LINEAR PROGRAMMING, DESIGNING AWORK SYSTEM
AND DECISION ANALYSIS
(ASSIGNMENT # 02 SEMESTER 6TH -2020)
Submission Date (MARCH 12, 2020)
BY
UMAR FAROOQ
ROLL # 17460920-145
MGT-407 (POM)
BBA 6TH (AA)
Submitted to SIR BADAR MUNIR
Department of Management Sciences (FMAS)
UNIVE
RSITY OF GUJRAT
Decision Analysis
Decision Making After having selected various alternatives for solution of a design, designer
faces the task of taking decision for suitable feasible alternatives. The designer has to assess the
available solutions in stages and then the promising ones should be examined in detail.
The process can be used by individuals or groups attempting to decide related to risk
management, capital investments, and strategic business decisions.
Decision analysis uses a variety of tools to evaluate all relevant information to aid in the
decision-making process and incorporates aspects of psychology, management techniques,
training, and economics. It is often used to assess decisions that are made in the context of
multiple variables and that have many possible outcomes or objectives. Individuals or groups
attempting to decide related to risk management, capital investments, and strategic business
decisions can use the process.
Importance of Decision Making:
To select the optimum solution.
Stress on better performance due to increased competition.
Elements of Decision Making:
Alternatives available to the decision marker.
State of nature/events.
Outcomes.
Objective.
State of knowledge
Decision Making Under Multiple Criteria
Types of decision can be classified based on risk involved and are explained as below:
a) Decision Problems under Certainty:
This type of decision arises when all information's regarding alternatives are completely
available and there is no uncertainty.
b) Decision Problems Under Risk:
This type of decision arises when such a problem exists in which analyst decides to include state
of nature, the probability of which in his views are known.
c) Decision Problems under Uncertainty:
This type of decision arises when information's regarding alternatives are not completely
available and there is uncertainty.
d) Decision under Conflict:
The state of nature are replaced by courses of action determined by an opponent who is trying to
maximize his objective function. This type of decision theory usually is called game theory.
LINEAR PROGRAMMING
The word learning means the relationship, which can be represented by a straight line as the
form of relation i.e. Ax+ by=c.
The word “programming” is concerned with the optimal allocation of limited
resources.Linear programming is a way to handle certain types of optimization problems.
DEFINITION OF LP: LP is a mathematical modeling technique useful for the allocation of
“scarce or limited’’ resources such as labor, material, machine ,time ,warehouse space ,etc…,to
several competing activities such as product ,service ,job, new equipment’s, projects, etc...Based
on a given criteria of optimality mathematical method for determining a way to achieve the best
outcome.
General Representation of Linear Programming
Different Characteristics of Linear Programming
All linear programming problems must have following five characteristics:
(a) Objective function:
There must be clearly defined objective, which can be stated in quantitative way. In business
problems the objective is generally profit maximization or cost minimization.
(b) Constraints:
All constraints (limitations) regarding resources should be fully spelt out in mathematical form.
(c) Non-negativity:
The value of variables must be zero or positive and not negative. For example, in the case of
production, the manager can decide about any particular product number in positive or minimum
zero, not the negative.
(d) Linearity:
The relationships between variables must be linear. Linear means proportional relationship
between two ‘or more variable, i.e., the degree of variables should be maximum one.
(e) Finiteness:
The number of inputs and outputs need to be finite. In the case of infinite factors, to compute
feasible solution is not possible.
Properties of Linear Programming Mode
The following properties form the linear programming model:
Relationship among decision variables must be linear in nature.
A model must have an objective function.
Resource constraints are essential.
ASSUMPTIONS
Proportionality
Additivity
Continuity
Certainty
Finite Choices
Application of Linear Programming
Business
Industrial
Military
Economic
Marketing
Distribution
Requirements of Linear Programming.
• Clear Objectivity.
• Quantitative terms.
• Identifiable and Measurable.
• Resource Limitation Consideration.
Design of work system
First, a company determines its objectives, and then it develops an operations strategy to achieve
those objectives. Part of the operations strategy is designing a work system, which provides the
structure for the productivity of the company. The work system includes job design, work
measurement, and worker compensation. The company determines the purpose of each job, what
the job consists of, and the cost of the employees to do the job. A job must add value and enable
the company to achieve its objectives
Job design
Involves specifying the content and methods of job.
What will be done?
Who will do the job?
How the job will be done?
Where the job will be done?
Design of Work Systems is an important component in Production and Operations Management.
Design of Work Systems forms the basis and explains the importance of work design.
Suppose your company is an organization with an objective to operate a fancy, upscale
restaurant. To achieve its objective, the restaurant must define a set of jobs, the tasks each job
consists of, and a system for evaluating the employee's performance in the job. The set of jobs at
your restaurant would include a chef, a trained kitchen staff, a professional wait staff, a maître d’,
a wine steward, and so forth. The chef's tasks would include developing the food motif and
menu, for example. The performance measurement would be based on revenue.
Behavioral Approaches to Job Design
In an effort to make jobs more interesting and meaningful, job designers frequently consider job
enlargement, job rotation, job enrichment, and increased use of mechanization.
Job enlargement
It means giving a worker a larger portion of the total task. This constitutes horizontal loading —
the additional work is on the same level of skill and responsibility as the original job. The goal is
to make the job more interesting by increasing the variety of skills required and by providing the
worker with a more recognizable contribution to the overall output.
Job rotation Job rotation
It means having workers periodically exchange jobs. A firm can use this approach to avoid
having one or a few employees stuck in monotonous jobs. It works best when workers can be
transferred to more interesting jobs; there is little advantage in having workers exchange one
boring job for another. Job rotation allows workers to broaden their learning experience and
enables them to fill in for others in the event of sickness or absenteeism.
Job enrichment
It involves an increase in the level of responsibility for planning and coordination tasks. It is
sometimes referred to as vertical loading. An example of this is to have stock clerks in
supermarkets handle reordering of goods, thus increasing their responsibilities. The job
enrichment approach focuses on the motivating potential of worker satisfaction.
Teams
Organization adopt teams in order to exploit the benefits of teams
Higher quality
Higher productivity
Greater worker satisfaction.
Team-Based Approaches
Football team
Baseball team
Soccer team
Tennis doubles team
Methods analysis
Analyzing how a job gets done
Begins with overall analysis
Moves to specific details
REFRENCES
https://www.oreilly.com/library/view/operations-management-
creating/9780470525906/ch02.html
https://uh.edu/~jhansen/ITEC4341/StevCh7.htm
https://www.investopedia.com/terms/d/decision-analysis.asp
https://www.oreilly.com/library/view/operations-management-an/9781118122679/ch11-
sec004.html
https://www.businessmanagementideas.com/business-management/linear-programming-
meaning-characteristics-assumption-and-other-details/537
