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models describing a diverse array of variables’ relationships, and are designed to assist
administrators with administration problem-solving and decision-making
Statistical charts, Pareto analysis, and benchmarking were quantitative tools that
simplified the allocation of functional groups into the stages of planning and control for
achieving continuous improvement and decision making.
Statistical figures:
Data analyzed using two different procedures:
(a) Applying descriptive statistics.
(b) Using multivariable statistical analysis.
Optimization models,
Information gathered is sorted in an optimized and decision friendly model. In other
words also known as concept.
Computer simulations power point presentations and slides are run to show and interpret
the actual idea
Example
Linear programming for example is a technique that managers use to improve resource
allocation decision.
Work scheduling can be a more efficient way out as a result of critical path scheduling
analysis.
The economic quantity model helps managers determine optimum inventory levels.
-Planning. Planning is the formal process of deciding in advance what is to be done and
how. It involves selecting objectives and developing policies, programs, and procedures
for achieving them. Planning prescribes desired behaviors and results.
-Controlling. Controlling refers to the methods and mechanisms used to ensure that
behaviors and performance conform to the organization’s objectives, plans, and
standards. Controls help maintain or redirect actual behaviors and results. Thus, planning
and controlling complement and support each other.
-Alternative decisions:
The cost of an alternative includes direct expenditures and consumption of resources
along with the costs of lost opportunities and other less tangible consequences such as
loss of morale or political support. Evaluation of benefits may be more difficult. The
concept of benefits is a broad one, covering the direct and immediate gain produced, such
as increased achievement, as well as indirect effects to clients of the institution and the
general public, such as satisfactions and income increases. Benefit analysis is thus meant
to include a comprehensive view of all the positive effects (expressed in dollar terms) that
may result from each possibility. The ratio of costs to benefits provides a simple
quantitative way to compare the relative merits of alternatives. The higher ratios indicate
the preferred choices
No one likes to be sitting and waiting in queues, many customers get very upset when
they see a very long line and engage themselves in queues jumping based on their naïve
theories of which queue is moving faster. This leads to indiscipline and irritation amongst
those who follow the queue properly.
Same is the case with managers where they are required to give out quality decisions
keep in mind budgeting , queuing, call centre KPI, quality control regulations and similar
decisions. They keep in mind to use these different quantitative tools.
Acquire the knowledge by trial and error, looking at correlations one can acquire simple
management techniques very well.
REASONS:
Fundamentally there are four reasons why quantitative techniques are used by managers.
They are:
1. Models force managers to be explicit about objectives.
2. Models force managers to identify and record the types of decisions (decision
variables) that influence objectives.
3. Models force managers to identify and record pertinent interactions and trade-off
between decision variables.
4. Models force managers to record constraints (limitations) on the values that the
variables may assume.