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What is Operational Research ?
Though there is no "official definition" of Operational
Research ("Operations Research" in the US), it can be
described as a scientific approach to the solution of problems
in the management of complex systems. In a rapidly changing environment
an understanding is sought which will facilitate the choice and
the implementation of more effective solutions which, typically,
may involve complex interactions among people, materials and money.
Operational Research has been used intensively in business, industry
and government. Many new analytical methods have evolved, such
as: mathematical programming, simulation, game theory, queuing
theory, network analysis, decision analysis, multicriteria analysis,
etc., which have powerful application to practical problems with
the appropriate logical structure.
Operational Research in practice is a team effort, requiring close
cooperation among the decision-makers, the skilled OR analyst
and the people who will be affected by the management action.
The OR Society of United Kingdom, the world's oldest established society catering
for the needs of the OR profession considers that Operational Research looks at an
organisation's operations - the functions it exists to perform.
The objective of Operational Researchers is to work with
clients to find practical and pragmatic solutions to operational
or strategic problems, often working within tight timing
constraints. Once a good or better way of proceeding has been
identified, Operational Researchers can also be central to the
management of implementing the proposed changes.
Organisations may seek a very wide range of operational
improvements - for example, greater efficiency, better
customer service, higher quality or lower cost. Whatever the
business engineering aim, OR can offer the flexibility and
adaptability to provide objective help.
Most of the problems OR tackles are messy and complex, often
entailing considerable uncertainty. OR can use advanced
quantitative methods, modelling, problem structuring,
simulation and other analytical techniques to examine
assumptions, facilitate an in -depth understanding and decide on
practical action.
OR in action
A few examples to help illustrate the scope of OR were given by
the OR Society of United Kingdom.
"There are too many lorries on the road"
A common cry but something can be done! A bakery used OR
to devise an efficient scheduling system for its delivery
vehicles. The new system reduced lorry mileage, road
congestion and pollution as well as saving money for the
bakery.
"I had to wait all morning in hospital"
Great pressure on consultant time coupled with some patients
who don't always keep their appointment times can cause real
problems for hospitals. But by using OR, appointment systems
have been designed that substantially reduce waiting times
whilst keeping highly qualified medical staff fully occupied.
"We've just got to increase our sales"
Easier said than done but OR proved equal to the task for a
mail order firm. The OR model helped boost catalogue sales by
designing an idea mix of discounts, special promotions and
customer incentives.
"Bottlenecks - the bane of my life"
How many production managers say that? We know of some
that don't because they used OR! One manager wanted to
ensure the efficient operations of his new automated warehouse
by simulating the operation of alternative material handling
equipment. This meant that a selection could be made which
eliminated any bottlenecks and delivered the required output.
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