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DR. MA. TERESA V.

GONZALES

Describe the analytical approach and process as applied to MAS engagement. Analytical approach and process refers to the systematic, objective and rational method of solving business problems. It involves a professional-level ability to ascertain pertinent facts and circumstance, define problem, evaluate the alternative courses of action and present conclusions and recommendations to solve the problem.

What are the basic stages of a management consulting engagement? I. Negotiating the engagement II. Engagement planning III. Conducting a consulting assignment a. Problem identification and solution b. Identification of suitable and accurate sources of information c. Data analysis and diagnosis d. Solution development e. Preparation and presentation of the report and recommended solution f. Implementation g. Follow-up evaluation of the implemented solution IV. Evaluating the engagement and post-engagement follow-up

What is an MAS proposal letter? What are the content of this letter?
It is an advisable first step in most MAS engagement. It

is written communication between the CPA and the client setting forth the terms and conditions of a proposed consultancy work. Its contents generally include:
Objectives and benefits of the engagement. Scope of the work and the role of CPA. Approach to the study. Project organization. Fees and billing arrangements. Firm qualifications, where appropriate.

What are the uses of an engagement plan?


Provide a means for arranging, distributing and assigning

responsibility for various segments of an engagement. Provide a means of control for determining g whether all segments of the engagement have in fact been completed. Provide the framework for reporting progress of an engagement. Facilitate time and efficiency control over personnel assigned to the engagement. Assist in an engagement review by a partner or supervisor. Provide the basis for estimating fees.

Advantages of preparing a proposal letter: It minimizes misunderstanding between the CPA and the client. It assists in better administration of the engagement.

What are the factors that should be considered in setting the fee to be charged to clients? Nature of the MAS job. The jobs degree of difficulty and complexity. Qualifications of the staff required. Time involved. Technical importance of the service to the client. Define an engagement or work plan. It is an operational plan for conducting a management service engagement and considered as a blueprint of the remainder of the project.

What are the basic contents of an engagement program? The objectives and a description of each task to be accomplished. A description of tangible output required at completion of each task. A list of manpower required. A list of the personnel assigned. The starting and completion dates. Project costs.

Describe the activities involved in the problem definition phase? Identity of the problem. Objectives of the problem-solving process. Scope of the problem. Intensity of the problem Time dimensions of the problem Location of the problem Human elements involved in the problem Support systems surrounding the problem Tracking systems related to the problem Institutional process for managing the problem

What are the data-gathering techniques available to a management consultant? Interviews Questionnaires Observation Document gathering Charting Organization chart Data flow diagram System outflow Detail flowchart Decision table 5 internal sources of data and the corresponding data that may be obtained from such. Sources Corporate planning Facts Corporate objectives, Expansion plans Sources Engineering Facts Engineering schedule for products Sources Research and development Facts New product development schedules Sources Manufacturing Facts Inventory status Sources Accounting Facts Product pricing and costing Operating expenses

Describe the 4 approaches that a consultant may use in analyzing facts gathered in relation to the problem at hand.
Decision-Level Analysis has the purpose of depicting the

varied interrelationships among the decisions made throughout the segments and levels of organization. Input/output Analysis problem situation is analyzed in terms of its inputs and outputs. Structured Analysis organization is comprised of a number of well-defined functions, which in turn are made up of a group of activities. Less-Structured Analysis could be employed to a counteract some limitations of the structured approaches such as (1) difficulty in application and (2) stifling of creativity of the consultant.

Explain briefly the steps in the problem-solving process. Problem identification and desired outcome begins with initial recognition of a symptoms pointing to the problem and ends with the complete problem description. Identification of suitable and accurate sources of information and data-gathering - deals with fact sources and identifies places where the consultant can look to find facts associated with the operation of a client. Data analysis and Diagnosis consultant needs to apply a variety of fact analysis techniques to determine the effectiveness of each decision made. Solution selection Preparation and presentation of the report and recommended solution Implementation of recommended solution Follow-up evaluation of the implemented solution

Most commonly used techniques in gathering facts.


Interviews considered the best way to zero in on problems. It

can be conducted at all levels of the organizations. Questionnaires restricts channel of communications and should be used with great care for the purpose of fact finding. Observation useful in gathering facts prior to an interview, in verifying statements made during an interview, and in ascertaining relationships between individuals. Document gathering collect all relevant documents to gain an understanding of what is presently done and how it is organized, what is not available, and perhaps what the client considers being important. Charting fact gathering that provides a pictorial representation of a dimensions of the clients organization or of its activities.

The following approaches to analysis:


Decision-Level Analysis has the purpose of depicting the varied interrelationships among the decisions made throughout the segments and levels of organization. Input/output Analysis problem situation is analyzed in terms of its inputs and outputs. Structured Analysis organization is comprised of a number of well-defined functions, which in turn are made up of a group of activities. Less-Structured Analysis could be employed to a counteract some limitations of the structured approaches such as (1) difficulty in application and (2) stifling of creativity of the consultant.

The following analysis strategies:


Categorization process whereby data, facts or items are sorted into different groups by virtue of their features. Classification process whereby items are sorted into different groups wherein defined by external criteria rather than by arbitrary features. Numerical analysis numbers are combined in order to understand how they relate to each other. Association recognition of two things that are connected in some ways. Correlation recognition that the variation in one variable occurs in step with that of another. Causation explains correlation. It suggests that two variables are correlated because there is a cause and effect link between them.