| | 2 4 ¥ §2.45 The Business ‘ Use of Operations 4 Research . m sclem}e Stafford Beer ' Doubleday Science Series = s g e . = Editor’s Preface In terms of the effect on other people, the management of complex enterprises, in business, in government, and in the military services is certainly the most important activity in which individual men engage. Sound and imaginative management can fashion a successful and useful enterprise out of routine materials, while poor manage- ment can vitiate the most brilliant technical and staff work and lead to an appalling waste of human effort. Despite its importance, management is one of the most recent fields to seek assistance from the formal apparatus of science. Some of the tools used in management science—time and motion study, for example—have existed for some time. The application of scientific methods to a whole management problem, rather than merely to the gathering of data, seems to have gotten underway only during and after World War II, however. The feature that distinguishes the new approach is that a problem and the system that generates the problem are initially described in the most general terms possible, in order that the widest range of possible models can be studied and the widest range of possible solutions surveyed. Management science is not a theoretician’s exercise, however. The problems are intensely practical and must be solved in real time. Much of the value of this book derives from the fact that the author has been able to include a number of examples from his own experience as a practicing management scientist. Management Science The Business Use of Operations Research Stafford Beer Doubleday Science Series Doubleday & Company, Inc. Garden City, New York, 1968 MANAGEMENT SCIENCE: The Business Use of Operations Research was published simultaneously in a hardbound edition by Doubleday & Company, Inc. First published in the United States of America in 1967 by Doubleday & Company, Inc., Garden City, New York, in association with Aldus Books Limited Copyright © Aldus Books Limited, London, 1967 Printed in Italy by Arnoldo Mondadori, Verona Contents Chapter 1 Processes and Policies An Art, Yes, But a Science Too. Figures Are Not Enough The Beginnings of Operational Research Lessons From Early Experience System, Prediction, and Profit Understand First, Diagnose Second, Prescribe Third Chapter 2 Chance, Risk, and Malice Getting to Grips with Chance The Use of Approximation How Simple is a Simple Situation? How Near is Near Enough? The Likelihood of Getting Near Enough Putting Probability Theory Into Action Assessing the Ideal Stock Size Keeping the Queue to Acceptable Length The Genuinely Calculated Risk Chapter 3 Quantified Insight The Situation and Its Models The Scientist’s Model Meeting Deadlines in a Complex Operation Delay and Amplified Delay Models as Media for Simulation The Payoff of Simulation Chapter 4 An Alphabet of Models : Acoustics »: Biology w: Cybernetics O : Demography o m: Engineering m: Fluid Dynamics Q: Genetics Models and Mapping The Cones of Resolution Chapter 5 It Works The Limitations of Techniques As Such Modelling the Real-life Situation Using Techniques to Answer Real-life Questions When Reducing Costs Looked Too Costly Getting Past the Paradox to the Problem Getting Past the Problem to the Solution Chapter 6 The Viable Governor Implicit Control What Should be Controlled? Homeostasis and Ultrastability A New Model The Education of Systems Chapter 7 Automation and Such 169 Industry and Evolution 170 What’s Holding Things Up? 174 Rethinking About Rethinking 177 Why Not Just Leave Things to Evolve? 180 We’ll-Learn-in-Time-Diehards 184 Death of a Diehard 188 Index 190 Suggested Reading By Stafford Beer: Decision and Control, John Wiley (London, 1966) Cybernetics and Management, English Universities Press (London, 1959) Classics on Operations Research P. M. Morse & G. E. Kimball, Methods of Operations Research, Technology Press of M.LI.T. and Jahn Wiley (New York, revised edition 1951). J. F. McCloskey & F. N. Trelethen, Operations Research for Management, Johns Hopkins Press (Baltimore, 1954). C. W. Churchman, R. L. Ackoff, and E. L. Arnoff, Introduction to Operations Research, John Wiley (New York, 1957). General Works on Operations Research C. W. Churchman, Prediction and Optional Decision, Prentice Hall (New Jersey 1961). R. T. Eddison, K. Pennycuick, and B. H. P. Rivett, Operational Research in Management, John Wiley (New York), 1962. C. D. Flagle, W. H. Huggins, and R. H. Roy, Operations Research and Systems Engineering, Johns Hopkins Press (Baltimore, 1960). H. A. Simon, Models of Man, John Wiley (New York, 1957). J. D. Williams, The Compleat Strategist, McGraw Hill (New York, 1954). Conferences and Series Proceedings of the First (1957), Second (1960), and Third (1963) International Conferences on Operational Research, English Universities Press. ’ Progress in Operations Research Vol. 1 (Ed. Ackoff), 1961, Vol. II (Eds. D. B. Hertz and R. T. Eddison), John Wiley (New York, 1964). Introductory Cybernetics W. Ross Ashby, An Introduction to Cybernetics, John Wiley (New York, 1956). G. Pask, An Approach to Cybernetics, Harper and Row (New York, 1962). E. A. Feigenbaum & J. Feldman (Eds.), Computers and Thought, McGraw Hill (San Francisco, 1964). Acknowledgments Page 11 Courtesy Yuri Gridneff: photo B. Kapadia: 12 Mansell Collection : 13 Photo Media Associates : 14 Mansell Collection : 15 Metropolitan Museum of Art, New York : 17 Photo M. Buselle : 18 Photo B. Kapadia : 21 British Crown Copyright : 23 Imperial War Museum : 30 Moror Sport: 33 Photo B. Kapadia: S5 Photo M. Buselle: 59 lliustrated London News: 60 London Transport Executive: 68 Glaxo Laboratories Ltd.: 71 Imperial Chemical Industries Ltd.: 88 (Top) Rover Co. Ltd. (Bottom) Photo B. Kapadia : 90 Scientific American Inc. : 95 From the film 4Amoebha distributed by Rank Film Library: 99 Based on C. U. M. Smith, The Architecture of the Body, Cambridge University Press: 102 (Top) Photo D. McCullin (Bottom) English Electric Co. Ltd.: 104 Photo Paris Match: 111 Photomicrograph Gene Cox: 121 Photo R. Nelson: 140 Photo B. Kapadia: 142 Robert R. Goller, Civil Engineering A.S.C.E. 1965: 152 Photo Novak/Barnaby: 164 United Features Syndicate: 165 Photo Bill Rogers: 168 From Histoires des Inventions, Editions du Pont Royal, Paris: 171 Mansell Collection: 172 (Top) Courtesy Raleigh Industries; Photo John Isaac (Bottom) Drummond Asquith Ltd.: 177 Photo B. Kapadia: 186 Decca Navigator Co. Ltd.: 189 Courtesy Tutorage, U.S. Industries Inc. (Great Britain) Ltd.