October 26, 2019

Principles of Supply Chain Management - Crandall - Book Information

Principles of Supply Chain Management

Richard E. Crandall, William R. Crandall, Charlie C. Chen
CRC Press, 11-Dec-2014 - Business & Economics - 717 pages

The second edition of this popular textbook presents a balanced overview of the principles of supply chain management. Principles of Supply Chain Management explains the individual components of the supply chain, and  illustrates how the pieces come together to provide better service to the customers and more profits to the supply chain participants.


Are You Up to the Demands of Leadership?

BARRY CONCHIE, Coauthor of Strengths Based Leadership published "The Demands of Executive Leadership: What separates great leaders from all the rest?" in the Business Journal, 2004 of Gallup.


Fred Luthans in his book "Organizational Behavior" covered these demands.

They are:

Knowing One's Self.

Making sense of experience

Building a Constituency That Listens to Him and Follows Him.

Mentoring and Also Finding Mentors for Himself

Understanding the Values of Followers and Maximizing the Benefit from them

Providing Challenges to Result in Satisfactory Outcomes

Effervescent Vision Creation: A Vision that Brings Out Bubbles of Enthusiasm from the Group.

Articles on Seven Demands of Leadership by John C. Maxwell in 2007

Seven Demands of Leadership
This post will help you understand how to become a better leader. More at: www.LeeCockerell.com
August 3, 2009

25 Leadership Skills You Need To Learn Fast



October 25, 2019

What is Operational Excellence in Manufacturing and Supply Chain?

What is Operational Excellence in Manufacturing and Supply Chain?

“Operational Excellence is a state of readiness attained as the efforts throughout the enterprise reach a state of alignment for pursuing its strategies; where the corporate culture is committed to the continuous and deliberate improvement of company performance AND the circumstances of those who work there - – and is a precursor to becoming a high-performance organization.” – Joseph F Paris Jr.

In Introduction to  Operational Excellence Linked Group

Operational Excellence - Michael Treacy and Fred Wiersema

"Operational excellence  mean providing customers with reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience."

"Customer intimacy means segmenting and targeting markets precisely and then tailoring offerings to match exactly the demands of those niches. Companies that excel in customer intimacy combine detailed customer knowledge with operational flexibility so they can respond quickly to almost any need, from customizing a product to fulfilling special requests. As a consequence, these companies engender tremendous customer loyalty."

"Product leadership means offering customers leading-edge products and services that consistently enhance the customer’s use or application of the product, thereby making rivals’ goods obsolete."

Companies that push the boundaries of one value discipline while meeting industry standards in the other two gain such a lead that competitors find it hard to catch up

Customer Intimacy and Other Value Disciplines
by Michael Treacy and Fred Wiersema
From HBR January–February 1993 Issue


How Baldrige Works

Organizations everywhere are looking for ways to effectively and efficiently meet their missions and achieve their visions. 

Baldrige provides a framework to improve your organization's performance and get sustainable results. Whether your organization is— large or small, service or manufacturing, education or health care, government or nonprofit, has one site or worldwide locations, Baldrige can work for you. Your Organization’s Success Is Our Goal!

Performance Excellence
An integrated approach to organizational performance management that results in (1) delivery of ever-improving value to customers and stakeholders, contributing to ongoing organizational success; (2) improvement of your organization’s overall effectiveness and capabilities; and (3) learning for the organization and for people in the workforce.


Product Quality, Productivity and Customer Retention

Product quality, productivity and customer retention are the pillars of operational excellence. They are critical to profitable manufacturing concerns. Operational excellence has emerged as the key management initiative to sustainable revenue and business growth.

What is Operational Excellence?

As defined by Michael Treacy and Fred Wiersema in a seminal Harvard Business Review article, “Companies pursuing operational excellence are indefatigable in seeking ways to minimize overhead costs, to eliminate intermediate production steps, to reduce transaction and other ‘friction’ costs and to optimize business processes across functional and organizational boundaries.”

Operational excellence is ultimately about delighting your customers, setting a new standard of performance in your industry and becoming the preferred supplier in your industry.  As a preferred supplier, you grow revenue with existing customers and  attract business away from your competition.

