Employers generally prefer applicants with at least a master’s
degree in operations research or management science, or a closely
related field such as computer science, engineering, business,
mathematics, or information systems.
Employment growth is projected to be slower than average,
reflecting slow growth in the number of jobs with the title
“operations research analyst.”
Individuals with a master’s or Ph.D. degree in management
science, operations research, or equivalent should have good
job opportunities as operations research analysts or in closely
related occupations, such as systems analysts, computer scientists,
or management analysts.
Nature of the Work
“Operations research” and “management science” are terms
that are used interchangeably to describe the discipline of
applying advanced analytical techniques to help make better
decisions and to solve problems. The procedures of operations
research have been used effectively during wartime in areas
such as deploying radar, searching for enemy submarines, and
getting supplies to where they were needed most. New analytical
methods have been developed, and numerous peacetime applications
have emerged, leading to the use of operations research in
many industries and occupations.
The prevalence of operations research in the Nation’s economy
reflects the growing complexity of managing large organizations
that require the effective use of money, materials, equipment,
and people. Operations research analysts help determine better
ways to coordinate these elements by applying analytical methods
from mathematics, science, and engineering. Analysts often
find multiple possible solutions for meeting the particular
goals of a project. These potential solutions are then presented
to managers, who choose the course of action that they perceive
to be best for the organization.
Operations research analysts often have one area of specialization,
such as working in the transportation or the financial services
industry, but the issues and industries in which operations
research can be used are many. In general, operations research
analysts may be involved in top-level strategizing, planning,
forecasting, allocating resources, measuring performance,
scheduling, designing production facilities and systems, managing
the supply chain, pricing, coordinating transportation and
distribution, or analyzing large databases.
The duties of the operations research analyst vary according
to the structure and management of the employer’s or client’s
organization. Some firms centralize operations research in
one department; others use operations research in each division.
Operations research analysts also may work closely with senior
managers to identify and solve a variety of problems. Some
organizations contract with consulting firms to provide operations
research services. Economists, computer systems analysts,
mathematicians, industrial engineers, and others may apply
operations research techniques to address problems in their
respective fields. (These occupations are discussed elsewhere
in the Handbook.)
Regardless of the type or structure of the client organization,
operations research entails following a standard set of procedures
and conducting analysis to help managers improve performance.
Managers begin the process by describing the symptoms of a
problem to the analyst, who then formally defines the problem.
For example, an operations research analyst for an auto manufacturer
may be asked to determine the best inventory level for each
of the parts needed on a production line and to ascertain
the optimal number of windshields to be kept in stock. Too
many windshields would be wasteful and expensive, whereas
too few could result in an unintended halt in production.
Operations research analysts study such problems, breaking
them into their components. Analysts then gather information
about each of the components from a variety of sources. To
determine the optimal inventory, for example, operations research
analysts might talk with engineers about production levels,
discuss purchasing arrangements with buyers, and examine storage-cost
data provided by the accounting department.
With the relevant information in hand, the analyst determines
the most appropriate analytical technique. Techniques used
may include Monte Carlo simulation, linear and nonlinear programming,
dynamic programming, queuing and other stochastic-process
models, Markov decision processes, econometric methods, data
envelopment analysis, neural networks, expert systems, decision
analysis, and the analytic hierarchy process. Nearly all of
these techniques involve the construction of a mathematical
model that attempts to describe the system being studied.
The use of models enables the analyst to explicitly describe
the different components and clarify the relationships among
them. The descriptions can be altered to examine what may
happen to the system under different circumstances. In most
cases, a computer program is developed to numerically evaluate
the model.
Usually the model chosen is modified and run repeatedly to
obtain different solutions. A model for airline flight scheduling,
for example, might stipulate such things as connecting cities,
the amount of fuel required to fly the routes, projected levels
of passenger demand, varying ticket and fuel prices, pilot
scheduling, and maintenance costs. By assessing different
possible schedules, the analyst is able to determine the best
flight schedule consistent with particular assumptions.
Based on the results of the analysis, the operations research
analyst presents recommendations to managers. The analyst
may need to modify and rerun the computer program to consider
different assumptions before presenting the final recommendation.
Once managers reach a decision, the analyst usually works
with others in the organization to ensure the plan’s successful
implementation.
Working Conditions
Operations research analysts generally work regular hours
in an office environment. However, because they work on projects
that are of immediate interest to top managers, operations
research analysts often are under pressure to meet deadlines
and may work more than a 40-hour week.
Training, Other Qualifications, and Advancement
Employers generally prefer applicants with at least a master’s
degree in operations research or a closely related field,
such as computer science, engineering, business, mathematics,
information systems, or management science, coupled with a
bachelor’s degree in computer science or a quantitative discipline
such as economics, mathematics, or statistics. Dual graduate
degrees in operations research and computer science are especially
attractive to employers. Operations research analysts must
be able to think logically, use computers proficiently, work
well with people, and demonstrate good oral and written communication
skills.
