LESSON 2

Question 1

is the responsibility of the engineer manager. It is understandable for managers to make wrong decisions at times. The wise manager will correct them as soon as they are identified. The bigger issue is the manager who cannot or doesn’t want to make decisions. Delaney concludes that this type of manager is dangerous and “should be removed from their position as soon as possible

Answer 1

Decision-making

Question 2

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

Answer 2

Decision-making

Question 3

What are the various managemnet levels?

Answer 3

Top
middle
lower levels

Question 4

What are the various managemnet functions?

Answer 4

planning,
organizing,
directing, and
controlling

Question 5

according to Nickels and others, “is the heart of all the management functions. “

Answer 5

Decision-making

Question 6

Rational decision making according to ________?

Answer 6

David H. Holt

Question 7

If a manager wants to make an intelligent decision, his first move must be to identify the problem. An expert once said, “Identification of the problem is tantamount to having the problem half solved

Answer 7

Diagnose Problem

Question 8

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

Answer 8

Problem

Question 9

The objective of environmental analysis is the identification of constraints, which may be spelled out as either internal or external limitations.

Answer 9

Analyze the Environment

Question 10

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

Answer 10

External environment

Question 11

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

Answer 11

Internal environment

Question 12

Getting clear on what the problem is in any given situation can mean the difference between spending needless amounts of time and money or putting energy into the right areas of focus to get real results.

Answer 12

Articulate Problem or Opportunity

Question 13

refers to the process of selecting among alternatives representing potential solutions to a problem. At this point, Webber advises that “…particular effort should be made to identify all significant consequences of each choice”.

Answer 13

Choice-making

Question 14

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

Answer 14

Implementation

Question 15

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

Answer 15

Feedback

Question 16

refers to actions made to ensure that the activities performed to match the desired activities or goals that have been set.

Answer 16

Control

Question 17

– refers to the evaluation of alternatives using intuition and subjective judgment

Answer 17

Qualitative Evaluation

Question 18

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

Answer 18

Quantitative Evaluation

Question 19

The types of quantitative techniques that may be useful in decision-making are as follows:

Answer 19

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 20

– 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 20

Economic order quantity model

Question 21

– this is an economic order quantity technique applied to production orders.

Answer 21

Production order quantity model

Question 22

– this is an inventory model used for planned shortages

Answer 22

Back order inventory model

Question 23

– an inventory model used to minimize the total cost when quantity discounts are offered by suppliers.

Answer 23

Quantity discount model

Question 24

is one that describes how to determine the number of service units that will minimize both customers’ waiting time and the cost of service.

Answer 24

Queuing theory

Question 25

is applicable to companies where waiting lines are a common situation.

Answer 25

Queuing theory

Question 26

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

Answer 26

Network Model

Question 27

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

Answer 27

The Program Evaluation Review Technique (PERT)

Question 28

– 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.

Answer 28

The Critical Path Method (CPM)

Question 29

may be defined as “the collection of past and current information to make predictions about the future.”

Answer 29

Forecasting

Question 30

is a forecasting method that examines the association between two or more variables. It uses data from previous periods to predict future events.

Answer 30

Regression Model

Question 31

may be simple or multiple depending on the number of independent variables present. When one independent variable is involved, it is called simple regression; when two or more independent variables are involved, it is called multiple regression

Answer 31

Regression analysis

Question 32

is a model constructed to present reality, on which conclusions about real-life problems can be used. It is a highly sophisticated tool by means of which the decision-maker develops a mathematical model of the system under consideration.

Answer 32

Simulation

Question 33

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

Answer 33

Linear programming

Question 34

is very useful as a decision-making tool when supply and demand limitations at plants, warehouses, or market areas are constraints upon the system.

Answer 34

Linear programming

Question 35

is a 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 35

Sampling Theory

Question 36

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

Answer 36

Decision theory

Question 37

is to revise and update the initial assessments of the event probabilities generated by the alternative solutions. This is achieved by the use of additional information.

Answer 37

Bayesian analysis