Operations is the delivery mechanism of the manufacturing enterprise, providing what the business sells and how that product gets to market. It is an engine driving the work in purchasing, production, distribution, logistics and inventory management. That engine depends on input from the front line of the business—sales, marketing and is supported by finance.

To connect processes with performance goals, companies need business intelligence (BI) capabilities, including metrics, key performance indicators (KPIs), dashboards and advanced reporting. With the right BI solution, manufacturers can gain crucial visibility into performance and ensure Operations is functioning at peak levels.

You can get a continuous view into key areas, can gain the ability to see problems as they happen, can see trends developing, which allows you to take proactive action to prevent problems in real time or  before they happen. This means you can solve problems quickly and guarantee they have a minimal effect on your business. It helps to prevent losses and to improve revenues by identification of new, potentially profitable business opportunities.

Reference - IBM White Paper on Operational Excellence

Books on Operational Excellence

Discover Excellence: An Overview of the Shingo Model and Its Guiding Principles

Gerhard J. Plenert
Taylor & Francis, 03-Nov-2017 - Business & Economics - 198 pages

A facility-wide improvement initiative is expensive in terms of both time and money. Perhaps the most disappointing thing about them is that they often end up as temporary measures that may produce early results but are unsustainable in the long run. The unseen cost is that after they see such initiatives come and go, employees begin to see them as futile, temporary annoyances rather than the permanent improvements they are meant to be.

The Shingo ModelTM begins with culture informed by operational excellence principles that lead to an understanding of what aligns systems and tools and can set any organization on a path toward enterprise excellence with sustainable continuous improvement.

The Shingo Model is not an additional program or another initiative to implement. Instead, it introduces Shingo Guiding Principles on which to anchor current initiatives. Ultimately, the Shingo Model informs a new way of thinking that creates the capability to consistently deliver ideal results to all stakeholders. This is enterprise excellence – the level of excellence achieved by Shingo Prize recipients.

In Discover Excellence: An Overview of the Shingo Model and Its Guiding Principles, readers will learn the basics of the Shingo Model, discover the Three Insights of Enterprise ExcellenceTM, and explore how the Shingo Guiding Principles inform the kind of ideal behaviors that lead to sustainable results. This book is the introduction to the Shingo Model and prepares the reader for a deeper dive into the Shingo Guiding Principles.


State of Readiness: Operational Excellence as Precursor to Becoming a High-Performance Organization

Joseph F. Paris Jr.
Greenleaf Book Group, 16-May-2017 - Business & Economics - 400 pages

“Operational Excellence is a state of readiness attained as the efforts throughout the enterprise reach a state of alignment for pursuing its strategies; where the corporate culture is committed to the continuous and deliberate improvement of company performance AND the circumstances of those who work there - – and is a precursor to becoming a high-performance organization.” – Joseph F Paris Jr.

Accelerated Strategy Development and Execution

The company of today has its supply chains and finances stretched further around the globe than ever before while simultaneously having increasing pressures to drive value across a complicated and fluid set of metrics and deliver innovations, products, and services more quickly and reliably. The competitive advantage belongs to the companies that can quicken their vision-building and strategy-execution efforts—the ones that can identify challenges more swiftly and accelerate their decision making so they are better able to formulate and deploy responses decisively yet with greater agility. To successfully accomplish this, companies will have to prioritize creating a culture of leadership that strengthens communication skills and emphasizes systems thinking by building capacity and capability that  permeates the entire organization.

In State of Readiness, Joseph F. Paris Jr. shares over thirty years of international business and operations experience and guides C-suite executives and business-operations and -improvement specialists on a path toward operational excellence, the organizational capability and situational awareness that is attained as the enterprise reaches a state of alignment for pursuing its strategies. In doing so, create a corporate culture that is committed to the continuous and deliberate improvement of company performance and the circumstances of those who work there—a precursor to becoming a high-performance organization.




The 12 Principles of Manufacturing Excellence: A Leader's Guide to Achieving and Sustaining Excellence

Larry E. Fast
CRC Press, Oct 11, 2011 - 266 pages

Explaining how to implement and sustain a top-down strategy for manufacturing excellence, The 12 Principles of Manufacturing Excellence: A Leader’s Guide to Achieving and Sustaining Excellence provides a comprehensive, proven approach for delivering world-class performance while also cultivating the right culture through leadership and mentoring.

