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Chapter 0 Introduction to Systems Analysis and Management Techniques I

Prepared by: Engr. Romano A. Gabrillo MEngg-MEM

What is Systems Analysis?

In System Analysis more emphasis is given to understanding

the details of an existing system or a proposed one and then deciding whether the proposed system is desirable or not and whether the existing system needs improvements.
Thus, system analysis is the process of investigating a system,

identifying problems, and using the information to recommend improvements to the system.

Management Techniques
Being an effective manager requires experience in your

industry and experience with different management techniques.

Management techniques are not short-term tricks used to

motivate employees, but rather effective methods of managing that help to develop a productive workplace. There is no single management technique that works in all situations, which is why it is important to become familiar with more than one.

Objectives of the Module

The objective of this course is to solve the decision-making

problems that confront and confound managers in both the public and the private sector by developing mathematical models of those problems.
Developing a mathematical model is easily achieved through

the use of computer programs which are very evident in our modern world today. However, we need to understand first how they are solved manually through thorough analysis and modeling of the problem.

Main Problem in Systems Analysis

The main problem in Systems Analysis is concerned with the

efficient allocation of scarce resources. It is both an art and a science.

The art lies in the ability to depict the concepts efficient and

scarce in a well-defined mathematical model of a given situation. The science consists in the derivation of computational methods for solving such models.

Optimization Techniques
Optimal allocation of money, manpower, energy, or a host of

other scarce factors are very important for decision makers. These are translated in mathematical model and analyzed in such a way as to achieve the optimum solution to a problem.

A background in fundamental algebra, and matrix algebra is

needed in this course. A first course in probability is a prerequisite in a certain chapter. None the less, a very intuitive mind most basic to analysis, modeling and simulation through computer programs is needed to decipher the underlying chapters of the course syllabus.

A Quick Glimpse of the Contents of Systems Analysis and Management Techniques I

Chapter 0 Introduction to Systems Analysis and

Management Techniques I Chapter 1 Network Analysis Chapter 2 Mathematical Programming Chapter 3 Linear Programming Chapter 4 The Simplex Method Chapter 5 Transportation Tableau Chapter 6 Scheduling Algorithm End of Module

Chapter 1 Network Analysis

A network is a set of points, called nodes, and a set of curves,

called branches (or arcs or links), that connect certain pairs of nodes.
The network represents a certain path of deciding which

among the branches is optimized to be the best way or decision to take into.
An example of a network problem is given below:

Example of a Network Problem

A construction firm concern has been awarded a contract to

produce pretension foundation for bridges. The contract is for 4 years and it is not expected to be renewed. The production process requires a specialized machine which the concern does not have.

The concern can buy the machine, maintain it for the 4 years

of the contract, and then sell it for scrap value; or it can replace the machine at the end of any given operating cost for buying a machine in the beginning of the year i and trading it in at the beginning of year j is given in the next table.

Given in the table below with all figures expressed in thousand-dollar units.
i 1 12 19 33 49

2 3 4


23 16

38 26 13

Determine a replacement policy that will minimize the total operating cost for the machine over the life of the contract.

Solution to the Problem



19 Y1 12 Y2 14 23 38 Y3 16 Y4 13 Y5


Minimum-span Algorithm, Shortest-route Algorithm, Minimal

Spanning Tree Algorithms, and Maximal Flow Solution will be discussed in this chapter along with an Information Technology Application through computer programming.

Chapter II Mathematical Programming

This chapter familiarizes you with the different types of

mathematical solutions to any kind of management problems and how to solve it. It starts with the discussion of the Management Science Approach to Problem Solving.
Model Formulation and Graphical solution can will be

discussed to solve mathematical programs.

Management Science Techniques

Observation Management Science Techniques Problem Definition


Model Construction



Mathematical Programs
A mathematical program is an optimization problem in

which the objective (optimize) and constraints (subject to) are given as mathematical program and functional relationships. A Mathematical program is treated to the have the form:

Chapter III Linear Programming

This chapter discusses more extensively linear problems, that

is, a mathematical program in where and each dsfsd are linear in each of their arguments, that is if:

Example of a Linear Program

The Village Butcher Shop traditionally makes its meat

loaf from a combination of lean ground beef and ground pork. The ground beef contains 80% meat and 20% fat, and costs the shop 80cents per pound; the ground port contains 68% meat and 32% fat, and costs 60cents per pound. How much of each kind of meat should the shop use in each pound of meat loaf if it wants to minimize its cost and to keep the fat content of the meat loaf to no more than 25%?

