Quantitative methods of management

The various quantitative methods of management are derived from the fields of economics, operational research and budgeting. The various quantitative methods used are:

• Cost-Benefit Analysis
  • Each program is evaluated based on the cost incurred and the monetary gain achieved
  • But the problem of this approach in the healthcare field is that most achievements cannot be described in terms of economic gain
• Cost-Effective Analysis
  • This is similar to cost-benefit analysis
  • In contrast to cost-benefit analysis, the cost incurred is compared to the benefit attained in terms of various factors like lives saved, disability prevented etc
  • This is more suitable for use in healthcare field
• Cost Accounting
• Input-Output Analysis
  • The input (in terms of material, money, workforce) required to achieve the output (eg: decrease in disease frequenct) is assessed
  • Thereby output can be expressed in terms of the input required
• Model
  • A model of the system is created and it can be used to assess how each factor influences the others
• Systems analysis
  • The aim of systems analysis is to enable the investigator to choose the appropriate course of action by analysing the problem, assessing the different options for solving the problem in terms of its advantages and disadvantages and finding out the most cost effective alternative
• Network analysis
  • A network is a graphical representation of the different steps to be followed in attaining the objectives
  • There are 2 aspects in network analysis. They are:
    • Program Evaluation and Review Technique (PERT)
      • In this an arrow diagram is created based on the different steps to achieve the target
      • From this, we can understand the time required for each step and which steps are critical for achieving the objective on time
    • Critical Path Method (CPM)
      • The longest path in the network is called the critical path
      • Anything which lengthens the critical path will cause delay in achieving the target
      • Hence importance is given to the smooth functioning of the action in the critical path
• Planning Programming Budgeting System (PPBS)
• Work Sampling
• Decision making
  • Decision making can be done from the central level to the basic level
  • It is to be done only after proper assessment of the situation and considering the different alternatives