Tapping into four decades of leadership experience, 35 years of it in the manufacturing industry, Larry Fast explains how to achieve vertical and horizontal alignment across your organization. He details a clear pathway to excellence via the 12 Principles of Manufacturing Excellence and provides a method for tracking progress—plant by plant and function by function. Emphasizing the importance of using Lean and Six Sigma tools to improve your business, the book:

Integrates strategy and leadership development

Paves a path for culture change–Operator-Led Process Control (OLPC)—that prepares hourly employees to take control of their processes and prepares management to enable them to do it.

Details an audit process for tracking progress and ensuring sustainability
Includes a CD with color versions of the images in the book as well as a sample Manufacturing Excellence Audit, a sample Communications Plan, and a sample Training Plan that can all be easily customized for the reader’s use

This resource-rich book will allow you to spell out leadership expectations and provide your employees and associates with a clear understanding of their individual roles. Helping you keep everyone in your organization focused during the quest towards sustainable manufacturing excellence, the accompanying CD supplies the tools you and your team will need to pursue it with passion, confidence, and urgency.


Harvard Business Review on Manufacturing Excellence at Toyota

Harvard Business Press, 2008 - 246 pages
Few companies have so consistently inspired management best practices as Toyota. In everything from strategic operational design and quality improvement to integrated product development and management training, the company has achieved success through constant innovation. This collection shows just how Toyota does it and how you can apply these same lessons to fuel success in your company.

Leading Manufacturing Excellence: A Guide to State of Art Manufacturing

Patricia E. Moody

Improving Operational Excellence in Industry 4.0 Manufacturing Environment

Continuous improvement isn’t enough: Industry 4.0 sets a new bar. Technology allows manufacturers to drastically improve  processes.

A Large Industrial is Reinventing Operational Excellence with Digital Technology

Posted by Matthew Littlefield on Mon, Jan 22, 2018

Analyzing Business Impact in Industry 4.0: Value Proposition of Cyber Physical Systems


Updated on 26 October 2019,  13 July 2018,  12 July 2018
First published on 27 March 2015

Business Benefits of Digital Transformation and Big Data Initiatives - Planning and Implementing - BCG

26 October 2019

Digital Transformation - Productivity Improvement & New Product and Service Creation Examples

1. Tesla made all their electric vehicle patents available for free
2. Eaton, the US-based power management company offers the “eNotify Remote Monitoring” service that provides 24×7 remote monitoring of connected UPS systems.
3. GE: 3D-printing to make parts.  Result: 19 parts now produced as single assembly in 1 print. 5 times stronger.
4. Ingersoll-Rand PLC provides service of  remote monitoring of HVAC systems and data analysis through its Trane Intelligent Services.
5. Caterpillar and Uptake (data analytics startup) co-develop “predictive diagnostics” tools for the larger company’s customers to turn data generated by sensors in bulldozers and hydraulic shovels  into meaningful information that can help Caterpillar’s customers catch potential maintenance issues before breakdowns occur, minimizing downtime.
6. Pay-per-lux leasing program sold to Washington Metro and Schiphol Airport by Philips and energy services company Cofely. Clients pay for the light it uses without investing in fixtures and installations. Philips invests in  all fixtures and installations. Energy savings predicted will provide the return to Philips.
7. Barco proposed to deliver a projection service instead of selling the projectors with a cost per hour projected of LED lights.
8. Joy Global Inc.  manufactures and services heavy machinery used in underground and surface mining.  By installing sensors in their machines they notice  the machines needing  replacement parts or service and schedule the service also. (Smart Services monitoring program)
9. GE launched Predix as an industrial internet cloud solution for predicitivity solutions. Using Predix companies can keep an eye on machines, collect data about heat and vibration, and predict when need for  maintenance or replace parts.

21 January 2017


Advanced Analytics - An Explanation for Operations Managers

Operations managers and leaders and managers are often making operations management using rules of thumb or basic data analysis. Today, they can apply advanced analytics techniques which provide solutions with low total cost and higher effectiveness due to  cheaper computing power and improved data capture mechanisms—to make better-informed decisions that optimize value.