Model Construction
The objective is to minimize the cost (in cents), z,

a pound of meat loaf, where z = 80 x the poundage of ground beef used plus 60 times the poundage of ground pork used. Defining:
x1 = poundage of ground beef used in each pound of meat loaf. x2 = poundage of ground pork used in each pound of meat loaf.

The example of a linear problem is the solution of how much

meat should a shop use in a pound of meat loaf given by the objective: z = 80x1 + 60x2
to minimize its cost and to keep the fat content of the meat

loaf to no more than 25 percent?

Different methods and algorithms can solve linear programs.

Chapter IV Simplex Method

The simplex method is a matrix procedure for solving linear

programs in the standard form:

optimize: subject to: with: z = CTX AX = B X0

You need a knowledge on Matrix Algebra to transform the

previous problem into this standard form.

6 Steps of the Simplex Method

Step 1. Locate the most negative number in the bottom

row of the Simplex Tableau. Step 2. Form ratios by dividing each positive number in the work column, excluding the last row, into the element in the same row and last column.
Step 3. Use elementary row operations to convert the pivot

element to 1 and then to reduce all other elements in the work column to 0.

You need a background on fundamental algebra to carry on the steps of the Simplex Method
Step 4. Replace the x-variable in the pivot row and first

column by the x-variable in the first row and pivot column. Step 5. Repeat Steps 1 through 4 until there are no negative numbers in the last row, excluding the last column. Step 6. The optimal solution is obtained by assigning to each variable in the first column that value in the corresponding row and last column.

Chapter V Transportation Algorithm

A transportation algorithm involves m sources, each of

which requires ai (i=1,2,,m) units of a homogeneous product, and n destinations, each of which requires bj (j=1,2,,n) units of this product.
ith source to the jth destination is given for each i and j.

The cost cij of transporting one unit of product from the

The objective is to develop an integral transportation

schedule that meets all demands from current inventory at a minimum total shipping cost.

Steps in the Transportation Algorithm The transportation algorithm is the Simplex Method specialized to the format of the Transportation Tableau, it involves:
1. Finding an initial, basic feasible solution 2. Testing the solution for optimality 3. Improving the solution when it is not

optimal; and 4. Repeating steps 2 and 3 until the optimal solution is obtained.

Chapter VI Scheduling Algorithm

Scheduling Models include the following

Production Problem
Transshipment Problems

Assignment Problems
The Traveling Salesperson Problem

Production and Transshipment Problems

Production problems involve a single product which is to

be manufactured over a number of successive time periods to meet pre-specified demands.

A transshipment problem, like a transportation problem,

involves sources, having supplies, and destinations, having demands. In addition, it also involves junctions, through which goods can be shipped.

Assignment Problem
Assignment problems involve scheduling workers to jobs on

one-to-one basis (more generally, they involve permutations of a set of objects).

Assignment problems can be converted into transportation

problems by considering the workers as sources and the jobs as destinations, where all supplies and demands are equal to 1.

A solution procedure more efficient than the general

transportation algorithm is the Hungarian Method.

Traveling Salesperson Problem

This problem involves an individual who must

leave a base location, visit n 1 other locations (each once and only once), and then return to the base.

Such algorithm that can be used to solve a

traveling salesperson problem is the NearestNeighbor Algorithm which uses only the cost matrix.

Criteria for Evaluation

Quizzes Midterm Exam Final Exam Assignments Attendance Class Participation TOTAL Passing Average

__________ __________ __________ __________ __________ __________

20% 25% 30% 10% 10% _5% 100%

__________ 60%

End of Chapter 0
Any Questions??? Engr. Romano A. Gabrillo, Mengg-MEM

Master of Engineering Major in Manufacturing Engineering and Management Assistant Professor

E-mail Address: Phone Number: +251924818799 Address: Jimma Institute of Technology

Jimma University, P.O. Box 378 Jimma, Ethiopia