SVCE TIRUPATI

COURSE MATERIAL

SUBJECT MANAGEMENT SCIENCE (15A52601)

UNIT 5

COURSE B.TECH

DEPARTMENT ECE

SEMESTER 4-1

G Githanjali Jain
PREPARED BY
Assistant Professor
(Faculty Name/s)

Version V-5

PREPARED / REVISED DATE 26-09-2023

BTECH_ECE-SEM
41
SVCE TIRUPATI

TABLE OF CONTENTS – UNIT 5

S. NO CONTENTS PAGE NO.
1 COURSE OBJECTIVES 1
2 PREREQUISITES 1
3 SYLLABUS 1
4 COURSE OUTCOMES 1
5 CO - PO/PSO MAPPING 1
6 LESSON PLAN 2
7 ACTIVITY BASED LEARNING 2
8 LECTURE NOTES 2
5.1 CONTEMPORARY MANAGEMENT PRACTICES 2
5.2 MATERIALS REQUIREMENT PLANNING (MRP) 3
5.3 JUST-IN-TIME (JIT) SYSTEM 3
5.4 TOTAL QUALITY MANAGEMENT (TQM) 6
5.5 SIX SIGMA 10
5.6 CAPABILITY MATURITY MODELS (CMM) 12
5.7 SUPPLY CHAIN MANAGEMENT 13
5.8 ENTERPRISE RESOURCE PLANNING (ERP) 16
5.9 PERFORMANCE MANAGEMENT 18
5.10 BUSINESS PROCESS OUTSOURCING (BPO) 20
5.11 BUSINESS PROCESS RE-ENGINEERING 21
5.12 BENCH MARKING 22
5.13 BALANCE SCORE CARD 24
9 PRACTICE QUIZ 25
10 ASSIGNMENTS 27
11 PART A QUESTIONS & ANSWERS (2 MARKS QUESTIONS) 27
12 PART B QUESTIONS 28
13 CONTENTS BEYOND THE SYLLABUS 28
14 PRESCRIBED TEXT BOOKS & REFERENCE BOOKS 29

BTECH_ECE-SEM
41
SVCE TIRUPATI
1. Course Objectives
The objectives of this course is to
1. To understand the management practices.
2. To Know about Total Quality Management.
3. To Know about Six Sigma and CMM Models.
4. To Know about Performance Management and Supply Chain Management.

2. Prerequisites
Students should have knowledge on
1. Understand Management Practices.
2. Understand the MIS and ERP.

3. Syllabus
UNIT V
Contemporary Management Practices:

Basic concepts of MIS-Materials Requirement Planning(MRP),Just-In-Time(JIT)System,

Total Quality Management(TQM)-Six Sigma and Capability Maturity Models(CMM),
Supply Chain Management, Enterprise Resource Planning(ERP),Performance
Management, Business Process Outsourcing(BPO), Business Process Re-Engineering
and Bench Marking, Balance Score Card.

4. Course outcomes
1. Apply the knowledge of Contemporary Management Practices.
2. Identify how TQM and CMM Models.
3. Illustrate ERP and BPO Process.
4. Evaluate the Management Practices and Techniques by MNCs.
5. Explain the Concepts of Management Information Systems (MIS).

5. Co-PO / PSO Mapping

Machine
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 P10 PO11 PO12 PSO1 PSO2
Tools
CO1 3 3 2 2

CO2 3 3 2 2

CO3 3 3 2 2

CO4 3 3 2 2

CO5 3 3 2 2

1|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
6. Lesson Plan

Lecture No. Weeks Topics to be covered References

1 CONTEMPORARY MANAGEMENT PRACTICES T1

2 BASIC CONCEPTS OF MIS T1, R1

1
3 MATERIALS REQUIREMENT PLANNING (MRP) T1, R1

4 JUST-IN-TIME (JIT) SYSTEM T1, R1

5 TOTAL QUALITY MANAGEMENT (TQM) T1, R2

6 SIX SIGMA T1, R1

2
7 CAPABILITY MATURITY MODELS (CMM) T1, R1

8 SUPPLY CHAIN MANAGEMENT T1, R1

9 ENTERPRISE RESOURCE PLANNING (ERP) T1, R1

10 PERFORMANCE MANAGEMENT T1, R1

3
11 BUSINESS PROCESS OUTSOURCING (BPO) T1, R1

12 BUSINESS PROCESS RE-ENGINEERING T1, R1

13 BENCH MARKING T1, R1

4
14 BALANCE SCORE CARD T1, R1

7. Activity Based Learning

1. Case- studies
8. Lecture Notes
5.1 CONTEMPORARY MANAGEMENT PRACTICES
A management information system (MIS) is an information system used for decision-making,
and for the coordination, control, analysis, and visualization of information in an organization;
especially in a company.
The study of management information systems examines people and technology in an
organizational context.
In a corporate setting, the ultimate goal of the use of a management information system is to
increase the value and profits of the business
While it can be contested that the history of management information systems date as far
back as companies using ledgers to keep track of accounting, the modern history of MIS can
be divided into five eras originally identified by Kenneth C. Laudon and Jane Laudon in their
seminal textbook Management Information Systems.

2|M S - U N I T - 5
BTECH_ECE-SEM 41
SVCE TIRUPATI
MATERIALS REQUIREMENT PLANNING

Material requirements planning (MRP) is a production planning, scheduling,

and inventory control system used to manage manufacturing processes. Most MRP systems
are software-based, but it is possible to conduct MRP by hand as well.
An MRP system is intended to simultaneously meet three objectives:

 Ensure materials are available for production and products are available for delivery to
customers.
 Maintain the lowest possible material and product levels in store
 Plan manufacturing activities, delivery schedules and purchasing activities.

HISTORY

Prior to MRP, and before computers dominated industry, reorder point (ROP)/reorder-quantity
(ROQ) type methods like EOQ (economic order quantity) had been used in manufacturing
and inventory management.
 MRP was created initially to supply the Polaris program then, in 1964, as a response to
the Toyota Manufacturing Program, Joseph Orlicky developed material requirements
planning (MRP). The first company to use MRP was Black & Decker in 1964, with Dick
Alban as project leader. Orlicky's 1975 book Material Requirements Planning has the
subtitle The New Way of Life in Production and Inventory Management. By 1975, MRP
was implemented in 700 companies. This number had grown to about 8,000 by 1981.
 In 1983, Oliver Wight developed MRP into manufacturing resource planning (MRP II). In
the 1980s, Joe Orlicky's MRP evolved into Oliver Wight's manufacturing resource planning
(MRP II) which brings master scheduling, rough-cut capacity planning, capacity
requirements planning, S&OP in 1983 and other concepts to classical MRP. By 1989,
about one third of the software industry was MRP II software sold to American industry
($1.2 billion worth of software).
JUST – IN – TIME

Just-in-time also known as JIT is an inventory management method whereby labour, material
and goods (to be used in manufacturing) are re-filled or scheduled to arrive exactly when
needed in the manufacturing process.

