Proposed

method
implementati
on

DECISION MAKING TOOLS

1.Decision Tables
2.Value Engineering
3.Cost-Benefit Analysis
4.Crossover Charts
5.Multiple-Criteria Decision Making
6.Economic Decision Tools

Decision Tables
are a structured approach for taking out the subjectivity in making
decisions
Can be used to recommend actions in emergency and disaster
situations, (fire, hospital emergency procedures)
Have form:
If condition x, y, z, etc,
Then do action A
also known as hazard action tables, are frequently utilized in safety
programs to specify certain actions for given hazard conditions
(Gausch, 1972).

Decision tables can be used

Assembly task
example:
to
choose
between
If the assembly is perfect, then put in completed bin,
If two or fewer parts are defective, then put in rework bin,
alternatives:
If three or more parts
are defective, then put in scrap bin.
Can apply to many areas:
Medical room emergency procedures,
Sorting job applicants, etc.

Value Engineering
A simple way to expand the evaluation of alternatives is to apply
numbers and form a payoff matrix
A weight is determined for each benefit (0 to 10 is a reasonable
range), and then a value (0 to 4, with 4 being best)

COST-BENEFIT ANALYSIS
A more quantitative approach to deciding between different
alternatives
This approach requires five steps:
1.Determine what is changed due to better design, that is, increased
productivity, better quality, decreased injuries, and so on.
2.Quantify these changes (benefits) into monetary units.
3.Determine the cost required to implement the changes.
4.Divide the cost by the benefit for each alternative, to create a ratio.
5.The smallest ratio determines the desired alternative.

Example
Foot operated press for making blades (for a hand-held knife with
plastic handle):
Cut blade with press using foot operated pedal,
Pick up rubber nib with tweezers,
Place nib on blade,
Position blade on plate using stereoscope

Problems
Operators complain of pain in:
Wrist
Neck
Back
Ankle
Come up with alternative process changes
Use CTD Risk index to calculate risk of injury from new
alternatives.

Costs and Benefits of each

option

A DECISION TABLE
Company Policy says Proceed if condition 1, and either 2 OR 3 are met:
Condition 1: implementation cost is $200 or less,
Condition 2: productivity increase greater than 5%
Condition 3: injury risks reduced by more than 33%

Cost-Benefit Analysis

Crossover Charts
are very useful in comparing the payback times of alternative
methods changes.

MULTIPLE-CRITERIA
DecisionDECISION
making in the presence ofMAKING
multiple, often conflicting,
criteria can be approached by a relatively new process
developed by Saaty (1980)

ECONOMIC DECISION
The three most frequently used
appraisal techniques:
TOOLS
1.the return on sales method,
2.the return on investment or payback method, and
3.the discounted cash flow method.

 The return on sales method involves computing the ratio of (1) the
average yearly profit brought about through using the method to (2)
the average yearly sales or increase in dollar value added to the
product, based on the pessimistic estimated life of the product.
The return on investment method gives the ratio of (1) the average
yearly profit brought about through using the method, based upon
the pessimistic estimated life of the product, to (2) the original
investment.
The discounted cash flow method computes the ratio of (1) the
present worth of cash flow, based on a desired percentage return, to
(2) the original investment.