Sunteți pe pagina 1din 19

Basic Quantitative

Techniques

ABS-Bangalore
1 Quantitative Techniques - RVMReddy - ABS 26 June 2014

Dr. R. Venkatamuni Reddy
Associate Professor

Contact: 09632326277, 080-30938181

rvm.reddy@alliancebschool.ac.in

rvmunireddy@gmail.com



2 Quantitative Techniques - RVMReddy - ABS 26 June 2014
Quantitative Techniques

An Introduction
3 Quantitative Techniques - RVMReddy - ABS 26 June 2014
Topics to be Covered
Introduction
Definitions
Evolution
Classification
Role of Quantitative Techniques in Business
and Industry
Quantitative Techniques and Business
Management
Advantages and Limitations
26 June 2014 4 Quantitative Techniques - RVMReddy - ABS

Introduction

A person managing a production unit, where it is a
farm, factory, or domestic kitchen, has to
coordinate men, machines, and money against
several constraints like that of time, cost and space,
in order to achieve the organizations objectives in
an efficient and effective manner.
The manager has to analyze the situation on a
continuous basis, determine the objectives, identify
the best options from the set of available
alternatives, implement, coordinate, evaluate and
control the situation continuously to achieve these
objectives
26 June 2014 5 Quantitative Techniques - RVMReddy - ABS
Definitions
Quantitative techniques are those statistical
and programming techniques, which help
decision makers solve many problems,
especially those concerning business and
industry
Quantitative techniques are those techniques
that provide the decision makers with
systematic and powerful means of analysis,
based on quantitative data, for achieving
predetermined goals
26 June 2014 6 Quantitative Techniques - RVMReddy - ABS
These techniques involve the use of numbers
symbols, mathematical expressions, other
elements of quantities, and serve as
supplements to the judgment and intuitions of
the decision makers
Cont
26 June 2014 7 Quantitative Techniques - RVMReddy - ABS
Evolution
The utility of quantitative techniques has been
realized long ago and the science of
mathematics is probably as old as the human
society
The evolution of industrial engineering,
scientific methodologies the were prominent
earlier in the natural sciences, were found
applicable to management functions-planning,
organizing and controlling of operations
26 June 2014 8 Quantitative Techniques - RVMReddy - ABS
19
th
century, Frederick W. Taylor Proposed
an application of a scientific method to an
operations management problem- Productivity.
Determined that the variable that was
significant was the combined weight of the
shovel (move) and its load.
Henry L. Gantt, devised a chart-to schedule
production activities

Evolution
26 June 2014 9 Quantitative Techniques - RVMReddy - ABS

Classification

They can broadly be put under two groups
1) Statistical Techniques: Which are used in
conducting the statistical inquiry concerning
a certain phenomenon
It includes all the statistical methods
beginning from the collection of data till the
task of interpretation of the collected data.
Collection, Classification, Summarizing,
Analyzing , Interpretation of the data

26 June 2014 10 Quantitative Techniques - RVMReddy - ABS
2) Programming Techniques: Used by many
decision makers in modern times
First designed to tackle defense and military
problems and are now being used to solve
business problems
It includes variety of techniques like linear
programming, games theory, simulation,
network analysis, queuing theory, and so on



Classification

26 June 2014 11 Quantitative Techniques - RVMReddy - ABS
Applications of Programming Techniques:
1) System under consideration are defined in mathematical
language: Variable (Factors which are Controlled),
Coefficients (Factors which are not controlled)
2) Appropriate mathematical expressions are formulated
which describes inter-relations of all variables and
coefficients. This is known as the formulation of the
mathematical model. It describes the technology and the
economics of a business through a set of simultaneous
equations and inequalities
3) An optimum solutions is determined (Maximizing profit
and Minimizing cost)
26 June 2014 Quantitative Techniques - RVMReddy - ABS 12

Classification

Role of Quantitative Techniques in
Business and Industry
Quantitative techniques specially operation
research techniques have gained increasing
importance since world war II in the
technology of business administration. These
techniques greatly help in tackling the intricate
and complex problems of modern business and
industry
26 June 2014 13 Quantitative Techniques - RVMReddy - ABS
Role can be well understood under the following
heads
1) They provide a tool for scientific analysis
2) They provide solutions for various business
problems
3) They enable proper deployment of resources
4) They help in minimizing waiting and servicing
costs
5) They enable the management to decide when to
buy and how much to buy
Role of Quantitative Techniques in
Business and Industry
26 June 2014 14 Quantitative Techniques - RVMReddy - ABS
Contd
1) They assist in choosing an optimum strategy
2) They render great help in optimum resource
allocation
3) They facilitate the process of decision
making
4) Through various quantitative techniques
management can know the reaction of
integrated business systems


26 June 2014 15 Quantitative Techniques - RVMReddy - ABS
Quantitative Techniques and
Business Management
I. It helps the directing authority in optimum
allocation of various limited resources viz., men,
machines, money, material, time etc
II. It useful to the production management: selecting
the building site for a plant, scheduling and
controlling , locating, scheduling and calculating the
optimum product-mix
III. It useful to the personnel management: optimum
manpower planning, the number of persons to be
maintained on the permanent or full time role, kept
in a work pool intended for meeting the
absenteeism.
26 June 2014 Quantitative Techniques - RVMReddy - ABS 16
iv) It equally help the marketing management to
determine distribution points, warehousing should be
located, their size, quantity to be stocked choice of
customer, optimum allocation of sales budget to direct
selling and promotion expenses with consumer
preferences
v) It is very useful to the financial management finding
long range capital, determining optimum replacement
polices, workout profit plan, estimating credit and
investment risk.
26 June 2014 Quantitative Techniques - RVMReddy - ABS 17
Quantitative Techniques and
Business Management
Limitations
a) The inherent limitation concerning
mathematical expressions
b) High costs are involved in the use of
quantitative techniques
c) Quantitative techniques do not take into
consideration the intangible factors ie non-
measurable human factors.
d) Quantitative techniques are just the tools of
analysis and not the complete decision
making process

26 June 2014 18 Quantitative Techniques - RVMReddy - ABS
Thank You
19 Quantitative Techniques - RVMReddy - ABS 26 June 2014

S-ar putea să vă placă și