Updated  26 October 2019,  21 January 2017, 26 October 2016

Coordination in the Supply Chain - Review Notes

Coordination is a very important issue in management theory. Fayol included coordination as a function of management or element of management in the theory of management developed by him. But Koontz and O'Donnell argued that the purpose of management is coordination and hence every elements of management contributes to coordination and coordination is not a separate element in management. Chopra and Meindl also indicated that coordination is the output of SCM approach. They said adopting SCM implies a focus on coordination.

Coordination implies actions by various agents in the supply chain that are aimed at increase in total supply chain profits. It also implies that supply chain agents avoid actions that improve their local profits but hurt total profits. Hence supply chain coordination principles requires each stage of the supply chain to take into account the impact its actions have on other stages.

A lack of coordination creates "bullwhip effect" in the supply chain. Due to this effect, fluctuations in sales become larger and larger fluctuations in orders at higher stages in the supply chain. This leads to situations wherein large shortages or large surplus capacities are felt in the supply chain cyclically.

Bullwhip effect reduces the profit of a supply chain by making it more expensive to provide a given level of product availability.

In what way bullwhip effect increases costs for the supply chain?

1. In increases manufacturing cost.
2. It increases inventory cost.
3. It increases replenishment lead times.
4. Increases transportation cost.
5. Increases labor cost in shipping and receiving.
    All items of cost increase because excess capacity has to be installed to take care of unnecessary peaks in demand.
6. It reduces product availability due to some orders not getting filled when demand peaks. So some retail outlets may go out of stock.
7. Leads to problems of relationships - every body claims that they have done right. But still there is problem in the supply chain either as unfilled orders or excess inventory not having the order from down stream side.

The main reasons for coordination problems in supply chain are distributed owners of various stages of production & distribution, and product variety.

The fundamental challenge is for supply chains to achieve coordination in spite of multiple ownership and increased product variety.

What are Obstacles to Coordination in a Supply Chain?

Incentive obstacles
Information processing obstacles
Operational obstacles
Pricing obstacles
Behavioral obstacles
(Chopra and Meindl)

Managerial Levers to Improve Coordination in Supply Chains

Aligning goals and incentives
Improving information accuracy
Improving operational accuracy
Designing pricing strategies to stabilize orders
Building Partnerships and trust
(Chopra and Meindl)

Building Strategic Partnerships and Trust within a Supply Chain

The key steps to be taken in the design of partnership are:

1. Assessing the mutual benefit of the partnership.
2. Identifying operations roles for each party in the partnership.
3. Creating effective contracts
4. Designing effective conflict resolution mechanism


Sunil Chopra and Peter Meindl, Supply Chain Management: Strategy, Planning and Operations, Prentice Hall, 2001.

What Drives Supply Chain Behavior? HBS Working Knowledge article June 2004

Supply Chain Management: Chopra and Meindl - Book Information and Review

Trust Management: Key Factor of the Sustainable Organizations Embedded in Network
Adam Jabłoński, Barbara Kożuch
MDPI, 16-Jul-2019 - Business & Economics - 396 pages

Trust is an element of relationships between entities, but, above all, it positively influences the building of an organization's intellectual capital. This capital can be defined in different ways, but its definition always references elements that determine the potential of sustainable organizations, often in human, social, relational, organizational, and innovation dimensions. Trust is increasingly becoming the key determinant of this capital (Kożuch, Lenart-Gansiniec, 2017). Trust also has a number of different definitions. However, the basis of many of these definitions is the building of relationships focused on developing some kind of individual or inter-organizational link. Organizational trust is a complicated concept, and it is the basis of all organized activities performed by people in the organization, largely because trust is needed to develop relationships with integrity and commitment. Thus, it is interesting to study the relationship between trust and the building of the intellectual capital of sustainable organizations. Indeed, intellectual capital plays a special role here. It is a guide and a platform for achieving not only a competitive advantage for the sustainable organization, but also a source of value creation in the short and long term. Thus, this strategic hybrid, composed of a business model, strategy, and business processes, is favorable to the development of intellectual capital (Jabłoński 2017). Trust is an element that ties this capital to relationships in business. Moreover, it has an integrated character (R.C. Mayer, J. H. Davis, F. D. Schoorman 1995). Assuming that, nowadays, the network paradigm is becoming increasingly important, it is worth asking how the mechanism of building trust-based intellectual capital in a sustainable organization functions as its key asset in the network environment.


