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Biases Types

Bilal masood project Biases types

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engineer bilal
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0% found this document useful (0 votes)
13 views

Biases Types

Bilal masood project Biases types

Uploaded by

engineer bilal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Assignment-1

The biases that affect the industrial decision making-


The idea of industry 4.0 initiation

BILAL MASOOD
QUESTION

1-A brief description of decision


2-A discussion on the biases that may have affected the decision. This should include an
explanation of biases
3-Your suggestions on how the effects of these biases can be prevented in future
ANSWER
Q-1 brief description of decision
Decision making
Problem statement and brief description of decision
The biases that affect the industrial decision making and the idea of industry 4.0 initiation.
Industry 4.0 and Industrial automation
The process industry and manufacturing industry is fast paced. The human error is always
there. For the best quality product and to retain the customer. There must not be any error in
the product and design. The increasing market share with high demanding customer. Strong
competitive market and futuristic competitors. The need of automation of industry is required.
But, there is always a question? How much percentage of automation is required? Does the
industry need no automation, semi automation or fully automation?
• Automation decision scenarios for industry
1. No automation
2. Semi automation
3. Fully automation
• Funds present for automation
• Technology needed for automation is available or not
• Technical staff or expertise for automation is available or not
• Operating cost of automation
• Revenue generated after and before automation
• Product quality obtained from automation
Decision
• The industry has decided to do semi automation but there are certain decision trapes
are affecting like biases and personality types.

Q-2 -A discussion on the biases that may have affected the decision. This should include
an explanation of biases
Decision traps
• Biases: There are certain biases, which effect the decision making.
• Personality types: The personality types does effect the decision making.
Biases
1. Anchoring bias: Relying on the first piece of information. The decision is affected by
this bias as the decision is locked by its first information.
Industry The first piece of information the industry got was to get fully automated plant. There
were many managers requesting for it and stick to it. But fully automated plant has many
drawbacks.
2. Available heuristic bias: This bias is due to the available information. This is tendency
to focus on the information that is more readily available to people.
Industry There was less information available about the automation process. Available
information was to get fully automated plant. Even the advantages and disadvantages were not
fully known. The feasibility report is required to unlock this bias, so the right information may
help to get the right decision.
3. Bandwagon effect bias: This bias is due to the people following the specific trend
without judging it.
Industry many employees & managers were deciding that company must go for fully automated
plant and following the judgement of multinational companies and their industrial partners
without doing the feasibility report also during the feasibility report work.
4. Group think bias: This bias is due to the people following the specific person without
judging it.
Industry many employees were following judgement of company manger to go for fully
automated plant without doing the feasibility report also during the feasibility report work.
5. Blind spot bias: This bias is due to as we give more weight to thoughts than to the
intension without judging it.
Industry many employees were thinking and deciding the judgement of company manger to go
for fully automated plant without doing the feasibility report and also during the feasibility
report work.
6. Clustering illusion bias: This bias is due to pattern in the data that pattern actually does
not exists.
Industry during the feasibility report this kind of data could be seen
7. Conservative bias: This type of bias is due to the we believe in the existing system that
we do not want to change,
Industry The old employees were stick to the old system, they were used to it and do not want
automation. The employees and managers were stick to the non-automation and they were
afraid of automation. They found it to be easy to use.
Old employees = conservative, want old system
Young employees = non conservative, want automation
8. Salience bias: This type of bias is due to the easy recognition feature of a person or
concept.
Industry The old employees were stick to the old system, they were used to it and do not want
automation. They found it to be easy to use.
9. Selective perception bias: This type of bias is due to you focus on some points and you
remove the other points.
Industry The managers were focusing on the fully automated plant. This has many drawbacks.
The semi-automated plant has less drawbacks and organization can generate good revenue.

Q-3 -Your suggestions on how the effects of these biases can be prevented in future
Future recommendations and suggestions
1. Preventing Anchoring bias:
Industry The brain storming with effective alternatives can avoid this bias. Make hierarchy of
the information. First piece of information the industry got was to get fully automated plant.
There were many managers requesting for it and stick to it. But fully automated plant has many
drawbacks.

2. Preventing Available heuristic bias:


Industry Right excessive information gathering must be done. The less information available
about the automation process can cause this problem. The feasibility and survey report is
required to unlock this bias, so the right information may help to get the right decision.
3. Preventing Bandwagon effect bias: This bias is due to the people following the specific
trend without judging it.
Industry doing the feasibility report also during the feasibility report work this can be
prevented.
4. Preventing Group think bias: This bias is due to the people following the specific
person without judging it.
Industry many employees were following judgement of company manger to go for fully
automated plant without doing the feasibility report also during the feasibility report work.
Doing the feasibility report can unlock this bias
5. Preventing Blind spot bias: This bias is due to as we give more weight to thoughts than
to the intension without judging it.
Industry Clear the mind, make alternatives. Give weightage to the quantitative procedure.
Doing the feasibility report and also during the feasibility report work.
6. Preventing Clustering illusion bias: This bias is due to pattern in the data that pattern
actually does not exists.
Industry Make grouping of data can avoid this bias. During the feasibility report this kind of
data could be seen
7. Preventing Conservative bias: This type of bias is due to the we believe in the existing
system that we do not want to change,
Industry The old employees should be given training and lectures about the importance of the
automation. They old employees should be told that they will get increased pay with reward
about it. Old employees were stick to the old system, they were used to it and do not want
automation. The employees and managers were stick to the non-automation and they were
afraid of automation. They found it to be easy to use.
Old employees = conservative, want old system
• Solution training and lectures, benefits to change to new system
Young employees = non conservative, want automation

8. Preventing Salience bias: This type of bias is due to the easy recognition feature of a
person or concept.
Industry The old employees were stick to the old system, they were used to it and do not want
automation. They found it to be easy to use.
• Solution training and lectures, benefits to change to new system
9. Preventing Selective perception bias: This type of bias is due to you focus on some
points and you remove the other points.
Industry The semi-automated plant has less drawbacks
Solution Create clear Advantages and disadvantages of the system.
Create clear alternatives, the clear alternatives can be shown in diagram below.

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