A Quantitative Approach&

Modern Approach To Management

Presented By:-BiswajitDiksha

DilipIftakhar

Prabhava Ram

TopicsQuantitative Approach The Systems ApproachThe Contingency ApproachAssessment

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 CharacteristicsPrimary Focus on Decision makingBased on economic criteriaMathematical Models:Statistics, optimization models, information

models, and computer simulationsDependency 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 hours Labour hours Material (kg)

A 4 4 1B 2 6 1Total available 100 180 40

•Due to trade restrictions A can not be produced more than 20 Units in a weekand 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

0 10 20 30 40 50 60 70

10

20

30

40

50

60

X

Y

Y >. 10

X < 20

X + Y < 40

4 X + 2 Y < 100

4 X + 6 Y < 180

Optimal solution - X =15 , Y = 20Max. profit = 3x15 + 4x 20 = 125

Contributions of Quantitative Approach

In Production Management-Focus is on manufacturing technology and

the flow of material in plants.In Operation ManagementFocus is on organization such as hospitals,

banks, government & the military.

Limitations of Quantitative ApproachDespite 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 ApproachSystem 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 ApproachContingency 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……….?????