Connect with your favorite people

Email
BSCE3B_Group2@gmail.com
or phone

Password
**********

Continue

Keep me sign in
Managers of all kinds and types, including the
engineer manager, are primarily tasked to
provide leadership in quest for the attainment of
organization’s objectives.

Continue
Members

Allyson Cipriano Kyle Español Jaime Gadia Bruce Zapanta

Member Member Member Member

Friends Friends Friends Friends

“Alone, we can do so little; together, we can do so much.”

-Helen Keller
Messages
 DECISION MAKING

• Decision-making is a responsibility of the engineer manager.

• The higher the management level is, the bigger and more complicated
DECISION-MAKING
decision-making becomes.AS A MANAGEMENT RESPONSIBILITY
• The organization of the engineer manager will rise or fall depending on
the outcome of his decisions.
Aa
DECISION MAKING PROCESS

The production manager of a certain company has received a written

request from a section head regarding the purchase of air-conditioning
EXAMPLE:unit. Almost simultaneously, another request from another section was
forwarded to him requiring the purchase of a forklift. The production
manager was informed by his superior that he can only buy one of the two
requested items due to budgetary constraints.

Aa
 DECISION MAKING

1. Rational Perspective – maximize utility.

Two different ways to understand how
2. Naturalistic Perspective – less practicality but more
decisions
influence from personal beliefare
andmade:
prior experience.

Aa
 DECISION MAKING

Process of identifying and choosing alternative courses of action in a

manner appropriate to the
“Heart of demand of the situation
all the management designed to determine
function”
the best option available to solve a certain
- William problem
G. Nickela

Aa
 DECISION MAKING PROCESS

Step 1: Diagnose Problem

• Problem can be defined as when theres a difference between an

actual situation and a desired situation.
• To make a decision, you “Identification of the
must first identify theProblem
problemisyou
theneed
tantamount to having the problem
to solve or the question you need to answer. half-solved”

Aa
 DECISION MAKING PROCESS

Step 2: Analyze the Environment

• In the process of solving the problem, Analyze the Environment

and gather as much information related in the problem. Do an
internal assessment in the organization and seek information
from external sources By analyzing the environment we can identify the constraint.

Aa
 COMPONENT OF THE ENVIRONMENT

• Internal Environment – organizational activities within a firm

Organization Aspect
Personnel Aspect • External Environment – are variables that are outside the organization
Financial Aspect Government
Marketing Aspect Competitors
Production Aspect Client

Aa
 DECISION MAKING PROCESS

Step 3: Develop Viable Alternatives

Stepyou4:can
• After analyzing the environment Evaluate Alternatives
now proceed by coming up with a range of options or solution. You can
make a wide list of viable option by following the procedure below
I. Prepare a List • “Proper evaluation makes choosing the right solution less difficult.”
After of
II. Determine the viability identifying the range of solution you have, how the alternatives will be evaluated
each solutions
III. Revise the List will depend on (1) Nature of problem, (2) Objectives of the firm, (3) Nature of
alternatives

Aa
 DECISION MAKING PROCESS

Step 5: Make a choice

• Here is the part of the decision-making process where you make

the decision by choosingStep
on6: Implement
the Decisionpassed on the
list of alternatives
evaluation.
• Making the decision is just the beginning you should start making
implementation and develop a plan to make your decision tangible and
achievable.
Aa
DECISION MAKING PROCESS

Step 7: Evaluate and Adapt Decision Result

A Good Decision Maker always review the decision they make whether it resulted
in Good or Bad Outcome because this is where one may learn and improve,
therefore manager should use Control and Feedback mechanism.

Aa
 DECISION MAKING PROCESS

Feedback
Process which requires checking at each stage of the process to assure that the
Control
alternatives generated, and the solution selected for implementation are in keeping with
Action made to ensure that activities performed match the desired activities or
the goals and objectives
goals.

Aa
APPROACHES IN SOLVING PROBLEM

Types of Evaluation as Approaches in Solving Problems

• Qualitative Evaluation
• Quantitative Evaluation

Aa
 APPROACHES IN SOLVING PROBLEM

Qualitative Evaluation
Times When
It refers to an evaluation Managers Tend
of alternatives usingtointuition
Use Qualitative
and Evaluation (Stevenson)
subjective judgment. • The problem is fairly simple
• The problem is familiar
• The costs involve are not great (only low cost)
• Immediate decisions are needed

Aa
 APPROCHES IN SOLVING PROBLEM (EXAMPLE)

First Shift – 6:00 AM to 2:00 PM

Second Shift – 2:00PM to 10 PM
Third Shift – 10PM to 6 AM
Solution
Each shift
Because ofconsists of 200 workers
time constraints, manning
the manager 200 machines.
made On September
an instant decision on who16, 1996,the
among thefirst
operations went smoothly
shift workers until
would work the
overtime
factory
to the five
man the managers, an industrial engineer, was notified at 1:00 PM that five of the workers assigned to the second shift
machines.
could not report for work because of injuries sustained from traffic accident while they were on their way to the factory.

Aa
APPROACHES IN SOLVING PROBLEM

Quantitative Evaluation
It refers to an evaluation of alternatives using any techniques in a group classifies as
rational and analytical.

Aa
Figure 2.3 Feedback as a Control Mechanism in the Decision-Making Process

Aa
 QUANTITATIVE MODELS FOR DECISION MAKING

• Simulation • Inventory Models

• Linear Programming • Queuing Theory
• Sampling Theory • Network Models
• Statistical Decision Theory • Forecasting
• Regression Analysis

Aa
QUANTITATIVE MODELS FOR DECISION MAKING

• Inventory Models
Consist of several types all designed to help in making
1. Economic Order Quantity Model
decisions regarding inventory.
2. Production Order Quantity Model
3. Back Order Quantity Model
4. Quantity Discount Model
Aa
QUANTITATIVE MODELS FOR DECISION MAKING

Queuing Theory
It describes how to determine the number of service units that will
minimize the cost of service, as well as the customer waiting time.

Aa
QUANTITATIVE MODELS FOR DECISION MAKING

• Network
The twoModels
most prominent models:
1. The
The large complex
Program tasks Review
Evaluation are broken into smaller
Technique (PERT)segments that can
be managed- independently.
By employing three time estimates for each activity
2. The Critical Path Method (CPM)
- Uses one time factor per activity.

Aa
 QUANTITATIVE MODELS FOR DECISION MAKING

• Forecasting
It can be defined as “the collection of past and
• Regression
current information to make predictions
Analysis about the
future.” A forecasting method that examines the association
between two or more variables. It uses data from previous
periods to predict the future events.
Aa It may be simple or multiple depending on the
 QUANTITATIVE MODELS FOR DECISION MAKING

Simulation
- It is constructed to represent reality and conclusions about real-life problems can be
used.
- The decision maker develops a mathematical model of the system under
consideration.
- It can evaluate the alternatives fed into the process by the decision-maker.
Aa
 QUANTITATIVE MODELS FOR DECISION MAKING

• Linear Programming
• Sampling
It is used to produced an optimum
Theory solution within
the bounds imposed by constraints uponthe
Samples decision. are statistically determined to be
of populatios
used for a number of processes like quality control and
marketing research.

Aa
 QUANTITATIVE MODELS FOR DECISION MAKING

• Statistical Decision Theory

The rational way to conceptualize, analyze, and solve problems in situations
It is information
involving limited, or partial very important
abouttodecision
subjectenvironment.
the alternatives to Bayesian
analysis in order to revise and update the initial assessments of the
event probabilities generated by the alternative solutions.

Aa
Don’t forget to like and subscribe to our
channel.

Log Out