Efficiently running a complex organization or operation such as a large manufacturing plant, an airline, or a military deployment requires the precise coordination of materials, machines, and people. Operations research analysts help organizations coordinate and operate in the most efficient manner by applying scientific methods and mathematical principles to organizational problems. Managers can then evaluate alternatives and choose the course of action that best meets the organizational goals.
Operations research analysts, also called management science analysts, are problem solvers. The problems they tackle are for the most part those encountered in large business organizations: Strategy, forecasting, resource allocation, facilities layout, inventory control, personnel schedules, and distribution systems. The methods they use generally revolve about a mathematical model or set of equations that explains how things happen within the organization. Models are simplified representations that enable the analyst to break down systems into their component parts, assign numerical values to each component, and examine the mathematical relationships between them. These values can be altered to determine what will happen to the system under different sets of circumstances. Types of models include simulation, linear optimization, networks, waiting lines, and game theory.
Operations research analysts use computers extensively in their work. They are typically highly proficient in database management, programming, and in the development and use of sophisticated software programs. Most of the models built by operations research analysts are so complicated that only a computer can solve them efficiently.
The type of problem they usually handle varies by industry. For example, an analyst for an airline would coordinate flight and maintenance scheduling, passenger level estimates, and fuel consumption to produce a schedule that optimizes all of these factors to ensure safety and produce the most profits. An analyst employed by a hospital would concentrate on a different set of problems scheduling admissions, managing patient flow, assigning shifts, monitoring use of pharmacy and laboratory services, or forecasting demand for new hospital services.
The role of the operations research analyst varies according to the structure and management philosophy of the firm. Some centralize operations research in one department; others disperse operations research personnel throughout all divisions. Some operations research analysts specialize in one type of application; others are generalists.
The degree of supervision varies by organizational structure and experience. In some organizations, analysts have a great deal of professional autonomy; in others, analysts are more closely supervised. Operations research analysts work closely with senior managers, who have a wide variety of support needs. Analysts must adapt their work to reflect these requirements.
Regardless of the industry or structure of the organization, operations research entails a similar set of procedures. Managers begin the process by describing the symptoms of a problem to the analyst. The analyst then defines the problem, which sometimes is general in nature and at other times specific. For example, an operations research analyst for an auto manufacturer may be asked to determine the best inventory level for each of the materials for a new production line or, more specifically, to determine how many windshields should be kept in inventory.
After analysts define the problem, they learn everything they can about it. They study the problem, then break it into its component parts. Then they gather information about each of these parts. Usually this involves consulting a wide variety of people. To determine the most efficient amount of steel to be kept on hand, for example, operations research analysts might talk with engineers about production levels; discuss purchasing arrangements with industrial buyers; and examine data on storage costs provided by the accounting department.
With this information in hand, the operations research analyst is ready to select the most appropriate analytical technique. There may be several techniques that could be used, or there may be one standard model or technique that is used in all instances. In a few cases, the analyst must construct an original model to examine and explain the system. In almost all cases, the selected model must be modified to reflect the specific circumstances of the situation.
A model for airline flight scheduling, for example, might include variables for the amount of fuel required to fly the routes, several projected levels of passenger demand, varying ticket prices, pilot scheduling, and maintenance costs. The analyst chooses the values for these variables, enters them into a computer, which has already been programmed to make the calculations required, and runs the program to produce the best flight schedule consistent with several sets of assumptions. The analyst would probably design a model that would take into account wide variations in the different variables.
At this point, the operations research analyst presents the final work to management along with recommendations based on the results of the analysis. Additional runs based on different assumptions may be needed to help in making the final decision. Once a decision has been reached, the analyst works with others in the organization to ensure its successful implementation.
The field of operations research is growing rapidly due to the success of applying statistical techniques to business problems.
Operations research analysts generally work regular hours in an office environment. Because they work on projects that are of immediate interest to management, analysts often are under pressure to meet deadlines and may work more than a 40-hour week.
Operations research analysts held about 45,000 jobs in 1992. They are employed in most industries. Major employers include computer and data processing services, commercial banks and savings institutions, insurance agencies, engineering and management services firms, manufacturers of transportation equipment, airlines, and the Federal Government. Some analysts work for management consulting agencies that conduct operations research for firms that do not have an in-house operations research staff.
