A SYSTEMS APPROACH TO OPERATIONAL AND BUSINESS DECISION-MAKING

Pieter Pretorius

Abstract


The “PQ” problem was published in 1990 by Goldratt. An adapted version of this problem is provided to master’s level students a few weeks before starting an operations management course. The performance statistics collected from three South African (since 2016) and one European business school (from 2018 onwards) do not make for good reading. To date, only 2.3 per cent of the students (42 students from the sample of 1 866 students) were able to answer both questions correctly; and some of them were not able to justify their correct decisions. This paper will explore the differences between traditional, cost-based methods of decision-making for day-to-day operational and improvement decisions as practised by many companies today — and hence the bad performance by the students — and taking a systems approach to decision-making. The paper will argue for taking the systems approach as a real alternative, without which alternative realities will remain but a dream.

 


Full Text:

PDF


DOI: https://doi.org/10.7166/30-3-2228

Refbacks

  • There are currently no refbacks.




Copyright (c) 2019 Pieter Pretorius


ISSN 2224-7890 (on-line) ; ISSN 1012-277X (print)


Powered by OJS and hosted by Stellenbosch University Library and Information Service since 2011.


Disclaimer:

This journal is hosted by the SU LIS on request of the journal owner/editor. The SU LIS takes no responsibility for the content published within this journal, and disclaim all liability arising out of the use of or inability to use the information contained herein. We assume no responsibility, and shall not be liable for any breaches of agreement with other publishers/hosts.

SUNJournals Help