Operations Research Analysts

Summary

Operations research analysts use sophisticated computer software, such as databases and statistical and modeling packages, to analyze and solve problems.

Quick Facts: Operations Research Analysts
2010 Median Pay	$70,960 per year $34.12 per hour
Entry-Level Education	Bachelor’s degree
Work Experience in a Related Occupation	None
On-the-job Training	None
Number of Jobs, 2010	64,600
Job Outlook, 2010-20	15% (About as fast as average)
Employment Change, 2010-20	9,400

What Operations Research Analysts Do

Operations research analysts use advanced methods of analysis to help organizations solve problems and make better decisions.

Work Environment

Operations research analysts spend most of their time in offices. Almost all operations research analysts work full time.

How to Become an Operations Research Analyst

Applicants need a master’s degree for most operations research positions, but a bachelor’s degree is enough for many entry-level positions. Many schools offer bachelor’s and advanced degree programs in operations research, but it is common for analysts to have degrees in other quantitative fields, such as computer science and mathematics.

Pay

The median annual wage of operations research analysts was $70,960 in May 2010.

Job Outlook

Employment of operations research analysts is expected to grow by 15 percent between 2010 and 2020, about as fast as the average for all occupations. As technology advances and companies further emphasize efficiency, demand for operations research analysis should continue to grow.

Similar Occupations

Compare the job duties, education, job growth, and pay of operations research analysts with similar occupations.

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Contacts for More Information

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What Operations Research Analysts Do About this section

Operations research analysts advise managers and other decision makers on the appropriate course of action to solve a problem.

Operations research analysts use advanced methods of analysis to help organizations solve problems and make better decisions.

Duties

Operations research analysts typically do the following:

• Identify and define business problems, such as those in production, logistics, or sales
• Collect and organize information from a variety of sources, such as computer databases
• Gather input from workers involved in all aspects of the problem or from others who have specialized knowledge that can help solve the problem
• Examine information to figure out what is relevant to the problem and what methods should be used to analyze it
• Use statistical analysis, simulation, and optimization (minimizing or maximizing a function based on a set of variables) to analyze information and develop practical solutions to business problems
• Based on their findings, advise managers and other decision makers on the appropriate course of action to take to solve a problem
• Write memos, reports, and other documents outlining their findings and recommendations for managers, executives, and other officials

Operations research analysts are involved in all aspects of an organization. For example, they help allocate resources, develop production schedules, manage the supply chain, and set prices.

Operations research analysts use sophisticated computer software, such as databases and statistical and modeling packages, to analyze and solve problems. For example, they help decide how to organize products in supermarkets and help companies figure out the most effective way to ship and distribute products. Analysts break down problems into their various parts and analyze the effect that different changes and circumstances would have on each of these parts. For example, to help an airline schedule flights and decide what to charge for tickets, analysts might take into account the cities that have to be connected, the amount of fuel required to fly those routes, the expected number of passengers, pilots’ schedules, maintenance costs, and fuel prices.

There is no one way to solve a problem, and analysts must weigh the costs and benefits of alternative solutions or approaches in their recommendations to managers.

Because problems are complex and often require expertise from many disciplines, most analysts work on teams. Once a manager reaches a final decision, these teams may work with others in the organization to ensure that the plan is successful.

Work Environment About this section

Operations research analysts typically work in an office setting.

Operations research analysts held about 64,600 jobs in 2010. The industries employing the largest numbers of analysts in 2010 were as follows:

Most operations research analysts in the federal government work for the Department of Defense, which also employs a large number of analysts through private consulting firms.

Operations research analysts spend most of their time in offices. Many also spend some time in the field, gathering information and analyzing processes through direct observation.

Work Schedules

Almost all operations research analysts work full time. Analysts often travel to work with clients and company executives and to attend conferences.  Because they work on projects that are of immediate interest to top managers, operations research analysts often are under pressure to meet deadlines.

How to Become an Operations Research Analyst About this section

Operations research analysts identify and define business problems, such as those in production, logistics, or sales.

Applicants need a master’s degree for most operations research positions, but a bachelor’s degree is enough for many entry-level positions. Many schools offer bachelor’s and advanced degree programs in operations research, but it is common for analysts to have degrees in related fields.

Education

Most employers prefer to hire applicants with a master’s degree, but many entry-level positions are available for those with a bachelor’s degree. Many schools offer bachelor’s and advanced degree programs in operations research, management science, or a related field. Many operations research analysts have degrees in other technical fields, such as engineering, computer science, mathematics, and physics.

Because operations research is based on quantitative analysis, students need extensive coursework in mathematics. Courses include statistics, calculus, and linear algebra. Coursework in computer science is important because analysts rely on advanced statistical and database software to analyze and model data. Courses in other areas, such as engineering, economics, and political science, are useful because operations research is a multidisciplinary field with a wide variety of applications.

Continuing education is important for operations research analysts. Keeping up with advances in technology, software tools, and improved analytical methods is vital.

Important Qualities

Analytical skills. Operations research analysts use a wide range of methods, such as forecasting, data mining, and statistical analysis, to examine and interpret data.

Critical-thinking skills. Operations research analysts must be able to figure out what information is relevant to their work. They also must be able to evaluate the costs and benefits of alternative solutions before making a recommendation.

Ingenuity. Solutions to operations problems are not usually obvious, and analysts need to be able to think creatively to solve problems.

Interpersonal skills. Operations research analysts typically work on teams. They also need to be able to convince managers and top executives to accept their recommendations.

Mathematical skills. The models and methods used by operations research analysts are rooted in statistics, calculus, linear algebra, and other advanced mathematical disciplines.

Problem-solving skills. Operations research analysts need to be able to diagnose problems on the basis of information given to them by others. They then analyze relevant information to solve the problems.

Communication skills.  Operations research analysts need to be able to gather information, which includes interviewing people and listening carefully to the answers. They also need to communicate technical information to people who do not have a technical background.

Writing skills. Operations research analysts write memos, reports, and other documents outlining their findings and recommendations for managers, executives, and other officials.

Work Experience

Many operations research analysts who work with the military are veterans of the U.S. Armed Forces.

Pay About this section

The median annual wage of operations research analysts was $70,960 in May 2010. The median wage is the wage at which half of the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $39,920, and the top 10 percent earned more than $122,750.

Almost all operations research analysts work full time. Analysts often travel to work with clients and company executives and to attend conferences.

Job Outlook About this section

Employment of operations research analysts is expected to grow by 15 percent from 2010 to 2020, about as fast as the average for all occupations. As technology advances and companies further emphasize efficiency and cost savings, demand for operations research analysis should continue to grow. Operations research analysts will continue to be needed to provide support for our nation’s military and to assist in the development and implementation of policies and programs in other areas of government. 

Technological advances have made it faster and easier for organizations to get data. In addition, improvements in analytical software have made operations research more applicable to a wider range of areas and more affordable to the people who work in them. More companies are expected to use operations research analysts to help them turn data into valuable information that managers can use to make better decisions in all aspects of their business. For example, operations research analysts will be needed to help businesses improve their manufacturing operations and logistics.

Job Prospects

Analysts who are able to communicate their recommendations to managers and to workers outside of operations research should have the best job prospects.  

Opportunities should be better for those who have a master’s or Ph.D. degree in operations research, management science, or a related field.

Contacts for More Information About this section

For more information about operations research analysts, visit

Institute for Operations Research and the Management Sciences

Military Operations Research Society