Leong Ming’ En (S9035136B) UOLFT/F1-MSM Assignment 1 Question A

a) The cost versus decision quality issue basically arises from the dilemma between minimizing costs and spending time, versus reaching a good quality decision. Should we want to reach a ‘perfect’ decision, it is highly probable that we have to spend a greater amount of time and money on it, which goes against ones wishes of minimizing cost and time. The time and cost spent comes from developing the model, collecting the data used in the model, as well as the accuracy of the results. Models are representations of the system under investigation, but are typically simplified. To ensure higher accuracy in representing the system, we require a more complex model that includes more variables and limitations, which requires more time and cost to build. Certainly, as a model is more complex, it will take a longer time to collate data and sampling to verify the variables and limitations. In addition, accuracy is also crucial; the more time spent collecting and validating the data, the lower the standard deviation, and hence the higher the accuracy of the model. However, this once again, requires more time and money to be spent (on tools and manpower.). However, the measure of time taken to solve a model is not as critical as it is today as it was in the past, as in the modern day technology has advanced to give us a plethora of tools and applications that reduce the amount of time spent to solve models, especially in industries where solutions to decision problems have to be produced very quickly. An example would be the airline industry where decisions as to whether to sell a potential passenger a ticket, or how to reconfigure the schedule to cope with disruptions to the pre-planned schedule, must be made very quickly. b) A large extent as to whether an OR project is successful is determined by whether the project affects the decisions made by the client, and whether any action recommended is undertaken by the client; in other words for the organization to implement a proposed course of action.

which is very much less convincing. it might lead to non-implementation as the client does not believe in the model and therefore cannot confidently implement results. This may require the use of simplified. including regular discussions on the progress of the project and the model being produced. Finally. which therefore requires continuous communication with the client to gain . and for the solution to match that of the organization at a technological level as well as in a cultural sense. That is. all relevant technological and cultural constraints have to be known. Gaining the commitment of the person in power to implement the solution requires the consultant to persuade them that the changes recommended are worth making. a consultant must give the solution and justification using terms that the client can understand. Thirdly. especially if the results emerge either counter-intuitive or radical. to ensure that a feasible solution is being produced. First of all is regular and positive communication with the client. A solution irrelevant or obsolete. and constraints may change. for a feasible solution to be implemented. c) One problem that both issues relate to is the formulation of the model.For implementation to take place. to get information as well as to ensure the problem has not changed. the consultant must continually involve the client during the project. and to make sure that the client knows how and what problem is being approached. it must be possible to implement the solution. however brilliant. one must ensure that the action recommended in the solution is within the power of the client. continuous contact with the organization and specifically the client must be maintained. that all the relevant technology and cultural constraints and known and where appropriate. The person with the power to implement the recommended course of action must also remain committed to following through with it. A good practical rule is that while the consultant can surprise the client with the result. would therefore be of no use to the client. that it may not fall along the same vein as preconceived. that he or she is able to implement. transparent models and possibly examples showing the benefits of the solution. When formulating the model. Should the models be difficult to be understood by the client. included in the model. Secondly. Problems can change over time. Let us now examine the approaches which are likely to gain favor and commitment. it is necessary to ensure. objects of the organization may change. Hence. they should never surprise the client with the work and process that is done. when formulating the problem.

Hence. This leads to more time and costs to be involved in building an accurate model and validating it so we can achieve best decisions. Sometimes problems go away. . which also affects the relationships between variables. objectives of the organization may change. a complex model is required to achieve a more accurate representation of the system. which change the constraints and therefore variables within the model.information. which might be difficult for a more complex model. However. it the model might be rejected and implementation will fail. The formulated model also has to be justified and explained in layman terms. The structure of the model and the variables of the constraints hence have to be amended.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.