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Engineering Management > Chapter 2: Decision making > Flashcards

Chapter 2: Decision making Flashcards

Midterms reviewer

1
Q

TRUE OR FALSE:
The higher the management level is, the bigger and more complicated decision making becomes:

A

True

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2
Q

According to William G. Nickels, it is “the heart of all management functions”

A

Decision making

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3
Q

Steps of decision making process according to David H. Holt

A
  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
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4
Q

“The process of identifying and choosing alternative course of action in a manner appropriate to the demands of the situation”

A

Decision making

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5
Q

The various management levels (3)

A

Top
Middle
Lower

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6
Q

A ____ exists whene there is a difference between an actual situation and a desired situation”

A

Problem

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7
Q

Components of Environment

A

Internal
External

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8
Q

Refers to organizational activities within a firm that surrounds decision making

A

Internal Environment

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9
Q

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

A

External Environment

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10
Q

The benefits that can be expected in an alternative solution

A

Value of the alternatives

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11
Q

Refers to out-of-pocket costs, opportunity costs and follow-on costs of an alternative

A

Cost of the alternative

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12
Q

The likelihood of achieving the goals of the alternative.

A

Risk characteristic

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13
Q

The process of selecting alternatives representing potential solutions to a problem

A

Choice making

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14
Q

After a decision has been made, ______________ follows

A

Implementation

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15
Q

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

A

Implementation

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16
Q

To make implementation effective, a _____ plan must be devised.

A

Plan

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17
Q

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

A

Feedback

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18
Q

Refers to actions made to ensure that activities performed match thee desired activities or goals, has been set

A

Control

19
Q

The manage uses _______ and ______ mechanism to ensure results and to provide information for future decision.

A

Control and feedback

20
Q

Approaches in evaluations / solving problems

A

Qualitative evaluation
Quantitative evaluation

21
Q

Refers to evaluation of alternatives using intuition and subjective judgment.

A

Qualitative evaluation

22
Q

True or False:
William J. Stevenson states that managers tend to use the qualitative approach when:
1. the problem is simple
2. The problem is familiar
3. The costs are not great
4. Immediate decisions are needed

A

True

23
Q

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

A

Qualitative Evaluation

24
Q

Quantitative Models for decision making

A
  1. Inventory models
    2.Queuing Theory
  2. Network models
  3. Forecasting
  4. Regression analysis
  5. Simulation
  6. Linear programming
  7. Sampling Theory
  8. Statistical decision theory
25
Q

Types of Inventory models

A

Economic order quantity model
Production order quantity model
Back order Quantity model
Quantity discount model

26
Q

Inventory model used to calculate the number of items that should be ordered at one time to minimize the total yearly cost

A

Economic order quantity model

27
Q

Economic order quantity technique applied to production order

A

Production order quantity model

28
Q

Inventory model used for planned shortages

A

Back order inventory model

29
Q

Inventory model used to minimize the total cost when quantity discount are offered by suppliers

A

Quantity discount model

30
Q

The decision making theory that describes how to determine the number of service units that will minimize both costumer waiting time and cost of service

A

Queuing theory

31
Q

Decision making models where large complex tasks are broken into smaller segments

A

Network models

32
Q

Network model that enables engineer managers to schedule, monitor and control large complex projects by employing three time estimates for each activity

A

Program Evaluation Review Technique (PERT)

33
Q

Network model that enables engineer managers to schedule, monitor and control large complex projects by employing one time factor for each activity

A

Critical Path Method (CPM)

34
Q

Defined as “the collection of past and current information to make predictions about the future”

A

Forecasting

35
Q

A forecasting method that examines the association between two or more variables.

A

Regression analysis

36
Q

A regression analysis with one independent variable

A

Simple regression

37
Q

A regression analysis with two or more independent variables

A

Multiple regression

38
Q

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

A

Simulation

39
Q

TRUE or FALSE: Simulation guarantees an optimum solution.

A

False

40
Q

Quantitative techniques used to produce and optimum solution within the bounds imposed by constraints upon the decision

A

Linear programming

41
Q

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

A

Sampling theory

42
Q

Quantitative technique that refers to the “rational way to conceptualize, analyse, and solve problems in situations involving limited, or partial information about the decision environment.

A

Decision theory

43
Q

” To revise and update the initial assessments of the event probabilities generated by the alternative solutions.”

A

Bayesian analysis

44
Q

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

A

Bayes criterion

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