Introduction to some of the Tools & Theories in ManagementandIntroduction to the Single Pair & Multiple Pair SWOT Analysis

compiled by: Kristian M. Mamaril, BSBA-Mgt, LIA, MBAplutoniac_beaver@yahoo.comSlideshow not for sale or distribution. P lease ask permission to before duplicationg or printing by any means.Shared initially for the ABSTRACT Seminar of 2013

Introduction to some of the Tools and Theories in Management

Beginner:• 6P’s – Prior Planning Prevents Painfully Poor Performance

• 5S, a Japanese Management Philosophy of Lean Thinking• PEESTLE Analysis (parent of the simple SWOT Analysis)• SWOT Analysis (beginner, 2 pair, without IFEM/EFEM)• 5 Why’s• Chain reaction and Theory of Constraints (TOC)• Value Trade Offs• Kaizen• Top-Down and Bottom-Up strategies• Just-In-Time vs. Just-in-case (inventory/process tactic)

Introduction to some of the Tools and Theories in Management:

The 8 wastes(basic theory, and is derived from TPS, originally called by Toyota as “muda”)

1. Overproduction – Producing more than what is needed or before it is needed.2. Waiting – Any time spent waiting for tools, parts, raw material, packaging, inspection, repair, etc.3. Transportation – Any transportation of parts, finished goods, raw materials, packaging, etc. Waste is particularly apparent here when materials are moved into and out of storage or are handled more than once.4. Excess processing – Doing more work than necessary (e.g., providing higher quality than needed, performing unneeded operations, or watching a machine run).

The 8 wastes

5. Inventory – Maintaining excess inventory of raw materials, in-process parts, or finished goods.6. Excessive motion – Any wasted motion or poor ergonomics, especially when picking up or stacking parts, walking to look for items, or walking to look for people.7. Defects (correction) – Repair, rework, recounts, re-packing, and any other situation where the work is not done right the first time.8. Unused human potential – Unused employee minds and creativity.

Introduction to Basic Management Tools and TheoriesIntermediate:• Single PAIR SWOT ANALYSIS WITH IFEM AND EFEM• Six Sigma• X-Matrix

Introduction to Basic Management Tools and Theories

Expert:• Analytic Hierarchy Process (AHP)• Quality Function Deployment/House of Quality Matrix (QFD

Matrix)• Lean Thinking incorporated with Kaizen, JIT, and Six Sigma• Baye’s Theorem• Multiple Attribute Decision Making (MADM)

Downstream flow of Management Planning

MISSION AND VISION

GOALS AND OBJECTIVES

STRATEGY

TACTICS

SUPERVISORYPROCESSES

STANDARD OPERATING PROCEDURES (SOP)

WHAT IS A SWOT ANALYSIS?

Kotler and Keller, described SWOT analysis in their book Principles of Marketing 14th edition (2012):“SWOT Analysis is an overall evaluation of the company’s(or an organization’s) strengths (S), weaknesses (W), opportunities (O), and threats (T).”

Strengths include internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives.

Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance.

Opportunitiesare favorable factors or trends in the external environment that the company may be able to exploit to its advantage.

Threats are unfavorable external factors or trends that may present challenges to performance its advantage.

HOW TO DO A MEASURABLE SWOT ANALYSIS

Before doing SWOT, choose which is the best kind of SWOT which you think best fits your level of comprehension in analytical thinking. Then, process the following in a piece of scrap paper using a PENCIL:

• INTERNAL FACTORS EVALUATION MATRIX (IFEM) -includes the STRENGTHS and WEAKNESSES

• EXTERNAL FACTORS EVALUATION MATRIX (EFEM) -includes the THREATS and WEAKNESSES

• TOTAL WEIGHT MUST ALWAYS BE EQUAL TO 1.OO• RATING:

-IFEM; 1 = HIGHLY SIGNIFICANT 2 = SIGNIFICANT 3 = NOTICEABLE HINDRANCE 4 = HINDERS GREATLY

-EFEM; 4 = VERY HIGH POTENTIAL OF BEING HELPFUL

3 = HIGH POTENTIAL OF BEING HELPFUL

2 = NOTICEABLE HINDRANCE 1 = HINDERS GREATLY

GUIDELINES ON IFEM AND EFEM

• MAXIMUM ALLOWABLE FACTORS PER S,W,O, AND T IS 11, IN EXTREME CASES, A MAXIMUM OF 17 FACTORS EACH IS ALLOWABLE. MINIMUM OF 5 FACTORS. ON AVERAGE, STRATEGISTS USUALLY LISTS ONLY 5-10 EACH.

• NEVER EXAGGERATE THE NUMERICAL EQUIVALENT OF THE WEIGHT

• THE HIGHER THE WEIGHT, THE HIGHER IS ITS FORSEEABLE POTENTIAL IMPACT ON THE GOAL OR ORGANIZATION.

• FIRST STEP, FILL IN THE RATINGS FIRST. THEN SET THE MOST APPROPRIATE WEIGHT FOR EACH FACTOR. MULTIPLY WEIGHT AND RATING

• ADD ALL THE WEIGHED SCORES. NORMALLY, IT SWINGS BETWEEN SCORES 1.00 TO 6.00

• NEVER FORGET TO LABEL THE FACTORS (Ex: S1 for 1st on the list Strength).

GUIDELINES ON IFEM AND EFEM

•WEIGHED SCORE RESULTS:- >ALL WEIGHED SCORES BELOW 2.25 MEANS THE GOAL IS

IMPOSSIBLE TO ACHIEVE WITHOUT ANY ASSISTANCE FROM OTHER PARTIES

- >ALL SCORES BETWEEN 2.25 AND 3.79 MEANS THAT THE GOAL WILL BE SUCCESSFUL IF TACTICS AND STRATEGIES ARE IMPLEMENTED PRECARIOUSLY ALONG WITH MINIMAL OR NO ASSISTANCE FROM OTHER PARTIES

- >ALL SCORES HIGHER THAN 3.79 MEANS THE ORGANIZATION HAS THE POTENTIAL TO DO IT ALONE.. OF COURSE, WE SHOULD NEVER PUT OUR HANDS DOWN EVEN IF THIS IS THE CASE.

Making the SWOT

1. List all Factors and their corresponding number (from the IFEM/EFEM) on the SWOT or TOWS table appropriately.

2. Start formulating SO, WO, ST and WT strategies. Pairing in a single pair SWOT analysis is, of course, pairing one S factor with one O, one W with one O, one S with one T, one W with one T. Multiple pair SWOT requires basic to intermediate knowledge in the following areas:

a. Chain reaction and TOCb. Value trade offsc. Analytical skills – especially deductive reasoningd. Top Down and Bottom-Up strategies

SINGLE PAIR SWOT ANALYSIS

MULTIPLE PAIR TOWS MATRIX

Bibliography• Principles of Marketing 14th edition by Kotler and Keller• Operations Management 6th edition by Slack et. Al• Encyclopedia of Operations Management by Hill• E’spot Entertainment Complex by Mamaril