well as of their
effects and results.

The key points in this process are problem analysis and the choice of the best
alternative, since they are the ones that require clearly defined techniques and processes to
increase the effectiveness of the decision made.

Techniques for Analyzing Problems

There are several techniques for effective problem analysis, in this course we will review
three of them:
Contrast Analysis
Iceberg Analysis
Cause and Effect Analysis

Contrast Analysis Technique

To clearly identify the problems, one can use, among others, the Technique of
Contrast analysis, where a problem is defined as the gap that exists between the
current state and the state that is intended to be achieved. To develop this technique
simplemente es necesario elaborar un listado de elementos y características de la situación
what makes up this gap, that is, to identify the distance between those two states.

The following questions help clarify the problem, as a comparison is made.


clearer about the situation.

Current state Desired state

WHO is (when speaking of WHO should be (e.g. Ideal person for a


some person) position or required skills development.

WHAT is (what is here and What it should be (goal to achieve)


now
· CUÁNDO debería ser o hacerse (cuál es el
WHEN it has been achieved deadline by which it should be achieved
until now)
WHERE it should be or be (in what place it is)
WHERE is (in which place is it wait for the project to be found.
project currently)
HOW it should be or be (description of it
HOW is it (current description)
expected)

HOW MUCH is (refers to the HOW much should it be (referring to the


current results indicators expected results indicators

As a result of that list of differentiating elements, the problem becomes more


clearly identified, allows us to broaden the analysis of causes and easily see the
key points for the solution.

Iceberg Analysis

The iceberg model in problem analysis states that it is the symptoms that
they are seen or manifested on a more superficial level than the essential problem. What is
perceives is only 20%, which represents just a small part that indicates that there
below exists another 80% that contains the causes and origins.

In this invisible lower layer, there is: the underlying problem, the positive forces and
negatives regarding this situation, the motivations, both of the people
like the areas, interests, values, preferences, power, and prestige that are in
game. This scheme reviews more the interaction of the team or teams involved in a
problem.
Cause-Effect Analysis

Created by Kaoru Ishikawa, from where this methodology takes its name asdiagram of
Ishikawa, stillwhen it is also known as fish skeleton, due to its similarity
graphic.

It is a tool taken from quality processes that is used to identify,


in an orderly manner, the possible causes that originate or influence a specific problem or
the effects they have on the problem. Their steps are:

Define and delimit the problem.

Team participation through brainstorming.

List all possible causes even if they sound illogical.

•Carry out a debugging and classification of causes (based on feasibility and


operability

Define categories to classify the causes. One of the most common classifications
common is the following:

Personal

2. Materials

3. Methods and procedures


4. Environment

5. Facilities and equipment

Sort the causes by categories.

Assess the causes and categories

Cause-effect diagram

Facilities and Equipment. The machinery, tools or resources involved in the


problem.
Those who have a responsibility segment regarding the process in
where the problem has been identified.
Process. Define which process is impacted by the problem.
Environment. Establish what environmental factors impact or influence the problem.
Material. What material is available or involved regarding the issue.

Analysis techniques and alternative selection

Unlike the previous ones, the following are techniques to analyze no longer the
problems without the solution alternatives, as the next step after problem analysis and
as options to facilitate decision-making:

Cost Benefit Matrix


Weighted Criteria Matrix
Decision Tree

Cost-benefit matrix
The cost-benefit matrix, according to W.H. Weiss ('Practical Guide for Decision Making')
decisions" Edit. Norma, Colombia 1987), allows to weigh what the opportunity is that
has when making a decision from among several alternatives; evaluate which of these results in the one that
lower cost, based on the benefits it will bring. It also helps to decide if a
the project should or should not continue; compare the effectiveness and efficiency of the alternatives and
help to evaluate the consequences of not acting, especially when the alternatives do not
can be evaluated in economic amounts.

Main Characteristics of Cost–Benefit Analysis:

Generally, the proposed objectives are final results with indicators.


qualitative

The alternatives to evaluate involve plans and procedures to achieve the goals.

Indicators can include both monetary and non-monetary costs.

It is possible to use efficiency models that indicate the relationship between the alternative and its
effectiveness in achieving the goals. As in the case where the goal is to reduce
the response times for citizen requests and to achieve this investment is necessary
in some new technological system, it is possible that at first this alternative has a
high economic cost, but in the long run it will result in great savings in quality and the
type of responses that users receive.

For example, in the face of the problem of 'Lack of quality in work', two have been proposed
alternativas de solución: a) Contratar gente más capacitada y b) Dar un curso de
training for current staff. It can be represented as follows:

Alternatives Risks and costs Benefits and Conclusion


rewards

a) Hire people Higher salaries Short effectiveness Best option in the


qualified deadline short term.

b) Course of Demotivation Learning and Better option in the


training ancient motivation long term
Low effectiveness at low cost
short term Effectiveness in the
medium term

To create the following matrix, the proposals made by


Cattie Berry, Cathy Fisk, and Paul Zimmerman, consultants of the ASTD (American Society of
Training and Development.
Weighted criteria matrix

In this analysis, certain criteria are chosen to allow the assessment of the
alternatives. Those criteria must be assigned a relative weight (weighting) and rated
numerically each criterion to then multiply it by the weighting, which allows
a more accurate quantitative analysis.

For example, let's assume we have 2 candidates to be hired. We consider


the experience, the skills, the requested salary, and personal qualities, such as
criteria. We have assigned 3 to 5 points to each criterion, as weighting, and we have
rated on a scale of 10 for each candidate, based on each of these criteria:

Criteria: Experience and Skills Salary Qualities


Rating
Alternatives: knowledge for the requested job personnel

Weighting 3 5 3 5

John 8 (24) 10 (50) 10 (30) 9 (45) 149

Peter 10 (30) 8 (40) 7 (21) 10 (50) 141

The results of the multiplication of the grade are noted in parentheses.


example 8 in the case of Juan) for the weighting of each criterion (8 x 3 = 24). The qualification
It is the sum of these multiplications.

Decision Tree Technique

Decision trees provide a structure that allows observing the implications


and alternatives to evaluate and select options.

Let's see an example:Larry's Women

This is the explanation of the elements that make up the tree:

They represent decision nodes (events). Decision variable. They are the
available alternatives

They represent random nodes. State variable. States of the


nature, future states, probable occurrences.

An arrow that always points to the right means an alternative to or


well a state of nature e.g., depending on whether the arrow comes out of a
square or of a circle, respectively.

There will be a number at the end of each branch of the tree. This number is the
expected profit after a period of time has passed
alternatives and states of nature. It is a number that can be
money, calories, time etc., depending on the decision to be made
taking. This data is called terminal value, precisely because it represents
the term of each branch of the tree.

The diagram must show the following:

1. All the initial or intermediate alternatives among which decisions must be made.
2. All uncertain events and future alternatives that will be considered.

For each decision variable, which is denoted by a square; there are as many lines out as
as available alternatives exist.

The terminals of the decision branches are used as starting nodes of


state variables.

From each of the round nodes, as many branches come out as possible values there may be.
take the first state variable.

The values of the state variable are located above the respective branch and its
probability of occurrence below it.

The terminal nodes represent all possible outcomes, associated with each of
the decision alternatives.

The analysis concludes by calculating the value based on its probability, starting with the nodes.
finals and ending with the initials, that is, in reverse order, seetheResolution
from Larry's tree.
There is another way to represent the decision tree that is exemplified below:

Conclusions

There are different methods for decision-making, but one of the most comprehensive is
the possibilities it provides is the tree diagram method, as it can be
to be used when dealing with risks or uncertainty.

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