What is Operational Research? – Full feature

Summary

Operational research, or 'O', is the application of analytical methods to improve decision-making across various sectors, from business to healthcare. It permeates everyday life, influencing flight bookings, grocery shopping, and government operations. Organizations like British Airways and Asda utilize 'O' for strategic decisions, enhancing efficiency and customer satisfaction. The script highlights 'O's role in sports stadium design, Formula 1 strategy, and emergency services deployment, emphasizing its impact on real-world outcomes and the importance of an analytical approach in solving complex problems.

Takeaways

• 🔍 Operational Research (O) is a discipline that applies analytical methods to improve decision-making across various sectors.
• 🌐 O is omnipresent, influencing everyday activities from shopping to business and government operations.
• 📈 In the modern world, O is more relevant than ever, with organizations leveraging data, fast communication, and powerful computers.
• 🛫 British Airways uses O to optimize operations, such as determining the right number of staff and boarding strategies for the Airbus A380.
• 🛒 Major UK retailer Asda relies on O techniques to streamline supply chain management, ensuring efficient product distribution to over 500 shops.
• 🏥 Operational Research is crucial in healthcare, like at St George Hospital, where it helps in managing patient flow and resource allocation.
• 🏎 Formula 1 racing utilizes O for strategic decisions, including race strategy, fuel load estimation, and pit stop planning.
• 🏛 The UK government uses O to enhance decision-making processes, impacting services like education, healthcare, and transport.
• 🏭 Operational Research techniques are integral to industrial efficiency, as seen in steel manufacturing where it aids in productivity and cost reduction.
• 🎓 A career in O requires a background in mathematics, statistics, computer science, or management, with a focus on analytical and problem-solving skills.
• 💼 O professionals work on a variety of projects, often involving real-world problem-solving and the opportunity to make significant impacts on business operations and society.

Q & A

What is operational research?

Operational research is the discipline of applying analytical methods to help make better decisions in various aspects of life, from business to government operations.

How does operational research impact everyday life?

Operational research impacts everyday life by optimizing processes in areas such as transportation, supply chain management, and healthcare, making services more efficient and accessible.

What role does operational research play in a business like British Airways?

Operational research at British Airways influences decisions such as aircraft purchasing, flight routes, alliance partners, and ticket pricing, aiming to improve customer satisfaction and profitability.

How is operational research used in the context of the Airbus A380 at British Airways?

Operational research was used to determine the optimal number of staff and boarding procedures for the Airbus A380 to ensure efficient turnaround times and customer satisfaction.

What is the significance of operational research in supply chain management for a retailer like Asda?

Operational research is crucial for Asda in managing the supply chain efficiently, ensuring products are delivered on time and in a cost-effective manner, which also benefits the environment.

How does operational research contribute to the planning and operation of a sports stadium?

Operational research contributes to the planning and operation of sports stadiums by optimizing crowd movement, ensuring safety, and enhancing the spectator experience.

What is the importance of operational research in Formula 1 racing?

Operational research in Formula 1 is vital for race strategy, including fuel load estimation, pit stop timing, and tire degradation analysis, which can determine the outcome of a race.

How does operational research assist in government decision-making?

Operational research assists government decision-making by providing analytical support in areas such as education, healthcare, transportation, and national security, leading to improved service delivery.

What is the role of operational research in a hospital setting?

Operational research in hospitals helps in optimizing patient flow, reducing waiting times, and ensuring efficient resource allocation, which can be critical for patient care.

How does operational research benefit a manufacturing company like TATA Steel?

Operational research at TATA Steel helps in improving productivity, reducing costs, and planning for increased production capacity by analyzing and simulating real-world processes.

What educational background is typically required for a career in operational research?

A career in operational research often requires a degree in mathematics, statistics, computer science, or management science, with a focus on learning various analytical techniques and their applications.

Outlines

00:00

🔍 Operational Research in Everyday Life

Operational research is the application of analytical methods to improve decision-making. It is omnipresent in modern life, from buying flights to grocery shopping, and plays a crucial role in business and government. With the current investment in data, communication, and computer technology, operational research is more relevant than ever. The script highlights its importance in various sectors, including British Airways, where it influences decisions on aircraft purchases, flight routes, and customer satisfaction, making a significant impact on the business's profitability.