3|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
JIT is a manufacturing management process. It was first developed and applied in the Toyota
manufacturing plants in order to meet consumer demands with minimum delays. Taiichi Ohno
of Japan is referred as the father of Just In Time. Toyota met the increasing challenges for
survival through a management approach that was entirely focused on people, systems and
plants. Toyota realised the Just In Time approach would only be successful if every person
within the Toyota was committed and involved in it if plant and processes were properly
arranged for maximum efficiency and output, and if the quality of the goods produced and
production programs were scheduled to meet demands exactly.

JIT approach has the capacity, when adequately applied to the organisation, to improve the
competitiveness of the organisation in the market significantly by minimizing wastes and
improving production efficiency and the product quality.

Why JIT concept matters?

The main focus of JIT is to identify and correct the obstacles in the production process. It shows
the hidden problems of inventory. Just In Time method prevents a company from using
excessive inventory and smoothens production operations if a specific task takes longer than
expected or a defective part is discovered in the system. This is also one of the main reason
why the companies (which are opted for JIT) invest in preventive maintenance; when a
part/equipment breaks down, the entire production process stops. The prime objective of JIT is
to increase the inventory turnover and reduce the holding and all connected cost. This
concept was made applicable again by the Japanese firms, placing an order for the material,
the same day for the production of the product. Thus, the Just In Time approach eliminates t he
requirement to carry voluminous inventories and incur heavy carrying other related costs to the
manufacturer. In order to avail the benefits of JIT system, there should be an optimum
synchronization between the manufacturing cycle and delivery of material. Just In Times
requires a good understanding of the supplier and the manufacturer in terms of the quantity
and delivery of the material. In the event of any misunderstanding between the manufacturer
and supplier of the material, the entire production process may come to a halt. One example
of JIT system is a car manufacturer, a manufacturer of the cars operates with bare minimum
inventory levels, as there is a strong reliance on the supply chain to deliver the parts required to
manufacture cars. The parts required in the manufacturing of cars do not arrive before or after
they are needed; rather, they arrive only when they are needed. Successful JIT implementation
wholly depends on how the manufacturer manages its suppliers. A lot of pressure is exert ed on
them, as the supplier of the materials have to be ready with an ample quality material, as the
need arises.

Elements involved in JIT

Continuous improvement:

 Attacking fundamental problems and anything that does not add value to the product.
 Devising systems to identify production and allied problems.

4|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
 Simplicity: Simple systems are simple & easy to understand, easily manageable and the
chances of going wrong are very low.
 A product: oriented layout for less time spent on materials and parts movement.
 Quality control at source to ensure every worker is solely responsible for the quality of
their own produced output.

Eliminating waste: There are seven types of waste:

1. Waste from product defects.

2. Waste of time.
3. Transportation waste.
4. Inventory waste.
5. Waste from overproduction.
6. Processing waste.

Waste minimization is one of the primary objectives of Just In Time system. This needs effective
inventory management throughout the whole supply chain. Initially, a manufacturing entity will
seek to reduce inventory and enhance operations within its own organization. In an attempt to
reduce waste attributed to ineffective inventory management, SIX principles in relation to JIT
have been stated by Schniededans and they are:

1. Reduce buffer inventory.

2. Try for zero inventory.
3. Search for reliable suppliers.
4. Reduce lot size and increase the frequency of orders.
5. Reduce purchasing cost.
6. Improve material handling.

Advantages & Disadvantages of Just-In-Time Systems

Advantages of Adopting Just-In-Time include:

 Just-in-time approach keeps stock holding costs to a minimum level. The released
capacity results in better utilization of space and bears a favourable impact on the
insurance premiums and rent that would otherwise be needed to be made.
 The just-in-time approach helps to eliminate waste. Chances of expired or out of date
products; do not arise at all.
 As under this management method, only essential stocks which are required for to
manufacturing are obtained, thus less working capital is required. Under this approach, a

5|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
minimum re-ordering level is set, and only when that level is reached, order for fresh
stocks are made and thus this becomes a boon to inventory management too.
 Due to the abovementioned low level of stocks held, the ROI (Return On Investment? of
the organizations be high in general.
 As this approach works on a demand-pull basis, all goods produced would be sold, and
thus it includes changes in demand with unanticipated ease. This makes JIT appealing
today, where the market demand is fickle and somewhat volatile.
 JIT emphasizes the 'right-first-time' concept, so that rework costs and the cost of
inspection is minimized.
 By following JIT greater efficiency and High-quality products can be derived.
 Better relationships are fostered along the production chain under a JIT system.
 Higher customer satisfaction due to continuous communication with the customer.
 Just In Time adoption result in the elimination of overproduction.

Disadvantages of Adopting JIT Systems

 JIT approach states ZERO tolerance for mistakes, making re-work difficult in practice, as
inventory is kept to a minimum level.
 A successful application of JIT requires a high reliance on suppliers, whose performance
is outside the purview of the manufacturer.
 Due to no buffers in JIT, production line idling and downtime can occur which would
have an unfavourable effect on the production process and also on the finances.
 Chances are quite high of not meeting an unexpected increase in orders as there will be
no excess inventory of finished goods.
 Transaction costs would be comparatively high depending upon the frequency of
transactions.
 JIT may have certain negative effects on the environment due to the frequent deliveries
as the same would result in higher use and cost of transportation, which in turn would
consume more fossil fuels.
TOTAL QUALITY MANAGEMENT

In order to understand “Total quality management”, first we have to understand what does
'Quality' actually mean?
'Quality' is generally referred to a parameter which decides the inferiority or superiority of a
product or service. It is a measure of goodness to understand how a product meets its
specifications. Usually, when the expression "quality" is used, we think in the terms of an
excellent product or service that meets or even exceeds our expectations. These expectations
are based on the price and the intended use of the goods or services. In simple words, when a

6|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
product or service exceeds our expectations we consider it to be of good quality. Therefore, it
is somewhat of an intangible expression based upon perception.
W. Edwards Deming, Armand V. Feigenbaum and Joseph M. Juran jointly developed the
concept of TQM. Initially, TQM originated in the manufacturing sector but it can be applied to
all organizations. The concept of TQM states that every employee works towards the
improvement of work culture, services, systems, processes and so on to ensure a continuing
success of the organization. TQM is a management approach for an organization, depending
upon the participation of all its members (including its employees) and aiming for long-term
success through customer satisfaction. This approach is beneficial to all members of the
organization and to the society as well.