In addition to supporting formal education in one manner
or another, employers often sponsor training for experienced
workers, helping them keep up with new developments in operations
research techniques and computer science. Some analysts attend
advanced university classes on these subjects at their employer’s
expense.
Computers are the most important tools used by operations
research analysts for performing in-depth analysis. As a result,
training and experience in programming are required. Analysts
typically need to be proficient in database collection and
management, programming, and the development and use of sophisticated
software packages.
Beginning analysts usually perform routine work under the
supervision of more experienced analysts. As the novices gain
knowledge and experience, they are assigned more complex tasks
and are given greater autonomy to design models and solve
problems. Operations research analysts can advance by assuming
positions as technical specialists or supervisors. Analysts
also gain valuable insights into the industry or field in
which they specialize and may assume higher level nontechnical
managerial or administrative positions. Operations research
analysts with significant experience may become consultants,
and some may even open their own consulting practices.
Employment
Operations research analysts held about 58,000 jobs in 2004.
Major employers include computer systems design firms; insurance
carriers and other financial institutions; telecommunications
companies; management, scientific, and technical consulting
services firms; and Federal, State, and local governments.
More than 4 out of 5 operations research analysts in the Federal
Government work for the Department of Defense, and many in
private industry work directly or indirectly on national defense.
Job Outlook
Employment of operations research analysts is expected to
grow more slowly than average for all occupations through
2014, reflecting slow growth in the number of jobs with the
title “operations research analyst.” Job opportunities in
operations research should be good, however, because organizations
throughout the economy will strive to improve their productivity,
effectiveness, and competitiveness and because of the extensive
availability of data, computers, and software. Many jobs in
operations research have other titles, such as operations
analyst, management analyst, systems analyst, and computer
scientist.Individuals who hold a master’s or Ph.D.
degree in operations research, management science, or a closely
related field should find good job opportunities because the
number of openings generated by employment growth and the
need to replace those leaving the occupation is expected to
exceed the number of persons graduating with these credentials.
Organizations face pressure today from growing domestic and
international competition and must work to make their operations
as effective as possible. As a result, businesses increasingly
will rely on operations research analysts to optimize profits
by improving productivity and reducing costs. As new technology
is introduced into the marketplace, operations research analysts
will be needed to determine how to utilize the technology
in the best way.
Opportunities for operations research analysts exist in almost
every industry because of the diversity of applications for
their work. As businesses and government agencies continue
to contract out jobs to cut costs, opportunities for operations
research analysts will be best in management, scientific,
and technical consulting firms. Opportunities in the military
will exist as well, but will depend on the size of future
military budgets. Military leaders will rely on operations
research analysts to test and evaluate the accuracy and effectiveness
of new weapons systems and strategies.
Earnings
Median annual earnings of operations research analysts were
$60,190 in May 2004. The middle 50 percent earned between
$45,640 and $78,420. The lowest 10 percent had earnings of
less than $36,180, while the highest 10 percent earned more
than $95,990.
The average annual salary for operations research analysts
in the Federal Government in nonsupervisory, supervisory,
and managerial positions was $89,882 in 2005.
Related Occupations
Operations research analysts apply advanced analytical methods
to large, complicated problems. Workers in other occupations
that stress advanced analysis include computer systems analysts,
computer scientists and database administrators, computer
programmers, engineers, mathematicians, statisticians, economists,
and market and survey researchers. Because its goal is improved
organizational effectiveness, operations research also is
closely allied to managerial occupations such as computer
and information systems managers, and management analysts.
Sources of Additional Information
Information on career opportunities for operations research
analysts is available from:
Institute for Operations Research and the Management Sciences,
7240 Parkway Dr., Suite 310, Hanover, MD 21076. Internet:
http://www.informs.org/
For information on operations research careers in the Armed
Forces and the U.S. Department of Defense, contact:
Military Operations Research Society, 1703 N. Beauregard
St., Suite 450, Alexandria, VA 22311. Internet: http://www.mors.org/
Information on obtaining positions as operations research
analysts with the Federal Government is available from the
Office of Personnel Management through USAJOBS, the Federal
Government’s official employment information system. This
resource for locating and applying for job opportunities can
be accessed through the Internet at http://www.usajobs.opm.gov/ or through an interactive
voice response telephone system at (703) 724-1850 or TDD (978)
461-8404. These numbers are not tollfree, and charges may
result.
Source: Bureau of
Labor Statistics, U.S. Department of Labor, Occupational
Outlook Handbook, 2006-07 Edition,
