MANAGEMENT SCIENCE MANAGEMENT SCIENCE PREPARED BY PREPARED BY Prof.N.Prasanna Balaji. - презентация

1 MANAGEMENT SCIENCE MANAGEMENT SCIENCE PREPARED BY PREPARED BY Prof.N.Prasanna Balaji

2 UNIT-I UNIT-I Introduction to Management Introduction to Management

3 INDEX UNIT 1 PPT SLIDES S.NO. TOPIC LECTURE NO. Introduction to ManagementL1 Introduction to ManagementL1 Concepts of Management of Organiztion L2 Concepts of Management of Organiztion L2 importance L3 importance L3 Taylors Scientific L4 Taylors Scientific L4 FUNCTIONS OF MANAGEMENT L5 FUNCTIONS OF MANAGEMENT L5 Fayols Principle of Management L6 Fayols Principle of Management L6 Mayos Hawthorne ExperimentsL7 Mayos Hawthorne ExperimentsL7 Maslows theory of Human NeedsSL8 Maslows theory of Human NeedsSL8

4 DEFINITION H enri Fayol(1916):To manage is to forecast and plan,to organize, to command, to coordinate and control H enri Fayol(1916):To manage is to forecast and plan,to organize, to command, to coordinate and control Peter. F. Drucker(1955):Management is concerned with the systematic organization of economic Resources and its task is to make these resources productive. Peter. F. Drucker(1955):Management is concerned with the systematic organization of economic Resources and its task is to make these resources productive.

5 Nature and Features Management is a social process Management is a social process It also denotes a a body of people involved in decision making It also denotes a a body of people involved in decision making It is inexact science It is inexact science It is an art and also science It is an art and also science It is profession It is profession It is inter-disciplinary It is inter-disciplinary It is complex It is complex

6 IMPORTANCE It facilitates the achievements of goals through limited resources It facilitates the achievements of goals through limited resources It ensures smooth sailing in case of difficulties It ensures smooth sailing in case of difficulties It ensures continuing in the organization It ensures continuing in the organization It ensures economy and efficiency It ensures economy and efficiency It focus on group efforts It focus on group efforts It is the key to the economic growth It is the key to the economic growth

7 Taylors Scientific Management Theory F.W.Taylor –Father of Scientific Management F.W.Taylor –Father of Scientific Management Taylor demonstrated the benefits of increased productivity and earnings through an experiment at Bethlehem Steel Works. Taylor demonstrated the benefits of increased productivity and earnings through an experiment at Bethlehem Steel Works.

8 FUNCTIONS OF MANAGEMENT According to Luther Gullick According to Luther Gullick P-----Planning P-----Planning O------Organizing O------Organizing S-----Staffing S-----Staffing D----Directing D----Directing Co---Coordinating Co---Coordinating R---Reporting R---Reporting B---Budgetting B---Budgetting

9 Fayols Principle of Management Henri Fayol contributed 14 principles to management Henri Fayol contributed 14 principles to management 1. Division of Work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to group interest

10 Fayols Principle of Management 7. Remuneration 8.Centralization of authority 9.Scalar chain 10.Order11.Equity 12.Stability of tenure of personnel 13.Initiative 14.Espirit de corps (Team work)

11 Mayos Hawthorne Experiments Mayo known for his famous experiment at Hawthorne plant of the western electric company, Chicago, USA, for evaluating the attitudes and Psychological reaction of workers on the job situations. Mayo known for his famous experiment at Hawthorne plant of the western electric company, Chicago, USA, for evaluating the attitudes and Psychological reaction of workers on the job situations.

12 Maslows theory of Human NeedsS According to him humans have 5 needs According to him humans have 5 needs 1. Physiological needs 2. Safety needs 3. Affiliation or acceptance needs 4. Esteem needs 5. Self-actualisation needs

13 Douglas McGregors Theory X and Theory Y Theory X: Assumptions 1. Employees are lazy 2. They require constant guidance and support 3. Some times they require even coersion and control 4. Given an opportunity they would like to avoid responsibility 5. They do not show any ambition but always seak security

14 Theory Y Assumptions: 1. Some employees consider work as natural as play as rest 2. They employees are capable of directing and controlling performance on their own. They are much committed to objectives of the organization. 3. Higher rewards make these employees more committed to organization. 4. Most of them are highly imaginative, creative, and display ingenuity in handling organizational issues. 5. Give an opportunity, they not only accept responsibility but also look for opportunities to out perform others.

15 Organization Organization refers to the institution where in the management functions are performed Organization refers to the institution where in the management functions are performed Organizing: is one of the functions of management means to achieve the plans. Organizing: is one of the functions of management means to achieve the plans.

16 INDEX UNIT 2 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Designing Organisational Structures L1 2. Basic ConceptsL2 3. Types of Mechanistic and OrganicL3 4. Line and Staff OrganizationL4 5. Committee Organization L5 6. Virtual OrganisationL6 7. Boundaryless organizatrionL7 8. Organization StructureL8

17 Basics concepts related to the organization Organizational Hierarchy Organizational Hierarchy Authority and Responsibility Authority and Responsibility Authority is the power to give commands and to use discertion vested in that particular position or Job. Authority is the power to give commands and to use discertion vested in that particular position or Job. Responsibility is the obligation on the part of the subordinate to complete the given job. Responsibility is the obligation on the part of the subordinate to complete the given job.

18 Basics concepts related to the organization Delegation of Authority Delegation of Authority The process of transferring authority from top to the lower levels in the organization is called delegation. The process of transferring authority from top to the lower levels in the organization is called delegation. Two types of Delegation Two types of Delegation 1. Centralized 2. De-centralized Span of Management Span of Management Number of all kinds of relationships (N)=n(2n- 1+n-1) Number of all kinds of relationships (N)=n(2n- 1+n-1) Where n=number of subordinates reporting to a manager

19 UNIT-II Designing Organizational Structures

20 Basics concepts related to the organization Flat and Tall organizations Flat and Tall organizations Flat organization:-Which have relatively few or even one level of management. Flat is also known as wider span of control Flat organization Flat organization Managing Director Manager (sales) Manager (production) Manager (personnel)

21 Basics concepts related to the organization Tall organization:-have many levels of management -involves narrow span of management -involves narrow span of management Tall organization Tall organization MD/ADDITIONAL MD Manager (sales) Manager (production) Manager (personnel)

22 Types of Organizations 1.Line organizations:- is also called military or scalar organization. is said to be the oldest and most traditional type of organizations. Managers in this organizations have direct responsibility for the results. Line organization Line organization Engineer Draughtsman1 (Design & Drawings) Draughtsman 2 (plans) Draughtsman 3 (specifications)

23 2.Line and Staff Organization:- Drawn from earlier civilisation and armies. Drawn from earlier civilisation and armies. Staff managers support the functions of the line managers. Staff managers support the functions of the line managers. Line and staff organization is a service organization. Line and staff organization is a service organization. Line and staff organization in a manufacturing unit. Line and staff organization in a manufacturing unit. Line and staff in the armed forces. Line and staff in the armed forces. Line relationships in staff positions. Line relationships in staff positions.

