Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

The Decision Process in Operations

Operations managers are not gamblers. But they are decision makers. To achieve the goals of their organizations, managers must understand how decisions are made and know which decision-making tools to use. To a great extent, the success or failure of both people and companies depends on the quality of their decisions. Overcoming uncertainty is a manager’s challenge.

What makes the difference between a good decision and a bad decision? A “good” ­decision—one that uses analytic decision making—is based on logic and considers all available data and possible alternatives. It also follows these six steps:

1. Clearly define the problem and the factors that influence it.

2. Develop specific and measurable objectives.