• Decision Making

    Decision making starts at the top management level of the organization after finalizing the business strategies.  The Decision making builds the foundation for a proper operations management plan.

    The activities for Initial Decision Making/Business strategy includes

    • Understanding the overall market, customer, customer requirements and opportunities available.
    • Checking the credibility to reach to all the prospective customers using the distribution channel. Company’s credibility is the most deciding factor behind any business decision making
    • Developing the business offerings – decide the product to be developed or services to be offered
    • Define the business portfolio and business assets
    • Preparing for execution – define goals and objectives, prioritize the activities/processes, understand the potential for expansion and growth.

    Decision making during regular operations would include:

    • Finding/defining a problem in everyday business operations
    • Identifying problem as a gap between expected result and achieved result which causes defects
    • Define an operational goal like increasing profit margin, Lower cost and waste and higher resource utilization
    • Identify all the business constraints like legal requirements, business environment, ethics, resource availability, management preferences
    • Determine potential outcome or payoffs – all the available paths/options should be analyzed for the potential cost as well as the probable profit and decision should be made accordingly.
    • Apply decision rule – after going through different courses of action and their outcomes, select course of action that meets company’s objectives
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