24 3.Functional organization:- F.W.Taylor suggested functional organization in his theory of Scientific management in support of his one best way of doing things. F.W.Taylor suggested functional organization in his theory of Scientific management in support of his one best way of doing things. The planning and implementation tasks are divided to ensure the division of labour. The planning and implementation tasks are divided to ensure the division of labour. The foremen involved in the planning task. The foremen involved in the planning task.

25 4.Committee Organization:- A committee is formed when two or more persons are appointed to work as a team to arrive at a decision on the matters referred to it. A committee is formed when two or more persons are appointed to work as a team to arrive at a decision on the matters referred to it.

26 Merits:- Pools up the organization resources in terms of knowledge, skills and experience. Pools up the organization resources in terms of knowledge, skills and experience. Represents groups, facilitates group decisions Represents groups, facilitates group decisions It yields good results It yields good results It reduces the fear of two much authority It reduces the fear of two much authority It motivates all the concerned It motivates all the concerned

27 Demerits:- Responsibility for decisions cannot be fixed on a particular person. Responsibility for decisions cannot be fixed on a particular person. It calls for high degree of coordination. It calls for high degree of coordination. It involves high cost in terms of time and money. It involves high cost in terms of time and money.

28 5.Matrix organization:- Also called Project organization. Also called Project organization. It is a combination of all relationships in the organization vertical, horizontal and diagonal. It is a combination of all relationships in the organization vertical, horizontal and diagonal. It is mostly used in complex projects. It is mostly used in complex projects. It provides a high degree of operational freedom. It provides a high degree of operational freedom.

29 Merits:- Offers operational freedom and flexibility. Offers operational freedom and flexibility. Seeks to optimize the utilization of resources. Seeks to optimize the utilization of resources. It focus on end results. It focus on end results. It maintains professional identity. It maintains professional identity. It holds an employee responsible for management of resources. It holds an employee responsible for management of resources.

30 Demerits:- Very complex to manage. Very complex to manage. Violates unity of command. Violates unity of command. Employee may find it frustrating to work with two bosses. Employee may find it frustrating to work with two bosses. Requires too much time for meeting and collaboration. Requires too much time for meeting and collaboration.

31 6.Virtual Organization:- Virtual organization structure does not physically exist, but its effect is felt. Virtual organization structure does not physically exist, but its effect is felt. Example: Bata Shoes Example: Bata Shoes Merits:- Enable for doing business with less capital, less HR and other inputs. Enable for doing business with less capital, less HR and other inputs. Provide flexibility of operations. Provide flexibility of operations. React to the environment demands most efficiently. React to the environment demands most efficiently.

32 Demerits:- Companies do not have strong foundations or strengths in their operations. Companies do not have strong foundations or strengths in their operations. Organizations have to heavily depend on out sourcing. Organizations have to heavily depend on out sourcing. Failure in network results in the failure of the entire organization. Failure in network results in the failure of the entire organization.

33 7.Team Organization Structure:- Team structure takes three forms Team structure takes three forms 1. Project team 2. The task force team 3. Venture team

34 UNIT-III Operations Management Operations Management

35 INDEX UNIT 3 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Operations ManagementL1 2. Principles and Types of PlantL2 3. Layout-Methods of ProductionL3 4. Work Study – Basic procedure involved in MethodL4 5. Study and Work MeasurementL5 6. Statistical Quality ControlL6 7. Acceptance SamplingL7 8. Deming's contribution to qualityL8

36 Principles and types of Plant Layout Plant Layout:- is physical arrangements, either existing or in industrial facilities. Mainly plant layout begins with plant location. Mainly plant layout begins with plant location.Objectives: Economics in handling materials, semi-finished and finished goods. Economics in handling materials, semi-finished and finished goods. Proper and efficient utilization of available floor space. Proper and efficient utilization of available floor space. Provision for better supervision and control. Provision for better supervision and control. Careful planning Careful planning To provide adequate safety To provide adequate safety To meet the quality and capacity requirements. To meet the quality and capacity requirements. Provision for medical and cafeteria at suitable and convenient places. Provision for medical and cafeteria at suitable and convenient places.

37 Advantages of good layout:- Economies in handling. Economies in handling. Effective use of available area. Effective use of available area. Minimizes production delays. Minimizes production delays. Improves quality control. Improves quality control. Avoids bottlenecks. Avoids bottlenecks. Controls production in a better way. Controls production in a better way. Better supervision. Better supervision. Improved utilization of labour Improved utilization of labour Improves employee morale. Improves employee morale. Avoids unnecessary and costly changes. Avoids unnecessary and costly changes.

38 Types of layouts:- 1. Product layout 2. Process or functional layout 3. fixed layout

39 Product layout:- This layout is followed by only by such industries where the product decisions are finalized and may not change at least in the near future. It is because a change in the product will call for a change in the plant layout. This layout is followed by only by such industries where the product decisions are finalized and may not change at least in the near future. It is because a change in the product will call for a change in the plant layout.

40 Advantages:- Faster and cheaper production. Faster and cheaper production. Lower cost of material handling. Lower cost of material handling. Effective utilization of floor space. Effective utilization of floor space. Easy monitoring. Easy monitoring. Team work benefits. Team work benefits.

41 Disadvantages:- Threat of duplication. Threat of duplication. Huge capital outlay. Huge capital outlay. Little flexibility. Little flexibility. Discontinuity in production likely. Discontinuity in production likely. Monitoring each worker made difficult. Monitoring each worker made difficult.

42 Process or functional layout:- The equipment is arranged as per the nature or types of the given set of products operations major it is called process layout. The equipment is arranged as per the nature or types of the given set of products operations major it is called process layout.

43 Advantages:- Optimum utilization of resources. Optimum utilization of resources. Flexibility. Flexibility. Continuity. Continuity. Interesting to workers. Interesting to workers. Monitoring. Monitoring.

44 Disadvantages:- Higher material handling costs. Higher material handling costs. Larger production cycle. Larger production cycle. Monitoring may be complex. Monitoring may be complex. Higher inspection costs. Higher inspection costs. Higher wage bill. Higher wage bill.

45 Fixed layout:- The manufacturing facilities are fixed in their position. They cannot be shifted from one place to another place. This type of layout is used in case of large projects. The manufacturing facilities are fixed in their position. They cannot be shifted from one place to another place. This type of layout is used in case of large projects.

46 Advantages:- Does not involve large investments. Does not involve large investments. High degree of flexibility. High degree of flexibility. Job enlargement. Job enlargement. Disadvantages:- Material handling costs will be very high. Material handling costs will be very high. Resources may be under utilized. Resources may be under utilized.

