1. Intro to ManSci

Management Science 

  • A decision making approach based on the Scientific Method 

  • a body of knowledge that uses quantitative approaches to decision making (Anderson et al., 2019) 

  • also known as Operations Research, Decision Science, Quantitative Methods, Quantitative Analysis, Business Analytics (Taylor, 2006) 

Frederick Winslow Taylor (1856-1915) 

  • Founder of Management Science 

  • Wrote and published several works, and one of these was “The Principles of Scientific Management” in 1911. 

  • Initiated the Scientific Management Revolution in the early 1900s 

Historical Development of Management Science 

  • Started during the World War II period. 

  • Flourished in business and industry due to: 

    1. Numerous methodological developments  

      • George Dantzig in 1947 discovered the simplex method for solving linear programming problems. 

    2. A virtual explosion in computing power 

      • Development of smartphones and the internet which helps gain inputs to management-science models. 

  • Example of management science: Airlines told a team to not enter the finals until the last match, to which resulted in an additional gain of 7% to 8% increase in revenue. 

Problem Solving 

  • Taking action to resolve what is happening to what we desire to happen. (the actual and desired state of affairs.) 

  • Problem solving involves 7 steps. 

    1. Define the problem. 

    2. Determine the set of alternative solutions. 

    3. Determine the criteria for evaluating alternatives. 

    4. Evaluate the alternatives. 

    5. Choose an alternative (make a decision). 

    ---------------------------------------- 

  1. Implement the decision. 

  2. Evaluate the results. 

Note: steps 1 to 5 – Decision Making, 

Note: steps 1 to 7 – Problem solving 

Decision Making 

  • Encompasses steps 1-5 of the steps in problem solving 

  • Single-criterion decision problems: Problem solving with only ONE criterion 

  • Multicriteria decision problems: Problem solving w/ MORE THAN ONE criterion. 

Qualitative Analysis 

  • Based largely on the manager's judgement and experience 

  • It is inherent and will increase with experience 

  • Includes the manager's intuitive "feel" for the problem 

  • Based on recommendations 

  • More of an art than a science 

Quantitative Analysis 

  • The manager has had little experiences/the problem is sufficiently complex 

  • It can be learned only by studying assumptions and methods of Management Science. 

  • Concentrate on the quantitative facts or data associated with the problem. 

  • Develop mathematical expressions that describe the objectives, constraints, and other relationships that exist in the problem. 

  • Use one or more quantitative methods to make a recommendation. 

  • A quantitative approach is used when: 

    1. The problem is complex  

    2. The problem is essentially important (a large sum of money) 

    3. The problem is new and has no previous experiences 

    4. The problem is repetitive requires routine decisions 

Outline

Introduction to Management Science

  • Definition: A decision-making approach based on the Scientific Method

  • Characteristics:

    • Utilizes quantitative approaches for decision-making (Anderson et al., 2019)

    • Also known as:

      • Operations Research

      • Decision Science

      • Quantitative Methods

      • Quantitative Analysis

      • Business Analytics (Taylor, 2006)

Historical Background

  • Founder: Frederick Winslow Taylor (1856-1915)

    • Published “The Principles of Scientific Management” in 1911

    • Initiated the Scientific Management Revolution in the early 1900s

  • Development Timeline:

    • Emerged during World War II

    • Growth driven by:

      • Methodological advancements

      • George Dantzig's discovery of the simplex method (1947)

      • Increased computing power

      • Rise of smartphones and the internet

Applications of Management Science

  • Example: Airlines' strategic decision led to a 7%-8% revenue increase

Problem Solving Process

  • Definition: Resolving the gap between actual and desired states

  • Steps in Problem Solving (7 steps):

    1. Define the problem

    2. Determine alternative solutions

    3. Establish criteria for evaluating alternatives

    4. Evaluate alternatives

    5. Choose an alternative (decision-making)

    6. Implement the decision

    7. Evaluate the results

  • Notes:

    • Steps 1-5: Decision Making

    • Steps 1-7: Problem Solving

Decision Making

  • Focus: Steps 1-5 of Problem Solving

  • Types of Decision Problems:

    • Single-criterion decision problems: One criterion

    • Multicriteria decision problems: Multiple criteria

Qualitative Analysis

  • Based on manager's judgment and experience

  • Characteristics:

    • Inherent and increases with experience

    • Intuitive understanding of problems

    • More art than science

Quantitative Analysis

  • Applicable when:

    • Manager has limited experience

    • Problem complexity is high

  • Process:

    • Study assumptions and methods of Management Science

    • Focus on quantitative data

    • Develop mathematical expressions for objectives and constraints

    • Use quantitative methods for recommendations

  • Situations for quantitative approach:

    • Complex problems

    • Significant financial implications

    • New problems

    • Repetitive problems

Mind Map

Central Idea

  • Management Science: A decision-making approach based on the Scientific Method.

Main Branches

1. Definition and Scope

  • A body of knowledge using quantitative approaches to decision-making (Anderson et al., 2019).

  • Also known as:

    • Operations Research

    • Decision Science

    • Quantitative Methods

    • Quantitative Analysis

    • Business Analytics (Taylor, 2006)

2. Historical Development

  • Frederick Winslow Taylor (1856-1915)

    • Founder of Management Science.

    • Authored "The Principles of Scientific Management" (1911).

    • Initiated the Scientific Management Revolution.

  • World War II Influence

    • Emergence during WWII.

    • Flourished due to:

      • Methodological developments (e.g., George Dantzig's simplex method in 1947).

      • Increased computing power.

      • Development of smartphones and the internet.

3. Problem Solving

  • Definition

    • Action to resolve the gap between actual and desired states.

  • 7 Steps of Problem Solving

    1. Define the problem.

    2. Determine alternative solutions.

    3. Determine evaluation criteria.

    4. Evaluate alternatives.

    5. Choose an alternative (make a decision).

    6. Implement the decision.

    7. Evaluate the results.

  • Note

    • Steps 1-5: Decision Making.

    • Steps 1-7: Problem Solving.

4. Decision Making

  • Encompasses steps 1-5 of problem solving.

  • Types of Decision Problems

    • Single-criterion decision problems.

    • Multicriteria decision problems.

5. Qualitative Analysis

  • Based on manager's judgment and experience.

  • Involves intuitive "feel" for the problem.

  • More of an art than a science.

6. Quantitative Analysis

  • Used when:

    • The problem is complex.

    • The problem is important (large sums of money).

    • The problem is new with no prior experience.

    • The problem is repetitive and requires routine decisions.

  • Focuses on quantitative facts and data.

  • Develops mathematical expressions for objectives and constraints.