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ISM Exam #1- Decision Making Process

Terms in this set (33)

Decision making
Choosing among alternative courses of actions
Good Decision making requires...
Creativity & Analystical Skills
Creativity
To find viable alternatives
Analystical Skills
To choose between alternatives
A framework for examining complex problems
Provided by having a formal DM process
A clear and transparent method that has been well defined and pproved
Provided by having a formal DM process
Gives rationale for decisions
Provided by having a formal DM process
Provides consistency with DM process
Provided by having a formal DM process
Ensures a level of objectivity
Provided by having a formal DM process
Requirements statements of assumptopns, criteria, goal, etc.
Provided by having a formal DM process
Gives repeatable, reviewables, revisables, and easy-to-understand decisions
Provided by having a formal DM process
8 Steps in DM process
-Problem Definition
- Determine Requirements
-Establish Goals
-Identifying alternatives
-Define Evaluation criteria
-Select Decision making tools
-Evaluate alternatives agains criteria
-Validate solutions against problem statement
Problem Definition
Critical step is to solve the root of the problem, produce a clear, concise statement that describes the initial and desired conditions
Determines Requirements
Well-defined requirements help you to eliminate infeasible solutions early
Requirements
Conditions that any acceptable solution must satisfy
Establish Goals
Sometimes goals suggest new alternatives and sometimes requirements are restated goals
Goals are
wants and desires
Goals go beyond...
essentials, must-have requirements
Identifying Alternatives
Alternatives provide different ways to transform the initial condition into the desired condition
Each alternative must show...
-How it solves the defined problem
- How it is different from the alternative solutions
Define Evaluation Criteria
Criteria should:
-Meansure something important
-Not depend on another criterion
Criteria
are used to measure how well the alternatives meets a goal
Select Decision Making Tools
Many decision-making tools exist
Match the tool...
to the decision
The simpler the tool...
the better
Evaluate alternatives against criteria
Use the criteria to evaluate alternatives
Not all Criteria are...
Equally Weighted- Reflect the importance of the criteria
Final Solution should
-Fulfull the required state
-meet all requirements
-Best achieve the goals
Pros and Cons Analysis
Lists good an bad about each alternative
- Good for simple decisions with few alternatives and few discriminating citeria
Cost/ Benefit Analysis
Determine the probable benefits of each alternative and weigh against the probable costs
Scenarios Analysis
Analyze possible future events by comparing the future alternatives outcomes
DM Tools/ Techniques
-Pros and Cons Analysis
-Cost/ Benefit Analysis
-Scenarios Analysis
Business Case
Feasibility & costs
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