Management Science Process

Quantitative decision making is not a substitute for competent management. Rather it is methodology that can significantly improve the executive decision making. So, every business students should learn about it. Followings are the graphical representation and description of management science process:

Management Science Process

1. Define the problem:

The First step of the management science process is to define the problem. Quantitative decision making approach is problem oriented. So we should define the managerial problem clearly and concisely. The problem must be stated precisely and that should be suitable for analysis. Many operation research studies were failed simply because the problem was poorly defined. So at first we should emphasize more on it.

2. Formulate a quantitative model:

In the second step, we need to formulate a model. In formulating model, we should consider controllable and uncontrollable inputs. A model is a simplified representation of real objects or situations. The representation inputs only essential, relevant and important features.

3. Gather relevant quantitative data:

Organization would gather data from past accounting records, sales, financial, inventory, production and engineering records and reports. Published documents such as government statistical summaries may be important sources of data. Managers and operating personnel can provide information about markets, financial conditions, productivity and other factors that are unavailable elsewhere.

4. Analyze and solve the quantitative model:

In this step we have to analyze collected data and solve the quantitative model. In most cases, there is tremendous volume of available data and a considerable amount of time is required to collect and organize the information. Furthermore, data are usually not in form of suitable form for decision making purposes. More effort then, is necessary for processing and analyzing the data. As a result many organizations have designed and implemented formal system for collecting, analyzing and reporting relevant and timely information. Such a structure id referred to MIS (management Information System).

5. Implement the solution:

It is the last phase of decision making. The quantitative technique analysis process is not complete, until the model’s solution information is reported to the decision maker and results are implemented. Such data constitute only one of the inputs considered by the manager when a final decision is being made. So it shows the success or failure of the process. For this reason it is called vital step among all.