Operations Analysis

The role of Management

A. COORDINATION
 Sequence of building blocks to support organizations operation:
1. Coordination
 To be effective, human activities have to be coordinated.
 Top foundation of management
2. Cooperation
 High productivity is dependent upon the interest and willing cooperation of managers
and workers.
3. Human relation
 The application of good human relation pays off through cooperative coordination
therefore greater productivity.
4. Understanding
5. Communication
 Greatest power of man

B. CONTROL
 To check or regulate…to keep within limits.
 Executive must have information revealing points that require his attention.
 Managerial control operates through:
1. Management by predetermined policies
2. Management by predetermined operation standards
3. Management by action on the exception principle
4. Management by responsible personnel

Management Science
 Applied by a functional staff management member or a consultant
 Individual Practitioner
o They provide an integrated viewpoint to operation analysis based on the application of
scientific research methods.
 Two discipline associated with management science:
1. Industrial engineering
2. Operation research
 Frederick W. Taylor
o Father of scientific management
o Known for systematic development of management technques
o Developed for principles of management:
1. Research
2. Standardization
 3. Control
4. Cooperation
 Other important pioneer of scientific management:
1. Carl G. Barth
2. Henry L. Gantt
3. Sanford E. Thompson
4. H. King Hathaway

Operation Research
 According to John F. Magee,
Operation research is the organized application of the methods and techniques of science,
particularly the physical sciences.

Information
 They are received and inspected for accuracy
 Reports, notes, interviews, conferences, and conversations.

Technical control
 Definition
 Servomechanism- motion of control
 Feedback- result of communication

Communication
 Extensive attention has been given in the past decade to improvement and greater use of
communication. This increased emphasis has developed from four primary considerations:
1. Recognition of the importance of records and reports as management tools for
planning, coordinating, and controlling the enterprise.
2. Reduction of the cost of clerical labor
3. Improvement of customer service
4. Improvement of working conditions
 Dr. Richard Peterson proposed five categories of information:
1. Decisive information
2. Implementation information
3. Required information
4. Restricted information
5. Persuasive information
Electronic Data Processing
 Most significant development in the area of information
 First major adaptation of electronics is machine accounting equipment
 EDP system
o Fed information for processing and instruction as to how it is to be processed.

Personnel
 Chief Executive is the most poorly informed person in the organization.
 Industrial Engineer may ask to report at the end of each day or week.

Consultants
 They make analysis of the problem of the company
 They brings company the breadth of experience gained in many different companies
 They view problem without bias or vested interest

Managing the management information system

 Management Information System
o Designed to provide information access and decision input capabilities to support
management decision making at all levels.
o It is built to deal with individual processing requirements.
o 3 areas standouts as beneficiaries of well managed MIS
1. Increase the productivity of office labor
2. Control of operation for which the value of real time information to monitor or
correct ongoing activities can be indispensible.
3. Impact of digested information on decision process of management

Future Operations Analyses

 Computer will be a world chess function