Bachelor of Science in Engineering Management: Strategic Decision Making Flashcards

When using a decision matrix (Pugh matrix) for concept selection in engineering management, the reference concept (datum) serves to:

Answer: Provide a baseline against which all other alternatives are compared on each criterion

In a Pugh matrix, the datum is a reference concept (often the current product or a benchmark) used as a comparison baseline; all other concepts are rated as better (+), worse (−), or equal (S) relative to it.

Which of the following BEST describes the difference between programmed and non-programmed decisions in engineering management?

Answer: Programmed decisions handle routine, structured problems; non-programmed decisions address novel, unstructured problems

Programmed decisions follow established rules or procedures for recurring situations, while non-programmed decisions require unique, creative judgment for complex or novel strategic issues.

A technology roadmap in strategic engineering management is primarily used to:

Answer: Align technology development timelines with business strategy and market needs

A technology roadmap visually links technology development plans to business objectives and market timelines, helping organizations make coordinated strategic investment decisions over time.

In strategic engineering decisions involving risk, which quantitative technique uses repeated random sampling to model the probability distribution of outcomes?

Answer: Monte Carlo simulation

Monte Carlo simulation runs thousands of iterations with randomly sampled inputs to generate a probability distribution of possible outcomes, enabling quantitative risk assessment.

The 'strategic fit' principle in engineering management portfolio decisions means that selected projects should:

Answer: Align with and reinforce the organization's long-term strategic objectives

Strategic fit ensures that selected projects collectively advance the organization's mission and long-term goals, preventing resource allocation to technically sound but strategically misaligned initiatives.

When applying sensitivity analysis to a strategic decision model, the primary goal is to:

Answer: Determine which input variables have the greatest impact on the decision outcome

Sensitivity analysis varies one input at a time (or in combination) to reveal which variables most strongly influence the output, helping decision makers focus attention on the most critical assumptions.

In strategic decision making, the 'devil's advocate' technique is used to:

Answer: Formally challenge a preferred strategy to expose hidden assumptions and weaknesses

The devil's advocate technique designates a team member to systematically critique the leading option, forcing the group to defend assumptions and identify overlooked risks before committing.