The Significance of Decision Making Tools-Free-Samples for Students

Question: Identify the root causes and proposing the use of appropriate tools and techniques of Decision Making. Answer: 1.Despite Latino Engineering maintaining its workers and its name after quit of the founder Dominic, and selling the company to an investment group, it was still at its highest possibility to face complain on the services and goods they offered because of several managerial issues which the new team of the investors did not take into consideration as highlighted below; Poor Management One of the root cause of all the complains aired by the customers was directly linked to poor management. The new owners were tracked to be having a frequent lack of a relevant company and management expertise in almost all company functions and seems they do not have enough capital to hire the necessary people to take care of what they do not know, and in case they had to recognize which section or areas, they dont perform well, and of more important seek help, the company owners were and had started facing a disaster. Any successful company owner is also a good leader just like Dominic who was creating a working and conducive climate that encourages a greater productivity as well as innovation. The new owners were supposed to be skilled at hiring competent people, adequately training them and also be able to empower the same people to go above and beyond the call of duty. For good leader he or she should also be skilled at strategic thinking, be able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future Lack of Mentorship and also Lack of Experience Many as of the setbacks and failures, hurdles and hiccups that are being encountered in the Latino engineering was due to the lack of a mentor, and the best way it could have been either be avoided or alleviated with the help of a company mentor. Presence of a mentor helps you identify potential pitfalls as well as confirm certain setbacks you will face if you continue what you are doing. They are an invaluable asset that you must seek to have in your corner if you want to be successful in business or company and at least get your business or company off the ground. Failure to Change with the Times Majorly the only constant in a company or business is change. Which involves the ability to recognize opportunities and be flexible enough to adapt to changing times is a key ingredient to surviving and even prospering in the toughest business climate. The big challenges that occurred is that the new Latino engineering investors were so excited about their idea on how Dominic was making profit and how the customers were appreciating the goods and services of the engineering supplied to them that they fail to observe some of the cons of pursuing it. They choose to ignore their competition and competitors that are most times more familiar with the company and are leveraging the changes in the marketplace. They were supposed to be sure that as they pursue the Latino engineering business venture they pay respect to the economy that is before and the competitors they are currently having. They have been running the marathon longer than you have and are still running. That is a good enough reason to pay attention to what they are doing as well as how they are reacting to the economy. Inadequate Goal-Setting The new investors failed to establish clear goals and create plans to achieve the respective goals, especially before they had started running the company, they also failed to develop a complete business plan before they had taken over on being charge of the Latino engineering company. Since one cannot achieve his or her goal if they do not have one. Importance of having a goal gives you purpose and direction. Goals will always act as life map. Since they are like the dashboard on your car and chart your course and tell you when you have arrived at your destination. Most entrepreneurs focus too much on the details versus just mapping out the end of the journey. One needn't worry about how he or she will achieve his or her goals. Simply concern oneself with the process of setting short term, medium term, and long-term goals. Appropriate decision-making tools and techniques that will be used There are various tools and techniques of decision making that are very helpful for smart decision makers. The Strategies in Decision Making that will be applied Always decision will arise if a problem or an issue occurs, the potential solutions may be presented but only one ultimatum option will be chosen. In the process of narrowing down the options to get to the most feasible choice, there are strategies in doing so. Optimizing In this strategy, the most practical solution or alternative to the problem is chosen from among the list of possible alternatives. There are factors to be considered in optimizing: significance of the problem time availability cost involved accessibility of tools and resources personal values and beliefs Satisficing This strategy is done by choosing the first satisfactory option over the best alternative. Maximax This is a decision making strategy that openly takes risks because the approach is choosing the alternatives based on their highest potentials and most favorable outcomes. Maximin In contrast to the maximax strategy, the decision maker settles for the alternative with the highest minimum payoff for failures or negative outcomes. The Significance of Decision Making Tools and Techniques The various tools for decision making are so useful in providing structured data and close-to-accurate information and details. There are tools that are primarily used for projecting or forecasting possible outcomes, so decisions undergo elimination of choices in the process. Other tools are suitable for simulating different alternatives while some can serve as leading tools for a decision towards a certain direction. There are techniques that apply to workplace and business settings. Certain tools work best for individual decision making. It is important to choose the tool carefully and choose the one that is most appropriate to the situation at hand Tools and Techniques The tools and technique that will be used in the decision making include; Cost/Benefit Analysis A tool that allows the decision maker to simply compare the costs with the benefits of something