© Mahindra Satyam 2009 Decision Analysis and Resolution QMS Training

2 © Mahindra Satyam 2009 Objective To ensure  systematic decision making in all the scenarios where several alternatives exist and an appropriate decision is sought for. Mahindra Satyam Confidential

3 © Mahindra Satyam 2009 Process Identify scenarios where Structure Decision is required Identify the Decision Making Technique Make the Decision Define Criteria for Selecting Alternatives Identify Alternatives Mahindra Satyam Confidential

4 © Mahindra Satyam 2009 Identify Scenarios Identify scenarios where structure decision is required  Possible scenarios provided in PP template – Technology Selection for the Project – Design Architecture Evaluation – Selection of tools to be deployed in the project – Make/Re-use/Buy  Other scenarios where structured decision analysis process can be applied are: – When the decision is related to topics assessed as being of high or medium risk – When the decision could cause significant scheduling delays – When the costs of the decision process are reasonable compared to the decision’s impact. Mahindra Satyam Confidential

5 © Mahindra Satyam 2009 Identify Decision Making Technique Select decision making technique to be used. The possible techniques are  Pugh Matrix  Brainstorming  QFD  Delphi The recommended technique is Pugh Matrix Mahindra Satyam Confidential

6 © Mahindra Satyam 2009 PUGH Matrix  Following are the steps to construct a Pugh Matrix  Determine a weight for each criteria. One of the weighting methods is to use weight levels that sum to 10 or 100 giving higher numbers to more important criteria and lower numbers to less important criteria. Another method is to assign relative weights ignoring the sum that results.  Multiply the rating of an alternative by the weight assigned and sum across all criteria. Divide this sum by the sum of the weights. The result is the composite rating for the alternative.  Alternate solutions are evaluated using the identified decision making technique and appropriate solution is selected  The selected solution is then implemented Mahindra Satyam Confidential

7 © Mahindra Satyam 2009 Identify Alternatives For every instance of DAR,  list of all the possible choices is made – including the choice of doing nothing, if required  recorded in the technique template identified [e.g.: PUGH matrix or QFD template] for decision-making Mahindra Satyam Confidential

8 © Mahindra Satyam 2009 Define Criteria for Selecting Alternatives Determine evaluation criteria - for the identified scenarios, decide the evaluation criteria for making a decision Some generic evaluation criteria are  Impact on cost  Schedule  Performance  Efficiency  Risk strategies Mahindra Satyam Confidential

9 © Mahindra Satyam 2009 Evaluation Criteria Decision ScenarioEvaluation Criteria Technology Selection for a project  Availability  Interoperability  Modularity  Adaptability  Scalability  Portability  Extensibility  Reliability  Maintainability  Conformance  Security  Long Life Mahindra Satyam Confidential

10 © Mahindra Satyam 2009 Evaluation Criteria Decision ScenarioEvaluation Criteria Design Architecture Evaluation  Data Design  Architectural and component level design  User interface design  Technical issues  Security  Restrictions or Limitations  Portability  Scalability Mahindra Satyam Confidential

11 © Mahindra Satyam 2009 Evaluation Criteria Decision ScenarioEvaluation Criteria Selection of tools to be deployed in the project  Completeness  Usability  Platforms / Installations  Reliability and Robustness  Consistency  Recovery mechanisms  Functional Specifications  Product reputation & industry acceptance  Support availability  Licensing options  Customization  Documentation quality Mahindra Satyam Confidential

12 © Mahindra Satyam 2009 Evaluation Criteria Decision ScenarioEvaluation Criteria Make/Re-use/Buy related decision scenarios  Productivity  Quality  Performance  Risk Factors  Strategic advantages  Payback  Infrastructure  Training Mahindra Satyam Confidential

13 © Mahindra Satyam 2009 Evaluation Criteria For Organizational decisions some of the evaluation criteria could be  Potential Impact on company performance  Ease to Implement  Cost / Benefit relationship  Speed of implementation  Acceptance by stakeholders  Negative impact on environment Mahindra Satyam Confidential

14 © Mahindra Satyam 2009 Make the Decision  Based on the evaluation of the alternatives, most appropriate solution is identified  Customer is approached in situations where the decision/solution impacts the customer  PM approves the decision based on the analysis  Record the decision taken and all required details in the DAR Record template Mahindra Satyam Confidential

15 © Mahindra Satyam 2009 Objective Met  All scenarios where Structured Decision Making is required are identified  DAR Techniques are used to achieve the desired result Mahindra Satyam Confidential