Project Decision Analysis Process
management is the art of making right decision. Project managers are
faced by huge array of choices. Should different supplier be used to
improve the quality of a product? Should additional team member be
brought in to improve the development performance? Should the work be
outsourced or done in-house?
addition to project management, decision analysis is used in strategic
planning, operational management, and other areas of business.
Decision analysis helps oil and gas companies to determine optimal
exploration and production strategies with uncertainties in cost,
prices, and exploration prospects. Lawyers are using decision analysis
for assessment of complex litigations with the uncertain outcomes.
Decision analysis helps medical professionals to make a correct
diagnosis and prescribe a most effective treatment.
important components of decision analysis are integrated into project
management processes in all knowledge areas. Analysis of potential
alternatives is the part of each stage of the project. Assessment of
uncertainties is the part of project risk management process. New
computerized project management tools utilizing quantitative analysis
help project managers to make informed decisions. Recent research
shows that well-established decision analysis process integrated into
overall project management significantly improves organizational
the diverse problems that impede accurate decision analysis, those
inherent in human mental processes are the most important and most
difficult to deal with. Psychologists have discovered a number of
patterns in the way people are selecting alternatives, assessing
probabilities, identifying and managing risks, and making decisions.
The knowledge of such patterns will help decision-makers to avoid
potential mental traps and ultimately improve quality of their