05:02

🛒 Operational Research in Retail and Supply Chain Management

In the retail sector, operational research is vital for maintaining an efficient supply chain. The script discusses its application at a major UK retailer, Asda, where it helps in reducing delivery times and environmental impact while cutting costs. It also touches on the strategic use of higher capacity vehicles, saving millions annually. Operational research is also critical in deciding the location for new stores or depots, ensuring the business operates smoothly and meets customer demands.

10:02

🏥 Operational Research in Sports and Healthcare

Operational research extends beyond business into sports and healthcare. It played a significant role in the design and operation of the Emirates Stadium, ensuring spectator safety and efficiency. In healthcare, it is used to optimize patient flow, bed allocation, and resource planning in hospitals like St George's in London. The script emphasizes the life-saving potential of operational research in healthcare settings.

15:03

🏗️ Operational Research in Government and Industry

Operational research is extensively used in government to improve decision-making at all levels, from local services to national security. It influences emergency services deployment, border control, and crime reduction strategies. The script also highlights its role in industry, such as in steel manufacturing, where it helps in planning, timing, and reducing costs to increase productivity. The use of simulation and modeling allows for safer and more cost-effective operations.

🎓 Career Opportunities in Operational Research

The script concludes by discussing the career opportunities in operational research, emphasizing the variety of problems to solve and the impact on real-life decisions. It suggests that a degree in mathematics, statistics, computer science, or management is beneficial, with operational research techniques such as computer simulation, optimization, and queuing theory being key components of the curriculum. The career offers the chance to innovate and make a tangible difference in various sectors.

Keywords

💡Operational Research

Operational Research, often abbreviated as 'O', is an interdisciplinary approach that uses advanced analytical methods to improve decision-making and efficiency. It is central to the video's theme, illustrating how it is applied in various sectors to optimize processes and outcomes. For example, it is used in British Airways to determine staff requirements and boarding strategies for the Airbus A380, ensuring efficient operations and customer satisfaction.

💡Analytical Methods

Analytical methods refer to the systematic techniques used to analyze data and make informed decisions. In the context of the video, these methods are crucial for operational research, helping to solve complex problems in business and government. The script mentions the use of computer simulation and optimization as part of these methods, applied to scenarios like flight ticket sales and aircraft boarding strategies.

💡Simulation

Simulation is a technique used to create a virtual model of a real-world process or system. It is highlighted in the script as a tool used by British Airways to test multiple scenarios safely and efficiently. For instance, the airline used simulation to determine the time it would take for an Airbus A380 to be prepared for departure after arrival, helping to minimize delays and enhance the passenger experience.

💡Supply Chain

The supply chain is the network of organizations, people, activities, information, and resources involved in producing and delivering a product or service. The video emphasizes its importance in businesses like Asda, a major UK retailer, where operational research techniques are used to ensure the efficient movement of products from manufacturers to stores, reducing costs and environmental impact.

💡Optimization

Optimization is the process of making the best or most effective use of a situation or resource. The video showcases how optimization is used in various industries, such as in the design of the Emirates Stadium, where operational research helped in planning the movement of spectators to ensure safety and efficiency during evacuation.

💡Risk Analysis

Risk analysis involves evaluating the potential risks that could impact an organization's ability to achieve its objectives. In the video, it is particularly relevant in the context of Formula 1 racing, where operational researchers use mathematical models to predict outcomes and make strategic decisions that can affect the success of a race.

💡Government

The government is highlighted in the video as a significant user of operational research for improving decision-making processes that affect public services and policies. It is used in various departments, from education and health to transport and border control, to enhance service delivery and address national challenges.

💡Hospitals

Hospitals, as part of the healthcare sector, rely on operational research to manage resources effectively and improve patient care. The script mentions St George's Hospital in London, where operational research techniques are used to analyze patient flow, reduce waiting times, and ensure the right capacity for incoming patients.

💡Continuous Improvement

Continuous improvement is a philosophy of constantly seeking better ways to be more efficient and effective. The video describes how Asda uses operational research for continuous improvement in its distribution processes, aiming to make depots more efficient and reduce costs, which can then be reinvested into lowering prices for consumers.

