Module 2 Flashcards
It is a big responsibility of the engineer manager.
Decision Making
Defined as the process of identifying and choosing alternative courses of action in a
manner appropriate to the demands of the situation.
Decision Making
Who conclude that if manger are afraid to make a decisions are dangerous
and “should be removed from their position as soon as possible.”
Delaney
According to him/her, Decision Making is the heart of all the management functions.
Nickels and others
According to him/her, Rational Decision Making is a process involving the following steps:
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
David H. Holt
Give the 8 steps for rational decision making process of David H. Holt.
- Diagnose problem
- Analyze environment
- Articulate problem or opportunity
- Develop viable alternatives
- Evaluate alternatives
- Make a choice
- Implement decision
- Evaluate and adapt decision results
What decision making process if a manager wants to make an intelligent decision, his first move must be to identify the problem.
Diagnose Problem
What Decision-Making Process that the objective is the identification of constraints, which may be spelled out as
either internal or external limitations.
Analyze the Environment
It exists when there is a difference between an actual situation and a desired
situation.
Problem
It refers to variables that are outside the organization and not typically within the
short-run control of top management.
External Environment
It refers to organizational activities within a firm that surrounds decision-making.
Internal Environment
Give 3 examples of internal limitations
- Limited funds available for the purchase of
equipment. - Limited training on the part of employees.
- Ill designed facilities
Give 3 examples of external limitation.
- Patents are controlled by other organizations.
- A very limited market for the company’s products
- Strict enforcement of local zoning regulations.
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 theright areas of
focus to get real results.
Articulate Problem or Opportunity
What Decision-Making Process that, oftentimes, problems may be solved by any of the solutions offered. The best among the alternative
solutions may be considered by management.
Develop Viable Alternatives
What Decision-Making Process that proper
evaluation makes choosing the right solution less difficult.
Evaluate Alternatives
It refers to the process of selecting among alternatives representing potential solutions to a
problem.
Choice-Making
After the alternatives have been evaluated, the decision-maker must now be ready to _______.
Make a Choice
This is necessary or decision making will be an
exercise in futility.
Implement Decision
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
refers to actions made to ensure that the activities performed match the desired activities or goals
that have been set.
Control
refers to carrying out the decision so that the objectives sought will be achieved.
Implementation
This term refers to evaluation of alternatives using intuition and subjective judgement.
Qualitative Evaluation
This term refers to the evaluation of alternatives using any technique in a group classified
as rational and analytical.
Quantitative Evaluation
Consist of several types all designed to help the engineer manager make decisions regarding
inventory.
Inventory Models
This one is 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.
Economic order quantity model
this is an economic order quantity technique applied to production order.
Production order quantity model
this is an inventory model used for planned shortages.
Back order inventory model
an inventory model used to minimize the total cost when quantity discounts are
offered be suppliers.
Quantity discount model
is one 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 Model
a techniques which enables engineer managers schedule, monitor, and control large and complex projects by
employing three time estimates for each activity.
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.
Critical Path Method (CPM)
Is a forecasting method that examines the association between two or more variables.
It uses data from previous periods to predict future events.
Regression Analysis
Is a model constructed to present reality, on which conclusions about real life problems can be
used.
Simulation
Is a quantitative technique that is used to produce an optimum solution within the bounds
imposed by constraints upon the decision.
Linear Programming
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.
Sampling Theory
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
The purpose of 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
Defined as “the collection of past and current information to make predictions about the future.”
Forecasting