Definition of TQM

Total Quality Management is defined as a customer-oriented process and aims for continuous
improvement of business operations. It ensures that all allied works (particularly work of
employees) are toward the common goals of improving product quality or service quality, as
well as enhancing the production process or process of rendering of services. However, the
emphasis is put on fact-based decision making, with the use of performance metrics to monitor
progress.

The key principles of Total Quality Manament

Commitment from the management:

 Plan (drive, direct)

 Do (deploy, support, and participate)

 Check (review)

 Act (recognize, communicate, revise)

Employee Empowerment

 Training

 Excellence team

 Measurement and recognition

 Suggestion scheme

Continuous Improvement

 Systematic measurement

 Excellence teams

 Cross-functional process management

 Attain, maintain, improve standards

Customer Focus

7|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
 Partnership with Suppliers

 Service relationship with internal customers

 Customer-driven standards

 Never compromise quality

Process Oriented

 Thinking about the process

 Handling of the process

 Processes which are result oriented

Decision Making Based on Facts Only and Not on Opinions

 Integrated, strategic and systematic approach to ensure the entire organisation is

aligned

 Communication must be open and at all levels of the organisation.

Benefits of Total Quality Management

The benefits arising from the implementation of a Total Quality Management in an organization
are:

 This will increase the awareness of quality culture within the organization.

 A special emphasis on teamwork will be achieved.

 TQM will lead to a commitment towards continuous improvement.

Essential requirements for successful implementation of TQM

 Commitment: Quality improvement (in all aspects) must be everyones' job in the
organization. An apparent commitment from the top management, breaking down the
barriers for continuous quality improvement and steps required to provide an
environment for changing attitudes must be provided. Training and support for this
should be extended.

 Culture: There should be proper training to effect the changes in attitude and culture.

 Continuous Improvement: Recognize improvement as a continuous process, and not

merely a one-off program.

 Customer Focus: Perfection in service with zero defects and full satisfaction to the end-
user whether it’s internal or external.

 Control: Ensure monitoring and control checks for any deviation from the intended
course of implementation.

1. Plan

2. Do

8|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
3. Check

4. Act

Planning Phase: This phase is the most crucial phase of total quality management. Under this
phase, employees have to come up with their respective queries and problems which need to
be addressed. The employees apprise the management of different challenges which they
are facing in their day to day operations and also analyze the root cause of the problem. They
need to do the required research and collect significant data which would help them find
solutions to all the problems.

Doing Phase: In this phase, a solution for the identified problems in the planning phase is
developed by the employees. Strategies are devised and implemented to crack down the
challenges faced by employees. The efficiency and effectiveness of solutions and strategies
are also evaluated in this stage.

Checking Phase: Under this phase, a comparison analysis of before and after is done in order
to assess the effectiveness of the processes and measure the results.
Acting Phase: This is the last phase of the cycle, in this phase employees document their results
and prepare themselves to address other problems.

Beliefs about Total Quality Management

Following are the universal Total Quality Management beliefs:

 Satisfaction of the customer/owner is the measure of quality.

 Everyone is an owner.

 Continuous Quality improvement must be there.

 Analysis of the processes is the key to quality improvement.

 Constant TQM is not possible without consistent, active and enabling leadership by
managers at all levels.

 It is important to incessantly improve the quality of the products and services which we
are supposed to provide to our customers/owners.
A successful TQM implementation requires a significant training for the employees involved in it.
Since the training program can take employees away from their day to day work, this
eventually can have a negative short-term impact. Also, since Total Quality Management
tends to result in a consistent series of incremental changes, it can lead to creating an
unpleasant response from those employees who prefer the existing system, or employees who
are afraid of losing their jobs because of it. Total Quality Management works best in an
environment where there is strong support and commitment from the management.

9|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI

SIX SIGMA
Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc. The method uses
a data-driven review to limit mistakes or defects in a corporate or business process. Six Sigma
emphasizes cycle-time improvement while at the same time reducing manufacturing defects to
a level of no more than 3.4 occurrences per million units or events. In other words, the system is a
method to work faster with fewer mistakes.

Six Sigma points to the fact that, mathematically, it would take a six-standard-deviation event
from the mean for an error to happen. Because only 3.4 out of a million randomly (and normally)
distributed, events along a bell curve would fall outside of six-standard-deviations (where sigma
stands in for "standard deviation").

Six Sigma represents a management ideology, which focuses on statistical improvements to a

business process. It advocates for qualitative measurements of success over qualitative markers.
Therefore, practitioners of Six Sigma are those business people who use statistics, financial
analysis, and project management to achieve improved business functionality.

Six Sigma evolved to define numerous ideas within the business sphere and is sometimes
confusing. First, it's a statistical benchmark. Any business process, which produces less than 3.4
defects per 1 million chances, is considered efficient. A defect is anything produced outside of
consumer satisfaction.

Second, it is a training and certification program, which teaches the core principles of Six Sigma.
Practitioners may achieve the Six Sigma certification belt levels, ranging from white belt to black
belt. Finally, it's a philosophy, which promotes the idea that all business processes can be
measured and optimized.

How Six Sigma Began

In the 19th century, German mathematician and physicist Carl Fredrich Gauss developed the
bell curve. By creating the concept of what a normal distribution looks like, the bell curve
became an early tool for finding errors and defects in a process.

In the 1920s, American physicist, engineer and statistician Walter Shewhart expanded on this
idea and demonstrated that “sigma imply where a process needs improvement,” according
to “The Complete Business Process Handbook: Body of Knowledge From Process Modeling to
BPM Vol. 1” by Mark von Rosing, August-Wilhelm Scheer and Henrik von Scheel.

In the 1980s, Motorola brought Six Sigma into the mainstream by using the methodology to
create more consistent quality in the company’s products, according to “Six Sigma” by Mikel
Harry and Richard Schroeder.

Motorola engineer Bill Smith eventually became one of the pioneers of modern Six Sigma,
creating many of the methodologies still associated with Six Sigma in the late 1980s. The system is
influenced by, but different than, other management improvement strategies of the time,
including Total Quality Management and Zero Defects.

10|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
Does it work? Motorola reported in 2006 that the company had saved $17 billion using Six Sigma.

