December 31, 2017

MBA Core Management Knowledge - One Year Revision Schedule


The blog contains articles on all management subjects developed using the most popular book on the subject. You can read articles on the sybject of your choice or use the following schedule.


One Year MBA Knowledge Revision Plan

Revision Schedule


Current Month -  April  


January  - February  - March  - April  - May   -   June

July       - August     - September  - October  - November  - December


Subject Details of Each Month



January  (Principles of Management)
February (P.of M & Marketing Management from 23 Feb 2015 )

March (Mktg. Mgmt. & Operations Management from 17 March 2015)
April  (Supply Chain Management and Financial & Cost Accounting)

May  (Management Accounting & Organizational Behavior)
June (Innovation, Industrial Engineering and Economics)

July  (Economics, Engineering Economics, & Managerial Ethics)
August    (Statistics, Quality and Six Sigma, OR & BRM)

September (HRM, Mentoring, Training, Maintenance, Energy & Environment Management)  -  October  (Information Technology and Management Information Systems, Logistics - Warehousing and Transport)

November (Strategic Management & Financial Management)
December (Business Laws, Negotiation, Taxes and Government Relations)

Subject                                               Revision Period

Principles of Management                15 January   to   19 February

Marketing Management                    22 February to   16 March

Operations Management                   17 March     to    2 April

Supply Chain Management                 3 April       to  15 April

Financial & Cost Accounting            16 April       to  12 May




I am participating in April A to Z Blogging Challenge and I am writing on the theme Top Management Challenges.

Top Management Challenges.


Article 1: Awareness of Environment
http://nraomtr.blogspot.com/2017/04/awareness-of-environment.html




Updated 1 April 2017.  22 February 2017,  10 December 2015




November 10, 2017

Management Theory and Practice - Bulletin Board - 2017

Engineering and Management News - A Daily Publication  - Management Principles and Propositions

HBR Business Blogs

November 2017


Transformations by New CEOs
https://www.bcg.com/publications/2017/transformations-people-organization-that-work-why.aspx?linkId=44591301

Amoeba Management - Kazuo Inamori - Full Web Page on the topic with various links

http://global.kyocera.com/inamori/management/amoeba/

27 August 2016

Why Companies Can’t Perceive Customer Insights and Can't Turn the limited Customer Insight into Growth

BCG Perspectives
16 August 2016

Many companies spend more time looking inward. Check in your next internal meeting, record on one sdie each mention of an internal topic, such as financial or operational performance, plans, metrics, organization, employees, or culture. On the other side, record each discussion of an external topic, related to competition such as technology, innovation, purpose, testing, social media conversations, or topics related to customer,  customers’ behaviors, needs, and wants. You will be surprised to see that internal topics dominate the external topics. Hence people spend more time in preparing for answering internal issues related questions and spend less time customers and competition.  This is not a good way of allocating top management and middle management resources. At each meeting, the priority area is to be decided and adequate time is to be given to that area. There has to be balance in various activities of the organisation. This principle was given by Henri Fayol way back in 1920s.
https://www.bcgperspectives.com/content/articles/center-customer-insight-marketing-sales-why-companies-cant-turn-customer-insights-growth/

Values of Business Schools


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Updated 12 November 2017, 20 October 2016,  27 August 2016,  18 September 2015

October 23, 2017

The Strategic Management Process - Review Notes





The tasks of developing  and executing company strategies are the heart and soul of managing a business enterprise and winning in the marketplace.

A company's strategy is the plan management is using to acquire a market position and  conduct its operations. This involves  attracting and pleasing customers, competing successfully against and the current and future rivals, and achieving organizational objectives.

The central thrust of a company's strategy is undertaking moves to build and strengthen the company's long-term competitive position in its chose target market segments as well as in the overall market and  gain a competitive advantage over rivals that then becomes a company's ticket to above-average profitability and performance. A company's strategy typically evolves over time as a blend of (1) proactive and purposeful actions on the part of company managers and (2) as-needed reactions to unanticipated developments and fresh market conditions.

Closely related to the concept of strategy is the concept of a company's business model.

A company's business model is management's story line for how and why the company's product offerings and competitive approaches will generate a revenue stream and have an associated cost structure that produces attractive earnings and return on investment—in effect, a company's business model sets forth the economic logic for making money in a particular business, given the company's current strategy.  Business model must have a demand model, that explains how the company's product or products sell a particular quantity at a particular price. The model has to satisfy the criterion that as price increases demand decreases for each product. The cost model is also a part of the business model. It tells how a particular quantity of a product is produced and distributed at a particular cost. Thus profit is determined from the demand model and cost model for a specified price. The company then has the option to select a price that maximizes the profit or a price that maximizes the demand given a minimum profit to be achieved.

A winning strategy fits the circumstances of a company's external situation and its internal resource strengths and competitive capabilities, builds competitive advantage, and boosts company performance.

Crafting and executing strategy are core management functions and especially the core top management functions in an organization. Whether a company wins or loses in the marketplace is directly attributable to the potential of that company's strategy and the zeal and controls with which the strategy is executed.

Managerial Process



The managerial process of crafting and executing a company's strategy consists of five interrelated and integrated phases:

Developing a strategic vision of where the company needs to head and what its future product/market/technology focus should be. This managerial step provides long-term direction, infuses the organization with a sense of purposeful action.


Objectives are derived from the  strategic mission and  vision and larger in number and they address the aspirations of all the stakeholders. Goals spell out how much of what kind of performance by when.  Companies need to both financial objectives and goals and strategic objectives and goals. A balanced scorecard approach provides the basis for both.


Crafting a strategy to achieve the objectives and move the company along the strategic course that management has charted. Crafting strategy is concerned principally with forming responses to changes under way in the external environment, devising competitive moves and market approaches aimed at producing sustainable competitive advantage, building competitively valuable competencies and capabilities, and uniting the strategic actions initiated in various parts of the company. The more that a company's operations cut across different products, industries, and geographical areas, the more that strategy making becomes a collaborative effort involving managers and company personnel at many organizational levels. The total strategy that emerges in such companies is really a collection of strategic actions and business approaches initiated partly by senior company executives, partly by the heads of major business divisions, partly by functional-area managers, and partly by operating managers on the frontlines.

The larger and more diverse the operations of an enterprise, the more points of strategic initiative it has and the more managers and employees at more levels of management that have a relevant strategy-making role.

Three Levels of Strategy


A single-business enterprise has three levels of strategy—business strategy for the company as a whole, functional-area strategies for each main area within the business, and operating strategies undertaken by lower-echelon managers to flesh out strategically significant aspects for the company's business and functional area strategies.

Four Levels of Strategy


In diversified, multibusiness companies, the strategy-making task involves four distinct types or levels of strategy: corporate strategy for the company as a whole, business strategy (one for each business the company has diversified into), functional-area strategies within each business, and operating strategies. Typically, the strategy-making task is more top-down than bottom-up, with higher-level strategies serving as the guide for developing lower-level strategies.


Implementing and executing the chosen strategy efficiently and effectively. 


Managing the implementation and execution of strategy is an operations-oriented (Marketing, Production, Sales, Distribution and Service), make-things-happen activity aimed at shaping the performance of core business activities in a strategy-supportive manner. Management's handling of the strategy implementation process can be considered successful if  the company meets or beats its strategic and financial performance targets and shows good progress in achieving management's strategic vision.


Evaluating performance and initiating corrective adjustments in vision, long-term direction, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities.

This phase of the strategy management process is the trigger point for deciding whether to continue or change the company's vision, objectives, strategy, and/or strategy execution methods.
A company's strategic vision plus its objectives plus its strategy equals a strategic plan for coping with industry and competitive conditions, outcompeting rivals, and addressing the challenges and issues that stand as obstacles to the company's success.

