A Quantitative Approach
&
Modern Approach To Management
Presented By:-
Biswajit
Diksha
Dilip
Iftakhar
Prabhava Ram
Topics
Quantitative Approach
The Systems Approach
The Contingency Approach
Assessment
Quantitative Approach
Quantitative Approach
Also called operations research or management
science
Evolved from mathematical and statistical
methods developed to solve WWII military
logistics and quality control problems
Basic Characteristics
Primary Focus on Decision making
Based on economic criteria
Mathematical Models:
Statistics, optimization models, information
models, and computer simulations
Dependency on Computers
Quantitative Techniques
Linear Programming: Deals with situations
which require need for limited resources
utilization to best advantage
Queuing Theory: Deals with how to manage
different customer for different services.
• In LP ,we either maximize (e.g. Profit)
or
minimize (e.g. cost)
an Objective Function under given
Constraints
• All factors involved have
• linear relationships, i.e. doubling of labour will
reduce the time put.
• A manufacture produces 2 products A and B,
whose profits are Rs. 3 and Rs. 4 per Unit respectively .
• Production data -
Per Unit
Machining Labour Material
hours hours (kg)
A 4 4 1
B 2 6 1
Total 100 180 40
available •Due to trade restrictions A can not be produced more than
20 Units in a week
and due to agreement with customer at least 10 units of B
must be produced.
• Let quantity of A and B be X and Y respectively in a week
Objective Function is Maximize 3X + 4Y
Subject to constraints 4X + 2Y < 100 ; 4 X + 6Y < 180 ;
X+Y < 40
X < 20 , Y > 10
Graphical Solution to LP Maximisation problem
X
Y >. 10
60 4X + 6 Y < 180
50
X + Y < 40
40
Optimal solution - X =15 , Y = 20
Max. profit = 3x15 + 4x 20 = 125
30
20 X < 20
10
4 X + 2 Y < 100
0 10 20 30 40 50 60 70 Y
Contributions of Quantitative
Approach
In Production Management-
Focus is on manufacturing technology and the
flow of material in plants.
In Operation Management
Focus is on organization such as hospitals,
banks, government & the military.
Limitations of Quantitative
Approach
Despite its potential impact, this approach
has certain limitations:-
Does not deal with the people aspect of an
organization!!!
Unfamiliar with advanced quantitative tools!!
The Systems Approach
System Defined
A set of interrelated and interdependent parts
arranged in a manner that produces a unified
whole.
Basic Types of Systems
Closed systems
Are not influenced by and do not interact with their
environment (all system input and output is internal)
Open systems
Dynamically interact to their environments by taking
in inputs and transforming them into outputs that
are distributed into their environments
Example:
The Operating Model in
Organizational System
Input Transformation Output
Feedback
Assessment of Quantitative
& Systems Approach
It can be used to improve manager’s ability to
deal with human resources issues.
Sophisticated staffing models can be used to
map the flow of people into and out of an
organization.
We are always ready to accept changes. We
can increase the productivity by modifying the
quantitative and system approach.
The Contingency
Approach
Contingency Approach Defined
Also sometimes called the situational approach.
There is no one universally applicable set of
management principles (rules) by which to
manage organizations.
Organizations are individually different, face
different situations (contingency variables), and
require different ways of managing.
Contingency Viewpoint
Popular Contingency Variables:
External Environment
Technology
Individual
Assessment of Contingency
Approach
Useful because of its diagnostic approach,
which clearly departs from one of the best
approach of traditionalist.
It is more flexible, although draw heavily from
other approaches.
Allows managers to apply principles from
those approaches selectively and
appropriately.
Questions……….?????
