Make A Choice

- The decision-maker needs to be prepared to make a decision after evaluating

the options. Making a choice is the act of deciding between options that could be a
potential fix for an issue. As mentioned by Webber, list all the important effects of
every decision.

Implement Decision

- Implementation will happen if a decision has been made. The act of putting a
decision into action in order to accomplish the desired goals is referred to as
implementation. If the execution is successful, a plan needs to be created.

Evaluate and Adapt Decision Results

- The manager must use control and feedback mechanisms when putting the
decision into action to guarantee the outcome and supply data for decisions to come.

Control - This is an action that was taken to ensure that the activities
performed match the desired goal.

Feedback - To ensure that the solutions chosen, the alternatives generated,

and the evaluation criteria applied in the process are in accordance with the
aims and objectives, it is necessary to verify at every stage of the process.

APPROACHES IN SOLVING PROBLEMS

- When making decisions, the engineer manager must deal with issues that can
be simple or complicated. He must be aware about or familiar with the following
strategies in order to guide him:

1. Qualitative Evaluation
2. Quantitative Evaluation

Qualitative Evaluation

- This is an evaluation of alternatives that use intuition and subjective

judgment. According to Stevenson, managers tend to use the qualitative approach
when:

1. The problem is fairly simple.

2. The problem is familiar.
3. The costs involved are not great.
4. Immediate decisions are needed.

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

Quantitative Evaluation

- the assessment of options through the application of any method within a

rational and analytical group.

QUANTITATIVE MODELS FOR DECISION MAKING

- The following are the types of quantitative models that are useful in
decision-making.

1. Inventory Models
2. Queuing Theory
3. Network Models
4. Forecasting
5. Regression Analysis
6. Simulation
7. Linear Programming
8. Sampling Theory
9. Statistical Decision Theory
Inventory Models

- It
is a kind of quantitative model, with various varieties, intended to assist the
engineer manager in making inventory-related decisions. Here are the things that are:.

1. Economic Order Quantity Model - The number of items that should be

ordered at one time is determined by this model, which helps to minimize the
overall annual cost.

2. Production Order Quantity Model - The production orders apply to the

economic order quantity technique.
3. Back Order Inventory Model - Used for planned shortages.
4. Quantity Discout Model - if quantity discounts are available, it is used to reduce
the overall cost.

Queuing Theory

- This one explains how to figure out how many service units to have in order
to minimize waiting times for customers as well as service costs.

Network Models

-A model with independent management that divides large, complicated tasks

into smaller ones.

1. The Program Evaluation Review Technique (PERT) - a method wherein

three time estimates are used for each task, allowing engineer managers to plan,
oversee, and manage big, complicated projects.
2. The Critical Path Method (CPM) - a method that makes use of a single time
factor for each task, allowing the engineer manager to plan, oversee, and manage big,
intricate projects.

Forecasting

- According to its definition, this kind of quantitative model is "the collection

of past and current information to make predictions about the future."

Regression Analysis

- This forecasting technique looks at the relationship between two or more

variables. The number of independent variables in the regression analysis determines
whether it is simple or multiple regression analysis. Simple regression refers to the
case when only one independent variable is involved; multiple regression refers to the
case when two or more independent variables are involved.

Simulation

- Based on this model's representation of reality, conclusions about issues that

arise in real life can be made. The decision-maker created a mathematical
representation of the system in question. Although it cannot ensure the best answer,
simulation can assess the options the decision-maker presents to the process.
Linear Programming

- Used to generate the best possible outcome within the limitations placed on
the choice. When there are constraints on supply and demand, linear programming is
a very helpful tool for making decisions.

Sampling Theory

- Using this technique, population samples are selected based on statistical

analysis and used for various purposes, including marketing research and quality
control. In essence, the sampling saves both money and time.

Statistical Decision Theory

- In situations where there is limited or partial information about the decision

environment, this theory refers to the "rational way to conceptualize, analyze, and
solve problems."

Bayesian Analysis - This is being done in order to update and modify the
preliminary evaluations of the event probabilities produced by the different solutions.

Bayes Criterion - This is the selection of the alternative with the maximum
expected payoff.

Summary

- For the engineer manager, having a decision-making process is crucial.

wherein, based on the results of their choices, it will be up to them to determine
whether their organization rises or falls. In actuality, the engineer manager's ability to
make decisions must be developed. Additionally, there are steps in the decision-
making process where the engineer manager diagnoses the issue, assesses the
environment, clarifies the issue or opportunity, generates workable alternatives,
weighs the alternatives, makes a decision, puts the decision into action, and then
assesses and modifies the decision's outcome. Since decision-making involves so
many steps, an engineer manager needs to be capable of making decisions.