Conflict: From Analysis to Intervention

Sandra I. Cheldelin, Daniel Druckman, Larissa Fast
A&C Black, 13-Aug-2003 - Political Science - 373 pages

This major new textbook analyses the emergent role of conflict analysis and resolution. Cheldelin, Druckman and Fast are all based at the Institute for Conflict Analysis and Resolution, and are international experts in the field of conflict. Covering theory, research and practice, the authors provide a comprehensive typology of conflict, as well as an in-depth analysis of the structural, strategic and cultural factors which influence conflict. They explore its management and resolution, paying particular attention to the concepts of negotiation, mediation and peace-building.

New Directions in Conflict Theory: Conflict Resolution and Conflict Transformation

Raimo Väyrynen
SAGE, 23-Aug-1991 - Conflict management - 240 pages

This is a timely work which explores the validity of rational and subjective approaches to conflict resolution, considers the value of international law and organizations for addressing complex social phenomena, and outlines a structural approach to international conflicts. In addition it extends the analysis of conflict transformation to new issues on the international agenda, such as antagonism between urban and rural areas and threat to the environment.

Updated 26 October 2019,  10 April 2015, 10.2.2012

October 16, 2019

Retail Store - Business Digital Transformation


16 October 2019

Supply Chain Conclave NITIE, Mumbai - Issues Discussed

1. Weekly Sales & Operations Planning
2. Concurrent Planning - Real Time Planning
3. Planning for Volatility
4. Planning for Uncertainty
5. Sales Force Effectiveness - Behaviour Issues

6. Triple A Supply Chain - We had discussion on 6A Supply Chain also.
7. Data - Input Data (ID) - Clustering Data (Important data point that can place the ID in a specific cluster. - Training Data (Behavior of the ID or customer) - Feedback Data (Actions taken on recommendations)
8. Cash back is investment to acquire customer ID.
9. AI vs Human - Wherever good quality data is there AI has upper hand.
10. Judgements are still done by human among alternative paths especially when human satisfaction is involved.

11. Moving to demand sensing.
12. Dynamic supply chain network paths - Not a single path optimized for a period ahead. It is now optimal path for every transaction.
13.  Changes due to digital transformation    Speed to Agility, Error Reduction to Probability of Event Determination,  Reliability to Predictability
14. Books Recommended - Predictive Machines, Meltdown
15. Reduction of transit time for perishable items

16. Item life determination using digital images - bananas
17. Reinforcement learning
18. Digital SKUs or stock flow tower similar to air traffic control towers.
19. Drones in warehouses
19. Hyper automated operation
20. Preemptive supply chain to offer extended cut-off time for next day deliveries

21. Man-Machine Cohabitation
22. Machine First - Mimicking human behavior - Augmenting human capability - Autonomous
23. Interesting algorithmic interventions in SCM
24. Integrated Digital Factory in manufacturing supply chains
25. Supply Chain Priorities - Cost - Service - Cash

July 5, 2019
TCS Named an IoT Leader in Digital Transformation in the Retail Industry by NelsonHall
TCS' Domain Expertise, Industry-specific Assets, and IoT-related Intellectual Property Positioned it as a Leader in the Retail and Travel, Transportation & Logistics Industries

The Future of Retail: Winning Models for a New Era
Absolute scale, rapid innovation and data-analytics expertise are now as important as local leadership.
By Marc-André Kamel, Suzanne Tager, Jonathon Ringer, Aaron Cheris and Charles Ormiston
June 10, 2019

Not just tools, reimagine retail through eStrategy
‘digital transformation’ is more than ‘digitalization’ of business. Here’s a lowdown on how to get it right.

12 examples of digital technology in retail stores
By Nikki Gilliland  January 23rd 2019

Top Four Digital Trends in Retail

Business 4.0



A year ago, following a TCS analyst event in Boston, the theme of which was Business 4.0: Intelligent, Agile, Automated, and on the Cloud (29 November 2018)

TCS is training its associates in agile. It is focusing on multiple skills for its associated. It is also promoting machine first work environment.