47 Methods of production:- Production:-is an act of transformation i.e inputs are processed and transformed into some output. Methods of production:-2 types 1. Intermittent or interrupted production 2. Continuous production

48 Intermittent or interrupted production:- The goods are manufactured specially to fulfill the order made by the customers rather than for stock. The goods are manufactured specially to fulfill the order made by the customers rather than for stock. This is of two types This is of two types 1. Job production 2. Batch production

49 Job production:- This is the production of single complete unit by one operator or group of operators. This is the production of single complete unit by one operator or group of operators. Ex:-Construction of a bridge, construction of dam, ship building etc In this process goods are produced to definite customers orders. In this process goods are produced to definite customers orders. Each production is a class by itself and requires a distinct and separate job for production purposes. Each production is a class by itself and requires a distinct and separate job for production purposes.

50 Characteristics of job production:- Whole project is taken as a single operation Whole project is taken as a single operation Work is to be completed on each product before processing the next item Work is to be completed on each product before processing the next item Skilled labor are required Skilled labor are required High capital investment is required High capital investment is required Control of operations is simple Control of operations is simple Cost of production per unit is high. Cost of production per unit is high. Sometimes special machinery & special training is required. Sometimes special machinery & special training is required.

51 Batch production:- The production schedule can be chalked out according to specific orders or on the basis of demand forecasts. The production schedule can be chalked out according to specific orders or on the basis of demand forecasts. In batch system new batch is undertaken for production only when the work on all items of a batch is complete. In batch system new batch is undertaken for production only when the work on all items of a batch is complete. Ex:-Pharmaceuticals, ready made garments, Paints, mineral water bottles.

52 Characteristics of batch production: Products are manufactured in batches as per the specific order produced Products are manufactured in batches as per the specific order produced Division of labor is possible Division of labor is possible Flow of material is continuous Flow of material is continuous Process layout is used Process layout is used Automation of processes and mechanization of materials handling can be done Automation of processes and mechanization of materials handling can be done Maintenance of equipment and machinery is essential Maintenance of equipment and machinery is essential Process and product planning is done for each batch. Process and product planning is done for each batch.

53 Continuous production:- In this system items are produced for the stocks and specific orders. In this system items are produced for the stocks and specific orders. In continuous manufacturing systems each production run manufacturers in large lot sizes and the production process is carried on in a definite sequence of operation in a pre-determined order. In continuous manufacturing systems each production run manufacturers in large lot sizes and the production process is carried on in a definite sequence of operation in a pre-determined order. This is of one type This is of one type 1.Mass production 1.Mass production

54 Mass production:- Also called as flow production Also called as flow production The production can be undertaken on large and specialized machines and processes. The production can be undertaken on large and specialized machines and processes. Characteristics:- Mechanization and division of labor Mechanization and division of labor Large-scale economies Large-scale economies Sophisticated material handling systems to minimize the cost Sophisticated material handling systems to minimize the cost Work study techniques Work study techniques ISO 9000 like sophisticated quality control techniques. ISO 9000 like sophisticated quality control techniques.

55 Work study:- According to British Standard (BS 3138), work study refers to the method study and work measurement which are used to examine human work in all its contexts by systematically investigating into all factors affecting its efficiency and economy to bring forth the desired improvement. According to British Standard (BS 3138), work study refers to the method study and work measurement which are used to examine human work in all its contexts by systematically investigating into all factors affecting its efficiency and economy to bring forth the desired improvement.

56 Benefits:- Directly leads to standardization of the job processes Directly leads to standardization of the job processes Determines cost of the work performed Determines cost of the work performed It saves the time It saves the time Contributes to cost savings Contributes to cost savings Enhances the employee morale Enhances the employee morale Facilitates the organization to plan and achieve work targets Facilitates the organization to plan and achieve work targets Enhances the productivity of all workers and machines Enhances the productivity of all workers and machines Helps to evaluate the department performance Helps to evaluate the department performance

57 Components of work study:- Method study Method study Work measurement Work measurement Method study:- Is also called as Motion study. Is also called as Motion study. Method study is the systematic recording and critical examination of the existing and proposed ways of doing work. Method study is the systematic recording and critical examination of the existing and proposed ways of doing work.

58 Basic procedure of method study:- Aim: to develop better working methods Aim: to develop better working methods Select: the task to be studied Select: the task to be studied Record: all related facts Record: all related facts Examine: the critical facts should be examined Examine: the critical facts should be examined Develop: the best possible method Develop: the best possible method Define: the best method so developed Define: the best method so developed Install: the new method Install: the new method Maintain: the installed method Maintain: the installed method Result: increased efficiency, cost effectiveness and good productivity Result: increased efficiency, cost effectiveness and good productivity

59 Work measurement:- Also called Time study, establishes the time taken by a qualified worker to complete a specified job at a defined level of performance. Also called Time study, establishes the time taken by a qualified worker to complete a specified job at a defined level of performance. Time measuring devices:- Time measuring devices:- 1. Stop watch 2. Motion picture camera 3. Time recording machine 4. Electronic timer

60 Statistical Quality Control:- Quality is some prescribed or desired characteristics present in raw material, semi-finished or finished goods. Quality is some prescribed or desired characteristics present in raw material, semi-finished or finished goods. Control is the process of verification or correction of the product when the deviations in the quality are found to be more than expected. Control is the process of verification or correction of the product when the deviations in the quality are found to be more than expected. Quality control is of great value to both producer and customer Quality control is of great value to both producer and customer SQC is applied by taking samples and drawing conclusions by means of some mathematical analysis. SQC is applied by taking samples and drawing conclusions by means of some mathematical analysis.

61 UNIT-IV Materials Management Materials Management

62 INDEX UNIT 4 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Materials ManagementL1 2. Objectives, Need of Inventory ControlL2 3. EOQ, ABC AnalysisL3 4. Purchase ProcedureL4 5. Stores Management and Stores RecordsL5 6. Marketing : Functions of MarketingL6 7. Matketing Mix, Marketing StrategiesL7 8. Based on Product Life CycleL8

63 Definition:- Material refer to inputs into the production process, most of which are embodied in the finished goods being manufactured. Material refer to inputs into the production process, most of which are embodied in the finished goods being manufactured.

64 Objectives:- To support the production departments with materials. To support the production departments with materials. To minimize investments. To minimize investments. To avoid accumulation of work in process. To avoid accumulation of work in process. To maintain adequate inventories. To maintain adequate inventories. To contribute direct profitability. To contribute direct profitability. To ensure economy of costs by processing EOQ To ensure economy of costs by processing EOQ

65 Need for Inventory control:- Inventory:-refers to all the idle physical stocks, which have economic value. Inventory control:-is defined as the scientific method of providing the right type of material at the right time in the right quantities and at right price to sustain the given production schedules.

