1 Observe the problem environment
2 Analyse and define the problem
3 Develop a model
4 Selection of data input
5 solution and testing
6 Implementation of the solution
Step I. Observe the Problem Environment
The first step of OR study is the observation of the environment in which the problem exists. The activities that constitute this step are visits, conferences, observations, research etc. with the help of such activities, the OR analyst gets sufficient information and support to proceed and is better prepared to formulate the problem.
Step II. Analyse and Define the Problem
In this step not only the problem is defined but also uses, objectives and limitations of the study that are stressed in the light of the problem. The end results of this step are clear grasp of need for a solution and understanding of its nature.
Step III. Develop a Model
The next step is to develop model, which is representation of same real or abstract situation. OR models are basically mathematical models representing systems, process or environment in form of equations, relationships or formulae. The activities in this step is to defining interrelationships among variables, formulating equations, using known OR models or searching suitable alternate models. The proposed model may be field tested and modified in order to work under stated environmental constraints. A model may also be modified if the management is not satisfied with the answer that it gives. Step IV. Selection of Data Input
It is a established fact that without authentic and appropriate data the results of the OR models cannot be trusted. Hence, taping right kind of data is a vital step in OR process. Important activities in this step are analysing internal-external data and facts, collecting opinions and using computer data banks. The purpose of this step is to have sufficient input to operate and test the model. Step V. Solution and Testing...