Most analysts in the Federal Government work for the Armed Forces. In addition, many operations research analysts who work in private industry do work directly or indirectly related to national defense.
Employers strongly prefer applicants with at least a master's degree in operations research or management science, or other quantitative disciplines. A high level of computer skills is also required.
Employers often sponsor skill-improvement training for experienced workers, helping them keep up with new developments in operations research techniques as well as advances in computer science. Some analysts attend advanced university classes on these subjects.
Operations research analysts must be able to think logically and work well with people, so employers prefer workers with good oral and written communication skills. The computer is the most important tool for quantitative analysis, and training or experience in programming is a must.
Beginning analysts usually do routine work under the supervision of experienced analysts. As they gain knowledge and experience, they are assigned more complex tasks, with greater autonomy to design models and solve problems. Operations research analysts advance by assuming positions as technical specialists or supervisors. The skills acquired by operations research analysts are useful for higher level jobs, and experienced analysts with leadership potential often leave the field altogether to assume nontechnical managerial or administrative positions.
Organizations are increasingly using operations research and management science techniques to improve productivity and quality and to reduce costs. This reflects growing acceptance of a systematic approach to decisionmaking as well as more affordable computers, which give even small firms access to operations research applications. The interplay of these two trends should greatly stimulate demand for these workers in the years ahead.
Those seeking employment as operations research or management science analysts who hold a master's or Ph.D. degree should find good opportunities through the year 2005. The number of openings generated each year as a result of employment growth and the need to replace those leaving the occupation, is expected to exceed the number of persons graduating with master's and Ph.D. degrees from management science or operations research programs.
Graduates with only a bachelors degrees in operations research or management science should find good opportunities as research assistants or analyst assistants in a variety of related fields; only the most highly qualified are likely to find employment as operations research or management science analysts.
Employment of operations research analysts is expected to grow much faster than the average for all occupations through the year 2005 due to the increasing importance of quantitative analysis in decisionmaking and the increasing availability of computing resources. Much of the job growth is expected to occur in the transportation, manufacturing, finance, and services sectors. Firms in these sectors recognize that quantitative analysis can achieve dramatic improvements in operating efficiency and profitability. More airlines, for example, are using operations research to determine the best flight and maintenance schedules, select the best routes to service, analyze customer characteristics, and control fuel consumption, among other things. Motel chains are beginning to use operations research to improve their efficiency by, for example, analyzing automobile traffic patterns and customer attitudes to determine location, size, and style of new motels. Like other management support functions, operations research grows by its own success. When one firm in an industry increases productivity by adopting a new procedure, its competitors usually follow. This competitive pressure will contribute to demand for operations research analysts.
Demand also should be strong in the manufacturing sector as firms expand existing operations research staffs in the face of growing domestic and foreign competition. More manufacturers are using mathematical models to study the operations of the organization for the first time. For example, analysts will be needed to determine the best way to control product inventory, distribute finished products, and to decide where sales offices should be based. In addition, increasing factory automation will require more operations research analysts to alter existing models or develop new ones for production layout, robotics installation, work schedules, and inventory control.
The Department of Defense and defense contractors employ many operations research analysts. For example, operations researchers helped plan the 1990 military deployment to Saudi Arabia. Not only did they determine the best air and water transport schedules to move the maximum number of personnel and amount of equipment in the shortest time, making optimal use of people, ships, aircraft, and fuel, but they were also central to the planning and command decisions made during combat. Because defense expenditures will be cut in the future, there will be fewer jobs available in the military and defense-related industries for these workers. However, high demand outside the military should more than offset reductions in defense-related demand.
According to recruiters and national operations research associations, operations research analysts with a master's degree generally earned starting salaries of about $30,000 to $35,000 a year in 1992. Experienced operations research analysts earned about $50,000 a year in 1992, with top salaries exceeding $90,000.
The average annual salary for operations research analysts in the Federal Government in nonsupervisory, supervisory, and managerial positions was $57,419 in 1993.
Operations research analysts apply mathematical principles to organizational problems. Workers in other occupations that stress quantitative analysis include computer scientists, applied mathematicians, statisticians, and economists. Operations research is closely allied to managerial occupations in that its goal is improved organizational efficiency.
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Reprinted with Permission of U. S. Department of Labor