66 Need for Inventory control:- Minimizing investments for the organization (in case of materials) Minimizing investments for the organization (in case of materials) Maximizing the service levels to the customers Maximizing the service levels to the customers

67 Economic Order Quantity (EOQ):- EOQ is defined as that quantity of material, which can be ordered at one time to minimize the cost of ordering and carrying the stocks. EOQ is defined as that quantity of material, which can be ordered at one time to minimize the cost of ordering and carrying the stocks. EOQ=2Ao/c EOQ=2Ao/c Where A=Annual Demand O=Ordering cost per order O=Ordering cost per order C=Carrying cost per unit C=Carrying cost per unit

68 ABC Analysis:- ABC Always Better Control of inventory inventory ABC analysis is a technique of controlling inventories based on their value and quantities. ABC analysis is a technique of controlling inventories based on their value and quantities. According to this analysis inventory is divided into three categoriesA, B and Cbased on their respective value

69 ABC Analysis:- A ---- Very costly and valuable strict control – day to day A ---- Very costly and valuable strict control – day to day B ---- less costly ---- moderate control – weekly B ---- less costly ---- moderate control – weekly C ---- least cost ---- low control C ---- least cost ---- low control - monthly - monthly

70 Purchase Procedure:- Purchasing is a specialized job. Purchasing is a specialized job.Objectives:- To purchase the right quantity and quality of materials. To purchase the right quantity and quality of materials. To ensure continuous flow of supplies. To ensure continuous flow of supplies. To explore and develop other sources of supply. To explore and develop other sources of supply. To obtain the best value for the money spent. To obtain the best value for the money spent. To maintain functional relations. To maintain functional relations. To train staff, make policies and procedures. To train staff, make policies and procedures.

71 Purchasing process:- Requisitioning purchases Requisitioning purchases Exploring the sources of supply Exploring the sources of supply Issuing of tenders and obtaining quotations Issuing of tenders and obtaining quotations Opening of tenders and quotations and preparation of comparative statements. Opening of tenders and quotations and preparation of comparative statements. Negotiating over the purchase price and terms of supply Negotiating over the purchase price and terms of supply

72 Purchasing process:- Placing purchase order Placing purchase order Receiving of material along with the invoice Receiving of material along with the invoice Checking inward invoice Checking inward invoice Inspecting and testing materials Inspecting and testing materials Forwarding the material to stores Forwarding the material to stores Checking invoice and passing of bills for payment Checking invoice and passing of bills for payment

73 Stores Management:- Facilitates the maintenance of accounts for each item of inventory. Facilitates the maintenance of accounts for each item of inventory. Position of inventory can be updated from time to time. Position of inventory can be updated from time to time.

74 Stores Records:- Common used store records:- Common used store records:- 1. Material requisition note 2. Purchase order 3. Invoice 4. Goods received note 5. Goods returned note 6. Stores ledger account 7. Bin card

75 Marketing:- Definition:- Marketing is an essential function of a modern organization whether it deals in products or services. According to Philip Kotler:- Marketing as a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

76 Functions of marketing:- The marketing functions comprise: buying, selling, transportation, storage, standardization, grading, financing, risk taking and market research. The marketing functions comprise: buying, selling, transportation, storage, standardization, grading, financing, risk taking and market research. Based on different authors classification marketing functions:- Based on different authors classification marketing functions:- 1. Functions of exchange Buying and assembling Buying and assembling Selling Selling

77 Functions of marketing:- 2.Functions of physical supply Transportation Transportation Storage and warehousing Storage and warehousing 3.Facilitating functions Financing Financing Risk taking Risk taking Standardization and grading Standardization and grading Market information and research Market information and research

78 Marketing Mix:- Marketing is the mixture of four ps Marketing is the mixture of four ps 1. Product 2. Promotion 3. Place 4. price

79 Marketing strategies based on product life cycle:- A product is a physical good or service or combination of both. A product is a physical good or service or combination of both. It is capable of satisfying the buyers needs. It is capable of satisfying the buyers needs.

80 Stages in Product Life Cycle:- Introduction Introduction Early growth Early growth Rapid growth Rapid growth Maturity Maturity Saturation Saturation Decline Decline

81 Channels of distribution:- Channels of distribution refer to the wages and means of reaching the customer through the intermediaries such as wholesalers, retailers and other agencies. Channels of distribution refer to the wages and means of reaching the customer through the intermediaries such as wholesalers, retailers and other agencies. Types of Channels of distribution: Types of Channels of distribution: 1. Manufacturer consumer 2. Manufacturer ---wholesaler---- consumer 3. Manufacturer--- retailer---- consumer 4. Manufacturer---wholesaler--- retailer--- consumer

82 UNIT-V Human Resource Management (HRM) Human Resource Management (HRM)

83 INDEX UNIT 5 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Human Resources Management HRML1 2. Concepts of HRM, HRD and Personnel ManagementL2 3. Industrial Relation ( PMIR), HRM vs PMIRL3 4. Basic functions of HR Manager: Manpower planningL4 5. Recruitment, Selection, Training and DevelopmentL5 6. Placement, Wage and Salary AdministrationL6 7. Promotion, Transfer, Separation, Performance AppraisalL7 8. Grievance Handling and Welfare AdministrationL8

84 Definition of HRM:- Dale Yoder – The Management of human resources is viewed as a system in which participants seek to attain both individual and group goals. Dale Yoder – The Management of human resources is viewed as a system in which participants seek to attain both individual and group goals. Flippo – HRM is the Planning, organizing, directing and controlling of the procurement, development,compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished. Flippo – HRM is the Planning, organizing, directing and controlling of the procurement, development,compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished.

85 Concepts of HRM:- Employment Employment Selection and training Selection and training Employee services Employee services Wages Wages Industrial relations Industrial relations Health and safety & Health and safety & Education Education

86 Functions of personnel Mgt:- Operative functions Procurement Procurement Development Development Compensation Compensation Maintaining Maintaining Managerial functions Planning Planning Organizing Organizing Co-ordination Co-ordination Directing Directing Motivating Motivating Controlling Controlling

87 Human Resource Development:- HRD is the process by which the employees of an organization are helped in a continuous and planned way to develop their capabilities. HRD is the process by which the employees of an organization are helped in a continuous and planned way to develop their capabilities.

88 Difference btw HRM & HRD:- HRM is a routine function. HRM is a routine function. Independent one. Independent one. Exclusive responsibility of personnel dept. Exclusive responsibility of personnel dept. It considers salary, economic rewards, job simplification as important motivators. It considers salary, economic rewards, job simplification as important motivators. HRD is a continuous development function. HRD is a continuous development function. HRD is a sub- system. HRD is a sub- system. Aims at developing the capabilities of all its managers. Aims at developing the capabilities of all its managers. It considers informal work groups, job enrichment, as main motivators. It considers informal work groups, job enrichment, as main motivators.