What Six Sigma Means

Experts credit Shewhart with first developing the idea that any part of process that deviates
three sigma from the mean requires improvement. One sigma is one standard deviation.

The Six Sigma methodology calls for bringing operations to a “six sigma” level, which essentially
means 3.4 defects for every one million opportunities. The goal is to use continuous process
improvement and refine processes until they produce stable and predictable results.

Six Sigma is a data-driven methodology that provides tools and techniques to define and
evaluate each step of a process. It provides methods to improve efficiencies in a business
structure, improve the quality of the process and increase the bottom-line profit.

The Importance of People in Six Sigma

A key component of successful Six Sigma implementation is buy-in and support from executives.
The methodology does not work as well when the entire organization has not bought in.

Another critical factor is the training of personnel at all levels of the organization. White Belts and
Yellow Belts typically receive an introduction to process improvement theories and Six Sigma
terminology. Green Belts typically work for Black Belts on projects, helping with data collection
and analysis. Black Belts lead projects while Master Black Belts look for ways to apply Six Sigma
across an organization.

Methodologies of Six Sigma

There are two major methodologies used within Six Sigma, both of which are composed of five
sections, according to the 2005 book “JURAN Institute Six Sigma Breakthrough and Beyond” by
Joseph A. De Feo and William Barnard.

DMAIC: The DMAIC method is used primarily for improving existing business processes. The letters
stand for:

 Define the problem and the project goals

 Measure in detail the various aspects of the current process

 Analyze data to, among other things, find the root defects in a process

 Improve the process

 Control how the process is done in the future

DMADV: The DMADV method is typically used to create new processes and new products or
services. The letters stand for:

 Define the project goals

 Measure critical components of the process and the product capabilities

11|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
 Analyze the data and develop various designs for the process, eventually picking the best
one

 Design and test details of the process

 Verify the design by running simulations and a pilot program, and then handing over the
process to the client

CAPABILITY MATURITY MODELS

The Capability Maturity Model (CMM) is a methodology used to develop and refine an
organization's software development process. The model describes a five-level evolutionary
path of increasingly organized and systematically more mature processes.

CMM was developed and is promoted by the Software Engineering Institute (SEI), a research
and development center sponsored by the U.S. Department of Defense. SEI was founded in
1984 to address software engineering issues and, in a broad sense, to advance software
engineering methodologies. More specifically, SEI was established to optimize the process of
developing, acquiring, and maintaining heavily software-reliant systems for the Department of
Defense.

Because the processes involved are equally applicable to the software industry as a whole, SEI
advocates industry-wide adoption of the CMM.

The CMM is similar to ISO 9001, one of the ISO 9000 series of standards specified by the
International Organization for Standardization (ISO). The ISO 9000 standards specify an
effective quality system for manufacturing and service industries; ISO 9001 deals specifically
with software development and maintenance. The main difference between the two systems
lies in their respective purposes: ISO 9001 specifies a minimal acceptable quality level for
software processes, while the CMM establishes a framework for continuous process
improvement and is more explicit than the ISO standard in defining the means to be employed
to that end.

CMM's Five Maturity Levels of Software Processes

 At the initial level, processes are disorganized, even chaotic. Success is likely to depend
on individual efforts, and is not considered to be repeatable, because processes would
not be sufficiently defined and documented to allow them to be replicated.

 At the repeatable level, basic project management techniques are established, and
successes could be repeated, because the requisite processes would have been made
established, defined, and documented.

 At the defined level, an organization has developed its own standard software process
through greater attention to documentation, standardization, and integration.

 At the managed level, an organization monitors and controls its own processes through
data collection and analysis.

12|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
 At the optimizing level, processes are constantly being improved through monitoring
feedback from current processes and introducing innovative processes to better serve
the organization's particular needs.

SUPPLY CHAIN MANAGEMENT

In commerce, supply-chain management (SCM), the management of the flow of goods and
services, involves the movement and storage of raw materials, of work-in-process inventory,
and of finished goods from point of origin to point of consumption. Interconnected or
interlinked networks, channels and node businesses combine in the provision
of products and services required by end customers in a supply chain.Supply-chain
management has been defined as the "design, planning, execution, control, and monitoring
of supply chain activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with demand and
measuring performance globally." SCM practice draws heavily from the areas of industrial
engineering, systems engineering, operations
management, logistics, procurement, information technology, and marketing [6] and strives for
an integrated approach. Marketing channels play an important role in supply chain
management. Current research in supply chain management is concerned with topics related
to sustainability and risk management, among others. Some suggest that the “people
dimension” of SCM, ethical issues, internal integration, transparency/visibility, and human
capital/talent management are topics that have, so far, been underrepresented on the
research agenda

Successful SCM requires a change from managing individual functions to integrating activities
into key supply-chain processes. In an example scenario, a purchasing department places
orders as its requirements become known. The marketing department, responding to customer
demand, communicates with several distributors and retailers as it attempts to determine ways
to satisfy this demand. Information shared between supply chain partners can only be fully
leveraged through process integration.
Supply-chain business-process integration involves collaborative work between buyers and
suppliers, joint product development, common systems, and shared information. According to
Lambert and Cooper (2000), operating an integrated supply chain requires a continuous
information flow. However, in many companies, management has concluded that optimizing
product flows cannot be accomplished without implementing a process approach. The key
supply-chain processes stated by Lambert (2004) are:

 Customer relationship management

 Customer service management
 Demand management style
 Order fulfillment
 Manufacturing flow management
 Supplier relationship management
 Product development and commercialization

13|M S - U N I T - 5
BTECH_IT-SEM 41
SVCE TIRUPATI
 Returns management
Much has been written about demand management.Best-in-class companies have similar
characteristics, which include the following:

 Internal and external collaboration

 Initiatives to reduce lead time
 Tighter feedback from customer and market demand
 Customer-level forecasting
One could suggest other critical supply business processes that combine these processes
stated by Lambert, such as:
Customer service management process
Customer relationship management concerns the relationship between an organization and its
customers. Customer service is the source of customer information. It also provides the
customer with real-time information on scheduling and product availability through interfaces
with the company's production and distribution operations. Successful organizations use the
following steps to build customer relationships:

 determine mutually satisfying goals for organization and customers

 establish and maintain customer rapport
 induce positive feelings in the organization and the customers
Procurement process
Strategic plans are drawn up with suppliers to support the manufacturing flow management
process and the development of new products. In firms whose operations extend globally,
sourcing may be managed on a global basis. The desired outcome is a relationship where
both parties benefit and a reduction in the time required for the product's design and
development. The purchasing function may also develop rapid communication systems, such
as electronic data interchange (EDI) and Internet linkage, to convey possible requirements
more rapidly. Activities related to obtaining products and materials from outside suppliers
involve resource planning, supply sourcing, negotiation, order placement, inbound
transportation, storage, handling, and quality assurance, many of which include the
responsibility to coordinate with suppliers on matters of scheduling, supply continuity
(inventory), hedging, and research into new sources or programs. Procurement has recently
been recognized as a core source of value, driven largely by the increasing trends to
outsource products and services, and the changes in the global ecosystem requiring stronger
relationships between buyers and sellers.[27]
Product development and commercialization
Here, customers and suppliers must be integrated into the product development process in
order to reduce the time to market. As product life cycles shorten, the appropriate products
must be developed and successfully launched with ever-shorter time schedules in order for
firms to remain competitive. According to Lambert and Cooper (2000), managers of the
product development and commercialization process must:

14|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
1. coordinate with customer relationship management to identify customer-
articulated needs;
2. select materials and suppliers in conjunction with procurement; and
3. develop production technology in manufacturing flow to manufacture and
integrate into the best supply chain flow for the given combination of product
and markets.
Integration of suppliers into the new product development process was shown to have a major
impact on product target cost, quality, delivery, and market share. Tapping into suppliers as a
source of innovation requires an extensive process characterized by development of
technology sharing, but also involves managing intellectual[28] property issues.
Manufacturing flow management process
The manufacturing process produces and supplies products to the distribution channels based
on past forecasts. Manufacturing processes must be flexible in order to respond to market
changes and must accommodate mass customization. Orders are processes operating on a
just-in-time (JIT) basis in minimum lot sizes. Changes in the manufacturing flow process lead to
shorter cycle times, meaning improved responsiveness and efficiency in meeting customer
demand. This process manages activities related to planning, scheduling, and supporting
manufacturing operations, such as work-in-process storage, handling, transportation, and time
phasing of components, inventory at manufacturing sites, and maximum flexibility in the
coordination of geographical and final assemblies postponement of physical distribution
operations.
Physical distribution
This concerns the movement of a finished product or service to customers. In physical
distribution, the customer is the final destination of a marketing channel, and the availability of
the product or service is a vital part of each channel participant's marketing effort. It is also
through the physical distribution process that the time and space of customer service become
an integral part of marketing. Thus it links a marketing channel with its customers (i.e., it links
manufacturers, wholesalers, and retailers).
Outsourcing/partnerships
This includes not just the outsourcing of the procurement of materials and components, but
also the outsourcing of services that traditionally have been provided in-house. The logic of this
trend is that the company will increasingly focus on those activities in the value chain in which
it has a distinctive advantage and outsource everything else. This movement has been
particularly evident in logistics, where the provision of transport, storage, and inventory control
is increasingly subcontracted to specialists or logistics partners. Also, managing and controlling
this network of partners and suppliers requires a blend of central and local involvement:
strategic decisions are taken centrally, while the monitoring and control of supplier
performance and day-to-day liaison with logistics partners are best managed locally.
Performance measurement
Experts found a strong relationship from the largest arcs of supplier and customer integration to
market share and profitability. Taking advantage of supplier capabilities and emphasizing a
long-term supply chain perspective in customer relationships can both be correlated with a

15|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
firm's performance. As logistics competency becomes a critical factor in creating and
maintaining competitive advantage, measuring logistics performance becomes increasingly
important, because the difference between profitable and unprofitable operations becomes
narrower.
A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance
measurement realized improvements in overall productivity. According to experts[according to
whom?] , internal measures are generally collected and analyzed by the firm, including cost,

customer service, productivity, asset measurement, and quality. External performance is

measured through customer perception measures and "best practice" benchmarking.
Warehousing management
To reduce a company's cost and expenses, warehousing management is concerned with
storage, reducing manpower cost, dispatching authority with on time delivery, loading &
unloading facilities with proper area, inventory management system etc.
Workflow management
Integrating suppliers and customers tightly into a workflow (or business process) and thereby
achieving an efficient and effective supply chain is a key goal of workflow management.

5.8. ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) is the integrated management of core business processes,
often in real-time and mediated by software and technology.
ERP is usually referred to as a category of business-management software — typically a suite of
integrated applications—that an organization can use to collect, store, manage, and interpret
data from these many businessactivities.
ERP provides an integrated and continuously updated view of core business processes using
common databases maintained by a database management system. ERP systems track
business resources—cash, raw materials, production capacity—and the status of business
commitments: orders, purchase orders, and payroll. The applications that make up the system
share data across various departments (manufacturing, purchasing, sales, accounting, etc.)
that provide the data.[1] ERP facilitates information flow between all business functions and
manages connections to outside stakeholders.[2]

16|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
Enterprise system software is a multibillion-dollar industry that produces components supporting
a variety of business functions. IT investments have become the largest category of capital
expenditure in United States-based businesses over the past[which?] decade. Though early ERP
systems focused on large enterprises, smaller enterprises increasingly use ERP systems.[3]
The ERP system integrates varied organizational systems and facilitates error-free transactions
and production, thereby enhancing the organization's efficiency. However, developing an ERP
system differs from traditional system development.[4] ERP systems run on a variety of computer
hardware and network configurations, typically using a database as an information repository
ORIGIN

The Gartner Group first used the abbreviation ERP in the 1990s [6][7] to extend upon the
capabilities of material requirements planning (MRP), and the later manufacturing resource
planning (MRP II),[8][9] as well as computer-integrated manufacturing. Without replacing these
terms, ERP came to represent a larger whole that reflected the evolution of application
integration beyond manufacturing.[10]
Not all ERP packages developed from a manufacturing core; ERP vendors variously began
assembling their packages with finance-and-accounting, maintenance, and human-resource
components. By the mid-1990s ERP systems addressed all core enterprise functions.
Governments and non–profit organizations also began to use ERP systems
CHARACTERISTICS

ERP systems typically include the following characteristics:

 An integrated system
 Operates in (or near) real time
 A common database that supports all the applications
 A consistent look and feel across modules
 Installation of the system with elaborate application/data integration by the Information
Technology (IT) department, provided the implementation is not done in small steps[20]
 Deployment options include: on-premises, cloud hosted, or SaaS
FUNCTIONAL AREAS

An ERP system covers the following common functional areas. In many ERP systems, these are
called and grouped together as ERP modules:

 Finance & Accounting: General Ledger, Fixed Assets, payables including vouchering,
matching and payment, receivables Cash Management and collections, cash
management, Financial Consolidation
 Management Accounting: Budgeting, Costing, cost management, activity based costing
 Human resources: Recruiting, training, rostering, payroll, benefits, retirement and pension
plans, diversity management, retirement, separation

17|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
 Manufacturing: Engineering, bill of materials, work orders, scheduling, capacity, workflow
management, quality control, manufacturing process, manufacturing projects,
manufacturing flow, product life cycle management
 Order Processing: Order to cash, order entry, credit checking, pricing, available to
promise, inventory, shipping, sales analysis and reporting, sales commissioning.
 Supply chain management: Supply chain planning, supplier scheduling, product
configurator, order to cash, purchasing, inventory, claim
processing, warehousing (receiving, putaway, picking and packing).
 Project management: Project planning, resource planning, project costing, work
breakdown structure, billing, time and expense, performance units, activity management
 Customer relationship management: Sales and marketing, commissions, service, customer
contact, call center support — CRM systems are not always considered part of ERP systems
but rather Business Support systems (BSS).
 Data services : Various "self–service" interfaces for customers, suppliers and/or employees

PERFORMANCE MANAGEMENT

Performance management is a set of processes and systems aimed at developing an employee

so they perform their job to the best of their ability.

Performance management is not aimed at improving all skills. In fact, good performance
management focuses on improving the skills that help an employee do their job better. This
means that it is about the strategic alignment of one’s work to the group and organizational
goals.

Because performance management is a process that aims to align individual goals with group
and organizational goals, it is a strategic and formal process. This means that key individual
career decisions, like bonuses, promotions, and dismissals are all linked to this process

Performance management can further be described as a periodic, systematic, and objective

process.

Example

Let’s look at an example of an organization that went through a period of intense change and
was able to leverage performance management to come up ahead of its competition. I
changed the characteristics and details for anonymization purposes but the example remains, in
essence, the same.

This company, Xylon, is a mid-sized consultancy firm and has long been a well-respected name
within their industry. Customers frequently approached the firm and consultancy projects were
usually long-term engagements that were very profitable for the company. However, after the
most recent financial crisis, customers became a lot less willing to work on long-term consultancy
projects, opting for cheaper, short-term projects with well-defined KPIs instead.

18|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
To survive, Xylon’s strategy had to change. After extensive research and interviews with
customers, the board of directors defined three new key drivers for better business results.

 The position of the consultant had changed. They were no longer seen as experts who
know best. Instead, the customer was looking for a trusted colleague who would work
alongside their employees and was able to integrate their knowledge into new business
processes and transfer know-how to employees.

 Consultants had to develop commercial skills to see tangible opportunities for ‘upsells’. This
required them to constantly be on the lookout for opportunities where Xylon could add
further value for the client.

 Consultants had to learn to productize services. When leaving the client organization, this
digital product would stay in place, creating stable and predictable revenue for Xylon.

These key drivers required a tremendous shift in the way consultants work and the skill they
needed to do their work. The attitude of the consultant had to change, the consultant had to
develop a more commercial mindset, and the consultant had to learn about digital
productization of services – something they hadn’t worked with before.

The board of directors clearly understood that the key to this change would be changing the
people who ran the organization. By translating these new requirements into skills for consultants,
Xylon was able to implement a new performance management policy that focused on three
elements.

1. New HR approach. Traditionally well-defined internal roles changed based on the new
skills required to be a successful consultant. A successful consultant at Xylon was a trusted
advisor, was commercially savvy, and was able to conceptualize a vision for value-adding
digital products.

2. Individual training & coaching. Employees were assessed, trained, and coached on their
commercial and digital skills. Individuals who excelled were promoted quicker, clear
benchmarks for individual performance were set, and suboptimal performance would
result in either a demotion or an exit.

3. Changing hierarchy. Because of these shifts, the traditional hierarchy at Xylon also
changed. People who were more commercially and digitally savvy were promoted faster
and more frequent, while people who weren’t able to develop these skills quickly were let
go of. This fundamentally changed the company’s values and identity into something that
represented the type of consultant the company needed much more closely.

Despite the fact that this big change in company culture led to a lot of initial tension and people
quitting, it resulted in Xylon being regarded as one of the most innovative firms in the market
within a few years after implementing this new policy and creating a much more stable stream
of revenue, ensuring its competitiveness for the future.

19|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
How to do performance management

There are many ways to conduct performance management. In literature, there are two
approaches when it comes to performance evaluation.

 Behavioral approach: Employees are evaluated based on their behaviors and effort
made. Behaviors are identified and evaluated. This approach is suitable for giving
detailed feedback on behaviors and by mapping desirable future behaviors. This
approach is suitable when individual results are hard to measure. Examples include
individual players in a team, support staff, and (oftentimes) HR professionals.

 Result-oriented approach: In this approach, employees are evaluated based on

objective criteria. The focus is not on input but output, both in terms of quality and
quantity. This approach is suitable when there are multiple ways to do the job. The end-
result is key, not how it has been done. Examples include call center employees who have
specific success metrics, as well as sales professionals. The evaluation of lawyers and
accountants is also highly result-oriented, as they keep track of their billable hours.

BUSINESS PROCESS OUTSOURCING

Business process outsourcing (BPO) is a method of subcontracting various business-related

operations to third-party vendors. Although BPO originally applied solely to manufacturing
entities, such as soft drink manufacturers that outsourced large segments of their supply chains,
BPO now applies to the outsourcing of services, as well.

Understanding Business Process Outsourcing (BPO)

Many businesses, from small startups to large companies, opt to outsource processes, as new
and innovative services are increasingly available in today's ever-changing, highly competitive
business climate.

Broadly speaking, companies adopt BPO practices in the two main areas of back
office and front office operations. Back office BPO refers to a company contracting its core
business support operations such as accounting, payment processing, IT services, human
resources, regulatory compliance, and quality assurance to outside professionals who ensure the
business runs smoothly.

By contrast, front office BPO tasks commonly include customer-related services such as tech
support, sales, and marketing.

The breadth of a business' BPO options depends on whether it contracts its operations within or
outside the borders of its home country. BPO is deemed "offshore outsourcing" if the contract is
sent to another country where there is political stability, lower labor costs, and/or tax savings. A
U.S. company using an offshore BPO vendor in Singapore is one such example of offshore
outsourcing.

BPO is referred to as "near shore outsourcing" if the job is contracted to a neighboring country.
Such would be the case if a U.S. company partnered with a BPO vendor located in Canada.

20|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
A third option, known as "onshore outsourcing" or "domestic sourcing," occurs when BPO is
contracted within the company’s own country, even if its vendor partners are located in
different cities or states.

