DECISION MAKING

TOOLS
Presented By:-
Nikita Saini
MBA 4th (25)
 • A decision tree is a decision support tool that uses a 
DECISION TREE tree-like model of decisions and their possible
consequences, including chance event outcomes,
resource costs, and utility. It is one way to display an 
algorithm that only contains conditional control
statements.
• Decision trees are commonly used in 
operations research, specifically in decision analysis,
to help identify a strategy most likely to reach a goal,
but are also a popular tool in machine learning.
• A decision tree is a graph that uses a branching
method to illustrate every possible outcome of a
decision.
 • Multivoting is a technique used to narrow down
MULTIVOTING and prioritize a large list of ideas. Multivoting can
be helpful in determining which ideas to pursue at
the end of a brainstorming session. This technique
is sometimes known as the N/3 technique. The
instructions for performing this technique vary by
the source, so we’ve put together an amalgam of
everything we could find.
• Multivoting is simple. It bears a lot of similarities to
Nominal Group Technique and the two are
sometimes (incorrectly) used interchangeably.
That’s likely why instructions for using the
Multivoting Technique vary so widely. However,
we’re hoping this sets the record straight for
inquiring minds with an interest in decision-making
strategies which borders on unhealthy.
 • Pareto Analysis is a statistical technique in decision-
making used for the selection of a limited number of
PARETO ANALYSIS tasks that produce significant overall effect. It uses the
Pareto Principle (also known as the 80/20 rule) the idea
that by doing 20% of the work you can generate 80% of
the benefit of doing the entire job. Take quality
improvement, for example, a vast majority of problems
(80%) are produced by a few key causes (20%). This
technique is also called the vital few and the trivial many.
• We can apply the 80/20 rule to almost anything:
• 80% of customer complaints arise from 20% of your
products and services.
• 80% of delays in the schedule result from 20% of the
possible causes of the delays.
• 20% of your products and services account for 80% of
your profit.
• 20% of your sales force produces 80% of your company
revenues.
• 20% of a systems defects cause 80% of its problems.
 PARETO ANALYSIS
• Here are eight steps to identifying the principal causes you should focus on, using Pareto Analysis:
• Create a vertical bar chart with causes on the x-axis and count (number of occurrences) on the y-axis.
• Arrange the bar chart in descending order of cause importance that is, the cause with the highest count
first.
• Calculate the cumulative count for each cause in descending order.
• Calculate the cumulative count percentage for each cause in descending order. Percentage calculation:
{Individual Cause Count} / {Total Causes Count}*100
• Create a second y-axis with percentages descending in increments of 10 from 100% to 0%.
• Plot the cumulative count percentage of each cause on the x-axis.
• Join the points to form a curve.
• Draw a line at 80% on the y-axis running parallel to the x-axis. Then drop the line at the point of
intersection with the curve on the x-axis. This point on the x-axis separates the important causes on the
left (vital few) from the less important causes on the right (trivial many).
CONJOINT • 'Conjoint analysis' is a survey-based statistical
technique used in market research that helps
ANALYSIS determine how people value different attributes
(feature, function, benefits) that make up an
individual product or service.
• Conjoint design involves four different steps:
1. Determine the type of study
2. Identify the relevant attributes
3. Specify the attributes’ levels
4. Design questionnaire
DECISION • A decision matrix is a list of values in rows and columns
that allows an analyst to systematically identify, analyze,
MATRIX and rate the performance of relationships between sets of
values and information. Elements of a decision matrix
show decisions based on certain decision criteria. The
matrix is useful for looking at large masses of decision
factors and assessing each factor's relative significance.
• The term decision matrix is used to describe a 
multi-criteria decision analysis (MCDA) problem. An
MCDA problem, where there are M alternative options
and each needs to be assessed on N criteria, can be
described by the decision matrix which has N rows
and M columns, or M × N elements, as shown in the
following table. Each element, such as Xij, is either a single
numerical value or a single grade, representing the
performance of alternative i on criterion j.
 • A T Chart (or T-Chart) is a graphic organizer that
T-CHART separates information into columns, traditionally for
comparing. It gets its name from the basic version with
two columns: it looks like the letter "T" and is both
versatile and commonly used across all subjects.
• T chart helps you:-
1. Compare and contrast two or more items
2. Separate information into groups
3. Show change
• The T-Chart is an easy-to-use and versatile graphic
organizer because of its straightforward layout.
Thank you