the management science approach
Skip this Video
Download Presentation
The Management Science Approach

Loading in 2 Seconds...

play fullscreen
1 / 14

The Management Science Approach - PowerPoint PPT Presentation

  • Uploaded on

The Management Science Approach. Problem Definition. What is Management Science?. Scientific approach applied to decision making “Mess management”-- Early developer of MS “The use of logic and mathematics in such a way as to not to interfere with common sense”

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'The Management Science Approach' - elina

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
what is management science
What is Management Science?
  • Scientific approach applied to decision making
  • “Mess management”-- Early developer of MS
  • “The use of logic and mathematics in such a way as to not to interfere with common sense”
    • “The results should look, feel and taste like common sense” -- Prominent MS Consultant
  • “The use of [mathematical and statistical] techniques, mathematical programming, modeling, and computer science [to solve complex operational and strategic issues]. -- US Army
definition of management science
Definition ofManagement Science
  • Art of mathematical modeling
  • Science of the solution techniques for solving mathematical models
  • Ability to communicate results
management science objective
Management Science Objective
  • Given a limited amount of personnel, resources and material, how do we use them most effectively to:
    • Maximize -- Profit, Efficiency
    • Minimize -- Cost, Time
  • Management Science is about doing the best you can with what you’ve got -- OPTIMIZATION
management science applications
Management Science Applications
  • Linear Programming Models

Using of scare resources to achieve maximum profits when there are constant returns to scale.

      • Steelcase scheduling monthly production desks, cabinets, and other office furniture to maximize profit by assigning workers and utilizing the steel, wood, and other resources that are available.
      • Texaco blending various grades of raw crudes to maximize profits while meeting production targets.
  • Integer Linear Programming Models

Determining integer quantities (such as people, machines, airplanes, etc.) that maximize profits.

      • American Airlines assigning planes, crews, and support personnel on a daily basis.
      • McDonald’s assigning workers throughout the day.
management science applications1
Management Science Applications
  • Network Models

Using specialized linear models to determine routes of shortest distance, connections that tie points together of minimum length or finding a maximum flow (through a series of pipes)

      • UPS scheduling deliveries in a fleet of trucks.
      • United Van Lines determining the least costly route between a pickup and delivery point.
  • Project Scheduling Models

Scheduling of the various tasks that make up a project in order to minimize the time or cost it takes to complete the entire project.

      • William Lyon Homes scheduling the construction of a new tract of homes in Orange County.
      • CalTrans supervising the reconstruction of the Golden State Freeway after the devastating earthquake in the 1990’s.
management science applications2
Management Science Applications
  • Decision Models

Making decisions about the best course of action when the future is not known with certainty.

      • Fidelity Investments making mutual fund decisions given the uncertainty of the company performance, and the markets.
      • The International Olympic Committee making site decisions given uncertain weather patterns and changing international conditions.
  • Inventory Models

Determining how much of a product to order and when to place the order to minimize overall total costs.

      • Macy’s making merchandising decisions for the season.
      • See’s Candies producing goods for their own stores.
management science applications3
Management Science Applications
  • Queuing Models

Analyzing the behavior of customer waiting lines to determine optimal staffing policies.

      • Disneyland designing waiting lines and policies for rides at the amusement park.
      • United States Postal Service determining staffing levels and type of waiting line at different branch offices.
  • Simulation Models

Analyzing a variety models whose forms do not meet the assumptions or are too complex to be solved by other specialized techniques.

      • United States Army evaluating tactical combat situations.
      • Conagra Foods evaluating “what-if” situations in their food production processes.
management science team approach
Management Science Team Approach
  • Most management science models, particularly in larger companies are developed by “teams” of professionals.
    • Expertise from various specialists is integrated into building a good mathematical model
      • Engineers, accountants, economists, marketing analysts, production personnel, etc. are just some of the specialists that can be utilized in the model building process.
parts of a management science study
Parts of a Management Science Study
  • Problem Definition
  • Building Mathematical Models
  • Solving/Refining Mathematical Models
  • Communication of Results
types of management science problem definitions
Types of Management Science Problem Definitions
  • How Do We Get Started?
    • Evaluation of new operations and/or procedures
  • Can We Do Better?
    • Ongoing operations may be performing well, but perhaps they could improve
  • Help!
    • Situations where the company is clearly in trouble – “mess management”
problem definition approach
Problem Definition Approach
  • Observe Operations
    • Try to view problem from various points of view within the organization.
  • Ease into complexity
    • Do a lot of listening; ask simple questions; initially build a simple, common sense model that can be made more complex later.
  • Recognize political realities
    • Managers will not usually supply evidence showing his/her failures – there can be a “blame game” for failures.
  • Decide what is really wanted -- the goal/objective
    • Managers can have a fuzzy or a definitive idea as to the objective; this can be at odds with the global objective.
  • Identify constraints
    • With input from various sources seek the factors that will limit the firm’s ultimate objective; include only relevant factors.
  • Seek continuous feedback
    • The management science team must solve the “right” problem; seek, share and document frequent input with decision makers.
updating the problem definition
Updating The Problem Definition
  • Once the problem has been defined it is time for the modeling/solution phase.
  • But results from this phase may result in a re-evaluation of the problem definition.
    • The model may be “infeasible”
    • The model may not provide “good enough results”
    • The model may highlight heretofore unobserved or unanticipated constraints
    • The model may result in a set of optimal or at least “good” possible courses of action allowing the decision maker to look at secondary objectives.
  • Management science seeks to do the best you can with what you’ve got.
  • It involves modeling, solution approaches, and communication.
  • The process consists of:
    • Problem definition
    • Mathematical modeling
    • Solving the mathematical model
    • Communication/implementation of results.
  • Approaches/pitfalls associated with the problem definition step.