Assignment #2

Subject: Problem Solving and Decision Making

1- Problem: Performance is the least at the national level (The production was decreased to
40 files daily, knowing that the daily production should reach 60 files daily)

Ethical corruption
2- Root Causes: Among Employees

Low Moral
Employees
Poor & Neglected
Supervision in the
Performance is past
the least at
National Level
(Production Surface Area not
decreased from suitable for work
60 to 40 Files Resources
Daily) (Employees &
Equipment)
not being used
efficiently Workload not
divided properly

Type of Decision: In this case it is a non-programmed Strategic decision for unstructured

problem, taken by a high level executive “Operation Manager” with long term implications on
the branch’s profitability, with a bit of Uncertainty as the Manager Knows the Goals to
achieve but not all the Information is available for him so he needs to develop creative
alternatives.

Because of the Uncertainty, his previous experience on the other branch and the time being
limited to come up with a plan to achieve the target, he will be relying on “intuition”

The Operation Manager Uses the Delphi Technique, Delphi has been widely used for business
forecasting which is needed in this case, by forecasting the implications of all the alternatives
on solving the root causes of the problem and how much the production will be increased; also
the opinion of outsourced experts is needed.

Steps of Delphi Technique:

Delphi
Round 3
 Delphi
Round 1
• Summarize the
1
responses and
feedback to the
 Analyze first round
• Assemble a panel of panel until the
responses members reach
experts

• agreement
 Preparation of the •
• Create a
second round • Create a brief report
questionnaire of
questionnaire and send to the
open-ended questions

• panel members for
 Transmission of the agreement/disagree
• Each expert provide
second round ment
an individually
questionnaire to the •
written opinion
panel of experts • Preparation of a
report to present the
conclusions of the
Delphi
exercise
Round 2

Below are the alternative solutions that Delphi panel of experts came up with and the
solutions chosen and the reason of choosing the solution taking into consideration the
main Goals & Objectives:

Goals:
1- Transform Branch into a profitable Unit
2- Increase long-term growth

Objectives:

1- Achieve profits reaching to $ 50,000 within one year

2- Increase productivity from 40 to 75 files daily
3- Reduce costs

Elements of
Chosen
the Alternatives why/comments
Alternative
problems to
 be solved

Investing on Current staff is

1 Hire New Staff more cost effective Than Hiring
new staff which will have
Invest on Current (recruitment cost, Training
1 Employees
Staff cost, time taken for the new
employee to get up to the level
2 Invest on Current Staff of production and productivity
of the previous employee

Search for a new & more effective Searching for a new work
1 Make space will consume money and
work Space
Improvements on time and it is much more cost
2 Work Space
the Current effective to work on
Make Improvements on the Work Space improvements on the current
2
Current Work Space space.
Increase the
Increase Production from 40 to 75 production
1 Files Daily from the beginning of Gradually
the year Maximize short-term financial
(Short-Term:
objectives – harm long-term
3 Production from 40 to 60
Increase the production Gradually strategic objectives
"Normal Daily
(Short-Term: from 40 to 60 Rate", Long-
2
"Normal Daily Rate", Long-Term: Term: from 60 to
from 60 to 75 Files Daily) 75 Files Daily)

1 Purchase new equipment Maintain

Target is to work on reducing
4 Equipment Current
cost as much as we can
2 Maintain Current Equipment Equipment

3- Short-Term & Long-Term Plans:

Build a high-performance team & eliminate all the Causes preventing the team from using
their optimum energy to reach the normal rate of production which is 60 files daily and
gradually increase the production to 75 files daily by following:
 Employees Work Space Productivity

Maintain Good Identify area of improvements

1 Create an efficient layout
Communication in work processes

Empower them with the best

technology to decrease time
2 Build positive relationships Use connected technology
taken to produce the research
files
Make a space for
3 Acknowledge Good Work Improve the workflow
collaboration
Check all the current
Set Expectations and establish equipment used and make sure
4 Install adequate lighting
Short Term

group norms with the team they are maintained and not out
dated
Invest in one machine that
Increase Production from 40 to
5 Review work loads lets you scan, copy, fax
60 files Daily
and print to save space

Retain good employees and let

bad ones go (Get rid of the
Develop Audit process to
6 employees who have negative Use wall space for storage
monitor the workflow
impact on the other team
members)

Develop a performance
management system to help
Develop weekly reports to
7 you monitor the team's
monitor production outcomes
progress towards their
objectives

Train them On new

8 Technologies you will be using
to enhance productivity

Long- Maintain the Good Increase Production from 60 to

9 Development Plan
Term Working space 75 daily