💡Career

The video concludes with an invitation to consider a career in operational research, emphasizing the diversity of problems to be solved and the impact that can be made on real-world decisions. It suggests that individuals with strong analytical, mathematical, and logical skills can find a fulfilling career in this field, influencing the way people live their lives.

Highlights

Operational research is a discipline that applies analytical methods to improve decision-making.

Operational research is integral to everyday activities, from buying flights to grocery shopping.

It plays a crucial role in saving lives, driving business, and supporting government operations.

Organizations are increasingly investing in operational research due to the availability of data and sophisticated technology.

Operational research is not just theoretical math but is applied in the real world to make a tangible difference.

British Airways uses operational research to enhance customer satisfaction and business profitability.

Operational research helps in making complex decisions such as aircraft purchases and flight routes.

Simulation is used to solve problems by running multiple scenarios in a virtual environment.

Operational research techniques are essential in supply chain management for businesses like Asda.

Asda uses operational research to optimize delivery vehicle capacity, saving millions annually.

Operational research is vital in determining the best locations for new stores or depots.

In sports, operational research contributes to spectator experience and stadium design.

Formula 1 relies on operational research for risk analysis and strategic decision-making during races.

Operational research improves government decision-making, affecting various public services.

St George's Hospital in London uses operational research to optimize patient flow and hospital capacity.

Operational research techniques are key to improving productivity and reducing costs in manufacturing.

TATA Steel uses operational research to plan infrastructure upgrades and increase production efficiency.

A career in operational research offers a variety of problems to solve and the opportunity to make a real-world impact.

Operational research requires analytical, mathematical, and logical skills to address real-life challenges.

Academic paths into operational research often include degrees in mathematics, statistics, computer science, or management.

Operational research involves learning techniques such as computer simulation, optimization, and queueing theory.

The work of an operational researcher involves a balance between theoretical knowledge and practical application.

Operational research can lead to a career that is both intellectually challenging and practically significant.

Transcripts

what is operational research in a

nutshell o is the discipline of applying

appropriate analytical methods to help

make better

[Music]

decisions in today's world o is all

around us it can be found in just about

everything we do

[Music]

it forms the building blocks for our

everyday World from buying a flight to

curing for our weekly

groceries it helps save lives it drives

business and

government without o the modern world we

take for granted wouldn't

[Music]

exist there has never been a better time

to be an operational researcher today

most organizations have masses of data

the ways we communicate are fast

computers are sophisticated and

powerful and the business world is now

investing heavily in putting operational

research at the center of what they

do this is not maths in theory but maths

in the real world making a real

[Music]

difference

never before have so many people all

products needed to be moved around the

world as passengers and consumers we

expect everything to run

smoothly whether we are buying flights

commuting to work or wanting food

readily available at the

supermarket for businesses moving people

and products around can be a complicated

and expensive matter here at British

Airways getting the maths right can make

passengers more satisfied with the

service and make millions of pounds

worth of difference to the business the

O Department of British Airways has been

here a long time we influence a whole

range of decisions we're a big

complicated business and O thinking is

pretty critical to taking the right

decisions our helps influence a range of

decisions across the business right from

which aircraft should we buy uh where we

should fly who our alliance Partners

should be how we should board the new

a380s how many tickets we should sell of

what type what our customer data is

telling us right across the range of the

business this is the Airbus A380 the

largest passenger aircraft in the world

these new aircraft are a fantastic

opportunity for British Airways to

expand but with this opportunity comes

risk we've never operated an aircraft

this big before and getting it wrong can

have huge imp impacts on the entire

operation there could be delays which

would impact customer satisfaction and

getting it wrong could incur additional

costs which obviously will impact

profitability the business was

interested in seeing how long it would

take between the aircraft arriving and

then being ready to leave again we chose

to solve the problem using simulation

and the reason we used simulation was

because it allowed us to run multiple

scenarios in a safe and virtual

environment we were able to

recommend to the business how many staff

were required how many doors we needed

to use to board the aircraft to ensure

that boarding took no longer than it

currently does on the Boeing 747 whilst

making sure the customers have the best

experience

possible o really valued here by the

company o thinking and O insights are

incredibly useful when you're trying to

take really difficult business decisions

uh and also our people often bring that

different way of looking at a problem

that you you don't see

[Music]

