QUANTITATIVE QUANTITATIVE APPROACHAPPROACH

BYBY

G.S.N.RAMYA & RAMADEVIG.S.N.RAMYA & RAMADEVI

22

HISTORYHISTORY

During World War II, mathematicians, During World War II, mathematicians, physicists, and other scientists joined together physicists, and other scientists joined together to solve military problems. The quantitative to solve military problems. The quantitative school of management is a result of the school of management is a result of the research conducted during World War II research conducted during World War II

33

DefinitionDefinition

The quantitative approach involves the use of The quantitative approach involves the use of quantitative techniques to improve decision quantitative techniques to improve decision making. This approach has also been labeled making. This approach has also been labeled operations research of management science. operations research of management science. It includes applications of statistics, It includes applications of statistics, optimization models, information models, and optimization models, information models, and computer simulationscomputer simulations

44

BRANCHES OF QUANTITATIVE BRANCHES OF QUANTITATIVE MANAGEMENTMANAGEMENT

management science management science operations management operations management management information systems management information systems

55

MANAGEMENT SCIENCEMANAGEMENT SCIENCE The management science school emerged to The management science school emerged to

treat the problems associated with global treat the problems associated with global warfare. Today, this view encourages warfare. Today, this view encourages managers to use mathematics, statistics, and managers to use mathematics, statistics, and other quantitative techniques to make other quantitative techniques to make management decisionsmanagement decisions

66

Contd.Contd.

Managers use several science applicationsManagers use several science applications• Mathematical forecasting Mathematical forecasting • Inventory modeling Inventory modeling • Queuing theory Queuing theory

77

Operations managementOperations management

It It is the function or field of expertise that is is the function or field of expertise that is primarily responsible for the production and primarily responsible for the production and delivery of an organization’s products and delivery of an organization’s products and services.services.

Operations management is a narrow branch of Operations management is a narrow branch of the quantitative approach to management.the quantitative approach to management.

It focuses on managing the process of It focuses on managing the process of transforming materials, labor, and capital into transforming materials, labor, and capital into useful goods and/or servicesuseful goods and/or services

88

Management information systemsManagement information systems

It is the name often given to the field of It is the name often given to the field of management that focuses on designing and management that focuses on designing and implementing computer-based information implementing computer-based information systems for use by management systems for use by management

99

How Do Today’s Managers use the How Do Today’s Managers use the quantitative approach? quantitative approach?

The quantitative approach has contributed directly to The quantitative approach has contributed directly to management decision making in the areas of planning management decision making in the areas of planning and control. and control.

When managers make budgeting, scheduling, quality When managers make budgeting, scheduling, quality control, and similar decisions, they typically rely on control, and similar decisions, they typically rely on quantitative techniques. quantitative techniques.

The availability of sophisticated computer software The availability of sophisticated computer software programs to aid in developing models, equations, and programs to aid in developing models, equations, and formulas has made the use of quantitative techniques formulas has made the use of quantitative techniques somewhat less intimidating for managers, although somewhat less intimidating for managers, although they must still be able to interpret the results.they must still be able to interpret the results.

1010

If I don’t know the answer, maybe I

can make one up!

1111

THANK YOUTHANK YOU