QUANTITATIVE APPROACH

QUANTITATIVE APPROACH

The quantitative approach to management includes the application of statistics, optimization models, information models and computer simulations. More specifically, this approach focuses in achieving organizational effectiveness through the application of mathematical and statistical concepts. The three main branches of this approach are:

Ø Management Science
Ø Operations Management
Ø Management Information System

Management Science: This approach stresses the use of mathematical models and statistical methods for decision-making. It visualizes management as a logical entity, the action of which can be expressed in terms of mathematical symbols, relationships and measurement data. Management science techniques are widely used in the following areas:

· Capital budgeting and cash flow management
· Production scheduling
· Development of product strategies
· Planning for HR development programs
· Maintenance of optimal inventory levels
· Aircraft scheduling

Various mathematical tools like the Waiting line theory or queuing theory, linear programming, the program evaluation review technique (PERT), the critical path method (CPM), the decision theory, the simulation theory, the probability theory, sampling, time series analysis etc. have increased the effectiveness of managerial decision-making.

Operations Management: This is an applied form of Management Science. It deals with the effective management of the production process and the timely delivery of an organization’s products and services. Op mgt concerned with:

(i) Inventory Management
(ii) Work Scheduling
(iii) Production Planning
(iv) Facilities location and Design
(v) Quality assurance.

Management Information System: MIS focuses on designing and implementing computer based information systems for business organizations. In simple terms, the MIS converts raw data into information and provides the needed information to each manager at the right time, in the needed form.