ME 212: Module 2 Flashcards
are primarily tasked to provide leadership in the quest for the attainment of the organization’s objectives.
Managers
They must be made at various levels in the workplace. They are also made at the various stages in the management process.
Decisions
It is a responsibility of the engineer manager.
Decision Making
True or False:
The higher the management level is, the SMALLER and the LESS complicated decision-making becomes
FALSE
may be defined as the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.
Decision Making
True or False:
the engineer manager must adapt a certain procedure designed to determine the best option available to solve certain problems
TRUE
The Management Levels Where Decisions Are Made
- Top
- Middle
- Lower
The Management Functions Where Decisions Are Made
- Planning
- Organizing
- Leading
- Controlling
According to Nickels, this is “the heart of all the management functions.”
Decision Making
The 8 Decision Making Process According to David H. Holt (hint: DA ADE MIE)
- Diagnose the Problem
- Analyze the Environment
- Articulate Problem
- Develop Viable Alternatives
- Evaluate Alternatives
- Make a Choice
- Implement Decision
- Evaluate Decision Results
If the manager fails in this aspect, it is almost impossible to succeed in the subsequent steps.
Diagnose Problem
The environment where the organization is situated plays a very significant role in the success or failure of
such an organization
Analyze the Environment
The 2 Constraints in Analyzing Environment
- Internal Limitations
- External Limitation
variables that are outside the organization and not typically within the short-run control of top management.
external environment
refers to organizational activities within a firm that surrounds decision-making.
internal environment
The 5 Aspects of Internal Environment (FOMPP)
- Financial Aspects
- Organizational Aspects
- Marketing Aspects
- Personnel Aspects
- Production Aspects
Aspects like org. structure, policies, procedures, rules, ability of management, etc.
Organizational Aspects
Aspects like product strategy, promotion strategy
Marketing Aspects
Aspects like recruitment practices, incentive systems, etc.
Personnel Aspects
Aspects like plant facility layout, inventory control.
Production Aspects
Aspects like liquidity, probability, etc.
Financial Aspects
The 8 Aspects of External Environment
(CCLEGSBP)
- COMPETITORS
- CLIENTS
- LABOR UNION
- ENGINEERS
- GOVERNMENT
- SUPPLIERS
- BANKS
- PUBLIC
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
Articulate Problem or Opportunity
Oftentimes, problems may be solved by any of the solutions offered. The best among the alternatives may be considered by management
Develop Viable Alternatives
This is important because the next step involves making a choice. Proper
evaluation makes choosing the right solution less difficult.
Evaluate Alternatives
It refers to benefits that can be expected.
Value of Alternatives
This is the point where he must be convinced that all the previous steps were correctly undertaken.
Make a Choice
It refers to the process of selecting among alternatives representing potential solutions to a problem.
Choice-making
After a decision has been made, implementation follows. This is necessary or decision making will be an exercise in futility.
Implement Decision
It refers to carrying out the decision so that the objectives sought will be achieved. At this stage, the resources must be made available so that the decision may be properly implemented.
Implementation
True or False:
To make implementations effective, a plan must be devised.
TRUE
In this last stage of the decision making process, the engineering management will find whether or not the desired result is achieved.
Evaluate Decision Results
It refers to the process which requires checking at each stage of the process to assure that the alternatives generated, the criteria used in evaluation and the solution selected for implementation are in keeping with the goals and objectives originally specified
Feedback
It refers to actions made to ensure that the activities performed match the desired activities or goals that have been set.
Control
The 2 Approaches in Evaluating Problem
- Qualitative Evaluation
- Quantitative Evaluation
this term refers to evaluation of alternatives using intuition and subjective judgment.
Qualitative Evaluation
This term refers to the evaluation of alternatives using any technique in a group classified as rational and analytical.
Quantitative Evaluation
9 Quantitative Models for Decision Making (FLIRN 3SQ)
- Forecasting
- Linear programming
- Inventory models
- Regression analysis
- Network models
- Simulation
- Sampling theory
- Statistical decision theory
- Queuing theory
4 Types of Inventory Models (QBEP)
- Quantity Discount
- Back Order Inventory
- Economic Order Quantity
- Production Order Quantity
this one is used to calculate the number of items that should be ordered at one time
Economic order quantity
this is an economic order quantity technique applied to production orders
Production order quantity
this is an inventory model used for planned shortages
Back order inventory
an inventory model used to minimize the total cost
Quantity discount model
It is the theory model that describe how to determine the number of service units that will minimize both costumers waiting time and cost of service
Queuing Theory
These are models where large complex tasks are broken into smaller segments that can be managed independently
Network Models
The 2 Most Prominent Network Models
- Program Evaluation Review Techniques (PERT)
- Critical Path Method (CPM)
a network model technique which enables engineer managers to schedule, monitor, and control large and complex projects by employing three time estimates for each activity.
The 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
The Critical Path Method (CPM)
It may be defined as “the collection of past and current information to make predictions about the future.”
Forecasting
It is a forecasting method that examines the association between two or more variables.
It uses data from previous periods to predict future events.
Regression Model
It may be simple or multiple depending on the number of independent variables present.
Regression Analysis
A type of regression when one independent variable is involved
Simple Regression
A type of regression when two or more independent variables are involved
Multiple Regression
It 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 marker develops a mathematical model of the system under consideration.
Simulation
It is a quantitative technique that is used to produce an optimum solution within the bounds imposed by constraints upon the decision
Linear Programming
It is very useful as a decision-making tool when supply and demand limitations at plants, warehouse, or market areas are constraints upon the system.
Linear Programming
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.
Sampling Theory
It refers to the “rational way to conceptualize, analyze, and solve problems in situations involving limited, or partial information about the decision environment”.
Statistical Decision Theory
It 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
Bayesian analysis