TCS Study 2019
Press Release

October 11, 2019

Elements of Customer Perceived Value - Marketing Management

The 30 Things Customers
Really Value
by Eric Almquist
AUGUST 11, 2016
Harvard Business Review

Page 24

Value Creation 4.0 - Marketing Products in the 21st Century

Gábor Rekettye

Transnational Press London, 15-Aug-2019 - Business & Economics - 260 pages

Value Creation 4.0 is a marketing guide to the age of the fourth industrial revolution (‘Industry 4.0’). This title draws attention to the situation which poses new challenges and risks for the whole of humanity. The book takes an essentially practice-oriented approach. The book intends to highlight the importance of the topic, define its conceptual framework and present its practical applications. The book is therefore primarily recommended for practitioners. The topics of the book together with the supporting exhibits and cases – which also include international dimensions – provide information for them that can help increase their competitiveness. The book can also be very handy in higher education. Whole courses can be built on it, as the book comprises 4 parts and 14 chapters which can provide the basis for lectures. Each part is illustrated with cases, and some of the more than 30 exhibits could be used for the efficient processing of the material and for further reflection.

October 7, 2019

Creating Brand Equity - Kotler - Keller Chapter Summary

Creating Brand Equity - Kotler - Keller

1.What is a brand and how does branding work?

Brand is name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

The purpose of branding is to create demand for the product that a particular firm is offering or marketing or selling. A satisfied buyer can repurchase the same product only when it is identified uniquely and branding provides the means through firms provide unique identification to their products targeted at various segments in the product or need market.

2. What is brand equity?

Brand equity brand value is associate with the customers. If more customers recognize the brand and show preference for the brand, the brand has more value. Customer-based brand equity is the differential effect brand has on consumer response to the marketing activities of that brand. A brand has positive customer-based brand equity or value when consumers react more favorably to a product's marketing activity conducted with the brand name in comparison to marketing activity conducted without disclosing the brand name.

3. How is brand equity measured and managed?

BrandAsset Valuator
Brand Resonance Model

Brand audit
Brand tracking studies
Brand reinforcement
Brand revitalization

4. What are the important brand architecture decisions involved in developing a branding strategy?
Choosing Brand elements
Developing brand elements

Decisions to use either or combinations of - Corporate umbrella brand name - Separate product family brand names - Target offer brand name.

Creating Brand Equity - Chapter Sections

How Does Branding Work?

Defining Brand Equity

Building Brand Equity

Measuring Brand Equity

Managing Brand Equity

Devising a Branding Strategy

Customer Equity

Marketing Excellence of McDonald's

Marketing Excellence of Procter & Gamble

How Does Branding Work?

Defining Brand Equity

BrandAsset Valuator

Energized differentiation



Brand Resonance Model

4. Resonance
3. Judgments - Feeling
2.  Performance - Imargery
1. Salience

Building Brand Equity

Initial choices for brand elements

Product, service and marketing activities

Other associations

Measuring Brand Equity

Managing Brand Equity

Devising a Branding Strategy

Customer Equity

Marketing Excellence of McDonald's

Marketing Excellence of Procter & Gamble

Updated on 8 October 2019, 9 September 2019.

October 6, 2019

Psychology Evaluation of Scientific Management by Lilian Gilbreth - 1914

Lilian Gilbreth evaluated scientific management from the view point of Psychology in the book "THE PSYCHOLOGY  OF MANAGEMENT."

Important points made in the book are presented below.


Definition of Psychology of Management - Importance of the Subject - Purpose of this Book
Definition of Management. - Possible Psychological Studies of Management - Plan of Psychological Study Here Used -  Conclusions to be Reached

Definition of Psychology of Management.

The Psychology of Management, as here used, means, the effect of the mind that is directing work upon that work which is directed, and the effect of this undirected and directed work upon the mind of the worker.

Psychology, in the popular phrase, is " the study of the mind."

It was not recognized that every man going out into the world needs all the knowledge that he can get as to the working of the human mind in order not only to give but to receive information with the least waste and expenditure of energy, nor was it recognized that in the industrial, as well as the academic world, almost every man is a teacher.

With the advent of "Scientific Management," and its demonstration that the best management is founded on laws that have been determined, and can be taught, the study of management in the class
room as well as on the work became possible and actual.