yourself in today's world all of us

expect the things we want and need to be

readily available that means shelves to

be always stocked and deliveries to

arrive on time this is what we term the

supply chain of a business

for a major UK retailer like Asda it's

crucial that this process runs like

clockwork and O techniques lie at the

very heart of keeping the business

running we service over 500 shops in the

UK serving almost 8 million customers

every week of the year clearly in

distribution we have a huge

responsibility to make sure that our

customers served on time with product

that's as fresh as

possible we use operational research

pretty much every day in our working

lives one of our biggest challenges in

The Last 5 Years is about how quickly we

can get the products from point of

manufacturer to point of delivery into

our

depos our focus on root planning

analysis has made a real big difference

to the way that we operate it means that

we take miles off the road we we reduced

the impact on the environment and has

helped our cost

position one of our biggest recent

initiatives is the utilization of higher

capacity delivery vehicles um into our

shops through the analysis that we

completed we were able to prove that by

getting almost twice as much product on

these vehicles had a substantial cost

benefit for us and it saves US 10

million a year which could reinvest back

into price here at Asda o techniques run

right through the business helping to

influence big decisions such as where to

build a new store or Depot building a

new Depot is a big investment for Asda

and can cost up to 60 million so it's

critical that we build in the right

location we do this through a large

amount of modeling and Analysis tools to

help us understand where in the country

we will be building new stores so where

that Depo needs to be here o is used to

ensure that Asda are constantly

improving every process within the depos

to get the products out to the stores

more quickly I work in continuous

Improvement for distribution and we look

at our depos um the processes that we

complete how long they take and how we

can improve them so that we can make the

Depo more

efficient every single day that we come

to work it's a new challenge and if we

can use operational research to support

that and make it easier and better for

our customers then we've done a great

job

[Music]

[Applause]

collectively the World of Sport isn't an

obvious place where operational research

is at hand yet many of our much loved

activities rely on

o and whether designing a sports Stadium

or even an Olympic Village o helps make

the spectator's experience much more

[Music]

enjoyable this is the Emirates Stadium

in North London home of Arsenal Football

Club here o had a big part to play in

the design and construction of the

stadium as well as in the efficient

running of the site on Match

day just imagine a match day situation

when you arrive at the station itself uh

o starts defeat you immediately you get

off the off the train uh people Marshall

you towards the stadium that part of the

process has already got o taken into

account trying to find the safest way

for you to move then when you reach the

stadium itself a number of turnstyles

for example will have been determined by

uh an O technique and then as you move

around the stadium the places where the

signs are located and the the way you

move to your seat will also have been

determined by by different o techniques

so it's really important to everything

about this this

Stadium the design of this stadium is

obviously magnificent it's a it's a

60,000 capacity stadium and without a

model of people moving in and out you'd

never know whether during a match

situation if there was a fire for

example if those people could be

evacuated safely within the 8 Minute

guidelines

[Applause]

[Music]

the explosive world of Formula

1 highp speeds multi million pound

racing

technology in Formula 1 we we require

more and more uh expert on kind of uh

risk analysis and uh Game Theory and

simul

Formula 1 where split-second decisions

are the difference between success and

failure and often these decisions are a

matter of mathematics resting in the

hands of some of the world's finest

operational

researches I think the first thing that

people will see the direct application

of O is on Define the race strategy the

initial fuel load estimating

uh competitors uh Fu load and where they

going to stop and when we're going to

hit traffic during the race when is a

good LA to come out of the pit stops and

tire degradation this is a all

estimation that we need to do as the

race

[Applause]

develop I strongly believe that OA has a

great role to play in Formula 1 for the

[Music]

future don't try to apprehend

it central government is the biggest

business in

Britain and in government o gets

involved in just about everything that

affects our day-to-day

lives operational research plays a

crucial role in improving the quality of

decision making right the way through

the system from senior decision makers

in apartments right the way up to the

prime minister to confront our problems

if you've ever interative with schools

obviously you have or with hospitals or

with a transport system you'll have had

some benefit from the role o has played

in improving the way that those services

are

delivered traveling on motorways how

does the Department of Transport

actually deploy its various Emergency

Services UK borders agency plays a role

in actually modeling the number of

people who arrive and leave the country

the home office they do significant

amounts of work on how we're trying to

reduce crime across the country doing o

in the hard of government really gives

you the opportunity to influence

decision makers right at the very

center it's a real Buzz on a drive to

actually be changing the way that we're

delivering the things that we all live

and breathe and interact with on a daily

[Music]

