Operations Research

Operations Research (OR) Defined

Operations Management
Due to companies’ growth, there is a need for them to be smarter than ever before. Operations research is the answer to this particular situation. In the current financial climate, it’s imperative to know that your business is operating efficiently and that every dollar invested is spent adequately. That being said, as managers, it is not always easy to know which decisions are best for your company.

Operations Research (OR) considered a sub-field of mathematics dealing with the application of advanced analytical methods to help make better decisions. The term management science and decision science are sometimes used as more modern-sounding synonyms. OR arrives at optimal (or near-optimal) solutions to complex decision-making problems by employing techniques from other mathematical sciences, such as modeling, statistical analysis, and optimization.

Furthermore, as a field, operations research has overlapped with other disciplines, notably industrial engineering and organizational psychology (I/O) mainly due to the emphasis on human-technology interaction and their focus on practical applications. This type of 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.

Philosophies and Methodology for Operations

Continuous Improvement shares values with Operation’s Research

Operations Research Efficiencies

  • Increases competitive advantage
  • Reduces operational costs
  • Increases customer (I/E) satisfaction and loyalty
  • Call Center Operations Optimizations
    • Identify areas for improvement ā€“ gaps in processes
    • Visualize where the problems are and provide a root cause analysis
    • Optimize service level
    • Simplify processes
    • Identify patterns and trends
    • Manage and reduce risk
    • Improves forecast (e.g., staffing and scheduling & queue wait time)
  • Sales ā€“ stimulate the customer to buy more

If you are interested in an operational analysis, make sure you read up on VivaColombia’s Operational Analysis!

Original Publication:

Rivera Pecunia, Gustavo. ā€œOperations Research: A Brief Overview.ā€ Pecunia Group, Pecunia Group, 28 Sept. 2018, https://pecuniagroup.com/operations-research-brief-overview/.

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