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Management Science Introduction and Concepts

Management science is a problem-solving process that uses mathematical models to help managers make decisions. It began with Frederick Taylor's scientific management techniques in the late 19th century. Management science takes a systems view and uses various disciplines to understand problems. It aims to uncover new problems and uses modeling approaches. Common tools include decision trees, mathematical programming, network models, inventory models, and simulation.

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Melanie Cruz Convento
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512 views19 pages

Management Science Introduction and Concepts

Management science is a problem-solving process that uses mathematical models to help managers make decisions. It began with Frederick Taylor's scientific management techniques in the late 19th century. Management science takes a systems view and uses various disciplines to understand problems. It aims to uncover new problems and uses modeling approaches. Common tools include decision trees, mathematical programming, network models, inventory models, and simulation.

Uploaded by

Melanie Cruz Convento
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Management

Science:

Definition, Characteristics and Tools
Learning Objectives

1. Define and understand the concept of Management
Science
2. Discuss the historical development of management
science
3. Describe the characteristics of management science
and identify the different tools used.
Definition and Concept of
Management Science:

 Management Science (MS) can be defined as:
 “A problem-solving process used by an
interdisciplinary team to develop mathematical
models that represent simple-to-complex functional
relationships and provide management with a basis
for decision-making and a means of uncovering new
problems for quantitative analysis”.

Management science encompasses, however, more than
just the development of models for specific problems. It
makes a substantial contribution in a much broader
area: the application of the output from management
science models for decision-making at the lower,
middle, and top management levels.
Historical Development of
Management Science:

The roots of management science extend to the work of
F.W. Taylor, the father of Scientific Management.

Taylor is known for his systematic development of


management techniques which he started at the
Midvale Steel Company in Philadelphia around 1880.

When installed at the Link Belt Engineering Company
in 1905, the system included cost accounting, time
study, inventory control, production control, planning,
output scheduling, functional operation, standardized
procedures, a mnemonic system of clas­sification, and
means for maintaining quality production
Taylor developed what he called his
four principles of management :

 (i) Research,
 (ii) Standardization,
 (iii) Control and
 (iv) Cooperation.
other important pioneers of
scientific management

Carl Barth - he brought to the work of scientific manage­ment the use
of research mathematics, which he merged with his extensive
knowledge of machine tools.

Gantt - contributed the recognition of worker psychology, the


development of a bonus plan, and the charts used in production
scheduling.

Out of this came the term Industrial Engineering which today is


descriptive of the work of functional staffs responsible for such
activities as incentive standards, methods analysis, quality control,
production control, cost control and materials handling.

In brief, management science describes an integrated
approach to operational control based on the
application of scientific research methods to business
problems. A systematic approach to problem solving
received early impetus from Taylor’s scientific
management movement and is continued today by
Industrial engineers and mathematical business
analysts. This approach is characterized by a
methodology of sequential investigation steps.
Characteristics of
Management Science:

(1) Examines Functional Relationships from a Systems
Overview:

(2) Uses the Interdisciplinary Approach:

(3) Uncovers New Problems for Study:

(4) Uses a Modeling-Process Approach to Problem


Solving:
(1) Examine Functional
Relationships from a System

The activity of any one function of a company will have
some effect on the activity of each of the other
functions. Therefore it is necessary to identify all
important interactions and determine their impact on
the company as a whole.

A systems overview examines the entire area under the


manager’s control. This approach provides a basis for
initiating inquiries into problems that seem to be
affecting performance at all levels.
(2) Use the Interdisciplinary
Approach:

Management science makes good use of a simple principle, 
it looks at the problem from different angles and
approaches. For example, a mathematician might look at
the inventory problem and formulate some type of
mathematical relationships between the manufacturing
departments and customer demand. A chemical engineer
might look at the same problem and formulate it in terms of
flow theory. A cost accountant might conceive the
inventory problem in terms of component costs (e.g., direct
material cost, direct labour cost, overheads etc.) and how
such costs can be controlled and reduced, etc.
(3) Uncover New
Problemsfor Study
The third characteristic of management science, which
is often overlooked, is that the solution of an MS
problem brings new problems to light. All interrelated
problems uncovered by the MS approach do not have
to be solved at the same time. However, each must be
solved with consideration for other problems if
maximum benefits are to be obtained
(4) Use a Modeling-Process
Approach to Problem Solving:

Management science takes a systematic approach to
problem solving. It may use a modeling process
approach taking the help of mathematical models
Other Characteristics of
Management
 Science
 (5) A primary focus on managerial decision-making.
 (6) The application of science to decision-making.
 (7) A dependence on electronic computers.
The Tools of
Management Science:

(a) Decision Matrices (Decision Matrix):
Allocation and investment problems involving a
relatively small number of possible solutions can be
presented in a tabular form known as decision matrix.

b) Decision Trees:
The extension of decision matrices for situations
involving several decision periods takes the shape of a
tree
The Tools of
Management
 Science
c) Mathematical Programming:
It attempts to maximize the attainment level of one goal
subject to a set of requirements and limitations. It has
extensive use in business, economics, engineering, the
military and public service, mainly as an aid to the
solution of allocation problems
The Tools of
Management
 Science
(d) Network Models:
This is a family of tools designed for the purpose of
planning and controlling complex projects. The best
known models are PERT and CPM

(e) Inventory Models:


For certain types of inventory control problems, certain
models that attempt to minimize the cost associated with
ordering and carrying inventories have been developed
The Tools of
Management
 Science
(F) Simulation Models:
For the analysis of complex systems when all other
models fail, management science uses descriptive-type
simulation models

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