basis this is St George Hospital in

London here using o techniques can

literally be the difference between life

and death one of the really big things

that hospitals have to think about is

how long patients stay and so therefore

how many beds and how many Wards and how

many doctors you have to look after them

it's really important for us to be able

to get as far as we can the right

capacity for the patients who are going

to come through the door so that we can

give them the treatment that they need

when they need

[Music]

it PTI patients when they're referred by

their GP either into A&E or into

outpatients um enter a series of cues

and one of the things that we really

have to do and we've been working very

hard on is getting those cues as short

as we can and making sure that we don't

have bottlenecks in our system and so

therefore we need queuing Theory and

operational research techniques to help

us make sure that we can get that

right

operational research is often at the

heart of what makes a business run

efficiently here everything must be

planned and timed precisely to avoid

bottlenecks tter steel manufactures

steel products and operational research

techniques are key to improving

productivity and reducing

costs what we produce here are big steel

coils that we sell on to various

companies that produce everyday objects

such as tin cans office furniture cars

and

fridges the O team currently consists of

12 members we provide an in-house

service where we incorporate ourselves

into various project teams for all the

Departments we use lots of software

within the department where we can build

real world processes on a computer

screen and Visually show these to the

project managers the process Specialists

and they can play out various scenarios

without having to work them out on real

world processes this in turn can save a

lot of money and is a lot safer in the

long

run dur on the plant we've had a

throughput of up to 4.4 uh million tons

of uh steel and we're looking to take

that up to 5.3 million tons so we got a

project to look at the infrastructure to

see if it can handle the extra 20%

through but the benefits of uh producing

5.3 million tons as opposed to 4.4 will

mean that our cost per T will come down

as an

organization

the reason why we got the O team

involved is because when you're looking

at your own process and you're so close

to it I think you make a lot of

assumptions and the model will take

those assumptions away they started

coming to our meetings first of all but

then we got into the nitt actually going

out on plant and getting them as close

to the process as we could so they could

see for

[Music]

themselves as you think about what the

future may hold for you if you want to

consider taking up a career in

operational research take a look at the

interesting University degrees out there

that are the best route into what we

call O the science of

better offering you a truly

inspirational challenge that will test

even the most inquisitive of Minds where

are many different academic paths into

operational research although most

people tend to have degrees um with

mathematics statistics computer science

or management content pupils will learn

a number of O techniques such as

computer simulation optimization

queueing Theory inventory control

problem structuring methods to name just

a few you also get a good balance

between a theoretical work and and an

appreciation of the application of these

techniques that will involve case

studies Project work which might involve

working with a real life company on a

real world

problem operational researchers

encouraging innovation in successful

organizations what I really like about

working in a is the variety of problems

we need to solve and being able to work

on the different production processes on

a week toe basis and going out and

visiting the plant and helping process

Specialists solve their problems if you

really want to use your analytical

mathematical logical skills to actually

make a difference o gives you the

perfect opportunity to actually change

the way people live their lives

excellent problem solvers that the rest

of us turn to to help revolutionize the

way we live thing about an operational

research career is that the variation

you work in you you can work for any

Department you can work even within the

department the projects you work on are

almost buried after the first two weeks

I was on a project right from the start

you know I felt really a important

member of the team I was meeting with

clients and it was really exciting I

enjoy the role that I do because of the

variety of the things that I can be

involved in um and I also get to see

behind the scenes of a a big UK retailer

um and the scale of the operations that

we have and the different processes we

complete within our depos and I also get

to be involved in the decision making

process behind our projects MTH at work

is somewhat different than mass at

school you're not given a structured

problem you become you get a general

problem you to structure it into a math

problem and then solve it and also the

decision and result you come up with is

actually used in real life decisions do

you want to take decisions that can make

a real

difference if you'd like to learn more

about o go to learn about .co.uk

UK okay UK UK

UK