89 Basic Functions of Manager:- From the stage of identifying the manpower requirements to the stage of ensuring that the employees contribute to the corporate goals, the personnel manager has to look after all the functions. From the stage of identifying the manpower requirements to the stage of ensuring that the employees contribute to the corporate goals, the personnel manager has to look after all the functions. In this process of job analysis, job description and job specification assist the personnel manager at every stage. In this process of job analysis, job description and job specification assist the personnel manager at every stage.

90 Manpower planning:- Definition:- Manpower planning is defined as a rational method of assessing the requirements of human resources at different levels in the organization. It ends with proposals for recruitment, retention, or even dismissed.

91 Recruitment:- Recruitment is often called a positive function because the applications are invited as this stage for further scrutiny and short listing. Recruitment is often called a positive function because the applications are invited as this stage for further scrutiny and short listing. Sources of recruitment include: internet, execuite search agencies (head-hunters), advertisements in the media including TV and radio, employment exchanges, university and college campuses, technical and trade journals…. Sources of recruitment include: internet, execuite search agencies (head-hunters), advertisements in the media including TV and radio, employment exchanges, university and college campuses, technical and trade journals….

92 Selection:- The process of identifying the most suitable persons for the organization is called selection. The process of identifying the most suitable persons for the organization is called selection. Selection is called a negative function because at this stage the applications are screened and short listed on the basis of the selection criteria. Selection is called a negative function because at this stage the applications are screened and short listed on the basis of the selection criteria.

93 Stages in selection process:- Initial screening/ short listing Initial screening/ short listing Comprehensive application/ bio data screening Comprehensive application/ bio data screening Aptitude or written tests Aptitude or written tests Group discussion Group discussion Personal interview Personal interview Medical examination Medical examination Employment offer Employment offer

94 Training and Development:- Training and development are essential for achieving organizational goals. Training and development are essential for achieving organizational goals. Development is an activity aimed at career growth rather than immediate performance Development is an activity aimed at career growth rather than immediate performance Training methods:- 2 types Training methods:- 2 types 1. On the job training 2. Off the job training

95 On the job training:- Learning by physically doing the work Job instruction training Job instruction training Experiential training Experiential training Demonstration Demonstration Apprentice training Apprentice training

96 Off the job training:- Provide a relatively broad idea relating to a given job or task. Lectures/tasks and class room instructions Lectures/tasks and class room instructions Conferences Conferences Seminars Seminars Team discussions Team discussions Case study Case study Role-playing Role-playing Programmed instructions Programmed instructions Simulation exercises Simulation exercises Group decision making Group decision making

97 Placement:- After training, the employee is placed in position under the charge of manager. The new recruit is allowed to exercise full authority and is held responsible for the results. After training, the employee is placed in position under the charge of manager. The new recruit is allowed to exercise full authority and is held responsible for the results.

98 Wage and Salary Administration:- Wage and salary administration is the process of fixing wage/ salary for different jobs in the organization through job evaluation, negotiations with the unions. Wage and salary administration is the process of fixing wage/ salary for different jobs in the organization through job evaluation, negotiations with the unions.

99 Promotion, Transfer, Separation:- Promotion:-refers to the advancement of an employee to a job with a higher authority and responsibility. Transfer:-moves an individual employee from one position to another. Separation:-refers to termination of employment. The employee is separated from his job.

100 Performance appraisal:- Definition:- is the process of measuring and evaluating the performance or accomplishments including individual behavior, of an employee on the job front for a given period. Who will appraise: Who will appraise: supervisors, peers, subordinates, managers by themselves, users of services, consultants. supervisors, peers, subordinates, managers by themselves, users of services, consultants.

101 Grievance Handling:- Grievance is any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the attention of management. Grievance is any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the attention of management. A grievance is traceable to perceived non-fulfillment of one expectations from the organization. A grievance is traceable to perceived non-fulfillment of one expectations from the organization.

102 Welfare Administration:- The payment of wages act,1936 The payment of wages act,1936 The minimum wages act, 1948 The minimum wages act, 1948 The workmens compensation act, 1923 The workmens compensation act, 1923 The employee state insurance act,1948 The employee state insurance act,1948 The employee provident fund act,1952 The employee provident fund act,1952

103 Job evaluation:- Definition:-Is the technique of assessing systematically the relative worth of each job. Methods of Job evaluation:-2 types 1. Non-quantitative methods Ranking method Ranking method Job classification or Grading method Job classification or Grading method 2. Quantitative methods points rating method points rating method Factors comparison method Factors comparison method

104 Merit rating:- Is the process of evaluating the relative merit of the person on a given job. Is the process of evaluating the relative merit of the person on a given job.Objectives:- To determine salary increments To determine salary increments Decide who has to be transferred, promoted, or demoted. Decide who has to be transferred, promoted, or demoted. To enhance employee morale. To enhance employee morale. To guide and monitor the performance of those who are lagging behind To guide and monitor the performance of those who are lagging behind

105 Methods of Merit Rating Ranking method Ranking method Paired comparison method Paired comparison method Rating scale Rating scale Forced distribution method Forced distribution method Narrative or essay method Narrative or essay method Management by objectives (MBO) Management by objectives (MBO)

106 UNIT-VI Project Management (PERT/CPM)

107 INDEX UNIT 6 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Project Management ( PERT/CPM)L1 2. Network AnalysisL2 3. Programme Evaluation and Review TechniqueL3 4. (PERT), Critical Path Method ( CPM ), IdentifyL4 5. Critical Path, Probability of Completing the ProjectL5 6. Within given time, Project Cost AnalysisL6 7. Project Crashing, (simple problems)L7

108 108 Project Planning Given: Given: Statement of workStatement of work written description of goals written description of goals work & time frame of project work & time frame of project Work Breakdown StructureWork Breakdown Structure Be able to: develop precedence relationship diagram which shows sequential relationship of project activities Be able to: develop precedence relationship diagram which shows sequential relationship of project activities

109 109 Gantt Chart Popular tool for project scheduling Popular tool for project scheduling Graph with bar representing time for each task Graph with bar representing time for each task Provides visual display of project schedule Provides visual display of project schedule Also shows slack for activities Also shows slack for activities (amount of time activity can be delayed without delaying project)(amount of time activity can be delayed without delaying project)

110 Month Activity Design house and obtain financing Lay foundation Order and receive materials Build house Select paint Select carpet Finish work A Gantt Chart

111 111 CPM/PERT Critical Path Method (CPM) Critical Path Method (CPM) - DuPont & Remington-Rand (1956)- DuPont & Remington-Rand (1956) - deterministic task times- deterministic task times - activity-on-node network construction (AON)- activity-on-node network construction (AON) Project Evaluation & Review Technique (PERT) Project Evaluation & Review Technique (PERT) - U.S. Navy, Booz, Allen & Hamilton- U.S. Navy, Booz, Allen & Hamilton - multiple task time estimates( probabilistic)- multiple task time estimates( probabilistic) - activity-on-arrow network construction (AOA)- activity-on-arrow network construction (AOA)

