Decision Making Flashcards
(36 cards)
the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation
decision-making
is the heart of all the management functions
decision making
the way of making choices by establishing a decision, collecting data, and analyzing alternative resolutions
decision making
Conditions for Making a Decision
- at least two choices
- must involve something that is achievable
- must have the power to decide
Who is responsible for decision-making?
engineering manager
Decision-Making Process
- diagnose problem
- analyze environment
- develop viable alternatives
- evaluate alternatives
- make a choice
- implement decision
- evaluate and adapt decision results
It exist when there is a difference between an actual situation and a desired situation.
problem
Its objective is the identification of constraints, which may be spelled out as either internal or external limitations.
environmental analysis
It refers to organizational activities within a firm that surrounds decision-making.
internal environment
It refers to factors that are outside of the organization and not usually under top management’s short-run supervision.
external environment
Give at least three aspects included in internal environment
organizational aspects, marketing aspects, personnel aspects, production aspects, financial aspects
Give at least three aspects included in external environment
engineers, government, labor unions, suppliers, banks, public, competitors, clients
This refers to the assessment using intuition and subjective judgment for alternatives.
qualitative evaluation
This refers to the evaluation of alternatives using any technique in a group classified as rational and analytical.
quantitative evaluation
Its main aim is to make an optimal decision in a situation where the probability of all outcomes is uncertain, using amthematical and statistical models.
quantitative method
Give at least 3 Types of Quantitative Techniques
- inventory models
- queuing theory
- network models
- forecasting
- regression analysis
- simulation
- linear programming
- sampling theory
- statistical decision theory
Inventory Models
- economic order quantity model
- production order quantity model
- back order inventory model
- quantity discount model
It is one that describes how to determine the number of service units that will minimize both customer waiting time and cost service.
queuing theory
It is applicable to companies where waiting lines are common situation; aims to minimize such waiting periods and also reduce investments on such expenses.
queuing theory
These are models in which large, complex tasks are divided into smaller segments that can be independently managed in order to avoid wasting time, energy, and money. This technique aims to solve this by creating strong network structures for work.
network models
Two Most Prominent Network Models
- The Program Evaluation Review Technique (PERT)
- The Critical Path Method (CPM)
A technique that helps engineers and executives to plan, track, and manage large and complex projects by using three times estimates for each task.
Program Evaluation Review Technique (PERT)
This is a network technique using only one time factor per activity that enables engineer managers to schedule, monitor, and control large and complex projects.
Critical Path Method (CPM)
the collection of past and current information to make predictions about the future
forecasting
