Operations Research

J. M. Rivera

Jmrnovo@yahoo.com

Operation ResearchOperation Research

• All companies need to be more effectively than ever before. In the current

financial climate, every dollar invested is important and know that your

business is operating efficiently is an imperative need, but as a Manager not

always easy to know if the decisions are really the best for your company.

• Operation Research (OR): It is a discipline that deals with the application of

advanced analytical methods to help make better decisions. It is often

considered to be a sub-field of Mathematics. The term management

science and decision science are sometimes used as more modern-sounding

synonyms.

• Employing techniques from other mathematical sciences, such as mathematical

modeling, statistical analysis, and mathematical optimization, operations

research arrives at optimal or near-optimal solutions to complex decision-making

problems.

– Because of its emphasis on human-technology interaction and because of its focus on

practical applications, operations research has overlap with other disciplines,

notably industrial engineering and operations research, and draws

on psychology and organization science. Operations Research is often concerned with

determining the maximum (of profit, performance, or yield) or minimum (of loss, risk,

or cost) of some real-world objective.

Operation Research Operation Research –– Information HierarchInformation Hierarch

Level Use

StrategicStrategic

Business and TacticalBusiness and Tactical

OperationalOperational

Senior Management

Strategic Planning

Junior Management

Planning and Control

Workforce Control

Philosophies and Methodology Philosophies and Methodology

Continuous Improvement Continuous Improvement

• Operation Research share values with continuous

improvement philosophies and methodology like it;

– Total Quality Management• Focusing on Deming’s 14 rules

– Kaizen• Plan, Do, Check, and Act

– Six Sigma• DMAIC, DMADV and DPSS

– Lean Thinking• Identify Value and Stream, Flow, Pull and Perfection

– Theory of Constraints • Identify Constraint, Exploit Constraints, Subordinate processes

and Repeat cycle.

Data AnalysisData Analysis

• Data analytics (DA) is the science of examining raw data with the purpose of drawing conclusions about that information. Data analytics are used in many industries to allow companies and organization to make better business decisions and in the sciences to verify or disprove existing models or theories. Data analytics are distinguished from data mining by the scope, purpose and focus of the analysis. Data miners sort through huge data sets using sophisticated software to identify undiscovered patterns and establish hidden relationships. Data analytics focuses on inference, the process of deriving a conclusion based solely on what is already known by the researcher.

EDW= Enterprise Data Warehouse

Operation ResearchOperation Research

Operation ResearchOperation Research

Operation Research Logic Structure Operation Research Logic Structure

VOC

Input

StaffingForecasting

Workforce

Management

Activities

High Level

Design AspectChannel

Scheduling

Measures,

Analysis and

Optimization

Performance

Management

Model Approach and

Developmental

Implementation

Conclusions and

Recommendation

Operations ResearchOperations Research

• Some areas where Operation Research can help;

– Increases competitive advantage

– Reduction cost of operation

– Increase customer (I/E) satisfaction and loyalty

– Optimization of call center operation

• Identify areas for improvement – gaps processes

• Visualize where the problems are and provide a root cause analysis

• Optimize service level

• Simplified processes

• Identify pattern and trend

• Manage and reduce risk

• Improve forecast (e.g. staffing and scheduling & queue wait time)

– Sales - Stimulate the customer to buy more

– Provide management a powerful tool - Dashboard

Operation ResearchOperation Research-- How to startHow to start……

Step 1 Step 2 Step 3 Step 4

Presents proposal to create the new division with cost and benefit

analysis, and operational saving projection.Get the approval

Presents to IT and EDW the Operation

Research scope

Set up the guideline for the new division and start recruiting: Performance Analyst

Start operation

Create a presentation to the high level of management

Operation Research Analyst Operation Research Analyst –– Job Description Job Description

• Performance analysts provide subject matter expertise on organizational performance and

statistical functions. In this role, analysts support systems applications, initiatives, and projects.

Performance analysts' roles are typically self-directed. The position could be performed in a

supervisory or non-supervisory capacity.

• GENERAL DUTIES

– Analysts monitor organizational performance and perform quality control evaluations. They are involved

in departmental projects and corporate initiatives. Performance analysts will review processes,

recommend improvements, increase customer service levels, and reduce operational risks. Analysts build

strong relationships between internal and external customers. They also contribute subject expertise to

team and organizational efforts

• JOB DESCRIPTION

– Possesses great analytical skills and is able to interpret data sets.

– Analyzes current processes and procedures in order to make recommendations to promote effective

operations within and between departments.

– Manages the completion of difficult projects that are broad in nature by following general guidelines and

using creativity and resourcefulness to meet established goals.

– Generates summaries of the analysis and include specific details, trends, agents' behavior, etc.…

– Performs ad hoc analysis of Center Performance as requested by the Center and organizational leaders.

– Expert level in MS-Office applications, and Excel Ability to compile data and present to large groups.

– Evaluates performance against established metrics to determine acceptable levels of quality or efficiency

for various business functions and units.

– Be able to provide independent recommendations for process improvements based on the analysis

performed.

– Independently works to identify opportunities for improvement in department performance and

results.

– Maintains and applies expert knowledge of practices and procedures in areas of expertise and

maintains a broad knowledge of practices and procedures of other departments.

•EDUCATION & EXPERIENCE

– Bachelor's degree or MBA in mathematics, statistics, operation research, programming or

engineering.

– Plus certification in Six Sigma, Kaizen or PMP.

– Minimum three years of experience in OR.

• SKILLS

– Ability to read, analyze and interpret business information and data. Ability to create

reports/correspondence/presentations, and present information and respond to questions from

upper management. Proficient use of Excel, Access, PowerPoint, Visio, and Project, SQL, Minitab,

SAS, and SPSS. Ability to apply statistical concepts. Ability to define problems, collect data,

establish facts, and draw valid conclusions. Ability to interpret an extensive variety of technical

instructions in mathematical or diagram form and deal with several abstract and concrete

variables.

Operation Research Analyst Operation Research Analyst –– Job Description Job Description