1. 1 © APICS Confidential and Proprietary Karen Broyles January 2016 Logical & Rational Method to Decision Making

2. 2 © APICS Confidential and Proprietary Steps of Decision Analysis Process State the Decision-What is the purpose of the decision or choice you are about to make?  What do you want to achieve?  What to you want to happen?  What do you want to accomplish?

3. 3 © APICS Confidential and Proprietary The Format of the Statement  Choice word  Result  1 or 2 key modifiers My Statement was: Select a New 4-Door Car

4. 4 © APICS Confidential and Proprietary How you State the Choice Matters! Select a Mode of Transportation Select a Vehicle Select a New Vehicle Select a Car Select a New 4-Door Car Select a New 4-Door Toyota Car

5. 5 © APICS Confidential and Proprietary Determine the Objectives of your Decision or Choice What results do we want? What constraints do we have? What resources do we want to save? What is the metric we will use for the objective? How will you measure the objective? Note: An objective must have a measure or otherwise you cannot determine if the objective was met or not.

6. 6 © APICS Confidential and Proprietary My Objectives:

7. 7 © APICS Confidential and Proprietary Classify the Objectives Of the objectives that you want to achieve, which of the objectives are deal breakers if not met i.e. “Must” objectives If the objective is not a “Must” objective then it is a “Want” objective.

8. 8 © APICS Confidential and Proprietary My Classifications

9. 9 © APICS Confidential and Proprietary Weigh the “Wants” You must determine the relative weight of the remaining “Want” objectives to know what role the objective plays in the decision or choice to make.

10. 10 © APICS Confidential and Proprietary My Relative Weighting

11. 11 © APICS Confidential and Proprietary Brainstorm/List Alternatives for Choice or Decision List options that exists

12. 12 © APICS Confidential and Proprietary My Alternatives 1. Buick Regal 2. Toyota Camry 3. Buick LaCrosse 4. Lexus

13. 13 © APICS Confidential and Proprietary Score the alternatives Calculate how the alternatives measure and compare to each other. Select the top two to three alternatives

14. 14 © APICS Confidential and Proprietary Scoring of Options

15. 15 © APICS Confidential and Proprietary Determine & Assess Risks of Options Assess the probability of the risk occuring as well as the impact the risk will have if it does occur. Risks can be viewed as objectives that you don’t have measures for or can’t know the measure prior to making the decision or choice.

16. 16 © APICS Confidential and Proprietary Assess Risk

17. 17 © APICS Confidential and Proprietary Make the Decision or Choice Choose the best choice one that you can live with the risks on.

18. 18 © APICS Confidential and Proprietary Karen Broyles, MBA, CPIM, CSCP Lean Leader, Continuous Improvement bioMerieux, Inc.|St. Louis 595 Anglum Road Hazelwood, MO 63042 Tel: 314-731-8662 (Office)|314-281-0887 (Mobile) Email: karen.broyles@biomerieux.comkaren.broyles@biomerieux.com

19. 19 © APICS Confidential and Proprietary Link to webinar recording: http://apics.adobeconnect.com/p6coujnifbv/