Decision making and technical feasibility
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This document discusses the process of decision making and technical feasibility. It outlines the key steps in good decision making: 1) identifying the problem, 2) gathering information, 3) analyzing the situation, 4) developing options, 5) evaluating options, 6) selecting the preferred alternative, and 7) acting on the decision. Each step of the decision making process is then described in more detail with examples of tools that can be used at each step, such as cause-and-effect diagrams and Pareto charts for analysis.
Decision making and technical feasibility
- 1. Decision Making & Technical Feasibility ACPM L1 B7 By- Palla Narasimhudu
- 2. 3/23/2015 ACPM L1 B7 2 Decision-making can be regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities Every decision-making process produces a final choice that may or may not prompt action Decision Making & Technical Feasibility What is Decision Making
- 3. Qualities of a Good Decision Maker Good Decision Identify the Problem Gathering Information Analysing the Situation Developing Options Evaluating Options Selecting Preferred Alternative Cost Benefit Analysis Acting on Decision Decision Making & Technical Feasibility 3/23/2015 ACPM L1 B7 3
- 4. Identification of the Problem The problem is thoroughly analysed in this step What exactly is the problem? Why the problem should be solved? Who are the affected parties of the problem? Does the problem have a deadline or a specific time- line? Decision Making & Technical Feasibility 3/23/2015 ACPM L1 B7 4
- 5. Gathering Information Most decisions require a good understanding of the current state in order to understand all implications of the potential choices For this reason it can be valuable to consider the views of all parties that will be affected by the decision These may include customers, employees, or suppliers Data should be gathered on how the current problem is affecting For the process of information gathering, tools such as 'Check Sheets' can be effectively used. Decision Making & Technical Feasibility . 3/23/2015 ACPM L1 B7 5
- 6. Analysis of the Problem For this step, brainstorming to list down all the ideas is the best option Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes We can make use of Cause-and-Effect diagrams and Pareto Chart tool Cause-and-Effect diagram helps us to identify all possible causes of the problem Pareto chart helps us to prioritize and identify the causes with highest effect We can move on generating all possible solutions (alternatives) for the problem in hand Decision Making & Technical Feasibility 3/23/2015 ACPM L1 B7 6
- 7. Developing Options In this step, the baseline criteria for judging the alternatives should be set up When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken into consideration For Instance- Profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand Decision Making & Technical Feasibility . 3/23/2015 ACPM L1 B7 7
- 8. Evaluating options Use judgement principles and decision-making criteria to evaluate each alternative In this step, experience and effectiveness of the judgement principles come into play We need to compare each alternative for their positives and negatives. Decision Making & Technical Feasibility 3/23/2015 ACPM L1 B7 8
- 9. Selecting preferred alternative After analysis all the alternatives, we must decide on the best one The best alternative is the One that produces the most advantages and the fewest serious disadvantages Sometimes the selection process can be Straight forward such as the alternative with the most Pros and fewest Cons Decision Making & Technical Feasibility 3/23/2015 ACPM L1 B7 9
- 10. Cost Benefit Analysis: Decision Making & Technical Feasibility A comparison statement of the preferred alternative is made in terms of Cost The various parameters may include resources like men, material, machinery (if any) etc. . 3/23/2015 ACPM L1 B7 10
- 11. Acting on Decision Convert our decision into a plan or a sequence of activities Execute our plan by ourselves or with the help of subordinates Decision Making & Technical Feasibility 3/23/2015 ACPM L1 B7 11