BPO is often referred to as information technology-enabled services (ITES) because it relies on

technology/infrastructure that enables external companies to efficiently perform their roles.

Special Considerations

The Attraction of Business Process Outsourcing (BPO)

Companies are often drawn to BPO because it affords them greater operational flexibility. By
outsourcing non-core and administrative functions, companies can reallocate time and
resources to core competencies like customer relations and product leadership, which
ultimately results in advantages over competing businesses in its industry.

BPO offers businesses access to innovative technological resources that they might not
otherwise have exposure to. BPO partners and companies constantly strive to improve their
processes by adopting the most recent technologies and practices.

Since the U.S. corporate income tax is among the highest in the developed world, American
companies benefit from outsourcing operations to countries with lower income taxes and
cheaper labor forces as viable cost reduction measures.

BPO also offers companies the benefits of quick and accurate reporting, improved productivity,
and the ability to swiftly reassign its resources, when necessary.

The Disadvantages of BPO

While there are many advantages of BPO, there are also disadvantages. A business that
outsources its business processes may be prone to data breaches or have communication issues
that delay project completion, and such businesses may underestimate the running costs of BPO
providers.

BUSINESS PROCESS RE-ENGINEERING

Business process re-engineering is the radical redesign of business processes to achieve dramatic
improvements in critical aspects like quality, output, cost, service, and speed. Business process
reengineering (BPR) aims at cutting down enterprise costs and process redundancies on a very
huge scale.

Is business process reengineering (BPR) same as business process improvement (BPI)?

On the surface, BPR sounds a lot like business process improvement (BPI). However, there are
fundamental differences that distinguish the two. BPI might be about tweaking a few rules here
and there. But reengineering is an unconstrained approach to look beyond the defined
boundaries and bring in seismic changes.

21|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
While BPI is an incremental setup that focuses on tinkering with the existing processes to improve
them, BPR looks at the broader picture. BPI doesn’t go against the grain. It identifies the process
bottlenecks and recommends changes in specific functionalities. The process framework
principally remains the same when BPI is in play. BPR, on the other hand, rejects the existing rules
and often takes an unconventional route to redo processes from a high-level management
perspective.

BPI is like upgrading the exhaust system on your project car. Business Process Reengineering, BPR
is about rethinking the entire way the exhaust is handled.

Five steps of business process reengineering (BPR)

To keep business process reengineering fair, transparent, and efficient, stakeholders need to get
a better understanding of the key steps involved in it. Although the process can differ from one
organization to another, these steps listed below succinctly summarize the process:

1. Map the current state of your business processes

Gather data from all resources–both software tools and stakeholders. Understand how the
process is performing currently.

2. Analyze them and find any process gaps or disconnects

Identify all the errors and delays that hold up a free flow of the process. Make sure if all details
are available in the respective steps for the stakeholders to make quick decisions.

3. Look for improvement opportunities and validate them

Check if all the steps are absolutely necessary. If a step is there to solely inform the person,
remove the step, and add an automated email trigger.

4. Design a cutting-edge future-state process map

Create a new process that solves all the problems you have identified. Don’t be afraid to design
a totally new process that is sure to work well. Designate KPIs for every step of the process.

5. Implement future state changes and be mindful of dependencies

Inform every stakeholder of the new process. Only proceed after everyone is on board and
educated about how the new process works. Constantly monitor the KPIs.

BENCH MARKING

Benchmarking is a process of measuring the performance of a company’s products, services, or

processes against those of another business considered to be the best in the industry, aka “best
in class.” The point of benchmarking is to identify internal opportunities for improvement. By
studying companies with superior performance, breaking down what makes such superior
performance possible, and then comparing those processes to how your business operates, you
can implement changes that will yield significant improvements.

22|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
That might mean tweaking a product’s features to more closely match a competitor’s offering,
or changing the scope of services you offer, or installing a new customer relationship
management (CRM) system to enable more personalized communications with customers.

There are two basic kinds of improvement opportunities: continuous and dramatic. Continuous
improvement is incremental, involving only small adjustments to reap sizeable advances.
Dramatic improvement can only come about through reengineering the whole internal work
process.

Step-by-Step Benchmarking

Benchmarking is a simple, but detailed, five-step process:

 Choose a product, service, or internal department to benchmark

 Determine which best-in-class companies you should benchmark against – which

organizations you’ll compare your business to

 Gather information on their internal performance, or metrics

 Compare the data from both organizations to identify gaps in your company’s
performance

 Adopt the processes and policies in place within the best-in-class performers

Benchmarking will point out what changes will make the most difference, but it’s up to you to
actually put them in place.

First Steps

In order to benchmark anything, you need to have quantitative data available to study. That
means breaking down internal processes to calculate performance metrics. Quantify
everything, because only quantifiable information can be accurately compared.

Key Benefits

In addition to helping companies become more efficient and profitable, benchmarking has
other benefits, too, such as:

 Improving employee understanding of cost structures and internal processes

 Encouraging team-building and cooperation in the interests of becoming more

competitive

 Enhancing familiarity with key performance metrics and opportunities for improvement
company-wide

In essence, benchmarking helps employees understand how one small piece of a company’s
processes or products can be the key to major success, just as one employee’s contributions
can lead to a big win.

23|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI

BALANCE SCORE CARD

A balanced scorecard is a strategic management performance metric used to identify and

improve various internal business functions and their resulting external outcomes. Balanced
scorecards are used to measure and provide feedback to organizations. Data collection is
crucial to providing quantitative results as managers and executives gather and interpret the
information and use it to make better decisions for the organization.

Understanding Balanced Scorecards

Accounting academic Dr. Robert Kaplan and business executive and theorist Dr. David Norton
first introduced the balanced scorecard. The Harvard Business Review first published it in the 1992
article "The Balanced Scorecard—Measures That Drive Performance." Both Kaplan and Norton
took previous metric performance measures and adapted them to include nonfinancial
information.

The balanced scorecard model reinforces good behavior in an organization by isolating four
separate areas that need to be analyzed. These four areas, also called legs, involve learning
and growth, business processes, customers, and finance.

The balanced scorecard is used to attain objectives, measurements, initiatives, and goals that
result from these four primary functions of a business. Companies can easily identify factors
hindering business performance and outline strategic changes tracked by future scorecards.

The balanced scorecard can provide information about the company as a whole when viewing
company objectives. An organization may use the balanced scorecard model to implement
strategy mapping to see where value is added within an organization. A company also uses a
balanced scorecard to develop strategic initiatives and strategic objectives.