SWOT The acronym stands for Strengths, Weaknesses, Opportunities and Threats. It is a very useful and effective tool for various situations in businesses and organizations wherein the strengths and weaknesses are identified as well as the opportunities and threats in order to arrive at sound decisions. Pareto Analysis This tool is useful in focusing on major causes for changes that will bring about huge benefits to the decision maker. Stepladder Technique The technique works by managing the entry or admission of members in a decision-making group. It encourages every member to contribute ideas and alternatives to the group. Starbursting Starbursting is a process of gaining knowledge on new ideas through brainstorming but the focus is more on the questions and not on the answers. PMI PMI tool is used for arriving at quick decisions that do not quite have problems. The acronym stands for Plus, Minuses, and Interesting points. Paired Comparison Analysis It is a tool that helps determine the relative significance and feasibility of the alternatives. Decision Trees With this tool, the decision maker can choose from among alternatives by foreseeing the possible outcomes or courses of action. 5 Whys Technique This is a very simple but effective tool that requires analyzing the problem at hand by asking Why? and What caused it? The question Why? is asked simultaneously 5 times, thus the term 5 Whys. Six Thinking Hats Here is another powerful tool that allows the person to look at decisions from various perspectives by thinking out of the box or going beyond the conventional manner of thinking. Plan to eliminate or reduce the root causes. Failures to any causes in the company can be introduced at any time. They can be seen to appear during operation from management decision errors, operating errors, repair errors and even abuse. The reliable equipment output could be acquired by prevent the introduction of defects and errors at all stages of the equipment output life cycle, and also act to remove the defects and errors already present in it. By getting rid of all the defects that generate future failures, the company will greatly reduce its future maintenance requirements, and hence guarantee great production performance. An average item of equipment has several dozen direct and consequential failure modes. The best maintenance strategy that will need to be adopt is to not allow failure modes into the equipment from the start. These strategies will require the company to put in place management controls and quality standards that must be followed to detect, control and stop the introduction of errors and defects into the equipment. For example, a wise strategy at the design stage is to look for every failure mode possible and remove it while on the drawing board. You take each part of the equipment, assembly by assembly, component by component and list its possible defects and errors and then introduced strategies and plans to address every one of those failure paths in the design. A spreadsheet can be developed of all component and assembly failure modes and this becomes a check sheet to assess all future equipment purchases and designs. It also identifies where you should use preventative and planned replacement maintenance strategies hence Reliability Centered Maintenance. Creation defect model Maintenance is used to address the effects of the continually growing number of defects. More maintenance is not the answer, it will only add more expense without benefit of defect elimination, since they add more cost and resources requirements into the production costs. Maintenance can only act to drain away the impact of defects. It hides and masks their effect. But it cannot remove them because maintenance only replaces like-for-like. The original defect remains. Doing maintenance does not fix problems, it can only rejuvenate equipment. If the cause of the problem is not removed and this will tend to remains to reappear again in future. Defect management If we intentionally reducing the size and quantity of defects entering the company operation and check if it will enable the company to reduce the maintenance, the company will now need to stop the defects from flooding and drowning it out of its existence. The company will have to address each of the defect categories systematically, while effective mechanisms will be introduced by the company to combat and defeat the cause of the defects, and unless this causes are controlled and stopped the company will be in a continually battling failures. The company should be aware that defects will never stop, unless it is acted on to stop them. They will forever be introduced and perpetuated by poor procedures and practices, poor quality control and poor management systems. Unless the company purposefully act to stop defect their introduction, since every new piece of equipment, every new part, every new person that will join the company will bring with him or her defects and errors, and this will one day cause future failures as now experienced in Latino engineering company. The magnitude of the catastrophic the failures will be will depend on the internal controls the company will have in place to prevent and control them. This will allow the company to intentionally, proactively, with the future well-being of its stability put into place a strategy to eliminate and eradicate the defects encountering it now forever, in order to get both higher production and greater acceptance of the products by the customers. Conclusion For the effectiveness operational and existence of Latino engineering company several measures will be undertaken for both the retained works and the new management that is administering its authoritative mandate, by ensuring best and proper operational checks in each section or stage of production is done, through introduction of new and advanced technological equipment, in order to produce quality products with new outlook, in order to counter their competitors and enhance more customers, in addition the welfare of the worker should be reviewed and even harmonized to given them the morale to work more, similarly the coordination of the management team should be readily flexible to any adjustment that will come introduced at any time without any rigidity implication. 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