2-the main steps of decisional process supported by a simple example

04/12/23

Main steps of the decision Main steps of the decision process supported by a simple process supported by a simple example – a Toaster choiceexample – a Toaster choice

Main steps of the decision Main steps of the decision process process

1. The problem1. The problem

• The The Simpsons are a family with an old toaster Simpsons are a family with an old toaster they bought for less than € 10 many years they bought for less than € 10 many years ago, and it now toasts unevenly.ago, and it now toasts unevenly.

• In the toaster example, all In the toaster example, all members of the members of the SIMPSON SIMPSON FAMILYFAMILY are the are the STAKEHOLDERS STAKEHOLDERS (anyone who (anyone who can make a useful and can make a useful and significant contribution to significant contribution to the choice). the choice).

1. Stakeholders involved1. Stakeholders involved

• But … so many people, so many different points of But … so many people, so many different points of view…view…

Different stakeholdersDifferent stakeholdersDifferent points of viewDifferent points of view

2. Identification of the 2. Identification of the alternativesalternatives

• The Simpson family decides to narrow its The Simpson family decides to narrow its considerations to considerations to 7 ALTERNATIVES7 ALTERNATIVES that correspond that correspond to 7 different toaster models:to 7 different toaster models:

1.1. Boots 2-sliceBoots 2-slice2.2. Kenwood TT350Kenwood TT3503.3. Marks & Spencer 2235Marks & Spencer 22354.4. Morphy Richards Morphy Richards 5.5. Coolstyle Philips HD4807Coolstyle Philips HD48076.6. Kenwood TT825Kenwood TT8257.7. Tefal Thick’n’Thin 8780Tefal Thick’n’Thin 8780

3. Identification of criteria3. Identification of criteria

• The criteria are the The criteria are the attributes attributes selected by selected by stakeholders and stakeholders and used to evaluate used to evaluate each each alternative.alternative.

• A “A “placidplacid” discussion reduces” discussion reduces the criteria to just 3:the criteria to just 3:

1.1. priceprice2.2. presence of reheat settingpresence of reheat setting3.3. number of disadvantagesnumber of disadvantages

4. Identification of the relationship 4. Identification of the relationship between criteria and alternativesbetween criteria and alternatives• The family detects the value of every criterion The family detects the value of every criterion

corresponding to each toaster model corresponding to each toaster model (alternatives):(alternatives):

• .. and of course for each value they have a .. and of course for each value they have a satisfaction level (i.e. smallest price biggest satisfaction level (i.e. smallest price biggest satisfaction).satisfaction).

Alternatives Price Presence of reheat settingNumber of

disadvantagesBoot 2-slice 18 3

Kenwood TT350 27 √ 3

Marks & Spencer 2235 25 √ 3

Morphy Richards 22 2

Coolstyle Philips HD4807 22 √ 2

Kenwood TT825 30 2

Tefal Thick’n’Thin 8780 20 √ 5

5. Identify a criteria priority scale5. Identify a criteria priority scale

• At this point the Simpson family identifies a At this point the Simpson family identifies a criteria priority scale:criteria priority scale:

13

2

priceNumber of disadvantages

Presence of reheat setting

6. Classify the alternatives6. Classify the alternatives

• .. and then they can make a final ranking of .. and then they can make a final ranking of alternatives (toaster models):alternatives (toaster models):

Coolstyle Philips HD4807

Morphy Richards

Boot 2-slice

Marks & Spencer 2235

Kenwood TT350

Tefal Thick’n’Thin 8780

Kenwood TT825

1

2

4

5

6

7

3

7. Take a decision7. Take a decision

• Finally the Simpsons make a toaster ranking and Finally the Simpsons make a toaster ranking and make their choice!make their choice!

Resuming the main steps of the Resuming the main steps of the decision processdecision process• After the identification of the After the identification of the problemproblem and the and the

stakeholdersstakeholders involved ( involved (1.1.) and also the different ) and also the different alternativesalternatives to be considered ( to be considered (2.2.) ) let’s summarize let’s summarize the main stepsthe main steps