112 112 Network Construction In AON, nodes represent activities & arrows show precedence relationships In AON, nodes represent activities & arrows show precedence relationships In AOA, arrows represent activities & nodes are events for points in time In AOA, arrows represent activities & nodes are events for points in time An event is the completion or beginning of an activity An event is the completion or beginning of an activity A dummy shows precedence for two activities with same start & end nodes A dummy shows precedence for two activities with same start & end nodes

113 113 The Project Network Network consists of branches & nodes 132 Branch Node

114 114 Simplified Project Network 132 Construct formsPour concrete

115 115 Consider the following table which describes the activities to be done to build a house and its sequence Activity predecessors Duration A Design house and obtain financing- 3 B Lay foundation A 2 C Order and receive materials A 1 D Build house B,C 3 E Select paint B,C 1 F Select carpet E 1 G Finish work D,F 1

116 116 Concurrent Activities Dummy Lay foundation 2 3 Lay foundation Order material Incorrect precedence relationship Correct precedence relationship

117 117 Project Network For A House Lay foundation Design house and obtain financing Order and receive materials Dummy Finish work Select carpet Select paint Build house

118 118 Critical Path A path is a sequence of connected activities running from the start to the end node in a network A path is a sequence of connected activities running from the start to the end node in a network The critical path is the path with the longest duration in the network The critical path is the path with the longest duration in the network A project cannot be completed in less than the time of the critical path (under normal circumstances) A project cannot be completed in less than the time of the critical path (under normal circumstances)

119 119 All Possible Paths path1: = 9 months; the critical path path2: = 8 months path3: = 8 months path4: = 7 months

120 120 Early Times (House building example) ES - earliest time activity can start ES - earliest time activity can start Forward pass starts at beginning of network to determine ES times Forward pass starts at beginning of network to determine ES times EF = ES + activity time EF = ES + activity time ES ij = maximum (EF i )ES ij = maximum (EF i ) EF ij = ES ij + t ijEF ij = ES ij + t ij ES 12 = 0ES 12 = 0 EF 12 = ES 12 + t 12 = = 3 monthsEF 12 = ES 12 + t 12 = = 3 months i j

121 121 Computing Early Times -ES 23 = max (EF 2 ) = 3 months - ES 46 = max (EF 4 ) = max (5,4) = 5 months - EF 46 = ES 46 + t 46 = = 8 months - EF 67 =9 months, the project duration

122 122 Late Times LS - latest time activity can be started without delaying the project LS - latest time activity can be started without delaying the project Backward pass starts at end of network to determine LS times Backward pass starts at end of network to determine LS times LF - latest time activity can be completed without delaying the project LF - latest time activity can be completed without delaying the project LS ij = LF ij - t ijLS ij = LF ij - t ij LF ij = minimum (LS j )LF ij = minimum (LS j )

123 123 Computing Late Times If a deadline is not given take LF of the project to be EF of the last activityIf a deadline is not given take LF of the project to be EF of the last activity LF 67 = 9 monthsLF 67 = 9 months LS 67 = LF 67 - t 67 = = 8 monthsLS 67 = LF 67 - t 67 = = 8 months LF 56 = minimum (LS 6 ) = 8 monthsLF 56 = minimum (LS 6 ) = 8 months LS 56 = LF 56 - t 56 = = 7 monthsLS 56 = LF 56 - t 56 = = 7 months LF 24 = minimum (LS 4 ) = min(5, 6) = 5 monthsLF 24 = minimum (LS 4 ) = min(5, 6) = 5 months LS 24 = LF 24 - t 24 = = 4 monthsLS 24 = LF 24 - t 24 = = 4 months

124 124 Project cost analysis: ES=0, EF=3 LS=0, LF=3 ES=3, EF=5 LS=3, LF=5 ES=5, EF=5 LS=5, LF=5 ES=5, EF=8 LS=5, LF=8 ES=6, EF=7 LS=7, LF=8 ES=8, EF=9 LS=8, LF=9 ES=3, EF=4 LS=4, LF=5 ES=5, EF=6 LS=6, LF=7

125 125 Activity Slack Slack is defined as the LS-ES or LF- EF Slack is defined as the LS-ES or LF- EF Activities on critical path have ES = LS & EF = LF (slack is 0) Activities on critical path have ES = LS & EF = LF (slack is 0) Activities not on critical path have slack Activities not on critical path have slack S ij = LS ij - ES ij S ij = LS ij - ES ij S ij = LF ij - EF ijS ij = LF ij - EF ij S 24 = LS 24 - ES 24 = = 1 monthS 24 = LS 24 - ES 24 = = 1 month

126 126 Total slack/float or Slack of an activity Total slack/ float means the amount of time that an activity can be delayed without affecting the entire project completion time. Total slack/ float means the amount of time that an activity can be delayed without affecting the entire project completion time. The activity on a given path share the maximum possible slack of the activity along that path according to its share. The activity on a given path share the maximum possible slack of the activity along that path according to its share. Sum of the possible slacks of the activities can not exceed the maximum slack along that path. Sum of the possible slacks of the activities can not exceed the maximum slack along that path.

127 127 Free slack of an activity This is the maximum possible delay of an activity which does not affect its immediate successors. This is the maximum possible delay of an activity which does not affect its immediate successors. This is evaluated as This is evaluated as FS ij = ES j – EF ij FS ij = ES j – EF ij

128 128 Activity Slack Data ActivityESLSEFLF Slack (S) Free slack 1-2* * * * * Critical path

129 129 Probability of completing the project within given time:- Activity Activity Design house and Design house and obtain financing obtain financing Lay foundation Lay foundation Order and receive Order and receive materials materials Build house Build house Select paint Select paint Select carpet Select carpet Finish work Finish work

130 130 Probabilistic Time Estimates Reflect uncertainty of activity times Reflect uncertainty of activity times Beta distribution is used in PERT Beta distribution is used in PERT b - a 6 ()() Variance: 2 = a = optimistic estimate m = most likely time estimate b = pessimistic time estimate where, 2 Mean (expected time): a + 4m + b 6 t =

131 131 Example Beta Distributions m = t ba P (time) b a m bta P (time) mtmt

132 132 PERT Example Manual Testing Dummy System Training Dummy System Testing Orientation Position recruiting System development Equipment installation Equipment testing and modification Final debugging System changeover Job training

133 133 Activity Information Time estimates (wks)Mean Time Variance Activitya m bt 2

134 134 Early And Late Times Activityt 2 ESEFLSLF S FS?

