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Decision Making Presentation

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19 views24 pages

Decision Making Presentation

Uploaded by

Joanah Nichole Tinoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ES 303

ENGINEERING
MANAGEMENT

DECISION
MAKING

BSCE-3N
MEMBERS TOPICS

DECISION MAKING PROCESS DEFINITION


TEJADA, RACHEL MAE I.
APPROACHES IN PROBLEM SOLVING
YTEM, JUSTINE MAE A.
QUANTITATIVE MODELS FOR DECISION-
TORRES, ADRIAN KYLE C.
MAKING
DECISION MAKING
PROCESS DEFINITION
PRESENTED BY: TORRES, ADRIAN KYLE C.
DECISION MAKING PROCESS

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
DIAGNOSE
PROBLEM

WHAT IS A PROBLEM?

it is the difference between the actual situation


and a desired situation
EXAMPLE:

Analyze the 1 LIMITED FUNDS

Environment 2 LIMITED TRAINING

3 ILL-DESIGNED FACILITIES
to identify constraints
which may be internal or 4 LIMITED MARKET
external limitations
5 STRICT ENFORCEMENT OF

LOCAL ZONING REGULATIONS


Develop Viable
Alternatives
Prepare a list
Determine viability of each
solutions
Revise the list
Evaluate
Alternatives
By properly evaluating and choosing the right solution.

Alternatives may be evaluated depending on the nature


of the problem, objectives of the firm, and nature of
alternatives presented.

Souder suggest, “each alternative must be analyzed and


evaluated in terms of its value, cost, and risk
characteristics
Make a Choice
Webber
Choice- -refers to advises,
representing
making the process “...identify all
potential
of selecting significant
solutions to
among consequence
a problem
alternatives s of each
other
IMPLEMENT DECISION
-carry out the decision so that the objectives sought
will be achieved
-to make implementation effective, a plan must be
devised
Evaluate and Adapt

FEEDBACK CONTROL
Use control and
process that requires checking at
feedback mechanism each stage of the process to actions made to ensure
to ensure results and ensure that the alternatives, that activities performed
provide information
criteria used, and solution match the desired
selected are in keeping the goals
activities or goals
and objecives
APPROACHES IN
PROBLEM SOLVING
PRESENTED BY: YTEM, JUSTINE MAE A.
QUALITATIVE EVALUATION

This term refers to evaluation of alternatives using intuition


and subjective judgement.

Stevenson states that managers tend to use the qualitative


approach when:
1. The problem is fairly simple.
2. The problem is familiar.
3. The cost involved are not great.
4. Immediate decisions are needed.
QUANTITATIVE EVALUATION

This term refers to the evaluation of


alternatives using any technique in a group
classified as rational and analytical.
Feedback as a Control Mechanism in the Decision - Making - Process

Step 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 results results not achieved determine steps where


error was made

results achieved adapt decision results


QUANTITATIVE MODELS
FOR DECISION-MAKING
PRESENTED BY: TEJADA, RACHEL MAE I.
TYPES OF QUANTITATIVE
TECHNIQUES

Inventory models
Queuing theory
Network models
Forecasting
Regression analysis
Simulation
Linear programming
Sampling theory
Statistical decision theory
Economic order quantity model - is
used to calculate the number of
items that should be ordered at one
INVENTORY MODELS time to minimize the total yearly cost
of placing orders and carrying the
items in inventory.

A method of ensuring that the right Production order quantity model - is


quantity and quality of the relevant stock an economic order quantiy technique
is available at the right time and place. applied to production orders.

It consist of several types all designed to Back order inventory model - is an


help the engineer manager make inventory model used for planed
decisions regarding inventory. They are as shortages.
follows:
Quantity discount model - to
minimize the total cost when quantity
discounts are offered by suppliers.
QUEUING THEORY NETWORK MODELS

Large complex tasks are broken into


The queuing theory is one that smaller segments that can be
describes how to determine the managed independently.
number of service units that will
minimize both customer waiting time The two most prominent network
and cost of service. models are:

The program Evaluation Review


Technique (PERT)

The Critical Path Method (CPM)


THE PROGRAM EVALUATION THE CRITICAL PATH
REVIEW TECHNIQUE (PERT) METHOD (CPM)

To schedule, monitor, and control Is a network technique using only one


larger and complex projects by time factor per activity that enables
employing three time estimates for engineer managers to schedule,
each activity. monitor, and control large complex
projects.
FORECASTING REGRESSION ANALYSIS

There are instances when engineer The regression model is a forecasting


managers make decision that will method that examines the association
have implications in the future. between two or ore variables.

Forecasting my be defined as “the When one variable is involved, it is


collection of past and current called simple regression while two or
information to make predictions more independent variables, it is called
about the future.” multiple regression.
SIMULATION LINEAR PROGRAMMING

A model constructed to represent is used to produce an optimum


reality, on which conclusion about real- solution within the bounds imposed
life problems can be used. by constraints upon the decision.

One of the most widely used It is very useful as a decision-


quantitative methods because it is so making tool when supply and
flexible and can yield so many useful demand limitations at plants,
results. warehouses, or market areas are
constraints upon the system.
STATISTICAL DECISION-
SAMPLING THEORY
THEORY

Samples of populations are Rational way to conceptualize, analyze,


statistically determined to be used and solve problems in situations
for a number of processes, such as involving limited, or partial information
quality control and marketing about the decision environment.
research.

Sampling saves time and money.


THANK
YOU!

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