LESSON 2 Flashcards
A responsibility of the engineer. What ever his choice is, it will have effects in the operations of the organization
Decision Making
The process of identifying and choosing alternative options
Decision making
Decision Making process
Diagnose problem
Analyze environment
Articulate problem
Develop alternatives
Evaluate alternatives
Make a choice
Implement decision
Evaluate decision results
It exist when there is a difference between an actual situation and desired situation
Problem
Components of environment
Internal and External
Refers to the organization activities within a firm
Internal environment
Refers to variables that are outside the organization and not within the control of the firm
External Environment
The process of selecting among alternatives representing potenti solutions to a problem
Choice Making
Refers to carrying out the decision so that the objectives sought will be achieved
Implementation
Refers to the process which requires assuring the alternatives used are in keepin with the goals if the firm
Feedback
Refers to actions made to ensure that activities performed matched the desired goal
Control
Approaches in solving problems
Qualitative and Quantitative Evaluation
Refers to evaluation of alternatives using intuition
Qualitative Evaluation
Refers to the evaluation of alternatives using any techniques rational and analytic
Quantitative evaluation
Types of Quantitative Evaluation
Inventory model
Queuing theory
Network model
Forecasting
Regression
Simulation
Linear programming
Statistic decision
This one is used to calculate number of items ordered one at a time
Economic order quantity model
An economic order quantity technique alllied in production order
Production order quantity model
Inventory model for planned shortage
Back order inventory model
Model used to minimize total cost when discounts are offered
Quantity Discount model
It describes the number of service units that will minimize waiting time
Queuing Theory
A technique enables managers to schedule, monitor and control large projects
Program Evaluation Review Technique
PERT
Technique using one time factor per activity
Critical Path Method
CPM
Collecting of past and current information to make predictions
Forecasting
Forecasting method that examines the association of 2 or more variables
Regression Analysis
