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7. Decision Making
Decision making is the process of defining problems and choosing a course of action from
among alternatives. Decision making is often associated with problem solving, since many
managerial decisions focus on finding solutions to existing and/or anticipated problems.
Problems are not limited to difficult or negative situations; they can include opportunities or
positive situations that present alternatives.
As a manager, decision making is at the center of your job. You must continually decide what is
to be done, who is to do it, and how, when, and where it is to be done. Although these decisions
may appear to be separate, they are often interrelated. Each decision is affected by, and builds
upon, previous ones.
You can always learn how to make more thoughtful decisions to and improve the quality of your
decisions. Decision making is a skill that can be developed by learning the steps, practicing, and
exerting effort. At the same time, ensure that employees learn to make their own decisions more
effectively. You cannot make all the decisions necessary to run a department. Many daily
decisions are made by the employees who do the work.
Maintenance management decisions, directed at every part of the maintenance function are
interdepartmental and require information from different sources. Such decisions range in
importance from a major equipment replacement to minor repair option.
Decision making is directed at the objective, organizational structure and actions of the
maintenance function.
A decision problem exists when:

There is a desire objective

At least two courses of actions are available

There is uncertainty as to which course is the best and,

External factors are present which can affect the outcome and which are outside the
control of the decision maker

What is the decision-making process?

In making non-programmed managerial decisions, managers should follow the six steps of the
decision-making process. The six steps are:

Define the problem.

Analyze the problem using available information.

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Establish decision criteria-the factors that will be used to evaluate alternatives.

Develop alternative solutions.

Evaluate the alternatives carefully and select the "best" solution-the most feasible under
the circumstances.

Follow up and appraise the consequences of the decision.

Influencing factors in decision making and in identification of the most suitable action are the
following:

Cause of failure

Failure incidence with respect to time

Costs of maintenance or re-design

Maintainability

In decision making, in place of forwarding decision rules it is always of primary importance to

keep the maintenance objective clear and information systems clearly designed and understood.
This is so because maintenance tasks that require decisions at various levels are diverse in nature
and each task may have many alternatives.
How do I define the problem?
Before seeking answers, the manager should identify the real problem. Nothing is as useless as
the right answer to the wrong question. Defining the problem is not always an easy task, though.
A problem exists when there is a difference between the way things are and the way they should
be. What appears to be the problem might be merely a symptom of the problem that shows on
the surface. It usually is necessary to delve deeper to locate the real problem and define it.
Expressing a problem through a problem statement can help you understand it. A good problem
statement should address the following questions:

What is the problem?

How do you know there is a problem?

Where has the problem occurred?

When has it occurred?

Who is involved in or affected by the problem?

Defining a problem can require a fair amount of time, but it is time well spent. You should not
proceed in the decision-making process until the problem relevant to the situation has been

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specifically identified. The effective manager will use problem solving not only to take
corrective action, but also as a means to make improvements in the organization.
How do I analyze the problem using available information?
After the problem has been defined, the next step is to analyze it. Begin by assembling the facts
and other relevant information. This is sometimes viewed as being the first step in decision
making, but until the real problem has been defined, you do not know what information is
needed. Only after gaining a clear understanding of the problem can you determine which data
are important and what additional information to seek.
Some questions that will help you identify your information needs are:

What types of decisions do you make regularly?

What types of information do you need to make these decisions?

What types of information do you regularly receive?

What types of information would you like to have but not getting now?

What information would you want daily? Weekly? Monthly? Yearly?

What types of data analysis programs would you like to see made available?

Information should be formally cataloged in some manner if it is to be available when needed.

You cannot remember everything. Critical information should be put where it can be found
quickly and easily. Personal computers (In a form of MTL) offer a handy way to maintain ready
access to a vast body of information.
After gathering information, analyze the problem. Try to be as objective as possible in gathering
and analyzing information. Observe reasonable time and cost limitations; gather as much
information as possible without undue delay or excessive costs. Try to think of intangible factors
that play a significant role in the problem such as reputation, morale, discipline, and personal
biases. As a general rule, written and objective information is more reliable than opinions and
hearsay.
How do I establish decision criteria?
Decision criteria are the standards used to evaluate alternatives. They typically express what you
want to accomplish with the decision, and they can also be used to evaluate whether the
implementation of the decision is producing the expected results. Once the decision criteria are
established, you must determine which criteria are absolutely necessary and their order of
priority. Because it is likely that no solution will meet all the criteria, you need to know which

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are most important. You will evaluate alternatives based on which and how many of the
important criteria they meet. You may want to consult with upper-level managers, other
managers, or supervisor, maintenance personnel to assist in prioritizing the decision criteria.
How do I develop alternative solutions?
After you have defined and analyzed the problem and established decision criteria, the next step
is to develop various alternative solutions. By formulating and considering many alternatives,
you are less likely to overlook the best course of action. Stating this in another way, a decision
will only be as good as the best available alternative. Almost all problems have a number of
possible solutions, which may not always be obvious. You must work to develop alternatives
rather than fall into an "either/or" kind of thinking. You must stretch your mind to develop
alternatives even in the most discouraging situations. Although none of the alternatives may be
attractive, some should be better than others.
How do I follow up and appraise the consequences of the decision?
After a decision has been made and implemented, evaluate the consequences. Following up and
appraising the results of a decision are actually part of the decision-making process. You should
ask: "Did the decision achieve the desired results? If not, what went wrong? Why?" The answers
to these questions can be of great help in similar future situations.
Following up and appraising a decision can take many forms, depending on the nature of the
decision, timing considerations, costs, standards expected, personnel involved, and other factors.
For example, a minor preventive maintenance scheduling decision could easily be evaluated
through a short written report or by your observation or discussion with employees. A major
decision involving the maintenance of complex equipment, however, will require close and timeconsuming follow-up by you, technical or other maintenance employees, and higher-level
managers. This type of decision usually requires you to prepare numerous detailed written
reports on equipment performance under varying conditions, which are compared closely with
plans or expected standards for equipment maintenance.
What is the impact of time on the decision-making process?
In some situations, managers may feel they do not have enough time to go through the decisionmaking process. Frequently, a manager, a coworker, or an employee approaches the manager,
presents a problem, and looks to the manager for an immediate answer. Most problems do not

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require an immediate answer, however, and managers cannot afford to make decisions without
adequate consideration. Many managers get themselves into trouble by making hasty decisions.

Whatever mentioned above is placed on the flow chart shown in figure 5.1 demonstrates a
decision making procedure in general.

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Figure 7.1 A general decision making procedure

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In applying a decision making procedure in maintenance there are a few important questions that
need to be answered. And those can be:

In what ways does each failure matter?

What can be done to prevent each failure?

What should be done if a suitable preventive task cannot found?

In answering these questions a maintenance decision procedure should take the following issues
into consideration:

Nature of failure: - whether the failure is hidden or evident to operating crew under
normal operational conditions

Safety consequences: - whether the failure can affects health of operators or even may
kill someone

Environmental consequences: - whether the failure can affect the environment and
whether it could result in violation of environmental standards and regulations

Operational consequences: - the effect of failure on operational capabilities

The decision diagram shown in figure 5.2, integrate these issues into a decision process which
forms a framework for maintenance decision making.

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Figure 7.2 Decision Diagram

(Source: Moubray, Reliability Centered Maintenance, 1997.)