Module 1: Introduction to Operation Research
and Project Management
1.1 Introduction to Operation Research
1.2 Concept and Meaning of Operation Research
1.3 Features of Operation Research
1.4 Introduction to Project Management
1.5 Role of Operation Research in Project Management
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1.1 Introduction to operation research
Operations Research is the application of advanced analytical methods to
help to make better decisions. Management Science uses mathematical and
scientific techniques to help organizations model and predict outcomes to
inform their decisions. The name management science is preferred by Americans and the English names it as operations research. The range of problems
and issues to which operations research has contributed insights and solutions
is vast. It includes scheduling airlines, both planes and crew, deciding the
appropriate place to site new facilities such as a warehouse or factory, managing the flow of water from reservoirs, identifying possible future development
paths for parts of the telecommunications industry, establishing the information needs and appropriate systems to supply them within the health service,
and identifying and understanding the strategies adopted by companies for
their information systems.
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1.2 Concept of Operation Research
Decision making is required in every walk of life because everyone faces problems and wants to overcome them. Quantitative techniques can be used to
take apt decisions. Operations research is one of such techniques. Modern
business organizations and operations are complex in nature. Many components of the organizations grow relatively autonomous status, which creates
problems in decision making. As a discipline, operations research is considered as management science. The development of operations research as a
science consists of the development of its methods, concepts, and techniques.
Meaning of Operations Research
The term operations research refers to the application of scientific methodology of several different disciplines to problems related to the functioning
or operating of business units, government and institutions. Operations research experts provide quantitative basis for management decisions which
will help the management to make the best operating decisions. The word
Operation literarily means some actions which are applied in problems. Operations research is a systematic and method oriented study of the basic
structure, functions and relationships of an organisation. It is a scientific
approach to decision making and is an integral part of the multi disciplinary
area of management philosophy. It provides quantitative measure for decision making. It provides techniques for taking decisions and helps to attain
an optimal solution to the problems.
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1.3 Features of operation research
1. Operations Research uses scientific methods to solve decision-making
problems.
2. It involves combined efforts of experts from various disciplines; hence,
it follows a multidisciplinary approach.
3. Operations Research studies all aspects of a problem under study and
analyzes it thoroughly to find the optimum solution as a whole.
4. It provides better answers to problems where otherwise worse decisions
are given.
5. It provides a quantitative basis for analyzing complicated everyday
problems.
6. Operations Research is a continuous process. The application of a
model to one problem may create new problems in other sectors during
implementation.
7. Operations Research advocates a systems approach and is concerned
with optimization. All functional areas are relevant to Operations Research.
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1.4 Introduction to project management
A project involves a large number of interrelated activities (or tasks) that
must be completed on or before a specified time limit, in a specified sequence
(or order) with specified quality and minimum cost of using resources such
as personnel, money, materials, facilities and/or space. Examples of projects
include, construction of a bridge, highway, power plant, repair and maintenance of an oil refinery or an air plane; design, development and marketing of
a new product, research and development work, etc. Since a project involves
large number of interrelated activities, therefore it is necessary to prepare
a plan for scheduling and controlling these activities (or tasks). This approach will help in identifying bottlenecks and even discovering alternate
work-plan for the project. Project management deals with the planning,
scheduling, and controlling of a set of interrelated activities that must be
completed within a specified time, cost, and quality. A project uses limited
resources such as manpower, money, materials, and facilities to achieve a
specific objective. Examples of projects include construction works, product
development, research activities, and maintenance operations. Since projects
involve many connected tasks, proper planning is essential to avoid delays
and bottlenecks. Network-based techniques like PERT and CPM are widely
used in project management to represent activities in a logical sequence and
to ensure efficient completion of large and complex projects.
1.5 Role of Operation research in project management
Role of Operations Research in Project Management Operations Research
(OR) plays an important role in project management by providing scientific
and systematic techniques for planning, scheduling, and controlling complex
projects. A project consists of a large number of interrelated activities that
must be completed within a specified time, sequence, quality, and minimum
cost using limited resources such as men, money, materials, and facilities.
OR helps project managers to prepare an effective plan for scheduling and
controlling these activities. This approach helps in identifying bottlenecks,
critical activities, and possible delays in the project. It also assists in finding
alternative work plans to complete the project efficiently. Network planning
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techniques such as PERT (Programme Evaluation and Review Technique)
and CPM (Critical Path Method) are important OR tools used in project
management. These techniques represent the project in the form of a network
of activities using arrows and nodes, showing the logical sequence of activities
required to achieve project objectives. PERT is useful for projects where
activity time estimates are uncertain, especially in new or research-oriented
projects. CPM is useful for projects with repetitive activities and helps in
analyzing time-cost trade-offs.
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