BSE Bachelor of Science in Engineering Management: Strategic Decision Making 5 — Questions and Answers
Question 1: When using a decision matrix (Pugh matrix) for concept selection in engineering management, the reference concept (datum) serves to:
- Define the absolute performance standard that all alternatives must exceed
- Provide a baseline against which all other alternatives are compared on each criterion (Correct answer)
- Identify the most cost-effective option before detailed evaluation begins
- Establish the minimum acceptable threshold for technical performance
Correct 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.
Question 2: Which of the following BEST describes the difference between programmed and non-programmed decisions in engineering management?
- Programmed decisions use software tools; non-programmed decisions rely on human judgment
- Programmed decisions handle routine, structured problems; non-programmed decisions address novel, unstructured problems (Correct answer)
- Programmed decisions are made by senior managers; non-programmed decisions are delegated to engineers
- Programmed decisions require group consensus; non-programmed decisions are made individually
Correct 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.
Question 3: A technology roadmap in strategic engineering management is primarily used to:
- Document current software architecture for IT auditing purposes
- Align technology development timelines with business strategy and market needs (Correct answer)
- Track daily project milestones across engineering sub-teams
- Standardize procurement processes for engineering materials
Correct 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.
Question 4: In strategic engineering decisions involving risk, which quantitative technique uses repeated random sampling to model the probability distribution of outcomes?
- Linear programming
- Monte Carlo simulation (Correct answer)
- Critical path method
- Earned value analysis
Correct 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.
Question 5: The 'strategic fit' principle in engineering management portfolio decisions means that selected projects should:
- Have the highest individual NPV regardless of organizational direction
- Align with and reinforce the organization's long-term strategic objectives (Correct answer)
- Be chosen solely based on technical feasibility and resource availability
- Minimize interdependencies to reduce coordination overhead
Correct 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.
Question 6: When applying sensitivity analysis to a strategic decision model, the primary goal is to:
- Identify the probability distribution of each input variable
- Determine which input variables have the greatest impact on the decision outcome (Correct answer)
- Eliminate all variables with uncertainty from the model
- Confirm that the chosen alternative is optimal under all possible scenarios
Correct 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.
Question 7: In strategic decision making, the 'devil's advocate' technique is used to:
- Assign blame for past decision failures to specific team members
- Formally challenge a preferred strategy to expose hidden assumptions and weaknesses (Correct answer)
- Negotiate between conflicting stakeholder positions to reach compromise
- Document minority opinions after a group has reached consensus
Correct 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.
BSE Bachelor of Science in Engineering Management: Strategic Decision Making 5
When using a decision matrix (Pugh matrix) for concept selection in engineering management, the reference concept (datum) serves to: