Beruflich Dokumente
Kultur Dokumente
Perspective
We keep making decisions, keep postponing decisions,
sometimes jump to decisions and sometimes sit on decisions,
sometimes are faced with tough decisions and sometimes we
delegate decisions.
But decisions are part of life, more so, if you are designated as
Manager – your job description may include quality of decision
making as one of the key result areas.
CLASSIFICATION OF DECISIONS
2. Selection Decisions:
i. Products / Services
ii. Process
iii.Locations
iv.Layout
v. Equipment
vi.Workforce
a. Design Decisions:
i. Product design
ii. Service Design
iii.Job Design
iv.Process Design
v. Control System Design
vi.Capacity Design
3. Recurring Decisions:
a. Target Setting
b. Scheduling
c. Sequencing
d. Inventory Control
e. Cost Control
f. Maintenance
4. Planning Decisions:
5. Organizing Decisions:
a. Organization Structure
b. Organizing the jobs
c. Staffing
d. Work and Workstation Design
e. Standards of Performance
f. Compensation Systems
6. Controlling Decisions:
a. Quality
b. Quantity
c. Schedule
d. Inventories
e. Costs
f. Maintenance
It is not necessary that all decision makers make all the above-
mentioned decisions. All of us make some of those decisions. It
is perhaps, very few people – especially entrepreneurs – make
all the above-mentioned decisions.
a. Target setting
b. Sequencing
c. Scheduling
d. Inventory control
e. Preventive Maintenance
5. Democratic Decision Making:
6. Consensus Building:
Dominant Factor:
Critical Examination:
1. Purpose (Why)
2. Means (How)
3. Place (Location)
4. Sequence (When)
5. Person (Who)
Questio
What
n What Why What else
Should
What is done? What
What else should
Purpos Is it Why is
could be
e necessary? it done? be done?
done?
Why How
How is it should?
Means this How else?
done?
way?
Where
Why Where should?
Place Where done?
there? else?
When
Sequen Why
When done? When else? should?
ce then?
Who
Why should?
Person Who does it? Who else?
them?
Queuing Theory:
Linear Programming:
Transportation Problem:
Delphi Method:
Decision Trees:
Outcome 1
Action Outcome 2.1
Outcome 2
Outcome 2.2.1
Outcome 2.2
Outc
ome 2.2.2
An example of a Decision tree is shown above. The branches
can be any number and grow in any direction.
Sampling:
Suggests that we draw one sample from the population and use
it to make assumptions about the population.
We draw two samples from the same population and test them
with two independent agencies and compare the results. One
popular example that comes to mind is testing for cancer thru
biopsy –two samples are sent to two laboratories and compare
the findings.
STATISTICAL ANALYSIS:
Correlation – or Covariance:
Probability Distributions:
Hypothesis Testing:
Consultants:
Decision Postmortem:
Conclusion:
STEPS:
Identifying the problem
Developing the decision criteria
Creating the alternatives
Allotment of weights
Analyzing the alternatives
Selecting one alternative
Implementation of alternative
Evaluation
STEP 1:
Identification of problem:
STEP 2:
STEP 3:
In this step owner will give the ranking to his priorities or needs
of customers.
To all those things which he has observed through surveying the
market. He gives grades to the properties of alternatives
according to their advantages or disadvantages.
STEP 4:
Creating alternatives:
STEP 5:
Analyzing the alternatives:
STEP 6:
STEP 7:
Implementation:
Evaluation:
In this step owner will evaluate the decision which he has made.
Means he will start benchmarking or comparing the alternative with
other weather their choice is working properly that they have made
a rational decision.
ROYAL FURNISHERS
G.T Road, Gujrat. (Pakistan) Tel: +92(0)53-3517303
Fax: +92(0)53-3516882, Mob: +92(0)333-8402993
INTRODUCTION:
Firstly they only have an outlet to sale out the products, the
products which they did not make themselves. They buy from
some where else and then used to sell them to consumers. That
shop was situated on railway road.
Let’s see how they followed the decision making process while
starting that business.
How they developed the decision criteria and what were
alternatives available.
STEP 1:
STEP 2:
STEP 3:
In the question that weather had he given weights to all those
requirements or he made some kind of grading to get the
maximum and to make a rational decision.
His answer was that not such type of grading he made. He just
collectively made a requirement and found it because there was
an advantage to him that he owned a brilliant plot right in the
spot between the great competitors. So he had not to work as
much.
ALLOCATION OF WEIGHT:
STEP 4:
CREATING ALTERNATIVES:
STEP 6:
IMPLEMENTAION:
EVALUATION: