Unit viii

UNIT VIII

CONTEMPORARY
MANAGEMENT PRACTICES

MIS
MIS – Management Information Systems.
MIS refer to the process of covering the
application of people, technologies and procedures
to solve business problems.
It is defined as ‘research in the information
systems field which examines more than just
the technological system, or just the social
system or even both.’

END USER COMPUTING
It is a group of approaches to computing
that aims at better integrating end users into
the computing environment.
The goal of EUC is to allow unskilled staff to
use expensive and highly skilled knowledge in
their jobs, by putting the knowledge and
expertise into the computer and teaching the
end user how to access it.

MATERIALS REQUIREMENT
PLANNING (MRP)
MRP is a software based production
planning and inventory control system used
to manage manufacturing processes.
The main objectives of MRP system are:
 To ensure the availability of materials and
products for production and delivery to customers.
 To maintain the lowest possible level of inventory
 To plan manufacturing activities, delivery
schedules and purchasing activities.

OUTPUTS OF MRP

 Recommended Production schedule
 Recommended Purchasing schedule
 Messages and reports

Benefits of MRP
 Significantly decreased inventory levels and
corresponding decrease in inventory carrying
costs.
 Few stock shortages which cause production
interruptions and time consuming schedule.
 Savings of labour, material cost, premium
transportation charges.
 Increased effectiveness of production
supervisors.
 Better customer service, meet delivery schedules.

JUST IN TIME (JIT)
Pioneered by Japanese, JIT is an integrated
set of activities designed to achieve high volume
production using minimal inventories of parts
that arrive at the workstation exactly when they
are needed.
When the components arrive as and when
required in a manufacturing operation, it is
called JIT.

BENEFITS OF JIT
 Quality consciousness
 Reduced scrap
 Reduced cycle times
 Smoother flow of production]
 Low inventory
 High productivity
 High worker participation
 Reduced space requirements

TOTAL QUALITY
MANAGEMENT (TQM)
TQM is a management philosophy that seeks
to integrate all organizational functions to focus
on meeting customer needs and other
organization objectives.
In a TQM effort, all members of the
organization participate in improving processes,
products, services and the culture in which they
work.

How products are developed in
TQM?
 Customer driven
 Quality
 process oriented
 Interaction
To achieve TQM, it is necessary that things
are done right the first time and that defects and
waste are eliminated from operations.

SIX SIGMA
Six Sigma is a set of practices developed by
Motorola to systematically improve processes by
eliminating defects.
It refers to the ability of highly capable processes
to produce output within specification. To achieve six
sigma a process must not produce more than 3.4
defects per million opportunities. A six sigma defect is
defined as anything outside of customer specifications.

METHODOLOGIES

 DMAIC
 DMADV

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

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

LEVELS OF CMM

 Level 1: Initial
 Level 2: Repeatable
 Level 3: Defined
 Level 4: Managed
 Level 5: Optimizing

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

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

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

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

PERFORMANCE MANAGEMENT

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

BUSINESS PROCESS
OUTSOURCING (BPO)
When some or all non core processes are
subcontracted, it is called BPO.

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

BUSINESS PROCESS
REENGINEERING (BPR)
It is a management approach aiming at
improvements by means of elevating efficiency
and effectiveness of the processes that exist
within and across organizations.

Clean slate perspective

Performance o ns
a ti
e ct Performance Gap
E xp
m ent
rove
us Imp
o
on t in u
C

Time

Customer Expectation Dilemma

BENCH MARKING
It is the process of comparing an
organization’s operations and internal
processes against those of other organizations
within or outside its industry.
2. Internal
3. Competitive
4. Functional
5. Generic

Benchmarking Methodology
Best Practice
Overlap Competitive
• Industry leaders
• Top performers with
similar operating
characteristics

Functional Internal
• Top performers • Top performers
regardless of industry within company
• Aggressive innovators • Top facilities
utilizing new within company
technology

BALANCED SCORE CARD
It is a strategic feedback system that enables
program managers to make better decisions
faster, smarter and easier than ever before.
Strategy cannot be implemented just with a
system designed for tactics. There is a need for a
tool that can balance among various factors
which share a view of the organization strategy
for its future development. This tool is BSC.

BENEFITS
 It focuses on few key things needed to create
break through performance in the entire
organization.
 It helps to integrate various corporate programs
 It breaks down strategic measures to local levels
so that unit managers, operators and employees
can see what’s required at their level to bring
about excellent performance.

Unit viii

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