Activities -  The Managers have to do


Successful managers have to do several things in leading the drive for good strategy execution and operating excellence.

First, they stay on top of things. They keep a finger on the organization's pulse by spending considerable time outside their offices, listening and talking to organization members, coaching, cheerleading, and picking up important information.

Second, they are active and visible in putting constructive pressure on the organization to achieve good results. Generally, this is best accomplished by promoting an esprit de corps that mobilizes and energizes organizational members to execute strategy in a competent fashion and deliver the targeted results.

Third, they keep the organization focused on operating excellence by championing innovative ideas for improvement and promoting the use of best practices to ensure value creating activities are performed in a first-rate fashion.

Fourth, they exert their clout in developing competencies and competitive capabilities that enable better execution.

Fifth, they serve as a role model in displaying high ethical standards, and they insist that company personnel conduct the company's business ethically and in a socially responsible manner. They demonstrate unequivocal and visible commitment to the ethics enforcement process.

Sixth and finally, when a company's strategy execution effort is not delivering good results and the organization is not making measured progress toward operating excellence, it is the leader's responsibility to step forward and push corrective actions.

Role of The Company Board


Boards of directors have a duty to shareholders to play a vigilant role in overseeing management's handling of a company's strategy-making, strategy-executing process. A company's board is obligated to (1) critically appraise and ultimately approve strategic action plans; (2) evaluate the strategic leadership skills of the CEO and others in line to succeed the incumbent CEO; (3) institute a compensation plan for top executives that rewards them for actions and results that serve stakeholder interests, most especially those of shareholders; and (4) ensure that the company issues accurate financial reports and has adequate financial controls.





References
http://highered.mcgraw-hill.com/sites/0073530425/student_view0/chapter1/
17th edition site

http://highered.mcgraw-hill.com/sites/0073530425/student_view0/chapter2/


Updated 25 October 2017,  13 August 2016,  21 May 2012

October 21, 2017

Psychology for Managers - Introduction

Manufacturing Management - Text Books - Bibliography














Early Books on Manufacturing Management



Factory Organization and Administration
Hugo Dimer, First Professor of Industrial Engineering, Pennsylavania State College
First edition: 1910
Third edition digital copy
http://www.archive.org/stream/factoryorganiza00diemgoog#page/n10/mode/2up

Profit Making in Shop and Factory Management
Charles U. Carpenter, 1908
http://www.archive.org/stream/cu31924002748576#page/n1/mode/2up

Shop Management
Frederick Winslow Taylor, 1911
http://www.archive.org/stream/shopmanagement00taylgoog#page/n10/mode/2up

Factory and Office Administration
Lee Galloway, 1918
http://www.archive.org/stream/factoryofficeadm00galliala#page/n3/mode/2up

Factory Management Wastes: And How to Prevent Them
James F. Whiteford, 1919
http://www.archive.org/stream/factorymanagemen00whit#page/n7/mode/2up

Plant Management
Dexter S. Kimball, 1919
http://www.archive.org/stream/cu31924031222627#page/n7/mode/2up






2017

Advances in Production Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected Papers

Irenilza Nääs, Oduvaldo Vendrametto, João Mendes Reis, Rodrigo Franco Gonçalves, Márcia Terra Silva, Gregor von Cieminski, Dimitris Kiritsis
Springer, 15-Mar-2017 - Computers - 962 pages


This book constitutes the refereed post-conference proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2016, held in Iguassu Falls, Brazil, in September 2016.

The 117 revised full papers were carefully reviewed and selected from 164 submissions. They are organized in the following topical sections: computational intelligence in production management; intelligent manufacturing systems; knowledge-based PLM; modelling of business and operational processes; virtual, digital and smart factory; flexible, sustainable supply chains; large-scale supply chains; sustainable manufacturing; quality in production management; collaborative systems; innovation and collaborative networks; agrifood supply chains; production economics; lean manufacturing; cyber-physical technology deployments in smart manufacturing systems; smart manufacturing system characterization; knowledge management in production systems; service-oriented architecture for smart manufacturing systems; advances in cleaner production; sustainable production management; and operations management in engineer-to-order manufacturing.

https://books.google.co.in/books?id=khBhDgAAQBAJ

Manufacturing Management - Introduction

Planning, organizing and controlling manufacture of goods is manufacturing management. Chase et al. define operations management as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. Operations management is a discipline that includes production of goods and services.

Once the company decides to manufacture and sell a product, the specialized responsibility of the manufacturing management starts. But the decision to manufacture a product is based on feasibility analysis. During this analysis also manufacturing management issues are involved. Therefore, the persons doing strategic analysis or corporate planning analysis include persons from manufacturing management discipline with manufacturing management knowledge and bring into the analysis or decision making process the manufacturing view point.

Manufacturing is carried out through processes. A process is any actvity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs. The output could be for an external customer for sale or for an internal customer to use for further processing. In some cases it can be for consumption in the same process or by the consumption by the producer hmself. Manufacturing processes convert materials into goods that have a physical form. The transformation processes change the materials on one or more of the following dimensions:

1. Physical properties
2. Shape
3. Fixed dimension
4. Surface finish
5. Joining parts and materials.

The outputs from manufacturing processes can stored and transported in anticipation of future demand (Krajewski et al. 2007).

Important Developments in Manufacturing Management



Developments in manufacturing management include certain technical developments that made manufacturing systems more productive and flexible.

Shop floor management guidelines provided by F.W. Taylor were landmarks in the field of manufacturing management. Taylor further development Scientific management philosophy. Taylor also brought out the importance of scientific studies in manufacturing processes improvement or design. His studies on machining were considered a very important research contribution. Taylor also introduced time study based best practice identification and training all operators in the best practice. He advocated that manufacturing managers have the responsibility of developing manufacturing methods and training operators in best methods.

Frank Gilbreth developed study of motions of operators to develop efficient operator movements either to do manual work or to operate machines. He and Lilian Gilbreth also introduced the concept of fatigue and proposed ways to prevent the negative consequences of fatigue in operators as well as in manufacturing systems.

Henry Ford introduced moving assembly lines that revolutionized the production systems. Henry Gantt developed charts that helped scheduling production activities.

Harry Emerson wrote a book on principles of efficiency and it became part of industrial engineering and scientific management literature. Focus on efficiency in systems in general and especially manufacturing systems sharpened.

F.W. Harris developed theory of batch quantities in production and purchase. Walter Shewart developed procedures for using statistical thinking in process control. He created methods for determining when to change machine setups based on the measurements of samples taken at random intervals.

Hawthorne studies became another landmark development in manufacturing management. They brought out the importance of psychological variables in improving or decreasing productivity of operators. Unfortunately, the proponents of this line of thought have not integrated their conclusions with the ideas of scientific management appropriately. They chose to attack themes of scientific management. Manufacturing management might have had a different state today, if scientific management movement that had engineering foundations and human relations school of thought that had psychology as its foundation were appropriately integrated by human relations school.

Development of operations research (OR) helped manufacturing managers to understand and optimize their systems better. Study of operations research became a part of studies of manufacturing managers. Use of computers was started in recording store related transactions and data and it was extended to shop floor transaction data. The use was further extended to calculation of batch quantities and preparation of loading sheets and schedules. MRP and MRP II came into existence and they got extended into ERP systems.

In 1970s, scholars in USA recognized that Japanese had used their manufacturing management philosophies, strategies and techniques as a strategic capability to win market shares in global markets. A new era of manufacturing strategy thought developed in manufacturing management. Automation increased in factories. With this multi-skilling of operators came into picture as now operators have more time and can operate more machines. As group layout became more popular, an operator was required to operate different machines which were in series. Total quality management, total productive maintenance, total cost management became the strategies. JIT or lean systems became the best practice production systems. While improvement everywhere reached its zenith, the important idea that it is improvement in bottleneck that has the most value was highlighted by Goldratt in the name of 'Theory of Constraints.'

Many new technologies came into existence and were adopted into manufacturing processes. The existing ideas regarding technology adoption did not emphasize the suboptimal use of technology. The full power of technology was not being put to use by many. Theory of BPR brought this into focus and helped systems become more productive by utilizing the power and potential of the new technologies more. Ability to look at bigger and bigger systems using OR models and system dynamics models and the ability to access data anywhere using internet based data communication systems made coordination across distributed national and global facilities. This led to the development of theory of supply chain wherein information can be made visible to anybody and optimization can be done from the point of origin or raw materials to its dumping point. Manufacturing facilities are now a part of supply chains wherein information is available to both suppliers and potential customers in real time and purchasing is done through electronic orders. In a century, manufacturing management theory and practice developed immensely.


Chase, Richard, B., F. Robert Jacobs, Nicholas J. Aquilano , Operations Management, 11th Edition, McGraw-Hill, New York, 2006.
Krajewski, Lee et al., Operations Management: Processes and Value Chains, 8th Edition, Prentice Hall, Upper Saddle River, 2007.

________________________________________________________________________

Early Books on Manufacturing Management



Factory Organization and Administration
Hugo Dimer, First Professor of Industrial Engineering, Pennsylavania State College
First edition: 1910
Third edition digital copy
http://www.archive.org/stream/factoryorganiza00diemgoog#page/n10/mode/2up

Profit Making in Shop and Factory Management
Charles U. Carpenter, 1908
http://www.archive.org/stream/cu31924002748576#page/n1/mode/2up

Shop Management
Frederick Winslow Taylor, 1911
http://www.archive.org/stream/shopmanagement00taylgoog#page/n10/mode/2up

Factory and Office Administration
Lee Galloway, 1918
http://www.archive.org/stream/factoryofficeadm00galliala#page/n3/mode/2up

Factory Management Wastes: And How to Prevent Them
James F. Whiteford, 1919
http://www.archive.org/stream/factorymanagemen00whit#page/n7/mode/2up

Plant Management
Dexter S. Kimball, 1919
http://www.archive.org/stream/cu31924031222627#page/n7/mode/2up

__________________________________________________________________________


Advances in Production Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected Papers

Irenilza Nääs, Oduvaldo Vendrametto, João Mendes Reis, Rodrigo Franco Gonçalves, Márcia Terra Silva, Gregor von Cieminski, Dimitris Kiritsis
Springer, 15-Mar-2017 - Computers - 962 pages


This book constitutes the refereed post-conference proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2016, held in Iguassu Falls, Brazil, in September 2016.

The 117 revised full papers were carefully reviewed and selected from 164 submissions. They are organized in the following topical sections: computational intelligence in production management; intelligent manufacturing systems; knowledge-based PLM; modelling of business and operational processes; virtual, digital and smart factory; flexible, sustainable supply chains; large-scale supply chains; sustainable manufacturing; quality in production management; collaborative systems; innovation and collaborative networks; agrifood supply chains; production economics; lean manufacturing; cyber-physical technology deployments in smart manufacturing systems; smart manufacturing system characterization; knowledge management in production systems; service-oriented architecture for smart manufacturing systems; advances in cleaner production; sustainable production management; and operations management in engineer-to-order manufacturing. 



Article originally posted in
http://knol.google.com/k/-/-/2utb2lsm2k7a/3309

Updated 22 October 2017, 13 October 2014

October 20, 2017

Manufacturing Management Subject Update


Journal of Manufacturing Technology Management
http://www.emeraldinsight.com/journal/jmtm

2017

Advances in Production Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected Papers

Irenilza Nääs, Oduvaldo Vendrametto, João Mendes Reis, Rodrigo Franco Gonçalves, Márcia Terra Silva, Gregor von Cieminski, Dimitris Kiritsis
Springer, 15-Mar-2017 - Computers - 962 pages


This book constitutes the refereed post-conference proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2016, held in Iguassu Falls, Brazil, in September 2016.

The 117 revised full papers were carefully reviewed and selected from 164 submissions. They are organized in the following topical sections: computational intelligence in production management; intelligent manufacturing systems; knowledge-based PLM; modelling of business and operational processes; virtual, digital and smart factory; flexible, sustainable supply chains; large-scale supply chains; sustainable manufacturing; quality in production management; collaborative systems; innovation and collaborative networks; agrifood supply chains; production economics; lean manufacturing; cyber-physical technology deployments in smart manufacturing systems; smart manufacturing system characterization; knowledge management in production systems; service-oriented architecture for smart manufacturing systems; advances in cleaner production; sustainable production management; and operations management in engineer-to-order manufacturing. 


March 2015


Questions by Manufacturing Managers on Industrial Engineering and Cost Management
http://nraoiekc.blogspot.in/2014/11/manufacturing-managers-questions-on.html
You can provide your answers in comments


Advances in Production Management Systems
Conference APMS 2013
Proceedings Vol. 2
Preview Google Books
https://books.google.co.in/books?id=MGS7BQAAQBAJ&printsec=frontcover#v=onepage&q&f=false

Early Books on Manufacturing Management



Factory Organization and Administration
Hugo Dimer, First Professor of Industrial Engineering, Pennsylavania State College
First edition: 1910
Third edition digital copy
http://www.archive.org/stream/factoryorganiza00diemgoog#page/n10/mode/2up

Profit Making in Shop and Factory Management
Charles U. Carpenter, 1908
http://www.archive.org/stream/cu31924002748576#page/n1/mode/2up

Shop Management
Frederick Winslow Taylor, 1911
http://www.archive.org/stream/shopmanagement00taylgoog#page/n10/mode/2up

Factory and Office Administration
Lee Galloway, 1918
http://www.archive.org/stream/factoryofficeadm00galliala#page/n3/mode/2up

Factory Management Wastes: And How to Prevent Them
James F. Whiteford, 1919
http://www.archive.org/stream/factorymanagemen00whit#page/n7/mode/2up

Plant Management
Dexter S. Kimball, 1919
http://www.archive.org/stream/cu31924031222627#page/n7/mode/2up


Updated 2017, 10 December 2015

Scope and Definition of Manufacturing - Production Management



Manufacturing creates man-made goods from various materials. The goods, more specifically called finished  goods are created through manufacturing processes. Modern manufacturing employs machines to produce goods. Manufacturing management plans, organizes, acquires resources required for manufacture, allocates those resources to various departments, directs and controls manufacturing activity.The aims of manufacturing management are producing goods according to the specifications of the customer or of the product design department if it is made to stock product developed by the company, in amounts and by the schedule demanded at minimum cost. Manufacturing is carried out in factories or manufacturing plants. A manufacturing plant and the various activities carried out in it can also be described as a manufacturing system. Modern manufacturing systems have machines, methods, men, material, motive power, money and management essential components of the system. In terms of assets used in accounting terminology, we can say manufacturing system has both long term assets (fixed assets) and current assets (short term assets).

Manufacturing management involves plans and  decisions regarding long term assets and short term assets, manufacturing methods and manpower.

We can say the long term decisions are in the areas of design, installation and improvement of specified products, manufacturing processes to produce those products, equipment for production, transportation, inspection etc., industrial buildings, location of the plant, layout of the plant. recruitment of permanent manpower and training to develop them into skilled operators in the processes employed by the organization etc. Manufacturing management has to be effective and efficient. Effectiveness refers to producing what customers want in quantities according to the delivery time requested. Efficiency refers to the cost dimension and wastes that occur in manufacturing systems if special attention is not paid to eliminate them.  Industrial engineering is a specialized discipline providing efficiency improvement service at design, installation and improvement stages of manufacture.  

The short term decisions of manufacturing are related production quantities in year, quarter, month etc., inventories, temporary increases or reductions in manpower, overtime decisions to take care of sudden increases in demand, or some exigencies, short term cost budgets, and other incidental  day to day activities. Production planning and control, inventory planning and control, cost control, quality control, maintenance planning and control etc. are some of the well known short term manufacturing management areas that are well developed as independent subjects in manufacturing management degree curriculums. Similarly, new product development, process planning, facilities planning, manufacturing strategy, industrial engineering etc. are well developed subjects dealing with long term aspects of manufacturing management. Industrial engineering became a degree level curriculum as number of methods were developed in this area providing a scope for specially educated and trained professionals in this discipline. Value engineering, Methods Efficiency Engineering, Motion Study, Work Measurement, Ergonomics, Operations Research, Engineering Economics, Applied Statistics, Six Sigma, SMED, Poka Yoke Design etc. are full subjects in industrial engineering curriculums apart  from the basic engineering knowledge in various engineering branches, knowledge of business processes and managerial processes.

Manufacturing managers at various levels are responsible for both effectiveness and efficiency. But they can employ industrial engineers in their department either on full time basis or on assignment basis from their organization industrial engineering department or on consultancy basis from outside industrial engineering organizations.

Elwood S. Buffa, well known author of Modern Production Management first published in 1961 included the following topics to introduce the scope of production management. 

Long Term Decision Areas

Production processes
Automation and Use of Computers (Presently CAD-CAM or CIM)
Design of Jobs and Work Methods
Design of The Working Environment
Production Design of Products and Process Planning
Plant Location
Layout of Physical Facilities

Short Term Decision Areas

Inventory and Production Control
Maintenance
Control of Quality
Production Standards and Work Measurement
Wages and Labor Costs
Control and Improvement of Production Costs.


It is important to state that managerial skills are classified as business conceptual skills, people related skills and technical skills. So manufacturing managers need to have the knowledge to conceive a business opportunity to their department assets and people, knowledge to manage people related to the supply chain that starts  from suppliers of materials and ends with the customer, and technical skills in various methods involved in the manufacturing establishment to plan them, organized them, acquire resources, allocate resources, and direct and control the activities.

References

Elwood S. Buffa, Modern Production Management, John Wiley and Sons, New York, 1961.

Related Article
Manufacturing Management - Introduction


Planned Revision of Operations Management/Production Management Book Chapters  - March Month



Advances in Production Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected Papers

Irenilza Nääs, Oduvaldo Vendrametto, João Mendes Reis, Rodrigo Franco Gonçalves, Márcia Terra Silva, Gregor von Cieminski, Dimitris Kiritsis
Springer, 15-Mar-2017 - Computers - 962 pages


This book constitutes the refereed post-conference proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2016, held in Iguassu Falls, Brazil, in September 2016.

The 117 revised full papers were carefully reviewed and selected from 164 submissions. They are organized in the following topical sections: computational intelligence in production management; intelligent manufacturing systems; knowledge-based PLM; modelling of business and operational processes; virtual, digital and smart factory; flexible, sustainable supply chains; large-scale supply chains; sustainable manufacturing; quality in production management; collaborative systems; innovation and collaborative networks; agrifood supply chains; production economics; lean manufacturing; cyber-physical technology deployments in smart manufacturing systems; smart manufacturing system characterization; knowledge management in production systems; service-oriented architecture for smart manufacturing systems; advances in cleaner production; sustainable production management; and operations management in engineer-to-order manufacturing.

https://books.google.co.in/books?id=khBhDgAAQBAJ

Updated 22 October 2017, 17 March 2017

October 5, 2017

Business Logistics - An Introduction

Logistics – Introduction

A dictionary definition of logistics is “the branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities.”
The definition promulgated by the Council of Logistics Management (CLM), is: “Logistics is the process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.”
Ballou explained that in the context of manufacturing it appears from the definition that the logistician is concerned with flow of goods to and from his firm. But the responsibility extends to the flow of components and goods through the production process as well. But the logistician may not deal with detailed production processes, machine scheduling, quality control etc. in the production process. Also the manufacturing logistics definition excludes maintenance which is a part of military logistics.
The mission of logistics in a business firm is to get the right goods or services to the right place, at the right time, and in the desired condition, while making the greatest contribution to the firm. Value in logistics is a combination of time, place and cost.
Logistics is about creating value – value for customers, value for suppliers and value for the firm’s stakeholders.

The Activities of Logistics Function

Council of Logistics Management identified the following:


  • Customer Service
  • Demand Forecasting
  • Distribution Communications
  • Inventory Control
  • Material handling
  • Order Processing
  • Part and Service Support
  • Plant and Warehouse Site Selection
  • Purchasing
  • Packaging
  • Return Goods Handling
  • Salvage and Scarp Disposal
  • Traffic and Transportation
  • Warehousing and Storage


Case for Organizing a Separate Logistics Department

Both marketing and production have recognized the importance of logistical activities. According to Philip Kotler, “Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges with target groups that satisfy individual and organizational objectives.”

Therefore distribution of goods is identified as an important activity in marketing. Ballou quotes, McClain and Thomas, who stated that operations management has the responsibility for the production and delivery of physical goods and services. Hence delivery of goods at destinations required by the customer or the sales department is recognized as a part of operations management function.

But Ballou argued that both marketing and production have more important core activities to perform and hence logistic activities may not get adequate attention. According to him marketing may be given the job of creating possession value and production may be given the job of creating form value. A separate logistics department would be concerned with providing time and place value. Ballou recognized the interface problems that arise as more departments are created and hence stresses the need for coordination.

Objectives of Business Logistics Function

The logistics function has to earn the highest possible return on investment over time as far as internal objective is concerned. But to achieve this internal objective it has to first achieve external objectives. It has to earn revenue and minimize costs.

Therefore a logistics system has to be designed and operated considering its impact on revenue contribution that comes through the quality of customer service provided and cost of logistics facilities, system and operation.

Costs of logistics function include capital costs are operating costs. Wages, public warehousing (rented warehouses or warehouse space) expenses, public transport expenses, financial expenses related to inventory investment, other administrative expenses are examples of operating costs. Capital costs are one time costs, own warehouse, own trucks are examples of capital costs.

The financial objective of the logistics function can be expressed as “Maximize over the time the ratio of the annual revenue (due to the customer level provided) less the operating costs of the logistics system to the annualized investment in the logistic system.”

Time value of money may be considered and the objective can be expressed in net present value (NPV) terms or internal rate of return (IRR) terms.


Study of Logistics

Study of logistics can focus on management process and the skills needed to perform the activities involved. Management process can be briefly described as planning, organizing and controlling. The three important domain areas of logistics are facilities location, inventory levels and mix, and transport facilities. Logistics function is concerned with providing service levels to customers and managing costs appropriately for the company. All decision making requires information. Study of logistics includes principles and practices related to the above issues.  Some of the issues are discussed in detail in specialized texts related to those areas and a logistician has to examine them now in the context of logistics.

References


The Handbook of Logistics and Distribution Management: Understanding the Supply Chain

Alan Rushton, Phil Croucher, Peter Baker
Kogan Page Publishers, 03-Jan-2017 - Business & Economics - 912 pages

The definitive guide to supply chain philosophy, strategy AND the practicalities of logistics and distribution. The Handbook of Logistics and Distribution Management is a step-by-step guide to setting up and managing supply chains to add maximum value to the organisations they serve. Benefiting from the author team's years of practical field-based experience in some of the most challenging environments across the world from developed economies to third world countries and war zones, this is a book that will enthuse students and be an invaluable desk reference throughout the careers of practitioners.

Packed with worked examples and real-world data The Handbook of Logistics and Distribution Management offers complete coverage on all the key aspects of distribution, logistics and supply chain planning and management with clear and straightforward explanations. This is not a compilation of work drawn from a disparate collection of research papers and miscellaneous projects but a logical and complete holistic view of how supply chains fit together including the detailed, nitty gritty of the distribution and logistics.

Globalisation, increased competition and new technologies have all changed the landscape in which supply chains operate. This fully revised 6th edition of The Handbook of Logistics and Distribution Management provides solutions to the key challenges. With new material on international freight forwarding, environmental best practice, cool chain, intermodal shipping and outsourcing and a new, detailed index of contents this is the ultimate study/reference companion.
https://books.google.co.in/books?id=g_vTDQAAQBAJ

Ronald H. Ballou, Business Logistics Management, Fourth Edition,  Prentice Hall Int. Inc., USA,  1999.
Joh O. McClain and L. Joseph Thomas, Operations Management: Production of Goods and Services, Second Edition, Prentice Hall, USA, 1985.

http://www.bms.co.in/elements-of-logistics-management-notes/




http://knol.google.com/k/narayana-rao/business-logistics-an-introduction/ 2utb2lsm2k7a/ 1384


Updated 6 October 2017, 30 May 2012

October 4, 2017

October - Management Knowledge Revision



October  (Information Technology and Management Information Systems, Logistics - Warehousing and Transport)


October 1 to 5

Principles of Information Systems - Ralph M. Stair and George W. Reynolds
http://nraomtr.blogspot.com/2015/10/principles-of-information-systems-ralph.html

An Introduction to Information Systems

2.
Foundations of Information Sytems
http://www.comp.polyu.edu.hk/~csajaykr/introduction.pdf

E-Business
http://www.comp.polyu.edu.hk/~csajaykr/E_Business.pdf

3.
Competitive advantage with information systems
http://www.comp.polyu.edu.hk/~csajaykr/CA.pdf

IT Infrastructure
http://www.comp.polyu.edu.hk/~csajaykr/ITI.pdf

4.

Communication and Networking
http://www.comp.polyu.edu.hk/~csajaykr/CN.pdf

Improving decision making and managing knowledge
http://www.comp.polyu.edu.hk/~csajaykr/IDM.pdf

5.
Enterprise Applications
http://www.comp.polyu.edu.hk/~csajaykr/EAP.pdf

Economics of Information Technology - Hal Varian
people.ischool.berkeley.edu/~hal/Papers/mattioli/mattioli.pdf


October 8 - 12

Logistics - Warehousing and Transport




October 15 - 19



October  22 - 26







October 23  - 29



Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems



One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December


Updated 6 October 2017, 6 June 2014

October 2, 2017

Product Management in Digital World - Recent Trends



What Makes a Truly Great Product Great - Digital Products Related
Published on March 2, 2015
Jeff Weiner
CEO at LinkedIn
https://www.linkedin.com/pulse/what-makes-truly-great-product-jeff-weiner/


The one-stop product management guide
http://www.experiox.com/productmanagementguide/

Down the Book - Strategic Role of Product Management
http://pragmaticmarketing.com/strategic-role-of-product-management.aspx


The evolving role of product management
What product management is and why it’s so relevant today.
By Martin ErikssonRichard BanfieldNate Walkingshaw June 22, 2017
Excerpt from Chapter 1 of “Product Leadership.
https://www.oreilly.com/ideas/the-evolving-role-of-product-management

“The job of a product manager is to discover a product that is valuable, usable, and feasible.”
Product management is the intersection between business, user experience, and technology

Product managers for the digital world
By Chandra Gnanasambandam, Martin Harrysson, Shivam Srivastava, and Yun Wu
May 2017
http://www.mckinsey.com/industries/high-tech/our-insights/product-managers-for-the-digital-world


Product managers connect many functions related to  a product— market research, design, engineering,  marketing, sales, marketing, operations, finance, legal, and more. They are involved in the decisions about what gets built but also influence every aspect of how it gets built and launched.

The product manager of today is increasingly given the role of  the mini-CEO of the product.

16 Killer Videos on Product Management Essentials
June 9, 2016
https://userbrain.net/blog/12-killer-product-management-videos

A Panel Discussion on Product Management
12 March 2010
Stanford Graduate School of Business
Features executives formerly at Apple Computer, Hewlett-Packard, PeopleSoft, and Sybase:
Rita Iorfida, VP Products, Liquid Engines;
Rich Mironov, former VP Product Marketing, AirMagnet;
Tiffany Riley, VP Marketing at Nextance;
David Straus, SVP Worldwide Sales and Marketing, Corticon.
_________________

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Product Management At Google
http://a-knol.blogspot.com/2010/01/product-management-at-google.html


Updated 3 October 2017, 15 July 2017

October 1, 2017

Power - The Concept and Theory in Organizational Behavior

Power is an important dynamic (concept or variable) in organizational behavior.

Power - The Concept

Max Weber: "The probability that one actor within a social relationship will be in a position to carry out his own will despite resistance."

Pfeffer: "The potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do."

The concept of power needs to be distinguished from authority and influence.

The concept of power needs to be distinguished from authority and influence.

Authority is the right to direct others and ask them to do things which they would not otherwise do, but it is legitimate and is exercised in the working of organizations.

Influence is conceived as more broader and it is the ability to alter actions of other people in general ways by changing their satisfaction criteria and thus improve their performance. Authority is different from power because of its legitimacy and acceptance in an organizational context and leadership is broader than power and indicates a willingness on the part of the follower to follow in the absence of authority.

Luthans remarked that operational definition of power is still lacking.

The classifications of Power

Psychologists John French and Bertram Raven provided five categories

1. Reward power
2. Coercive power (punishment power)
3. Legitimate power
4. Referent power
5. Expert power

Contingent Explanations of Power

Power comes to people from being in the right place.

1. Power comes to people who have control over resources such as budgets, physical facilities and can allocate them with discretion.
2. Control over access to information can give power.
3. Formal authority and legitimate power comes from organizational positions.

Some of the propositions related to power in contingent explanations are:


1. The greater the professional orientation of group members, the greater relative strength referent power has in influencing them.
2. If the high ranking participants show less interest in managing a task, low ranking participants obtain more power.
3. The greater the target's dependency on agent, the more targets are manipulated against their will.
4. If people are uncertain about the appropriateness or correctness of their behavior, they allow the powerful people to manipulate them.


Source:
Fred Luthans, Organizational Behavior, 9th Edition, McGraw-Hill International,



New Theory of Power - Dacher Keltner


People who attain enduring power today exhibit five behaviors

1.    Enthusiasm: They express interest in others, advocate on their behalf and take joy in their achievements.
2.    Kindness: They cooperate, share, express appreciation and dignify other people.
3.    Focus: They establish shared goals and rules, a clear purpose and keep people on task.
4.    Calmness: Through their actions and communication, they instill calm and perspective.
5.    Openness: They display empathy and a disciplined process of listening attentively.

According to Keltner over 70 studies have shown that people who rise in power – whether it be in business, education or the military – consistently embody these qualities.

https://www.inc.com/marcel-schwantes/according-to-science-this-is-the-best-way-to-gain-.html

http://markccrowley.com/how-we-gain-power-and-influence-sciences-surprising-answer/

https://greatergood.berkeley.edu/article/item/power_paradox


Modern concept of power as a social and economic theory
http://www.ejournalnet.com/Contents/Issue_2/4/4_2002.htm

The Concept of power
http://www.jstor.org/pss/588888

Power and Politics - Basic Concepts
http://www.sociology.org.uk/ppbc.pdf



Updated 2 October 2017, 23 November 2011

September 18, 2017

10 - 15 - 20 - 25 Activities and Skills for Success as Manager at All Levels



4P Model of Management


I developed 4P Model of Management. Managers have to undertake Four major activities.

Providing Value  - They have to identify opportunities to add value to potential consumers, communicate value to them and exchange value with them.

Purchase Inputs - Managers have to purchase inputs to provide value.

Process Inputs and Convert them into Valuable Outputs

People Relations - Business is for People, Business is by People and Business is with People

The 4Ps fall into Business Skills, Process Skills and People Skills.

Detailed article
http://nraomtr.blogspot.com/2015/05/4-ps-of-management-4-essential-tasks-in.html


You can see how various authors only prescribe these skills in their articles.




Peter Economy - 10 things that super successful leaders do.


It was published in the Corporate Dossier of Economic Times (22 May 2015). Peter Economy was the author.

The 10 things listed were:

1. Acknowledge
2. Motivate
3. Be Decisive
4. Communicate
5. Trust
6. Be Confident
7. Develop
8. Direct
9. Partner
10. Be Honest and Transparent.


Jack Zenger and Joseph Folkman wrote in article in HBR Blogs.

The Skills Leaders Need at Every Level


The list given by them

Inspires and Motivates others
Displays High Integrity and Honesty
Solves Problems and Analyzes Issues
Drives for Results
Communicates Powerfully and Prolifically
Collaborates and Promotes and Teamwork
Builds Relationships
Displays Professional or Technical Expertise
Develops Others
Takes Initiative
Innovates
Champions Change
Connects the Group to the Outside World
Establishes Stretch Goals
Practices Self Development.

https://hbr.org/2014/07/the-skills-leaders-need-at-every-level


Updated 19 September 2017, 21 May 2015

Principles of Management - Subject Update


Basic Chapter Summaries of Principles of Management Based on Koontz and O'Donnell's Book

4 Ps of Management - 4 Essential Tasks in Business Management
Provide value - Procure inputs - Process inputs (Produce output) - People focus
http://nraomtr.blogspot.com/2015/05/4-ps-of-management-4-essential-tasks-in.html


Productivity Focus of Management  - Industrial Engineering

Taylor - Narayana Rao Principles of Industrial Engineering
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Download full paper: Full Paper - https://www.xcdsystem.com/iise/abstract/File7673/UploadFinalPaper_2569.pdf

June 2017

Change Management - How to manage the eight ‘change personalities’ at work?
https://www.theglobeandmail.com/report-on-business/careers/management/how-to-manage-the-eight-change-personalities-at-work/article35041096/

Making Decisions in Meetings
http://blog.lucidmeetings.com/blog/making-decisions-in-meetings

May 2017

How to Retain Employees Through 'Servant' Leadership
https://www.entrepreneur.com/article/289730


April 2017

By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering.

Basic and Detailed Principles of Industrial Engineering
http://nraoiekc.blogspot.com/2016/07/basic-principles-of-industrial.html

http://www.xcdsystem.com/iise/abstract/File7673/UploadFinalPaper_2569.pdf


March 2017

Leaders have to manage the current activity to change it to make it better

http://www.managementexchange.com/story/first-line-manager-leaders-must-manager-lead



March 2016

Seven Quality management principles (QMPs) 

by ISO  - Read them compulsorily if you have not read so far.
http://www.iso.org/iso/pub100080.pdf

One of the definitions of a “principle” is that it is a basic belief, theory or rule that has a major influence on the way in which something is done. “Quality management principles” are a set
of fundamental beliefs, norms, rules and values that are accepted as true and can be used as a basis for quality management.

The QMPs can be used as a foundation to guide an organization’s performance improvement. They were developed and updated by international experts of ISO/TC 176, which is responsible for
developing and maintaining ISO’s quality management standards.


The seven quality management principles



QMP 1 – Customer focus
QMP 2 – Leadership
QMP 3 – Engagement of people
QMP 4 – Process approach
QMP 5 – Improvement
QMP 6 – Evidence-based decision making
QMP 7 – Relationship management


These principles are not listed in priority order.  All are important and the relative importance
of each principle will vary from organization to organization and can be expected to change over time in the same organization.

Seven Principles of Supply Chain Management


Principle 1: Segment customers based on the ser­vice needs of distinct groups and adapt the supply chain to serve these segments profitably.

Principle 2: Customize the logistics network to the service requirements and profitability of customer segments.

Principle 3: Listen to market signals and align demand planning accordingly across the supply chain, ensuring consistent forecasts and optimal resource allocation

Principle 4: Differentiate product closer to the customer and speed conversion across the supply chain

Principle 5: Manage sources of supply strategically to reduce the total cost of owning materials and services

Principle 6: Develop a supply chain-wide technology strategy that supports multiple levels of decision making and gives a clear view of the flow of products, services, and information

Principle 7: Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently
http://www.supplychain247.com/paper/the_7_principles_of_supply_chain_management

Seven Principles of Change Management


Senders and Receivers
Resistance
Authority for Change
Value Systems
Incremental vs. Radical Change
The Right Answer Is Not Enough
Change Is a Process
https://www.prosci.com/change-management/thought-leadership-library/the-seven-principles-of-change-management


The APICS Principles of Operations Management consists of five classroom-based, instructor-led courses.

         The Principles of Inventory Management

         The Principles of Operations Planning

         The Principles of Manufacturing Management

         The Principles of Distribution and Logistics

         The Principles of Managing Operations


A HBR article on Negotiation
https://hbr.org/2003/10/nice-girls-dont-ask/

Free Open Access Book

http://open.lib.umn.edu/principlesmanagement/


TENDENCIES IN EVOLUTION OF 21ST CENTURY
MANAGEMENT
https://www.efst.hr/management/Vol20-Specissue/1-Buble%20-%20Management%20tendencies.pdf

THE PRINCIPLES OF MANAGEMENT OF EDUCATIONAL INNOVATIONS IN MODERN HIGHER EDUCATION INSTITUTION.
Source: In the World of Scientific Discoveries / V Mire Nauchnykh Otkrytiy . 2014, Vol. 60 Issue 11.11, p4244-4261. 18p.
Author(s): Danakin, N. S.; Shutenko, A. I.; Ospishchev, P. I.

Developing a Theory and Philosophy of Management
Chapter 1 of Pearson Book
https://www.pearsonhighered.com/assets/hip/us/hip_us_pearsonhighered/samplechapter/0205088155.pdf


November 2015

Innovation Excellence requires Ambidextrous Management
http://www.innovationexcellence.com/blog/2015/11/12/innovation-requires-ambidextrous-management/


September 2015
New and Updated articles in area

Systems Approach in Management - Very detailed treatment is now posted
http://nraomtr.blogspot.com/2014/12/systems-approach-in-approach.html

Execution is an important function of management

Planning and Execution - Theory and Practice
http://nraomtr.blogspot.com/2015/09/planning-and-execution-theory-and.html

Resourcing is an important activity for all managers to accomplish set goals

http://nraomtr.blogspot.com/2012/03/resourcing-function-of-management.html


May 2015

Negotiation: What Makes the Right Business Deal
http://www.forbes.com/sites/ianaltman/2015/05/05/negotiation-what-makes-the-right-business-deal/





Get the Boss to Buy In.

By: Ashford, Susan J.; Detert, James. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p72-79.

Middle managers  gather valuable intelligence from direct contact with customers, suppliers, and colleagues; they can often see when the market is ripe for a certain offering, for instance, or spot signs that a partnership won't work. But in a top-down culture, they may not voice their ideas and concerns -- and even when they do, they often struggle to persuade the people at the top.


The authors suggest that middle managers should tailor their pitch to the goals, values, and knowledge of decision makers; frame the issue to show how it supports a strategic goal; manage emotions (their own and their audience's); get the timing right by, say, attending to a boss's preoccupations or watching larger trends; involve others, both in and out of their networks; and  adhere to organizational norms, such as how leaders prefer to receive information.


MANAGING YOUR MISSION-CRITICAL KNOWLEDGE.

By: IHRIG, MARTIN; MACMILLAN, IAN. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p80-87. 8p. 2 Color Photographs, 2 Diagrams.

Large-scale, sustainable growth is  possible when people take insights from one knowledge domain and apply them in another -- when deep technical expertise in one business unit is applied in a different business unit, for example, or when a best-in-class marketing group pulls a product development unit into the 21st century by sharing market insights gleaned from customer data.

The authors describe how to map your organization's strategic knowledge.  When knowledge assets are placed in a grid along two dimensions -- unstructured (tacit) versus structured (explicit) and undiffused (restricted) versus diffused (shared) -- it becomes easier to manage them for future competitive advantage.





Playbook - AMA NET

Interesting Source for Management Articles
http://playbook.amanet.org/

Managing Power Dynamics in International Negotiations
BY YADVINDER RANA
About The Author: Yadvinder S. Rana is Professor of Cultural Management at the Catholic University in Milan, Italy, lecturer on intercultural negotiation and influence in leading international business schools, and founder of Neglob, a management consultancy firm that assists companies in international negotiations and global teams performance improvement. For more information about Rana and his new book, The 4Ps Framework: Advanced Negotiation and Influence Strategies for Global Effectiveness, please visit www.neglob.com.
http://playbook.amanet.org/managing-power-dynamics-in-international-negotiations/




The New Rules of Motivation: Unleash Employee Reciprocity
BY RODD WAGNER
About The Author: Rodd Wagner is the New York Times bestselling author of the new book Widgets: The 12 New Rules for Managing Your Employees As If They’re Real People (McGraw-Hill, April 2015).
http://playbook.amanet.org/the-new-rules-of-motivation-unleash-employee-reciprocity/

Only 10% are great managers.
Around 35% OK.
http://www.fastcoexist.com/3044630/this-may-not-surprise-you-only-10-of-managers-have-what-it-takes-to-be-managers



Principles of Management - Subject Update - 2014


Updated 19 Sep 2017,  7 June 2017,  7 May 2017,  8 April 2017,   12 March 2017, 26 Mar 2016, 16 Feb 2016, 11 Dec 2015

4 Ps of Management - 4 Essential Tasks in Business Management - Production or Service Businesses








Provide value - Procure inputs - Process inputs (Produce outputs) - People focus



Providing Value to Customers
Purchasing or Procuring Input Resources
Processing the Inputs into Outputs
People Relations


Every business manager has to do these four essential tasks. 
Every MBA must learn these four tasks.

They are classified by some management scholars as conceptual skills (business conceptual skills), technical skills (process skills) and people skills.

This blog,"Management Theory Review" provides you knowledge in all the essential activities through subjects - Principles of Management,  Marketing Management,  Supply Chain Management, Operations Management, Industrial Engineering and Organizational Behavior.

In the blog, chapter summaries of chapters from world famous textbooks are provided. Additionally, important developments and articles of each subject are provided as subject updates of the year.  Readers comments are invited as suggestion, feedback, questions etc. for improving the content to make it more useful to the readers to utilize the ideas in practice and increase production and profits for the organization and the society. Management as a profession must increase pleasure of the society and reduce pain of the society. Management as a profession has social purpose. But we need to fulfill organizational purpose and purposes of individuals working for the organization to fulfill the social purpose.

Business is done by people, Business is done for the people , Business is done with the people.
People dimension is important for business.

But there is no business if someone cannot find a business opportunity. Marketing is important. Providing value to people is marketing and sales.

If unfulfilled demand for a category is found, there have to be sources of inputs and a process to convert inputs into useful products. Supply chain and  production process are important.

2Ps  of Industrial engineering - Productivity and Profits


Industrial engineering is profit engineering. Industrial engineers analyze systems and make them more productive and profitable. Industrial engineering is concerned with 2Ps - Productivity and Profits

An effective and efficient business organization or an industrial organization is created by managers or entrepreneur managers using multiple skills.   Acquire the knowledge, use the procedures under guidance for some time and become proficient in them. Have a successful managerial career.



Principles of Industrial Engineering

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________________

Download full Paper - https://www.xcdsystem.com/iise/abstract/File7673/UploadFinalPaper_2569.pdf


Updated 19 September 2017, 17 May 2015

September 11, 2017

Lean Management - Management for Value and Productivity Enhancement

Lean Management for Productivity Enhancement
Presentation at Tata Steel
Dr. K.V.S.S. Narayana Rao, Professor , NITIE, Mumbai
Industrial Engineering Knowledge Center
http://www.nraoiekc.blogspot.com


____________________


____________________

Lean Management

Lean management gives importance to both effectiveness and efficiency.

Lean Managers simultaneously take care of customer satisfaction and productivity/ cost reduction responsibilities.

Hence lean management leads to more productivity in the organization.

It is appropriate that NPC came out with the theme “Lean Management for Productivity Enhancement”

"The core idea of the lean management system is to maximize customer value while minimizing waste." (7.3.2014)
http://www.winnipegfreepress.com/local/the-dean-of-lean-248954871.html

Management

Management is achieving objectives prescribed by owners/superiors, set by the manager himself and set in collaboration with the team members, together with the team with the resources provided to the team or acquired by the manager/team.

Soldier and Commander
Commander is a manager.
He may be a very good soldier himself.
Management is a lot more than being an expert doer.
But managers require the technical skills of a function they are managing.

Management Process

Planning
Organizing
Resourcing (Acquiring various resources including human resources known as staffing)
Directing (Executing describes the management steps at this stage better)
Controlling

Effectiveness and Efficiency

Managers have to be effective and efficient.
Effectiveness is achievement of objectives.
Efficiency is effectiveness combined with minimum consumption of resources.

No effectiveness - no efficiency.
Effectiveness first, efficiency next.


Scientific Management

F.W. Taylor advocated scientific management that highlighted the importance of efficiency in production shops.
Development of science of using machines and men in productive work is the theme of his management thought – scientific management
Taylor was responsible for development of industrial engineering discipline.

Principles of Management – Fayol

Management as a subject to be taught was advocated by Henri Fayol.
He gave 14 principles of management and explained management process.
He appreciated Taylor’s thought and advocated its wide adoption.

Principles of Management – Koontz

Koontz extended the 14 principles of management to around 30 and  embedded them in the five functions.
He stressed importance of effectiveness and efficiency in his first chapter. Also included some principles of efficiency in his list.

Koontz – Definition of Management
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

Koontz on Productivity
In a real sense, this book (Management) is about the improvement of productivity.
But  still, efficiency got neglected on a holistic basis in his book.
Industrial engineering is not mentioned in the book


Effectiveness and Efficiency as opposing ideas – An Error in Management Thought

Certain management authors positioned effectiveness and efficiency as opposing concepts.
They created tables showing differences between them.
Managers became isolated from the efficiency dimension.

Lean Management

Lean management philosophy brings efficiency back into the management discipline as a major component.
Managers must also have efficiency/productivity improvement skills
The Toyota Motors’ managers are to be given credit for this development.

Developments in Japan

Japanese executives captured the spirit of scientific management and industrial engineering almost from its birth in USA.
Industrial engineering was given a Buddhist religious dimension in the slogan-
Eliminate muda, mura, muri

Kiichiro Toyoda – Toyota Motors Founder
Kiichiro Toyoda was sure of the quality of his car.
But he was worried about its price.
He said unless its cost was reduced and price was reduced Toyota motors will not survive.

Effectiveness is there but Efficiency is the need.
So according to Kiichiro Toyoda, effectiveness was there.
Japanese customer is happy with the car.
But efficiency is not there.
Cost of production is high and hence price is high.


Manager’s Focus on Productivity/Efficiency
Therefore Kiichiro Toyoda’s focus shifted to productivity.
More and more managers were asked to focus on productivity.
Productivity in other words is cost reduction

Taichi Ohno
Taichi Ohno is a production manager.
Started concentrating on cost reduction.
Used Industrial Engineering.
Toyota Style Industrial Engineering.

Industrial Engineering

Industrial engineering is reducing cost of a product and increasing profit by increasing sales due to low prices.
Industrial engineering is profit making engineering (Ohno).
The other engineering is market-establishing and fulfilling engineering.


Industrial Engineering –  Definition or Explanation by Narayana Rao K.V.S.S. 


Industrial Engineering is Human Effort Engineering and System Efficiency Engineering.

JIT Systems - Lean Management

Kiichiro Toyoda looked around his production-distribution system for eliminating muda (excess resources).
Inventory seemed to him an excess resource.

He told his managers, that they have to think of JIT systems or low inventory systems.
Thus Kiichiro Toyoda is the man who first advocated JIT.

Taichi Ohno – JIT, IE and Productivity Activities

Reduce inventory – Create flow production.
Increase worker productivity
Use more automatic machines
 Make a worker attend more machines.
Make machines intelligent. No defective unit production


Kaizen
The change must be good.
The change must be profitable.
Do proper economic analysis.
Importance of Engineering Economic Analysis.
Low “lot size” inventory requires lower setup times.
Reduce setup times.

SMED
Shigeo Shingo, now a famous industrial engineer, helped Ohno.
Setup times for big presses were reduced to 3 minutes from earlier 2 to 4 or even 8 hours.

Low Safety Stocks
Systems have to be reliable and production should not result in defective parts.
Involve people in process quality improvement - TQM
Machines should not breakdown.
Improve maintenance and involve production workers also in machine upkeep

OEE
Emphasize on high availability of machines for production.
Do preventive and planned maintenance.
Condition monitoring employed for planned maintenance.
Maintenance for high available production time.
Total productive maintenance.

Low Inventory
Only a day’s inventory as buffer
Between components and assembly section only a days maximum consumption of each item is kept (as an illustration).
Components are made in small batches as per the use on that day.
Communication by Kanban.
Low inventory systems are lean systems

What is a lean system?

A system that satisfies customer requirements with a very low level of inventory.
It is a system that uses less resources than mass production systems based on traditional inventory principles.
Hence lean systems produce products at lower costs vs. high inventory systems.

Lean Manager


Lean managers use all management principles and techniques along with all the industrial engineering tools and also tools specially developed in Toyota Production System and its further development as Lean Enterprise System (Womack and Jones, The Machine that changed the World)

Is Lean Applicable to Steel Plants?
Yes.
Tata Steel is itself following some lean practices.
Its managers are talking of lean at least since 2001. May be lean movement started some time before.

Recent Publications
2003 Phd thesis on application of lean in a steel plant.
Lean supply chain practices in steel plants
Value stream mapping and reduction of production lead time in steel plants.
Optimizing inplant supply chain(PPC) using Lean.

Traditional Industrial Engineering Tools Applied in Lean Systems

Value engineering
Process and Operation Analysis (Method Study )
Standardization of Processes and Working Conditions
Motion Study and Principles of Motion Economy (5S)
Standardization of the Process
Time Study and Time Standards

Optimization and Operations Research
Statistical Methods to Control Variation
Engineering Economics
Ergonomics
Simulation

A Different IE Tool Classification
Product Design Efficiency Engineering
Process Efficiency. Engg.
Human Effort Eff. Engg.
Efficiency Engg. Of Various Resources


Process Efficiency Engineering - Classification
Technical Processes
Business Processes
Managerial Processes

New Ideas and Tools in Lean Systems

Just in Time Production - Change in Inventory Control Practices
Just in Time Supply
Kanban Communication System - Change in Production Planning and Control Procedure
Special Focus on Seven Wastes
Zero Defect Movement

Total Quality Control (Inspection by production persons only - no additional inspector) Total Productive Maintenance (Involving production operators significantly in preventive maintenance) Aggressive Kaizen (Team leaders responsible for monthly improvement in processes)

Visual Communication (Standard Work Sheets, Daily Targets and Production, and Problems)
Value Stream Mapping to identify and remove obstructions to flow
SMED (Application of methods study to setup time reduction)
U-shape layouts
Poka Yoke

Leveled production or production smoothing
Mixed model assembly or flexible production facilities
Supplier process improvement
Supply chain cost reduction led by Assembler.

Seven Waste Model – Waste and Elimination Principle or Technique
Waste of overproduction - One cannot produce without a production Kanban
Waste of time on hand (waiting)  - Multiple machines to an operator, all producing as per tact time.
Waste in transportation - Machines in line or flow placed close together

Waste of processing itself - Standardized Methods
Waste of stock on hand - JIT system
Waste of movement (of workers) - Machine layout changes
Waste of making defective products - Problem solving approach to produce zero defects. 5 Why’s?-Poka Yoke

Let us Hope


Hope Management Professors, Managers, Executives, Supervisors and Operators learn the new development in management – Lean Management.
High Customer Satisfaction and High Productivity  (No tradeoff).
Hope Industrial Engineers become Lean System IEs and Support Managers at all levels.


Thank You

Additional reading:
http://nraoiekc.blogspot.in/2014/02/lean-management.html
http://nraoiekc.blogspot.in/2013/10/lean-systems-industrial-engineering.html

Toyota Production System - IE Point of View - Shigeo Shingo


Industrial Engineering - Foundation of Toyota Production System Chapter 1 to 3 of the book - Presentation
Toyota Production System Industrial Engineering - Shigeo Shingo Chapters 4 to 10
Introducing and Implementing the Toyota Production System - Shiego Shingo Chapter 11 of the book

Presentation was done on 14 February 2014 at Tata Steel, Jamshedpur, Steelenium Hall


A McKinsey Article - Next Frontiers for Lean - Feb 2014 - Ewan Duncan and Ron Ritter

The further development in lean has to provide more scientific insight into how product and service attributes contribute to customer value; what matters most for improving classic lean variables, such as lead time, cost, quality, responsiveness, flexibility, and reliability; and new opportunities for cross-functional problem solving to eliminate anything that strays from customer-defined value.
http://www.mckinsey.com/business-functions/operations/our-insights/next-frontiers-for-lean

Principles of Industrial Engineering - Presented by Dr. K.V.S.S. Narayana Rao in the 2017 Annual Conference of IISE

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Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June



July - August - September - October - November - December


Updated 12 September 2017, 18 February 2014