Chapter 2

Question 1

The engineer manager’s _______ will be very crucial to his success as a professional

Answer 1

decision-making skills

Question 2

will provide the right environment for continuous growth and success of any organized effort

Answer 2

Good Decisions

Question 3

must be made at various levels in the workplace

Answer 3

decisions

Question 4

the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation

Answer 4

Decision-making

Question 5

Rational decision making, according to _________

Answer 5

David H. Holt

Question 6

Decision-making process

Answer 6

1. diagnose problem
2. analyze environment
3. articulate problem or opportunity
4. develop viable alternatives
5. evaluate alternatives
6. make a choice
7. implement decision
8. evaluate and adapt decision results

Question 7

is tantamount to having the problem half-solved

Answer 7

identification of the problem

Question 8

exists when there is a difference between an actual situation and a desired situation

Answer 8

problem

Question 9

its objective is the identification of constraints, which may be spelled out as either internal or external limitations

Answer 9

environmental analysis

Question 10

Examples of internal limitations

Answer 10

limited funds, limited training, ill-designed facilities

Question 11

Examples of external limitations

Answer 11

patents, limited market, strict enforcement of local zoning regulations

Question 12

components of the environment

Answer 12

internal and external

Question 13

refers to organizational activities within a firm that surrounds decision-making

Answer 13

internal environment

Question 14

refers to variables that are outside the organization and not typically within the short-run control of top management

Answer 14

external environment

Question 15

procedure in developing viable alternatives

Answer 15

prepare a list of alternative solutions, determine viability of each solution, revise the list

Question 16

proper _____ makes choosing the right solution less difficult

Answer 16

evaluation

Question 17

suggested that each alternative must be analyzed and evaluated in terms of its value, cost, and risk characteristics

Answer 17

William Emerson Sauder

Question 18

refers to benefits that can be expected

Answer 18

value of alternatives

Question 19

refers to out-of-pocket costs, opportunity costs, and follow-on costs

Answer 19

cost of the alternative

Question 20

refer to the likelihood of achieving the goals of the alternatives

Answer 20

risk charateristics

Question 21

refers to the process of selecting among alternatives representing potential solutions to a problem

Answer 21

Choice-making

Question 22

refers to carrying out the decision so that the objectives sought will be achieved.

Answer 22

Implementation

Question 23

refers to the process which requires checking at each stage of the process to assure that the alternatives generated, the criteria used in evaluation. and the solution selected for implementation are in keeping with the goals and objectives

Answer 23

Feedback

Question 24

refers to actions made to ensure that activities performed match the desired activities or goals

Answer 24

Control

Question 25

Approaches in solving problems

Answer 25

qualitative evaluation, quantitative evaluation

Question 26

this term refers to evaluation of alternatives using intuition and subjective judgement

Answer 26

qualitative evaluation

Question 27

this terms refers to the evaluation of alternatives using any technique in a group classified as rational and analytical

Answer 27

Quantitative evaluation

Question 28

Quantitative Models

Answer 28

1. Inventory Models 2. Queuing Theory 3. Network Models 4. Forecasting 5. Regression Analysis 6. Simulation 7. Linear Programming 8. Sampling Theory 9. Statistical Decision-Theory

Question 29

consist of several types all designed to help the engineer manager make decisions regarding inventory

Answer 29

inventory models

Question 30

types of inventory models

Answer 30

1. economic order quantity model 2. production order quantity model 3. back order inventory model 4. quantity discount model

Question 31

used to calculate the number of items that should be ordered at one time to minimize the total yearly cost of placing orders and carrying the items in inventory

Answer 31

economic order quantity model

Question 32

economic order quantity technique applied to production orders

Answer 32

production order quantity model

Question 33

inventory model used for planned shortages

Answer 33

back order inventory model

Question 34

used to minimize total cost when quantity discounts are offered by suppliers

Answer 34

quantity discount model

Question 35

describes how to determine the number of service units that will minimize both customer waiting time and cost of service

Answer 35

Queuing Theory

Question 36

models where large complex tasks are broken into smaller segments that can be managed independently

Answer 36

Network Models

Question 37

Two most prominent network models

Answer 37

Program Evaluation Review Technique (PERT), Critical Path Method (CPM)

Question 38

a technique which enables engineer managers to schedule, monitor, and control large and complex projects by employing three time estimates for each activity

Answer 38

PERT

Question 39

technique using only one time factor per activity that enables engineer managers to schedule, monitor, and control large and complex projects

Answer 39

CPM

Question 40

the collection of past and current information to make predictions about the future

Answer 40

Forecasting

Question 41

a forecasting method that examines the association between two or more variables

Answer 41

Regression Model

Question 42

may be simple or multiple depending on the number of independent variables

Answer 42

Regression Analysis

Question 43

it is when one independent variable is involved

Answer 43

simple regression

Question 44

it is when two or more independent variables are involved

Answer 44

multiple regression

Question 45

a model constructed to represent reality, on which conclusions about real-life problems can be used

Answer 45

Simulation

Question 46

is a quantitative technique that is used to produce an optimum solution within the bounds imposed by constraints upon the decision

Answer 46

Linear Programming

Question 47

quantitative technique where samples of populations are statistically determined to be used for a number of processes, such as quality control and marketing research

Answer 47

Sampling Theory

Question 48

rational way to conceptualize, analyze, and solve problems in situations involving limited, or partial information about the decision environment

Answer 48

Decision Theory

Question 49

to revise and update the initial assessments of the event probabilities generated by alternative solutions

Answer 49

Bayesian Analysis

Question 50

selects the decision alternative having the maximum expected payoff, or the minimum expected loss if he is working with a loss table

Answer 50

Bayes Criterion