MODULE 2 Flashcards
(44 cards)
It is one of the responsibilities
of an engineer manager
DECISION MAKING
It is a very important function of the engineer manager.
Decision Making
It can be determined by non-quantitative means, such as intuition, facts,
experiences and opinions.
Decision Making
The process of choosing a specific procedure or course of action from
among several possible alternatives.
Decision Making
It can also be determined by quantitative means such as operations
research, linear programming, simulation, Monte Carlo, gaming and
program evaluation review technique.
Decision Making
It is defined as the selection of a course of action from among
alternatives; it is at the core of planning.
Decision Making
A plan cannot be said to exist unless a decision has been made.
Decision Making
It is a commitment of resources, direction, or reputation
Decision
Managers sometime see it as their central job because they must constantly choose what is to be done, who is to do it, and when, where, and occasionally even how it will be done.
Decision Making
It helps to place the decision making
environment in its proper perspective.
Business system Model
Three levels of management
Operational, Tactical and Strategic.
They determine long-term strategies and set
corporate objectives and policy consistent with these objectives
Strategic-level Managers
They complete specific tasks as directed by the tactical-level managers.
Operational-level Managers
They are charged with the responsibility of
implementing the objectives and policies set forth at the strategic level of
management. To do this, the manager identifies specific tasks that need
to be accomplished.
Tactical-level Managers
Steps in Rational Decision Making
- Monitor the decision environment
- Define the decision problem
- Specify decision objectives
- Diagnose the Problem
- Develop alternative solutions
- Evaluate alternatives
- Choose the best alternatives
- Implement the chosen alternatives
The existence of a problem implies the need for a decision maker to make at least one decision, and typically a series of
decisions, to resolve a problem. In the first step, the decision maker _______ for the decision.
Sets Objectives
It limits the decision maker’s choices. It could be defined by legal, economic or political
considerations. Decision ___ are sometimes presented in terms of desired specification or performance standards.
Identify Constraints
Steps in Decision Making Process
- Set objectives
- Identify constraints
- Identify alternatives
- Gather appropriate information
- Evaluate alternatives
- Choose the most acceptable alternatives
The decision making process involves making a choice between two or more alternatives. In this step, the decision maker
identifies________ solutions that meet the constraints outlines in step 2. In most cases, these are chosen because they provided a solution to the problem, but often one of it is to do nothing.
Identify Alternatives
The information requirements for a given
decision vary considerably depending on the complexity and scope of the decision to be made. During this step, the decision maker gathers ____ that may provide insight as to which alternative to choose.
Gather appropriate information
In this step, the decision maker evaluates each _____. A decision can be rendered based on available information.
Evaluate alternatives
In this step, the manager examines the ranking of alternatives and selects the most acceptable alternatives, which is often the top-ranked alternative. On occasion, extending circumstances caused managers to look past the highest-ranking alternative
and select a lower-ranking alternative. Decisions, especially those made collectively by several managers, are often the result of creativity.
Choose the most acceptable alternatives
Major steps in Decision Making
- Identifying Alternatives and the Limiting Factor
- Evaluation of Alternatives
- Selecting an Alternative: Three Approaches
It is something that stands in the way of
accomplishing a desired objective.
Limiting Factor
