Operation Research

Project
Presented By:
Abdulrehman Mazroa
Hassan Khawaja
Mohammad Saad Waheed

Operation Research
Definition:

Development and use of analytical methods

to describe, analyze, plan, design, manage
and integrate the operations of systems
and enterprises that involve complex
interactions among people, processes,
materials, equipment, information,
organizations and facilities to provide
services and produce goods for society.

How to Become Operations Research Analyst

To become an OR Analyst, a person must possess the
following skills:

1.
2.
3.
4.
5.
6.
7.

Analytical skills.
Communication skills.
Critical-thinking skills.
Interpersonal skills.
Math skills.
Problem-solving skills.
Writing skills.

Linear Programming and Productivity

Measurement

LP: Bicycle Manufacturing Problem

PM: MFP for producing Surgical tools

Bicycle Manufacturing Problem

BMX Bicycle is a manufacturer of Bicycles. During the next production period,
management is considering producing Handles, Rims, and/or Body. The time
required for each item to go through the two stages of production (assembly and
polishing), the amount of steel required (stainless steel), and the corresponding unit
profits are given in the following table, along with the amount of each resource
available in the upcoming production period.

Handles

Rims

Body

Available

Assembly (minutes)

80

40

80

8100

Polishing(minutes)

30

20

30

4500

Steel (pounds)

50

10

80

9000

$300

$125

$360

Unit Profit

Bicycle Manufacturing Problem

From Table the details are as follows
Maximize profit = $300H + $125R +$360B
80H + 40R + 80B 8100 (assembly constraint)
30H + 20R + 30B 4500 (polishing constraint)

50H + 10R + 80B 9000 (steel constraint)

H, R, B 0 (non-negativity constraint)

Demonstration
Here we are going to demonstrate using solver in Excel.

Solution to Bicycle LP

Productivity Measurement
Productivity is one of the major concerns of managers as high
productivity is essential to survive in a competitive
environment. Productivity is of three types - total productivity,
multifactor productivity and partial productivity.
Partial Productivity is concerned with efficiency of one
particular characteristics
MFP (Multifactor Productivity) is an index of output obtained
from more than one of the resources used in
production/service
Total Productivity is the broadest measure of productivity and
is mainly concerned with the performance of entire
plant/organization.

Examples
PP
Items made/employee
MFP
output/labor + machine
TP
Goods / Services Produced /All inputs used to produce
them

Question
A team of welders make 500 units of Surgical Blades
having cost of SR 10/- on each blade. The actual cost is
SR. 400/- for the labor, SR. 2,000/- for the material and
SR. 500/- for overhead expenses.
Calculate the productivity
Output
Multifactor Productivity =
Labor+Materials+Overheads

Solution

MFP

500(10/)
400+2000+500

MFP 2 units/SR

5000
= 1.72 units/SR
2900