Content
Relationship between Manager
and OR specialist…………………….
………………………….…(2)
Limitations of Operation
Research………......(4)
Application of
OR…………………………………..…(5)
Stages of development OR
Research….….….(8)
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Relationship Between Manager and
OR Specialist (ORS)
The relationship between a manager and an
Operations Research Specialist (ORS) typically involves
collaboration and communication. Here's how they typically
interact:
Goal Alignment: The manager sets organizational goals
and objectives. The ORS works to align their work with these
goals by using operations research techniques to optimize
processes, make decisions, and improve efficiency.
Data and Information: Managers provide the ORS with
data and information related to the problem or project they
need assistance with. The ORS then analyzes this data to
provide valuable insights and solutions.
Problem Solving: ORS professionals use mathematical
modeling, simulation, and analytical methods to solve
complex problems within the organization. They collaborate
with managers to define the problem scope and constraints.
Recommendations: The ORS specialist presents
recommendations and findings to the manager in a clear and
understandable manner. This may include reports,
presentations, or discussions.
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Decision-Making: Managers ultimately make decisions
based on the ORS's recommendations, taking into account
the technical analysis and the broader organizational context.
Feedback Loop: There's often an iterative process where
the manager and ORS work together to fine-tune solutions
and strategies based on feedback and changing
circumstances.
Communication: Effective communication is crucial in this
relationship. Managers need to convey their objectives and
expectations clearly, while ORS professionals need to explain
their methodologies and findings in a way that non-technical
managers can grasp.
Mutual Respect: A productive relationship involves
mutual respect, recognizing the expertise and contributions
of both the manager and the ORS specialist.
Overall, the manager and ORS specialist collaborate closely to
apply mathematical and analytical tools to make informed
decisions that improve the efficiency and effectiveness of the
organization's operations.
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Limitations of Operations Research
Operations Research has certain limitations.
However, these limitations are mostly related to the time and
money factors involved in its applications rather than its
practical utility. These limitations are as follows :
Costly : Operations Research (OR) is very costly. This is
because OR makes mathematical models for taking decisions
and solving problems. The company has to make various
models for solving different problems. All this increments the
cost.
Not Realistic : OR experts make very complex models for
solving problems. These models may not be realistic. Hence,
they may not be useful for real-life situations.
Complex : OR is very complex concept. It is very difficult for
an average manager to understand it. Therefore, most
managers do not use OR techniques.
Magnitude of computation: Operations Research tries
to find out the optimal solution taking all the factors into
account. In the modern society, these factors are numerous
and expressing them in quantity and establishing relationship
among these, requires huge calculations. All these
calculations cannot be handled manually and require
electronic computers which bear very heavy cost. Thus, the
use of Operations Research is limited only to very large
organizations.
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Absence of quantification: Operations Research
provides solution only when all the elements related to a
problem can be quantified. The tangible factors such as
price, product, etc., can be expressed in terms of quantity,
but intangible factors such as human relations etc, cannot be
quantified. Thus, these intangible elements of the problem
are excluded from the study, though these might be equally
or more important than quantifiable intangible factors as far
as possible.
Distance between managers and Operations
Research: Operations Research, being specialists’ job,
requires a mathematician or a statistician, who might not be
aware of the business problems. Similarly, a manager may
fail to understand the complex working of Operations
Research. Thus, there is a gap between one who provides the
solution and one who uses the solution.
Applications of Operations Research
Operations Research is mainly concerned
with the techniques of applying scientific knowledge, besides
the development of science. It provides an understanding
which gives the expert/manager new insights and capabilities
to determine better solutions in his decision-making
problems, with great speed, competence and confidence. In
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recent years, Operations Research has successfully entered
many different areas of research in Defence, Government,
Service Organizations and Industry. We briefly describe some
applications of Operations Research in the functional areas of
management:
Finance, Budgeting and Investment
Cash flow analysis, long range capital requirements, dividend
policies, investment portfolios.
Credit policies, credit risks and delinquent account
procedures.
Claim and complain procedure.
Marketing
Product selection, timing, competitive actions.
Advertising media with respect to cost and time.
Number of salesmen, frequency of calling of account etc.
Effectiveness of market research.
Physical Distribution
Location and size of warehouses, distribution centres, retail
outlets etc.
Distribution policy.
Purchasing, Procurement and Exploration
Rules for buying.
Determining the quantity and timing of purchase.
Bidding policies and vendor analysis.
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Equipment replacement policies
Personnel
Forecasting the manpower requirement, Recruitment policies
and assignment of jobs.
Selection of suitable personnel with due consideration for
age and skills, etc.
Determination of optimum number of persons for each
service centre.
Production
Scheduling and sequencing the production run by proper
allocation of machines.
Calculating the optimum product mix.
Selection, location and design of the sites for the production
plant.
Research and Development
Reliability and evaluation of alternative designs.
Control of developed projects.
Co-ordination of multiple research projects.
Determination of time and cost requirements.
Besides the above mentioned applications of Operations
Research in the context of modern management, its use has
now extended to a wide range of problems, such as the
problems of communication and information, socio-economic
fields and national planning.
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Methodology or Stages of
Development of Operations Research
It is essential to follow some steps that everybody agrees as
being helpful in planning, organizing, directing and controlling
Operations Research activities within an organization. The
steps are listed below :
1. Formulation of the problem : It involves analysis of
the physical system, setting-up of objectives, determination
of restriction constraints against which decision should be
adopted, alternative courses of action and measurement of
effectiveness.
2. Construction of a Mathematical model : After
formulation of the problem, the next step is to express all the
relevant variables (activities) of the problem into a
mathematical model. A generalized mathematical model
might take the form :
E = f(xi, yj )
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Where f represents a system of mathematical relationships
between the measures of effectiveness of the objective and
the variables, both controllable and uncontrollable (yj ).
3. Deriving the solution from the model : Once the
mathematical model is formulated, the next step is to
determine the values of decision variables that optimize the
given objective function. This deals with the mathematical
calculations for obtaining the solution to the model.
4. Validity of the model : The model should be
validated to measure its accuracy. A model is valid or
accurate if (a) it contains al the objectives, constraints, and
decision variables relevant to the problem,(b) the objectives,
constraints, and decision variables included in the model are
all relevant to, or actually part of the problem, and (c) the
functional relationships are valid.
5. Establishing control over the solution : After
testing the model and its solution, the next step of the study
is to establish control over the solution, by proper feedback
of the information on variables which deviated significantly,
the solution goes out of control. In such situation the model
may accordingly be modified.
Implementation of the final results : Finally, the
tested results of the model are implemented to work. This
would basically involve a careful explanation of the solution
to be adopted and its relationship with the operating
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realities. This stage of Operations Research investigation is
executed primarily through the cooperation of both the
operations Research experts and those who are responsible
for managing and operating the system.
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