Quantitative TechniquesFullscreen Mode
TOPIC 1
OVERVIEW OF QUANTITATIVE TECHNIQUES
MEANING OF QUANTITATIVE TECHNIQUES
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 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
Classification of quantitative techniques
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
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
DEVELOPMENT OF QUANTITATIVE TECHNIQUES
Frederick Winslow Taylor is credited with the initial development of scientific management techniques. The scientific management principle developed by him during the early nineteen hundreds, laid the basis to the study of managerial problems. He developed his theory emphasizing the new philosophy of management responsibility for planning and supervision and formulating of rules, formulae, etc. in connection with labor and machine techniques, which would result in lower cost to the employer and a higher return to labor.
Taylor’s chief contribution to the development of management theory was an application of scientific method to problems of management. His emphasis on the study of management from the point of view of shop management led to the overlooking of “the more general aspects of management, particularly in the United States and Great Britain.”
In addition, several management science techniques were further developed during World War II.
World War II posed many military, strategic, logistic, and tactical problems. Operations research teams of engineers, mathematicians, and statisticians were developed to use the
scientific method to find solutions for many of these problems. The usefulness of the Quantitative Technique was evidenced by a steep growth in the application of scientific
management in decision-making in various fields of engineering and management. At present, in any organization, whether a manufacturing concern or service industry,
Quantitative Techniques and analysis are used by managers in making decisions scientifically.
ROLE OF QUANTITATIVE TECHNIQUES
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.
Role of Quantitative Techniques in Business and Industry
- Role can be well understood under the following heads
- They provide a tool for scientific analysis
- They provide solutions for various business problems
- They enable proper deployment of resources
- They help in minimizing waiting and servicing costs
- They enable the management to decide when to buy and how much to buy
- They assist in choosing an optimum strategy
- They render great help in optimum resource allocation
- They facilitate the process of decision making
