Abstract
Studies refer to Heuristics and Evidences Decision Making approaches in a comparative manner; however, it is identified that these two approaches are inseparable and are applied in parallel. The objective of this paper is to provide a qualitative analysis of a systems thinking framework that defines a transition path from either a heuristic dominated or evidence-based dominated decision-making approach to a balanced one. The aims are to demonstrate the stages of change and prepare managers and executives for the resistance that will be evident during the transition. We do not claim that this is the only path of change; however, it provides a structured model that can be repeated under similar context. We use abductive reasoning in order to make logical inferences and construct the framework’s theory based on a case study company, and then system dynamics that help us proceed to the modeling approach of this framework. The holistic modeling approach reveals the need to base decision making in both evidence and heuristics. Furthermore, it demonstrates actions to manage resistance and to make this system a self-regulated and continuous decision-making tool.
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Notes
For anonymity purposes we nicknamed the firm as MiddlePharma
In this case we define “campaign strategy” as balk production of a single product family that does not require tool changeovers and cleaning, based on annual demand.
Evidence is defined in our work as an organized body of information that is used in order to justify or support conclusions (Sackett et al. 2000). This information may have many forms, depending on the type of activities that are going to be used for and the scientific or managerial context they refer to. For example Sackett et al. (2000) consider information, as forms of evidence that may be used for evidence- based decision making.
Often the reasoning for change is external to the firm factors, for example, the activities and innovations of the competitor organizations, developments in technology and organizational procedures, diversity in customers’ requirements, changes in national and international legislation, diversity in local and global trading and economic circumstances, and changing cultural and social conditions (Radovic-Markovic 2007).
Frozen referred to the timeframe to 2 weeks closer the actual production. Changes are prohibited at this stage because it would be costly to reverse the plan to purchase the materials and produce different products. Firm, 2 weeks before frozen. In these weeks changes can occur, but only in exceptional situations. Full, which means that all the available production capacity has been allocated to orders. Changes in the full section can be made and production costs will be only slightly affected, but the effect on customer satisfaction is uncertain. The last section called Open, which means that there is available capacity for new orders (based on Gaither and Frazier 2002).
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Mahadeen, T., Galanakis, K., Samara, E. et al. Heuristics and Evidences Decision (HeED) Making: a Case Study in a Systemic Model for Transforming Decision Making from Heuristics-Based to Evidenced-Based. J Knowl Econ 12, 1668–1693 (2021). https://doi.org/10.1007/s13132-020-00688-4
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DOI: https://doi.org/10.1007/s13132-020-00688-4