Undergraduate Program

School of Business & Management

Institut Teknologi Bandung

MB2101 Decision Making

What have we learn so far ?

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System 1 and System 2

Decision Making process/ loop
Problem tree/ Objective tree
Brainstorming
Six thinking hats
Interactive Planning
Effective Meeting
Value Focused Thinking
Simple Multi Attribute Rating Technique (SMART)
Must and Wants

MB 2102 Decision Making

Value Focused Thinking

Do you still remember the difference between Value

Focused Thinking and Alternative Focused Thinking ?

MB 2102 Decision Making

Value Focused Thinking

Why is it
important?

: minimize maintenance cot

: maximize enjoy of life
: minimize number of mechanical trouble

: maximize quality of life

FUNDAMENTAL OBJECTIVE

MB 2102 Decision Making

Value Focused Thinking

Alternatif fosuced thinking:
Memilih berdasarkan alternatif-alternatif yang tersedia tanpa
mendefinisikan terlebih dahulu objectives yang ingin diperoleh.
Dapat mengambil keputusan dengan cepat.
Contoh : Pilihan alternatif kerja yang sudah tersedia, di ASTRA?,
HSBC?,CitiBank?

Value focused thinking:

Mendefinisikan terlebih dahulu objective yang ingin diperoleh baru
kemudian mencari alternative-alternatif yang sesuai.
Membutuhkan waktu untuk membuat mental model
Contoh: Value setelah lulus ingin melanjutkan S2

MB 2102 Decision Making

SMART
a) Drawing Value Tree is in which stage?
b) Below are the data of three alternative location for
MR. UUN. What is the aggregate of weighted value?

MB 2102 Decision Making

SMART
1. Identify decision maker(s)
2. Identify alternative courses of action
3. Identify the relevant attributes
creating value tree can be a useful
the attributes should have operationality (can be evaluated
and compared)

4. Assess the performance of the alternatives on each

attribute
Direct rating (for abstract value) : rank the alternatives, give
100 point to he best alternative, give 0 to the worst
alternative, rate the remaining alternatives between 0 and
100
Value function (transferring actual value/ dealing with DMs
preference)
MB 2102 Decision Making

SMART
5. Determine a weight for each attribute
The weight reflects their level of importance for decision
maker

6. For each alternative, take a weighted average of the

values assigned to that alternative
Represents how well an alternative performs over all the
attributes

7. Make a provisional decision

- for decision maker who doesnt confuse
- for decision maker who confuse

8. Perform sensitivity analysis

- to see how robust the decision
MB 2102 Decision Making

MUST and WANT

You need to purchase a sofa which is Rp. 2000.000 or
less; and can be delivered in less than 6 weeks.
Another requirement that you would like the suite will be
washable covers, able to tumble dry, footstool option,
and stain guard on footstool.
Based on the data bellow, which alternative should I
choose?

MB 2102 Decision Making