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r solutions. ?Which root causes are attacked, and to what extent? ?What is the cost? ?What are the potential benefits? ?How easy will this be to implement? ?What are the potential problems? ?How easy will it be to prevent or remedy side effects? 27 Weighting the Criteria ?Not all criteria are created equal ?You need to decide which criteria are most important for your project ?One approach for developing weights is to have team members vote 28 How to Weight Criteria ?Use consensus or a “multivoting” approach to narrow the list of criteria to 10 or fewer ?Rank the remaining criteria Criteria A. Easy to learn B. Quick timeline (2 months) C. Uses existing technology。 no new software or other equipment D . Has greatest impact on reducing defects E. Customers will notice the change Votes Li Kim Marcos Joe TOTAL .25 .5 .25 .2 .5 .2 .4 .1 .3 .1 .1 .5 .5 .1 29 How to Evaluate Solutions ?On rare occasions, the choice may be obvious given your knowledge of the process and problem ?More often, you need to carefully weigh pros and cons ? Use a structured approach, such as a solution prioritization matrix 30 Setting Up a Solution Prioritization Matrix Solution A B C D Criteria Easy Quick Tech Hi Impact Customers SUM 31 Scoring Each Option 1+1+2+2=6 Multiply overall rank by weight to achieve final score. 6 x = Solution A B C D Easy Quick Tech Hi Impact Customers SUM Criteria and Weights Sum ranks given by each team member for each criteria 32 Summarizing Final Scores Solution A B C D Easy Quick Tech Hi Impact Customers SUM 10 Criteria and Weights (Sum of the voted ranks) x weight Highest score = best option overall 33 Exercise: Using a Solution Prioritization Matrix Objective: Practice the skills needed to create a solution prioritization matrix, including generating criteria, weighting criteria, setting up the matrix, and ranking options. Instructions: As a class, list all of the potential solutions in the previous exercise. Using the Solution Prioritization Matrix: ?Generate criteria and weights ?Rank ideas ?Determine final scores Time: 30 minutes to create a solution prioritization matrix 34 Gather Other Data If the solution prioritization matrix does not result in a clear choice—and perhaps even if it does—you can get more information about a solution by… ?Modeling or simulating the solutions ?Doing trial implementations (small scale tests) ?Observation (find a person or anization who is doing something similar and observe) CostBenefit Analysis 36 Why Conduct a Cost/benefits Analysis ?At this stage, the team has invested a lot of emotional energy into the project, however the merits of their solution may not be obvious to those outside the team. ?The team might have selected a solution which does not meet the requirements of the business. ?A formal cost/benefit analysis expresses in financial terms the implications of your solution and helps to mobilize mitment and create buyin. 37 Benefits Analysis: Financial Express the financial benefits in terms that make sense for