Foodservice Systems Management Exam 3: Decision MakingW

What is decision making?

The selection of a course of action from a variety of alternatives

What is decision making one element of?

The linking process

Why is decision making one element of the linking process?

Integral to management's effectiveness in transforming inputs to outputs

What does decision making require?

-Seeking the facts from all the information

-Relating information to current situations

-Make the information into usable knowledge

What are the different types of decisions?

-Programmed decisions

-Non-programmed decisions

What are programmed decisions?

-Reached by following established policies and procedures

Who makes programmed decisions?

Lower-level managers and employees

What are nonprogrammed decisions?

-Unique and have little or no precedent

-Relatively unstructured

-More difficult to make than programmed decisions

-Focus on qualitative problems

Why are non-programmed decisions more difficult to make than programmed decisions?

-A more creative approach for the decision maker

-A much greater degree of judgment

What types of decisions do first-line managers (supervisors) make?

-More programmed decisions

-Less nonprogrammed decisions

What types of decisions do middle managers make?

An equal amount of programmed and nonprogrammed decisions

What types of decisions do top managers make?

-more nonprogrammed decisions

-Less programmed decisions

Why do managers and leaders have to make tough decisions all the time?

They seldom have time to do a scientific analysis of every problem

What are the steps of the decision making process?

1. Recognize and define the problem/situation

2.Identify alternatives

3. Evaluate alternatives

4.Select best alternative

5. Implement and evaluate outcome

How do you recognize and define situation in the decision-making process?

-Some issue has to alert you to problems

-Positive or negative stimulus

How do you identify alternatives in the decision making process?

-More important decision needs more attention on selecting alternatives

-Constraints might restrict your decision-makinh

What constraints may restrict your decision making?

Legal restrictions or the power and authority of the manager

How do you evaluate alternatives in the decision making process?

-Alternatives meet the needs of the operation

-The feasibility and consequences of the decision

How do you select the best alternative in the decision making process?

-Sometimes all alternatives cannot be developed (human or situational limitations)

-Complete knowledge of alternatives and consequences

How do you implement and evaluate outcomes in the decision making process?

-Must consider people's resistance to change

-Insecurity, inconvienence and the fear of the unknown

What are the conditions for decision making?

-Evaluate the effectiveness of their decision

-Certainty, risk, uncertainty

What is decision tree analysis?

Assess decision outcomes based on probabilities and payouts

What does decision tree analysis allow?

It allows management to assess the consequences of decisions with reference to a particular problem

How does decision tree analysis work?

-Link a number of event "branches" graphically

-Result in a schematic resembling a tree

What does decision tree analysis permit?

It permits the operators to make the decision with the best potential payoff

What is the first step for decision tree analysis?

Start with a primary decision

What needs to be kept in mind when starting with a primary decision in decision tree analysis?

Have at least two alternatives to be evaluated

What is the second step for decision tree analysis?

-The probability of each outcome is ascertained

-Identify the possible event and possibility for each

What is the third step for decision tree analysis?

Identify the effect on net income if each were to occur

-Figure out the monetary value

What is GANTT charts essentially?

Essentially a visual representation of a project timeline

How do GANTT charts work?

Each work package (tasks within a project) are represented on a different line of the chart with a start and stop date

What are GANTT charts commonly used for?

Commonly used to help participants track/understand project sequencing and progress

What are GANTT charts not good for and why?

-Don't work well for large projects

-Would require more than a display's worth of lines

What is not represented in GANTT charts and what can this cause?

-Work package size and important aren't represented

-Could lead to some misunderstanding

What is diagramming a decision tree?

It takes practice but is understandable if you have the necessary information

What is the difficulty with decision tree analysis?

The difficulty is generating the information

What is most information for decision tree analysis based on?

-Research

-Are estimates for costs, payoffs, and probabilities

How is decision tree analysis beneficial?

It formalizes the process for making decisions with incomplete information/risk conditions

What is a network?

A graphic representation of a project, depicting the flow and sequence of defined activities and events

What is an activity in a network?

An activity defines the work to be performed

What is an event in a network?

An event marks the beginning or end of an activity

What is a part of a network?

The Program Evaluation and Review Technique (PERT)

What is the Program Evaluation and Review Technique (PERT)?

Management science techniques for planning, scheduling, and controlling large projects

What does the Program Evaluation and Review Technique (PERT) use?

It uses a network to depictthe sequence of activities in a particular project

What are the 6 steps in the PERT planning process?

-Identify the specific activities and milestones

-Determine the proper sequence of activities (using letter to represent)

-Construct a network diagram

-Estimate the time required for each activity

-Determine the critical path

-Update the PERT chart as the project progresses

What is PERT used for?

It's used for projects in which the time when activities are finished is uncertain

What are the three ways time can be identified by PERT system?

-Most optimistic time, or shortest time

-Most likely time

-Most pessimistic time, or longest time

What does the most optimistic time by the PERT system assume?

Assuming most favorable conditions

What does the most likely time by the PERT system assume?

Implies most realistic time

What does the most pessimistic time by the PERT system assume?

Assuming the most unfavorable conditions

What is AI decision making?

A computer program that attempts to duplicate the thought processes of experienced decision makers

What are advantages of AI decision making?

-Analyze massive amounts of previous data

-Continuously improve decision making abilities

-Detects patterns and anomalies of the data

Why is it beneficial that AI decision making can detect patterns and anomalies of the data?

-Provide more accurate insights and predictions

-Identify changing market conditions and customer needs