135 135 Network With Times ( ) ES=8, EF=8 LS=9, LF=9 ( ) ES=6, EF=9 LS=6, LF=9 ( ) ES=3, EF=5 LS=14, LF=16 ( ) ES=0, EF=3 LS=2, LF=5 ( ) ES=0, EF=6 LS=0, LF=6 ( ) ES=0, EF=8 LS=1, LF= ( ) ES=3, EF=7 LS=5, LF=9 4 ( ) ES=9, EF=13 LS=12, LF=16 ( ) ES=9, EF=16 LS=9, LF=16 ( ) ES=13, EF=13 LS=16 LF=16 ( ) ES=16, EF=25 LS=16 LF=25 ( ) ES=13, EF=17 LS=21 LF=25 ( ) ES=8, EF=13 LS=16 LF=21

136 136 Project Variance Project variance is the sum of the variances along the critical path 2 = = = = = 6.89 weeks = 6.89 weeks

137 137 Probabilistic Network Analysis Determine the probability that a project is completed (project completion time is ) within a specified period of time within a specified period of timewhere = t p = project mean time = t p = project mean time = project standard deviation = project standard deviation x = project time (random variable) Z = number of standard deviations of x from the mean (standardized random variable) the mean (standardized random variable) Z = x -

138 138 Normal Distribution Of Project Time = t p Time x Z Probability

139 139 Standard Normal Distribution Of transformed Project Time =0 Time z Z Probability

140 140 Probabilistic Analysis Example What is the probability that the project is completed within 30 weeks? P(X 30) = ? 2 = 6.89 weeks = 6.89 = 2.62 weeks= 6.89 = 2.62 weeks Z = x - = = 1.91 Z = x - = = 1.91 P(Z 1.91) = ? 2.62

141 Determining Probability From Z Value Z … … = 25Time (weeks)x = 30 P( x < 30 weeks) = =

142 142 What is the probability that the project will be completed within 22 weeks? = 25 x=28Time (weeks)x = 22 P( x< 22 weeks) = P(Z < -1.14) = = Z = = -1.14

143 143 Benefits of PERT/CPM Useful at many stages of project management Useful at many stages of project management Mathematically simple Mathematically simple Uses graphical displays Uses graphical displays Gives critical path & slack time Gives critical path & slack time Provides project documentation Provides project documentation Useful in monitoring costs Useful in monitoring costs

144 144 Advantages of PERT/CPM Networks generated provide valuable project documentation and graphically point out who is responsible for various project activities Applicable to a wide variety of projects and industries Useful in monitoring not only schedules, but costs as well

145 145 Assumes clearly defined, independent, & stable activities Assumes clearly defined, independent, & stable activities Specified precedence relationships Specified precedence relationships Activity times (PERT) follow beta distribution Activity times (PERT) follow beta distribution Subjective time estimates Subjective time estimates Over-emphasis on critical path Over-emphasis on critical path Limitations of PERT/CPM

146 146 Identifying Critical path: Lay foundation Design house and obtain financing Order and receive materials Dummy Finish work Select carpet Select paint Build house

147 Project crashing:- When the two methods like work study, trade off and other possible ones fail, we go for crashing. When the two methods like work study, trade off and other possible ones fail, we go for crashing. Crashing includes: Crashing includes: Normal cost Normal cost Normal Time Normal Time Crash cost Crash cost Crash Time Crash Time Direct cost Direct cost Indirect cost Indirect cost optimization cost optimization cost

148 UNIT-VII Strategic Management Strategic Management

149 INDEX UNIT 7 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Strategic ManagementL1 2. Mission, Goals, Objectives, PolicyL2 3. Strategy, Programmes, ElementsL3 4. Corporate Planning ProcessL4 5. Environmental Scanning, Value Chain AnalysisL5 6. SWOT Analysis, Steps in Strategy Formulation L6 7. Generic Strategy alternativesL7

150 Mission:- Also called overall objective or overall goal Also called overall objective or overall goal Mission statement defines the basic reason for the existence of organization. Mission statement defines the basic reason for the existence of organization. A mission statement defines why the organization exists. It describes the customer needs, both present and future. A mission statement defines why the organization exists. It describes the customer needs, both present and future.

151 Characteristics:- It must be clear enough to trigger action. It must be clear enough to trigger action. It focuses on customer needs and utilities, not products. It focuses on customer needs and utilities, not products. It should be capable of being measured in terms of specific targets. It should be capable of being measured in terms of specific targets. It should focus on limited number of goals. It should focus on limited number of goals. It is a facilitator. It is a facilitator. It provides for shared vision. It provides for shared vision. It should be flexible. It should be flexible. It also identifies the core principles to guide decision making It also identifies the core principles to guide decision making

152 Goals:- Goals are the overall objectives of a department or an organization. Goals are the overall objectives of a department or an organization. Goal is defined as what an organization wants to achieve during or by the end of a given period. Goal is defined as what an organization wants to achieve during or by the end of a given period.

153 Significance:- It helps to define the organization in its environment. It helps to define the organization in its environment. It helps in coordinating decisions It helps in coordinating decisions Goals are more tangible targets. Goals are more tangible targets. It facilitates performance appraisal It facilitates performance appraisal Objective:- Objectives explain why one should do the given job.

154 Policy:- Policy is a broad guideline set by the top management for the purpose of making decisions at different levels in the organization. Policy is a broad guideline set by the top management for the purpose of making decisions at different levels in the organization. Features of policy:- It expresses organizational culture. It expresses organizational culture. It is a guide to managerial performance. It is a guide to managerial performance. It brings out uniformity in action. It brings out uniformity in action. It provides discretion to managers. It provides discretion to managers. It creates and sustains good conduct and character. It creates and sustains good conduct and character.

155 Strategy:- It is drawn from the armed forces. It is drawn from the armed forces. It is a strategic plan that interlocks all aspects of the corporate mission designed to overpower the enemy or the competitor. It is a strategic plan that interlocks all aspects of the corporate mission designed to overpower the enemy or the competitor. Purpose:-A strategy is an operational tool to achieve the goals, corporate mission

156 Programmes:- Refer to the logical sequence of operations to be performed in a given project or job. Refer to the logical sequence of operations to be performed in a given project or job. A programme is based on a set of goals, policies, procedures, rules and task assignments. A programme is based on a set of goals, policies, procedures, rules and task assignments.

157 Corporate planning:- The top level planning associated with realisation of these goals is called corporate planning. The top level planning associated with realisation of these goals is called corporate planning. Definition:- can be defined as the process of formulating the corporate mission, scanning the business environment, evolving strategies, creating necessary infrastructure and assigning resources to achieve the given mission.

158 Elements of corporate planning process:- Corporate Mission Corporate Mission Formulate Strategic objectives Formulate Strategic objectives Appraise internal and external environment Appraise internal and external environment Develop and evaluate alternative strategies Develop and evaluate alternative strategies Select the best strategy Select the best strategy Fix key targets and allot resources to strategic business units (SBUs) Fix key targets and allot resources to strategic business units (SBUs) Develop operating plans Develop operating plans Monitor the performance Monitor the performance Revise, where necessary Revise, where necessary

159 Environmental Scanning:- A major purpose of environmental scanning is to identify and understand the new opportunities in which the company can perform profitability. A major purpose of environmental scanning is to identify and understand the new opportunities in which the company can perform profitability. Environmental scanning involves an analysis and diagnosis of the external and internal environments of the business firm. Environmental scanning involves an analysis and diagnosis of the external and internal environments of the business firm.

