Why is proper

diagnosis of the
problem is important?
Approaches in Solving Problems
In decision-making ,the engineer manager is faced
within problems which may either be simple or
complex.

• Qualitative Evaluation
• Quantitative Evaluation
Qualitative Evaluation

• This term refers to evaluation of alternatives

using intuition and subjective judgement.
Example:

A factory operates on three shifts with the following schedule:

• First shift- 6:00 A.M. to 12:00 P.M.
• Second shift – 2:00 P.M. to 10:00 P.M.
• Third shift – 10:00 P.M. to 6:00 A.M.
Quantitative Evaluation

• This term refers to the evaluation of

alternatives using any techniques in a group
classified as rational and analytical.
Quantitative Evaluation
• Inventory Models
• Network Models
• Forecasting
• Queuing Theory
Inventory Models
• Inventory models consist of several types of all designed to
help the engineer manager make decisions regarding
inventory .

1.Economic Order Quantity Model- this one is used to calculate the number of
items that should be ordered at one time to minimize the total yearly cost of
placing orders and carrying the items in inventory.

2.Production Order Quantity Model- this is an economic order quantity

technique applied to production orders.
3.Back Order Inventory Model – this is an inventory model used for planned
shortages.

4. Quantity Discount Model – an inventory model used to minimize the total

cost when quantity discounts are offered by suppliers.
 Network Models
• These models where large complex task are broken into
smaller segments that can be managed independently.
• The two prominent network models are:

• 1.The Program Evaluation Review Technique(PERT)- a techniques which

enables engineer manager to schedule ,monitor ,and control large and
complex projects by employing three time estimates for each activity.
• 2.The Critical Path Method (CPM)- this is network technique
using only one time factor per activity that enables engineer
managers to schedule ,monitor and control large and complex
projects.
 Forecasting

• Forecasting may be defined as “collection of past and current

information to make predictions about the future”.
Queuing Theory

• Describes how to minimize the number of service

units that will minimize both customers waiting time
and cost of service.
 Can an engineer
manager avoid making a
management decision?
Why or why not?