By Scientific Management, it has demonstrated that the emphasis in successful management lies on the man, not on the work; that efficiency is best secured by placing the emphasis on the man,and modifying the equipment, materials and methods to make the most of the man. It has, further, recognized that the man's mind is a controlling factor in his efficiency, and has, by teaching, enabled the man to make the most of his powers.  In order to understand this teaching element that is such a large part of management, a knowledge of psychology is imperative; and this study of psychology, as it applies to the work of the manager or the man aged, is exactly what the " psychology of management " is.

The psychology of, that is, the mind's place in management is only one part, element or variable
of management; one of numerous, almost numberless, variables.

Purpose of This Book. It is scarcely necessary to mention that this book can hope to do little more
than arouse an interest in the subject and point the way to the detailed books where such an interest can be more deeply aroused and more fully satisfied.

Definition of Management. 

To discuss this subject more in detail
First: What is " Management "?
" Management," as defined by the Century Dictionary, is " the art of managing by direction or

Successful management of the old type was an art based on no measurement. Scientific Management
is an art based upon a science, upon laws deducted from measurement. Management continues to be
what it has always been, the art of directing activity.

Psychological Interest of the Terms.

Psychology could ask no more interesting subject than a study of the mental processes that lie back of many of these terms. It is most unfortunate for the obtaining of clearness, that new terms were not invented for the new ideas. There is, however, an excellent reason for using the old terms. By their use it is emphasized that the new thought is a logical out growth of the old, and experience has proved that this close relationship to established ideas is a powerful argument for the new science; but such terms as "task," "foreman," "speed boss," "piece-rate" and " bonus," as used in the science of management, suffer from misunderstanding caused by old and now false associations. Furthermore, in order to compare old and new interpretations of the ideas of management, the older terms of management should have their traditional meanings only. The two sets of meanings are a source of endless confusion, unwarranted prejudice, and worse. This is well recognized by the authorities on Management.

Plan of Psychological Study Used Here.

It has, therefore, seemed best to base the discussion that is to follow upon arbitrary divisions of scientific management, that is
1. To enumerate the underlying principles on which scientific management rests.
2. To show in how far the other two types of management vary from Scientific Management.
3. To discuss the psychological aspect of each principle.

Underlying Ideas and Divisions of Scientific Management. 

These underlying ideas are grouped under nine divisions, as follows :
1. Individuality.
2. Functionalization.
3. Measurement.
4. Analysis and Synthesis.
5. Standardization.
6. Records and Programmes.
7. Teaching.
8. Incentives.
9. Welfare.

Conclusions to be Reached.
These conclusions will include the following:

Psychology Evaluation of Scientific Management by Lilian Gilbreth - 1914

1. "Scientific Management" is a science.
2. It alone, of the Three Types of Management, is a science.
3. Contrary to a widespread belief that Scientific Management kills individuality, it is built on the basic principle of recognition of the individual, not only as an economic unit but also as a personality, with all the idiosyncrasies that distinguish a person.
4. Scientific Management fosters individuality by functionalizing work.
5. Measurement, in Scientific Management, is of ultimate units of subdivision.
7. Standardization under Scientific Management applies to all elements.
8. The accurate records of Scientific Management make accurate programmes possible of fulfillment.
9. Through the teaching of Scientific Management, the management is unified and made self-perpetuating.
10. The method of teaching of Scientific Management is a distinct and valuable contribution to Education.
11. Incentives under Scientific Management not only stimulate but benefit the worker.
12. It is for the ultimate as well as immediate welfare of the worker to work under Scientific Management.
13. Scientific Management is applicable to all fields of activity, and to mental as well as physical
14. Scientific Management is applicable to self-management as well as to managing others.
15. It teaches men to cooperate with the management as well as to manage.
16. It is a device capable of use by all.
17. The psychological element of Scientific Management is the most important element.
18. Because Scientific Management is psychologically right it is the ultimate form of management.
19. This psychological study of Scientific Management emphasizes especially the teaching features.
20. Scientific Management simultaneously
a. increases output and wages and lowers costs.
b. eliminates waste.
c. turns unskilled labor into skilled.
d. provides a system of self-perpetuating welfare.
e. reduces the cost of living.
f. bridges the gap between the college trained and the apprenticeship trained worker.
g. forces capital and labor to cooperate and to promote industrial peace.