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.

1. Decision Making &
Technical Feasibility
ACPM L1 B7
By- Palla Narasimhudu

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ACPM L1 B7
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 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
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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?
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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.
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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
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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
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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.
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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
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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.
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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
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