Analytical Decision Frameworks Flashcards
7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Analytical Decision Frameworks flashcards as text
A manager uses a decision matrix to evaluate three vendor options across five weighted criteria. What is the PRIMARY advantage of this approach over intuitive selection?
Answer: It provides a systematic, transparent comparison that reduces cognitive bias
A weighted decision matrix structures multi-criteria comparisons transparently, reducing the influence of bias or personal preference on the outcome.
In root cause analysis, the '5 Whys' technique is BEST suited for situations where:
Answer: A single chain of causation underlies the problem
The 5 Whys works best when a problem has a single linear cause-and-effect chain rather than multiple interacting root causes.
Which analytical tool is MOST appropriate when a manager needs to understand how changes in sales volume affect profitability under different cost assumptions?
Answer: Sensitivity analysis
Sensitivity analysis tests how outcomes change when key variables like sales volume or cost assumptions are altered, revealing profitability risk.
A manager applying bounded rationality theory recognizes that decision-makers typically:
Answer: Settle for a satisfactory solution due to cognitive and time limits
Herbert Simon's bounded rationality concept holds that decision-makers 'satisfice'—choosing a good-enough option—rather than optimizing, due to cognitive limits.
During a strategic planning session, a manager draws a fishbone (Ishikawa) diagram. Which of the following BEST describes its purpose?
Answer: Categorizing potential causes of a problem for systematic analysis
A fishbone diagram visually organizes potential causes of a problem into categories (e.g., people, process, equipment), enabling structured root cause analysis.
When constructing a payoff matrix for a competitive decision, a manager lists outcomes for each combination of own strategies and competitor responses. This approach is drawn from:
Answer: Game theory
Game theory uses payoff matrices to model strategic interactions where the outcome of one party's decision depends on the choices of others.
A manager reviewing a Pareto chart finds that 3 out of 15 defect types account for 78% of all defects. The CORRECT analytical conclusion is:
Answer: Eliminating those 3 defect types will likely yield the greatest quality improvement
The Pareto principle (80/20 rule) indicates that concentrating improvement efforts on the vital few defect types will produce the most significant quality gains.