Man E Paggawa NG Desisyon

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CHAPTER 2

DECISION
MAKING
P R E PA R E D B Y:
ALRO E. ABALOS
INTRO
MANAGEMENT
DIAGNOSE

ANALYZE

OPPORTUNITY

ALTERNATIVES

MAKE A
CHOICE

IMPLEMENT

RESULTS
DIAGNOSE
PROBLEM
IDENTIFYING
“TANTAMOUNT
THE TO HAVING THE
PROBLEM
PROBLEM HALF-
SOLVED”.
When
THE ENVIRONMENT

ILL- STRICT ENFORCEMENT


LIMITED LIMITED
LIMITED FUNDS TRAINING
DESIGNED PATENTS
MARKET
OF LOCAL ZONING
FACILITIES REGULATION
OF

INTERNAL

EXTERNAL
ORGANIZATIONAL
ASPECTS

FINANCIAL
MARKETING
ENGINEERING
ASPECTS
ASPECTS

FIRM

PRODUCTION PERSONAL
ASPECTS ASPECTS.
GOV’T LABOR
UNIONS

ENGINEERS
SUPPLIERS

CLIENTS
BANKS

COMPETI PUBLIC
TORS
DEVELOP

DETERMINE THE VIABILTY


OF EACH SOLUTION
LIST OF SOLUTION PREPARED BY THE
ENGINEERING MANAGERS

IMPROVE THE
BUY THE NEEDED
CAPACITY OF THE SECURE THE
ADDITIONAL OUTPUT
FRIM BY HIRING SERVICES OF THE
FROM ANOTHER
MORE WORKERS AND SUBCONTRACTORS
FIRM
BUILDINGS

STOP SERVING SOME DELAY SERVIVING


OF THE COMPANY’S SOME CLIENTS
COSTUMERS
PROPER EVALUATION
MAKES CHOOSING THE
RIGHT SOLUTION AND
LESS DIFFICULT
OBJECTIVE OF THE
FIRM

NATURE OF THE
PROBLEM

“EACH ALTERNATIVE MUST


BE ANALYZE
AND EVALUATE – VALUE,
COST,
AND RISK
CHARACTERISTICS”
2. COST OF ALTERNATIVE
C
H

C
E
Refers to carrying out the
decision so that the
objective sought will be
achieve.

At this stage, resources


must be made available.
APPROACHES IN
QUALITATIVE EVALUATION

QUALITATIVE APPROACH
THE PROBLEM IS FAIRLY SIMPLE

THE PROBLEM IS FAMILIAR

THE COSTS INVOLVED ARE NOT GREAT

IMMIDIATE DECISION ARE NEEDED


INVENTORY
QUEUING THEORY FORECASTING
MODELS

REGRESSION LINEAR
SIMULATION
ANALYSIS PROGRAMMING

STATISTICAL
SAMPLING THEORY
DECISION THEORY
ECONOMIC
ORDER
QUANTITY
MODEL PRODUCTION
ORDER
QUANTITY
MODEL

BACK ORDER
INVESTIGAT
ORY MODEL

QUANTITY
DISCOUNT
MODEL
QUEUING
THEORY
S
ANALYSIS
FORECASTING METHOD
THAT EXAMINES THE
ASSOCIATION BETWEEM
TWO OR MORE VARIABLES.
SIMULATION
LINEAR PROGRAMMING

• USED TO PRODUCE AN
OPTIMUM SOLUTION
WITHIN THE BOUNDS
IMPOSED BY THE
CONSTARINT IN UPON
THE DECISION
STATISTICAL-DECISION THEORY

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