Characteristics of the Balanced Scorecard Model

Information is collected and analyzed from four aspects of a business:

1. Learning and growth are analyzed through the investigation of training and knowledge
resources. This first leg handles how well information is captured and how effectively
employees use the information to convert it to a competitive advantage over the industry.

2. Business processes are evaluated by investigating how well products are manufactured.
Operational management is analyzed to track any gaps, delays, bottlenecks, shortages,
or waste.

3. Customer perspectives are collected to gauge customer satisfaction with quality, price,
and availability of products or services. Customers provide feedback about their
satisfaction with current products.

24|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
4. Financial data, such as sales, expenditures, and income are used to understand financial
performance. These financial metrics may include dollar amounts, financial ratios, budget
variances, or income targets.

These four legs encompass the vision and strategy of an organization and require active
management to analyze the data collected. The balanced scorecard is thus often referred to
as a management tool rather than a measurement tool.

9. Practice Quiz
1) JIT System is sometimes referred to adapting
(a)Linear system
(b)Lean production system
(c)TQM
(d)None
2) EOQ is
(a)Equal Order Quantity
(b)Estimated overall Quantity
(c)Economic Order Quantity
(d)Equilibrium Open Quantity
3) Six Sigma is registered trademark of
(a)GE
(b)United Bank of Switzerland
(c)Honeywell International
(d)Yes Bank
4) TQM was first coined by
(a)Toyota
(b) US Naval Air Systems Command
(c) General
Electric
(d)Mitsubishi
5) DMADV is used for
(a)New Process Design
(b)Existing process design
(c)Vendor development
(d)Stock turnover
6) CMMI is an acronym for
(a) Capability Maturity Model Improvement
(b)Capability Maturity Model Integration
(c)Capability Maturity Model Initialization
(d)Capability Maturity Model Initiation
7) Shojinka means
(a) A flexible workforce
(b)Rigid workforce
(c) Careful workforce
(d)skillful workforce
8) Balanced scorecard was developed by
(a)Robert Kaplan
(b) David Norton
(c) Robert Kaplan & David Norton
(d) Herald Koontz & Weihrich

25|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI

9) The process of comparing organizations operations and internal processes against other
other organizations in/outside industry is called
(a) TQM
(b) Bench Marking
(c) SQC
(d) Balanced Scorecard
10) In Six Sigma Methodolgy, DMAIC is to improve
(a) New Business Process
(b) Existing Business process
(c) Future business processes
(d)vendor development
11) Jikoda means
(a) Machines are maintained by workers
(b)Machine monitoring taken care of by consultants
(c) Providing machines with autonomous capability to use judgments
(d) minimization of work
12) Supply sourcing and negotiation is part of
(a)CRM
(b) Production planning
(c) Procurement
(d) BPO
13) The technique of improvements by means of elevating efficiency and effectiveness of
processes is called
(a)BPR
(b)BPO
(C) ITES
(d) MBO
14) In the context of JIT, Muda means
(a)unevenness
(b) Waste
(c) Excess
(d)creativity
15) Inbound and outbound logistics form_
(a) operational activity
(b) Tactical activity
(c) Strategic activity
(d)expansion activity

26|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI

10. ASSIGNMENTS

S.No Question BL CO
1 Explain briefly about six sigma and capacity maturity models? 2 1

Explain about the contemporary management practices taking

2 3 2
place in Indian business model?

What is performance management? Explain its importance?

3 2 1

4 What is bench marking? Explain the process of bench marking? 2 2

5 Explain about Balance scored card? 3 1

11. Part A- Question & Answers

S.No Question& Answers BL CO

1 What is the need of MIS?
A management information system (MIS) is an information system
used for decision-making, and for the coordination, control, 1 1
analysis, and visualization of information in an organization;
especially in a company.

2 What are the objectives of MRP?

Material requirements planning (MRP) is a production planning,
scheduling, and inventory control system used to manage
manufacturing processes. Most MRP systems are software-based,
but it is possible to conduct MRP by hand as well. 1 1
3 JIT introduced in which country?
Just-in-time (JIT) manufacturing, also known as just-in-time
production or the Toyota Production System (TPS) is a 1
1
methodology aimed primarily at reducing times within production
system as well as response times from suppliers and to customers.

4 Advantages of TQM.
Total Quality management is defined as a continuous effort by 1 1
the management as well as employees of a particular
organization to ensure long term customer loyalty and customer
satisfaction. Remember, one happy and satisfied customer brings
ten new customers along with him whereas one disappointed
individual will spread bad word of mouth and spoil several of your
existing as well as potential customers.

27|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI
5 What is mean by supply chain management?
Supply Chain Strategies are the critical backbone to 1 1
Business Organizations today. Effective Market coverage,
Availability of Products at locations that hold the key to
revenue recognition depends upon the effectiveness of
Supply Chain Strategy rolled out.

12. Part B

S.No Question BL CO
1 Explain briefly about Performance management and capacity 1 1
maturity models?

2 Explain about the contemporary management practices taking 2 1

place in Indian business model?

3 What is six sigma? Explain its importance? 2 1

4 What is bench marking? Explain the process of bench marking? 3 1

5 Explain about Balance scored card and its importance? 3 1

13. Contents beyond the Syllabus

1. HRIS- Human Resource Information Systems-Human Resource Information System
(HRIS) is a system designed to supply information required for effective
management of HR in an organization. Objectives of HRIS
Some of the common objectives of HRIS in operation in various enterprises are
as follows:
1. To make the desired information available in the right form to the right person
and at the right time.
2. To supply the required information at a reasonable cost.
3. To use the most efficient methods of processing data.
4. To provide necessary security and secrecy for important and / or confidential
Information.
2. What are the skills of HR manager?
The skills of HR manager are as follows:
Behavioral Skill
Negotiation Skills
Planning
Leadership Skill
Interpersonal Skill
Communication Skills
Interview Skill
Stress Management
Condition monitoring of Machine Tool

28|M S - U N I T - 5
BTECH_ECE-SEM
41
SVCE TIRUPATI

14. Prescribed Text Books & Reference Books

Text Book
1. A.R Aryasri: Management Science, TMH, 2013
2. Kumar /Rao/Chalill „Introduction to Management Science‟ Cengage, Delhi, 2012.

References:
1. A.K. Gupta “Engineering Management”, S. CHAND, New Delhi, 2016.
2. Koontz & Weihrich: Essentials of Management, 6/e, TMH, 2005.

29|M S - U N I T - 5
BTECH_ECE-SEM
41