This document discusses analytical techniques used in management science to solve models and problems. It describes three common solution methods: analytical, numerical, and simulation. The analytical method is then explained in detail using various techniques like brainstorming, six questions, mind maps, gap analysis, benchmarking, Pareto principle, and SWOT analysis. For each technique, the document provides a brief overview and example.

1. LESSON 1

2. New Topic:
Management
Science
Process

3. STEP 4. Model Solution
Once models have been constructed in management
science, they are solved using the management science
techniques. A management science solution technique
usually applies to a specific type of model. When we
refer to model solution, we also mean problem solution.

4. There are various methods for obtaining the solution:
1. Analytical method
2. Numerical method
3. Simulation method
Methods for Obtaining the Solution

5. A. Analytical Technique (Analytical Method)
An analytical technique (analytical method) is a procedure or a method for the
analysis of some problem, status or a fact.
Basic and most widely used analytical methods / techniques include:
 Brainstorming
 Six Questions
 Mind Maps
 Gap Analysis
 Benchmarking
 Pareto principle, Pareto principle 80-20 rule
 SWOT Analysis

6. Brainstorming is a group creativity technique. The aim
is to generate as many ideas on the topic. It is used in
many fields - from problem solving to generating highly
creative ideas. It is used in
the management, marketing and the scientific activities.
Oftentimes, the first step to brainstorming is
to gather everyone in a room and start thinking.

7. Copywriter Alex Faickney
Osborn came first with
this idea in 1939 and
developed it later in a
specific method in his
book Applied Imagination
(1953).

8. Six Questions is one of the most general while most
effective analytical techniques. The method is also known as Five
Ws and one H, Six Ws or Six Servants.

9. For example:
 What is and what is not a problem?
 When does the problem occur and when doesn’t?
 Why does the problem occur and why doesn’t?
 Where does the problem occur and where doesn’t?
 Who causes the problem and who contributes to its
solution?
 How do we know that the problem occurred and how do
we know that it did not occur?

10. Mind Maps is a highly efficient analytical technique applicable
in particular in problem solving, learning and personal
development. It is a graphic design of the solved problem or
learning material using charts covering all relevant aspects
and dimensions of the problem and their interactions and
relationships. The maps are created using either colored
pencils on a paper or using a computer with a
special software.
Mind maps can be used in group problem solving
in a form of brainstorming.

11. Example of Mind Map

12. Gap Analysis was designed by Igor Ansoff. Gap Analysis consists of the following
steps:
1. Description of the current state
2. Setting objectives (description of the target state)
3. Determining the difference (gaps) between the current and target state
4. Proposal of options to achieve the target state (an alternative strategy)
5. Evaluation of options and selection of the most suitable one
6. If necessary, the entire process is repeated until the target state is solved
Use of Gap Analysis in practice: This analytical technique is one of
the decision making and problem solving methods. It is a simple
methodology that is useful in situations where some strategies or
changes are planned.

13. Example of Gap Analysis

14. Benchmarking is a generally usable method, which was first used
by the company Xerox Corporation in the early 80’s of the 20th
century.
Benchmarking is a method based on the
systematic measurement and comparison
of selected indicators. Its use is not limited
only to strategic management, as stated by
some sources. It can be used at any level
of management and for almost any indicators.

15. It is based on comparison of selected indicators against
other reference values (benchmarks) that can be
either historical (time series of values ​​from 5 years
back) or they can be compared against another
reference entity (e.g. another comparable department
or a comparable organization). The comparison is
always relative. It can’t be said that higher or lower
values ​​for the parameters are bad or good.

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17. The biggest benefit of benchmarking is
that different values ​​provoke questions
about what is causing the different
value ​​and because of this management
should undergo to additional research.
Benchmarking is usable in almost all
fields.

18. Pareto Principle (also called Principle 80/20)
- is named after the Italian economist and sociologist Vilfredo Pareto who
in the late 19th century found out that in Italy 80% of the wealth is in the
hands of 20% of the people.
- Over time it became clear that the principle also applies in
the life of the organizations and in the management
practice. Pareto Principle is a simple analytical technique, a
tool that helps to simplify and focus
the management and decision making.

19. In this technique we will consider that, 80 percent of
problems can be traced back to 20 percent of causes.
Pareto Analysis identifies the problem areas or tasks that will
have the biggest payoff. It helps you focus on the “vital few”
and ignore the “trivial many” . The tool has several benefits,
one of these is identifying and prioritizing problems and
tasks.

20. Pareto Analysis Example
Jack has taken over a failing computer service center, with a
host of problems that need resolving. His objective is to increase
overall customer satisfaction. He decides to carry out a Pareto
Analysis to assess and prioritize the biggest issues facing the
center.
He starts by listing these (see the Problem column in the
table). He then identifies the underlying causes behind each
(see the Causes column). Finally, he scores each item by
the number of customer complaints that each has received
(see the Score column).

22. Jack uses his analysis to group problems together by cause, then
adds up the scores for each group identified. He is now able to
order the main causes affecting the center, starting with the one
that has attracted the highest number of customer complaints:
1.Lack of training (items 5 and 6) – 51 complaints.
2.Too few service center staff (items 1 and 2) – 21 complaints.
3.Poor organization and preparation (items 3 and 4) – 6
complaints.

23. Jack's Pareto Analysis has enabled him to
quickly identify the areas of the business that
face the biggest challenges, so he can focus
his efforts where they are needed most and
prioritize issues that will provide the biggest
payoff to the business. This will likely save him
a great deal of time and money that he might
otherwise have spent trying to fix a range of
different issues, some of which may have
provided very little benefit.

24. SWOT Analysis is an universal analytical technique focusing on the
evaluation of internal and external factors affecting the success of
an organization or any other evaluated system. Most often, SWOT analysis is used
in the strategic management of an organization in the evaluation of a strategic
intention.
Internal and external factors within the SWOT analysis are
evaluated.
 Internal factors include the Strengths and Weaknesses
of the organization/system.
 External factors include Opportunities and Threats which
are related to the surroundings of the organization/system.

25. SWOT Analysis is an universal analytical technique focusing on the
evaluation of internal and external factors affecting the success of
an organization or any other evaluated system. Most often, SWOT analysis is used
in the strategic management of an organization in the evaluation of a strategic
intention.
Internal and external factors within the SWOT analysis are
evaluated.
 Internal factors include the Strengths and Weaknesses
of the organization/system.
 External factors include Opportunities and Threats which
are related to the surroundings of the organization/system.

26. SWOT Analysis