Angelyn M.

Abajenza BSME 3A October 03, 2021

Assignment 2: Q and A

1. Can the engineer manager avoid making management decision? Why or Why not?

The engineer manager can't avoid making management decisions because their primary
task is to provide leadership in the quest for the attainment of their organization's objectives. As
an engineer manager, you are responsible for decision-making. Your decision-making skill is very
crucial for your success, not only for yourself but also for your organization. Every action there's
consequences. That is why you will need to be confronted many times by situations where you
will need to choose from among various options. Making a good decision can help you become
effective, and it will lead to success.

2. When a problem becomes apparent and the engineer manager chooses to ignore it, is he
making a decision? Explain your answer.

Yes, of course, he is making a decision. He decides it by choosing to ignore the problem.

He chooses the easy way than by taking action to find the solution. This kind of person is not fit
in the position of an engineer manager because they failed to uphold their responsibility. Their
skills and ability are useless if there are problems, but they choose to ignore them.

3. Why is the proper diagnosis of the problem important?

Having a proper diagnosis of the problem is important because it can lead you to
succeed in the subsequent steps of the decision-making process. It can help you to analyze the
environment, develop viable alternatives, evaluate those alternatives, make a choice,
implement decisions to evaluate and adapt the decision results. Because an expert once said
“Identification of the problem is tantamount to having the problem half-solved.”

4. What are the components of the environment from the point of view of the decision-maker?
What are they consist of?

Components of the environment, the environment consists of two major concerns: The
internal and external. The internal environment refers to organizational activities within a firm
that surrounds decision-making. The external environment refers to variables that are outside
the organization and not typically within the short-run control of top management.
5. How may one develop viable alternatives in problem solving?

Develop viable alternatives in problem solving is made possible by using a procedure with
the following steps:
 Prepare a list of alternative solutions.
 Determine the viability of each solutions.
 Revise the list by striking out those which are not viable.

6. How may alternative solution be evaluated?

The alternative solution be evaluated will depends on the nature of the problem, the
objectives of the firm, and the nature of the alternatives presented. Souder suggests that “each
alternative must be analyzed and evaluated in terms of its value, cost, and risk characteristics.”
The value of the alternatives refers to benefits that can be expected. The cost of the alternatives
refers to out-of-pocket costs, opportunity costs, and follow-on costs. The risk characteristics
refer to the likelihood of achieving the goals of the alternatives.

7. Why is it important for those who will be involved in implementation to understand and accept
the solution of the problem?

It is important for those who will be involved in implementation to understand and

accept the solution of the problem because in implementing the decision, the result expected
may or may not happen.

8. What are the approaches in solving problems?

The approaches in solving problems are Qualitative Evaluation and Quantitative

Evaluation. Qualitative Evaluation refers to evaluation of alternatives using intuition and
subjective judgment. Quantitative Evaluation refers to the evaluation of alternatives using any
technique in a group classified as rational and analytical.

9. What are the quantitative techniques are useful in decision-making?

The types of quantitative techniques are useful in decision-making are as follows:
 Inventory Models: I.V consist of several types all designed to help the engineer manager
make decision regarding inventory. They are as follows: Economic Order Quantity
Model, Production Order Quantity Model, Back Order Inventory Model, and Quantity
Discount Model.
 Queuing Theory: The Queuing Theory is one that describe how determine the number
of service units that will minimize both customer waiting time and cost of service.
 Network Models: These are models were large complex tasks are broken into smaller
segments that can be managed by independently. The two most prominent network
models are: The Program Evaluation Review Technique and the Critical Path Method.
  Forecasting: These are instances when engineer managers make decisions that will have
implications in the future.
 Regression Analysis: The regression model is forecasting method that examines the
association between two or more variables. It uses data from previous periods to
predict future events. Regression Analysis may be simple or multiple depending on the
number of independent variables present. When one independent variable is involved it
is called simple regression; when two or more are involved it is called multiple
regression.
 Simulation: is a model constructed to represent reality, on which conclusions about real-
life problems can be used. It is a highly sophisticated tool by means of which the
decision maker develops a mathematical model of the system under consideration.
 Linear Programming: is a quantitative technique that is used to produce an optimum
solution within the bounds imposed by constraints upon the decision. It is very useful
decision-making tool when supply and demand limitations at plants, warehouse, or
market areas are constraints upon the system.
 Sampling Theory: is a quantitative technique where sample of populations are
statistically determined to be used for a number of processes, such as quality control
and marketing research.
 Statistical Decision Theory: refers to the “rational way to conceptualize, analyze, and
solve-problems in situations involving limited, or partially information about the
decision environment.

10. What is the purpose of Bayesian Analysis?

The purpose of Bayesian analysis is to revise and update the initial assessment of the
event probabilities generated by alternatives solution. This is achieved by the used of additional
information.