CONTEMPORARY CONTEMPORARY MANAGEMENT MANAGEMENT

PRACTICESPRACTICES

UNIT VIIIUNIT VIII

MISMIS

MIS – Management Information Systems.MIS – Management Information Systems.

MIS refer to the process of covering MIS refer to the process of covering the application of people, technologies and the application of people, technologies and procedures to solve business problems.procedures to solve business problems.

It is defined as ‘research in the It is defined as ‘research in the information systems field which information systems field which examines more than just the examines more than just the technological system, or just the social technological system, or just the social system or even both.’system or even both.’

END USER COMPUTINGEND USER COMPUTING

It is a group of approaches to It is a group of approaches to computing that aims at better computing that aims at better integrating end users into the integrating end users into the computing environment. computing environment.

The goal of EUC is to allow unskilled The goal of EUC is to allow unskilled staff to use expensive and highly skilled staff to use expensive and highly skilled knowledge in their jobs, by putting the knowledge in their jobs, by putting the knowledge and expertise into the knowledge and expertise into the computer and teaching the end user computer and teaching the end user how to access it.how to access it.

MATERIALS MATERIALS REQUIREMENT PLANNING REQUIREMENT PLANNING

(MRP)(MRP)MRP is a software based production MRP is a software based production planning and inventory control system planning and inventory control system used to manage manufacturing used to manage manufacturing processes.processes.

The main objectives of MRP system are:The main objectives of MRP system are: To ensure the availability of materials and To ensure the availability of materials and

products for production and delivery to products for production and delivery to customers.customers.

To maintain the lowest possible level of To maintain the lowest possible level of inventoryinventory

To plan manufacturing activities, delivery To plan manufacturing activities, delivery schedules and purchasing activities.schedules and purchasing activities.

OUTPUTS OF MRPOUTPUTS OF MRP

Recommended Production scheduleRecommended Production schedule Recommended Purchasing scheduleRecommended Purchasing schedule Messages and reportsMessages and reports

Benefits of MRPBenefits of MRP Significantly decreased inventory levels Significantly decreased inventory levels

and corresponding decrease in inventory and corresponding decrease in inventory carrying costs.carrying costs.

Few stock shortages which cause Few stock shortages which cause production interruptions and time production interruptions and time consuming schedule.consuming schedule.

Savings of labour, material cost, Savings of labour, material cost, premium transportation charges.premium transportation charges.

Increased effectiveness of production Increased effectiveness of production supervisors.supervisors.

Better customer service, meet delivery Better customer service, meet delivery schedules.schedules.

JUST IN TIME (JIT)JUST IN TIME (JIT)

Pioneered by Japanese, JIT is an Pioneered by Japanese, JIT is an integrated set of activities designed to integrated set of activities designed to achieve high volume production using achieve high volume production using minimal inventories of parts that minimal inventories of parts that arrive at the workstation exactly when arrive at the workstation exactly when they are needed.they are needed.

When the components arrive as When the components arrive as and when required in a manufacturing and when required in a manufacturing operation, it is called JIT.operation, it is called JIT.

BENEFITS OF JITBENEFITS OF JIT

Quality consciousnessQuality consciousness Reduced scrapReduced scrap Reduced cycle timesReduced cycle times Smoother flow of production]Smoother flow of production] Low inventoryLow inventory High productivityHigh productivity High worker participationHigh worker participation Reduced space requirementsReduced space requirements

TOTAL QUALITY TOTAL QUALITY MANAGEMENT (TQM)MANAGEMENT (TQM)

TQM is a management philosophy TQM is a management philosophy that seeks to integrate all organizational that seeks to integrate all organizational functions to focus on meeting customer functions to focus on meeting customer needs and other organization objectives.needs and other organization objectives.

In a TQM effort, all members of the In a TQM effort, all members of the organization participate in improving organization participate in improving processes, products, services and the processes, products, services and the culture in which they work.culture in which they work.

How products are How products are developed in TQM?developed in TQM?

Customer drivenCustomer driven QualityQuality process orientedprocess oriented InteractionInteraction

To achieve TQM, it is necessary To achieve TQM, it is necessary that things are done right the first that things are done right the first time and that defects and waste are time and that defects and waste are eliminated from operations.eliminated from operations.

SIX SIGMASIX SIGMA

Six Sigma is a set of practices developed Six Sigma is a set of practices developed by Motorola to systematically improve by Motorola to systematically improve processes by eliminating defects.processes by eliminating defects.

It refers to the ability of highly capable It refers to the ability of highly capable processes to produce output within processes to produce output within specification. To achieve six sigma a process specification. To achieve six sigma a process must not produce more than 3.4 defects per must not produce more than 3.4 defects per million opportunities. A six sigma defect is million opportunities. A six sigma defect is defined as anything outside of customer defined as anything outside of customer specifications.specifications.

