Problem Solving In Retail Using PDCA Cycle



Problem Solving In Retail Using PDCA Cycle

Introduction

The report discusses how managerial problem solving approaches Deming approach, logical system approach, quantitative, qualitative or Imagineering approach. The report is illustrating workplace problems and it's possible solution and implementation plan with respect to the PDCA cycle in retail sector.

Decision making approaches

Management writers, practitioners and theorists have posited numerous approaches for effective decision making. Traditionally, these have be categorized four main ways:

Logical systems approach;

Contingency approach;

Quantitative approach; and

Qualitative approach.

The Logical Systems 

The logical systems approach derived from the rational approach and is a dominated and directed research in problem-solving until the 1960s and its influence remains to this day in retail. A logical systems approach to problem solving is premised on a rational decision making model. Here a manager would undertake steps towards a solution that maximizes goal attainment (Wong 2003). A number of phases to decision making and problem solving can be advanced using the logical systems approach. Rasberry and Lemoine Effective Managerial Communication, identified the following very rational set of stages to a logical systems approach to decision making.

Defining the problem 

The premise of this article is that to turn today's challenges and threats into fruitful opportunities, retail organizations must move away from their traditional modus operandi of closed system approach of management to an open system where employees, customers, procedures, processes, vendors, and strategies are viewed interdependently (Wisniewski 2001). Against this backdrop, we present a systematic and synergistic practical framework grounded in an open system of management. We contend that the framework can assist retail managers in tackling today's multifaceted challenges and may provide a practical remedy to the ills of the closed system management approach rampant among today's retailers (Verme 2006).

The utility of the framework is illustrated using a typical inventory shortage problem found in many retail organizations as a case in point. Inventory shortage problem presents an interesting setting since it has strategic, tactical and customer-related implications. Strategically, if not treated, inventory shortages can contribute to high overhead costs and high prices which eventually lead to a strategic competitive disadvantage in the marketplace (Sivadas 2000).

Analyzing the problem

The conceptual open system approach advocated in this study is presented in Figure 2. The basic premise of the framework is that the problems faced by the retail organization should become the concern of the entire system including management, employees and customers. They should all be directly involved in identifying, investigating, proposing solutions, implementing the chosen solution, and monitoring the results of the chosen solution to the problem. A comprehensive organizational information system incorporating information sources, linkages and interfaces is an integral component of the framework. This system which encompasses three capabilities capitalizes on the contemporary hardware and software technologies and makes information available where and when it is needed. The communication capability gathers information from inside and outside the organization. The decision capability through the decision support systems (DSS) helps evaluate and make decisions (Sharma 2004). Finally, the data manipulation capability in the form of databases organizes, tracks and summarizes relevant ...