Tool 13: Balance sheet


AKA

Pros and Cons

Classification

Decision Making (DM)

Tool description

A balance sheet is used to identify and review the pros and cons of several listed alternatives and to facilitate discussion for the purpose of guiding a team closer to consensus. The information provided from using this tool can also serve as a rationale for or against implementing a proposed change in activity or a solution to a problem.

Typical application

  • To determine a course of action on the basis of assessing the pros and cons.

  • To supply the information necessary for a team to make a decision.

  • To provide a quick approach for reaching team consensus.

Problem-solving phase

Select and define problem or opportunity

Identify and analyze causes or potential change

Develop and plan possible solutions or change

Implement and evaluate solution or change

Measure and report solution or change results

Recognize and reward team efforts

Typically used by

Research/statistics

Creativity/innovation

Engineering

3

Project management

Manufacturing

Marketing/sales

Administration/documentation

Servicing/support

2

Customer/quality metrics

1

Change management

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links to other tools

before

  • Consensus decision making

  • Brainstorming

  • Crawford Slip Method

  • Circle Respones

  • Buzz Group

after

  • Starbursting

  • Multivoting

  • Team meeting evaluation

  • Team Process Assessment

  • Consensus decision making

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Notes and key points

  • Balance sheets have two columns labeled Pros (+) and Cons ().

Step-by-step procedure

  • STEP 1 A facilitated team identifies and selects two or more alternatives to solve a problem, implement an improvement program, or initiate an organizational change effort.

  • STEP 2 A whiteboard is used to record the alternatives. A balance sheet is drawn showing alternatives and two columns, Pros and Cons. See example Twenty-four Hours of TQM Training within One Year for Every Employee in the Organization?

  • STEP 3 Participants systematically discuss the pros and cons of each alternative and generate short statements to be placed in the pros and cons columns.

  • STEP 4 When all alternatives have been discussed and pros and cons recorded, the facilitator guides team participants toward a decision by consensus. The decision could be for or against the activity, or simply point to a compromise.

Example of tool application

Twenty-four Hours of TQM Training within One Year for Every Employee in the Organization?

Cascading 24 Hours of TQM Training

Date: xx/xx/xx

Pros

Cons

  • Every employee will be TQM trained

  • Most employees will not use the training

  • Spreads employee involvement

  • Many employess will not have time

  • More problem-solving teams

  • Would drain too many resources

  • Will increase job satisfaction

  • Will not affect most job classifications

  • A good investment of time and money

  • To train all is too costly and time consuming

  • Promotes teamwork and communications

  • Hard to involve everyone—too busy now

Train Every Employee within One Year

  • Will have all employees trained by—

  • Cannot release all employees to training

  • Resources can be made available

  • Will be a hardship to prioritize resources

  • Become competitive and world class

  • Haste makes waste, hard to control

  • Develop a strong commitment

  • Difficult to get support at all levels

  • Learn from other companies

  • Could learn from internal experts




Six Sigma Tool Navigator(c) The Master Guide for Teams
Six Sigma Tool Navigator: The Master Guide for Teams
ISBN: 1563272954
EAN: 2147483647
Year: 2005
Pages: 326

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