METHODOLOGIESMETHODOLOGIES

DMAICDMAIC DMADVDMADV

CAPABILITY MATURITY CAPABILITY MATURITY MODELMODEL

Capability Maturity Model is a collection Capability Maturity Model is a collection of instructions an organization can follow of instructions an organization can follow with the purpose to gain better control with the purpose to gain better control over its software development process.over its software development process.

The CMM ranks software development The CMM ranks software development organizations in a hierarchy of five levels. organizations in a hierarchy of five levels. Each level has a progressively greater Each level has a progressively greater capability of producing quality software.capability of producing quality software.

LEVELS OF CMMLEVELS OF CMM

Level 1: Initial Level 1: Initial Level 2: RepeatableLevel 2: Repeatable Level 3: DefinedLevel 3: Defined Level 4: ManagedLevel 4: Managed Level 5: OptimizingLevel 5: Optimizing

SUPPLY CHAIN SUPPLY CHAIN MANAGEMENTMANAGEMENT

SCM is the process of planning, SCM is the process of planning, implementing and controlling the implementing and controlling the operations of the supply chain as operations of the supply chain as efficiently as possible.efficiently as possible.

The purpose of supply chain The purpose of supply chain management is to improve trust and management is to improve trust and collaboration among supply chain collaboration among supply chain partners, thus improving inventory partners, thus improving inventory visibility and inventory velocity.visibility and inventory velocity.

ENTERPRISE RESOURCE ENTERPRISE RESOURCE PLANNING (ERP)PLANNING (ERP)

ERP integrates all data and processes ERP integrates all data and processes of an organization into a unified system. It of an organization into a unified system. It uses multiple components of computer uses multiple components of computer software and hardware to achieve the software and hardware to achieve the integration.integration.

ERP delivers a single database that ERP delivers a single database that contains all data for the software contains all data for the software modules, which include manufacturing, modules, which include manufacturing, SCM, financials, projects, HR, CRM, data SCM, financials, projects, HR, CRM, data warehousing etc.warehousing etc.

PERFORMANCE PERFORMANCE MANAGEMENTMANAGEMENT

PM is a strategic and integrated PM is a strategic and integrated approach to delivering sustained approach to delivering sustained success to organizations by success to organizations by improving the performance of the improving the performance of the people who work in them and by people who work in them and by developing their capabilities as developing their capabilities as teams and individuals.teams and individuals.

BUSINESS PROCESS BUSINESS PROCESS OUTSOURCING (BPO)OUTSOURCING (BPO)

When some or all non core When some or all non core processes are subcontracted, it is processes are subcontracted, it is called BPO. called BPO.

The main aim of BPO is to allow The main aim of BPO is to allow the company to invest more time, the company to invest more time, money and human resources into core money and human resources into core activities and building strategies activities and building strategies which fuel company growth.which fuel company growth.

BUSINESS PROCESS BUSINESS PROCESS REENGINEERING (BPR)REENGINEERING (BPR)

It is a management approach It is a management approach aiming at improvements by means of aiming at improvements by means of elevating efficiency and elevating efficiency and effectiveness of the processes that effectiveness of the processes that exist within and across exist within and across organizations.organizations.

Clean slate perspectiveClean slate perspective

Customer Expectation

Dilemma

Time

Perf

orm

an

ce

Expect

ations

Continuous Improvement

Performance Gap

BENCH MARKINGBENCH MARKING

It is the process of comparing an It is the process of comparing an organization’s operations and organization’s operations and internal processes against those of internal processes against those of other organizations within or outside other organizations within or outside its industry.its industry.

1.1. InternalInternal

2.2. CompetitiveCompetitive

3.3. FunctionalFunctional

4.4. GenericGeneric

Competitive

• Industry leaders• Top performers with

similar operatingcharacteristics

Functional

• Top performersregardless of industry

• Aggressive innovatorsutilizing newtechnology

Internal

• Top performers within company

• Top facilities within company

Best PracticeOverlap

Benchmarking Methodology

BALANCED SCORE BALANCED SCORE CARDCARD

It is a strategic feedback system that It is a strategic feedback system that enables program managers to make enables program managers to make better decisions faster, smarter and better decisions faster, smarter and easier than ever before.easier than ever before.

Strategy cannot be implemented just Strategy cannot be implemented just with a system designed for tactics. There with a system designed for tactics. There is a need for a tool that can balance is a need for a tool that can balance among various factors which share a among various factors which share a view of the organization strategy for its view of the organization strategy for its future development. This tool is BSC.future development. This tool is BSC.

BENEFITSBENEFITS

It focuses on few key things needed to It focuses on few key things needed to create break through performance in the create break through performance in the entire organization.entire organization.

It helps to integrate various corporate It helps to integrate various corporate programsprograms

It breaks down strategic measures to It breaks down strategic measures to local levels so that unit managers, local levels so that unit managers, operators and employees can see what’s operators and employees can see what’s required at their level to bring about required at their level to bring about excellent performance.excellent performance.

Balance Score Balance Score CardCard