160 SWOT Analysis:- Is defined as the rational and overall evaluation of a company's strengths, weaknesses, opportunities and threats which are likely to affect the strategic choices significantly. Is defined as the rational and overall evaluation of a company's strengths, weaknesses, opportunities and threats which are likely to affect the strategic choices significantly. Some sources of threats:- Some sources of threats:- 1. political risks 2. Social risks 3. Economic risks 4. Financial risks

161 Strategy Formulation and Implementation:- Stages: Stages: 1. Identification of mission and objectives 2. Environmental scanning 3. Generic strategy alternatives 4. Strategy variations 5. Strategic choice 6. Allocation of resources and formulation of organizational structure 7. Formulation of plans, policies, programmes and administration 8. Evaluation and control

162 Generic Strategy Alternatives:- There are four strategic alternatives for any business There are four strategic alternatives for any business 1. Expansion strategy 2. Stability strategy 3. Retrenchment strategy 4. Combination strategy

163 UNIT-VIII Contemporary Management Practices

164 INDEX UNIT 8 PPT SLIDES S.NO. TOPIC LECTURE NO. 1. Contemporary Management PracticesL1 2. Basic concepts of MIS, End User ComputingL2 3. Materials Requirement PlanningL3 4. (MRP) Just-In-Time ( JIT ) SystemsL4 5. Total Quality Management ( TQM ), Six sigmaL5 6. Capability Maturity Model ( CMM ) LevelsL6 7. Supply Chain Management Business process L7 8. (ERP) Performance ManagementL8

165 Just-In-Time (JIT) JIT is an alternative to MRP system for certain type of production and as a bridge between management and work guide lines. JIT is an alternative to MRP system for certain type of production and as a bridge between management and work guide lines. JIT is applied systematically can have wide range of implications on marketing and transportation besides economizing production. JIT is applied systematically can have wide range of implications on marketing and transportation besides economizing production. JIT is defined as an approach to minimize waste in manufacturing in the fore of time, energy and errors. JIT is defined as an approach to minimize waste in manufacturing in the fore of time, energy and errors.

166 Total Quality Management (TQM) TQM is a total management system that sets the direction and focus the vision on the company. TQM is a total management system that sets the direction and focus the vision on the company. TQM allows to identify and develop an interaction among corporate problems for solutions. TQM allows to identify and develop an interaction among corporate problems for solutions. TQM specify policy management, team efforts, vendor quality, education and training. TQM specify policy management, team efforts, vendor quality, education and training.

167 Six sigma and Capability Maturity Model (CMM) Six sigma is a tool that must be wielded both at the design stage and at the process stage. Six sigma is a tool that must be wielded both at the design stage and at the process stage. Six sigma is converting defect prove business in to power of performance. Six sigma is converting defect prove business in to power of performance. Objectives of six sigma are: design, operate and control everyone of the processes in such a way that more of them yield more than 3,4defects out of every 1 million units of outputs Objectives of six sigma are: design, operate and control everyone of the processes in such a way that more of them yield more than 3,4defects out of every 1 million units of outputs

168 Supply Chain Management Supply chain is the entire process of accepting a customer order through to delivery of the product to the customer inclusive of supply procurement and production of the product. Supply chain is the entire process of accepting a customer order through to delivery of the product to the customer inclusive of supply procurement and production of the product. SCM is the overall system of coordinating closely with suppliers so that both the firm and its supplier reap the benefit of smaller inventories, some other production and less waste. SCM is the overall system of coordinating closely with suppliers so that both the firm and its supplier reap the benefit of smaller inventories, some other production and less waste.

169 Supply Chain Management SCM is the coordination of purchasing, manufacturing, shipping, and billing operations, often supported by an ERP system. SCM is the coordination of purchasing, manufacturing, shipping, and billing operations, often supported by an ERP system. It can also be said that it is the coordination of all the activities and information flows involved in buying, making and moving a product. It can also be said that it is the coordination of all the activities and information flows involved in buying, making and moving a product.

170 Enterprise Resource Planning (ERP) ERP is an integrated cross functional software that re-engineers manufacturing, distribution, finance, human resources and other basic business processes of a company to improve its efficiency, agility and profitability. ERP is an integrated cross functional software that re-engineers manufacturing, distribution, finance, human resources and other basic business processes of a company to improve its efficiency, agility and profitability.

171 Performance Management Displays the performance outcomes calculated for quarters exiters, where all UI wage data has NOT been posted.Displays the performance outcomes calculated for quarters exiters, where all UI wage data has NOT been posted.

172 Performance Management Example Year To Date Managers Report – Displays only the quarters for which all UI wage data has been posted and whose program year September 30 th deadline has not passed. Supplemental income can still be added in the Year To Date Managers Report outcomes. Select the LWA, program year and program quarter from the drop down boxes. Select view outcomes.Year To Date Managers Report – Displays only the quarters for which all UI wage data has been posted and whose program year September 30 th deadline has not passed. Supplemental income can still be added in the Year To Date Managers Report outcomes. Select the LWA, program year and program quarter from the drop down boxes. Select view outcomes.

173 Business Process Outsourcing (BPO) It is the process of purchasing products or services from another firm. It is the process of purchasing products or services from another firm. It is the practice of contracting computer center operations, telecommunication networks, or applications development to external vendors. It is the practice of contracting computer center operations, telecommunication networks, or applications development to external vendors. Eg:-All major auto companies outsource manufacturing of many components. Eg:-All major auto companies outsource manufacturing of many components.

174 Business process Re-engineering:- Dr. Michael Hammer defines BPR as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed. Dr. Michael Hammer defines BPR as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed.

175 Bench Marking:- Bench marking is a skill, an attitude and practice on excellence. A bridge between staff analysis, design of line programme for continuous improvement. Bench marking is a skill, an attitude and practice on excellence. A bridge between staff analysis, design of line programme for continuous improvement. Bench marking is the first step to effective TQM. It is comparatively new to Indian companies. Bench marking is the first step to effective TQM. It is comparatively new to Indian companies. It is the continuous process of measuring products, services and practices against the competitor. It is the continuous process of measuring products, services and practices against the competitor.

176 Balanced Score Card:- The Balanced Scorecard Toolkit reviews the history of Balanced Scorecard concept, compares this concept with other management concepts, gives a detailed ideas on how to develop, implement and use Balanced Scorecard to improve business productivity. The Balanced Scorecard Toolkit reviews the history of Balanced Scorecard concept, compares this concept with other management concepts, gives a detailed ideas on how to develop, implement and use Balanced Scorecard to improve business productivity.