July 3, 2020

Smart Manufacturing - Application Areas

Online MBA Management Theory Handbook 


Automatic changes to products on prod. line
Modelling and simulation
Digital direction setting
Rapid design prototyping through 3D printing
Digital twins – factory network
3D scanning for quality
Advanced analytics platform
Mixed reality for maintenance work
Energy management through IoT
Lean digitization
Smart supply chain- Automated Guided Vehicles
Predictive maintenance through IoT
3D Simulation for Production Line
Digital Assistant System for Operators
Implementation of Automation
Integration of ERP²/MES³/PLM

June 30, 2020

July - Management Knowledge Revision

Online MBA Management Theory Handbook 



July  (Economics, Engineering Economics, & Managerial Ethics)

1st Week  ( 1 to 5 July)

Economic Theory of Production and Production Cost
Economic Analysis of Different Competitive Conditions.

Wages and the Labor Market - Samuelson and Nordhaus 

Capital, Interest and Profits - Review Notes
Markets and Economic Efficiency - Review Notes

Economic Role of Government and Its Expenditure


Alternative Economic Systems - Review Notes
Theory of Economic Growth

2nd week  ( 8 to 12 July)

International Trade Theory and Issues
Exchange Rates: Markets Regulation and International Financial System

Supply Behavior/Decisions of Firm in Competitive Markets
Introduction to Engineering Economics


Engineering Economy or Engineering Economics: Economic Decision Making by Engineers
Time Value of Money - Time Value of Money Calculations


Cash Flow Estimation for Expenditure Proposals
Required Rate of Return - Cost of Capital  - Required Rate of Return for Investment or Expenditure Proposal..


Depreciation and Other Related Issues
NPV - IRR and Other Summary Project Assessment Measures



3rd week  (15 to 19 July)


Income Expansion Projects
Cost Reduction Projects


Replacement Decisons
Expected Values and Risk of Project Revenues and Costs


Present-Worth Comparisons
Rate-of-Return Calculations

18 July

Equivalent Annual-Worth Comparisons
Replacement Analysis


Replacement Problem - Engineering Economy Analysis...
Machine Selection Problem for an Engineer - Engine...

4th week

Depreciation and Income Tax Considerations
Sensitivity Analysis

Structural Analysis of Alternatives
Engineering Economic Analysis - Subject Update - Recent Case Studies

Business Ethics Revision Starts


Business Ethics – Introduction
Moral Standards and Moral Judgments – Approaches



Business System - Free Markets - Ethics
Ethics in the Market Place and Distribution System

Ethics in the Factory
Ethics in the Supply Chain







To August - Management Knowledge Revision


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



Industrial Engineering ONLINE Course



One Year MBA Knowledge Revision Plan


January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December



Updated 30 June 2020,  10 July 2016






June 29, 2020

Financial - Cost and Management Accounting - Subject Update Articles




                                      Narayana Rao K.V.S.S. on Cover Page of Business Today 
October 22 - November 6, 1997



2020

Video Lectures on Financial Accounting by Prof. Elbarrad
https://www.youtube.com/channel/UCXQAlFxCIlihCazcGq65wBA


Cost Effective Supply Chain
Brand owners require effective processes for collecting and managing cost data from manufacturing partners, item suppliers and logistics partners at the individual item and bill-of-material (BOM) levels. E2open’s Cost Management application enables multi-tier cost capture and management by providing a single view of BOMs, cost forecasting and rebate management. The result is efficient, optimized processes and lower supply chain costs.
https://www.e2open.com/intelligent-applications/supply-management/cost-management/

2019

Bain and Company
______________

______________



Save-to-transform as a catalyst for embracing digital disruption
Deloitte's 2019 Global Cost Survey
Cost-management remains a strong imperative around the world.
https://www2.deloitte.com/us/en/pages/operations/articles/global-cost-management-survey.html

Strategic Cost Transformation - Capgemini

https://www.capgemini.com/wp-content/uploads/2017/07/Strategic_Cost_Transformation.pdf

Manufacturing cost transformation

Situation
Our client, which primarily serves coal power generators, faced a unique set of market challenges driven by fossil fuel price and regulatory uncertainty:
https://www.strategyand.pwc.com/power-utilities/infrastructure-mining/casestudy/cost-transformation

Cost Transformation


We help you embark on major cost reduction—without losing focus on profitable growth.
https://www.atkearney.com/operations-performance-transformation/cost-transformation

IBM: Cost transformation for the digital era


In the new digital era, the classical dichotomy of grow and invest, or reduce costs has changed and it’s no longer an either/or choice. Organizations have new opportunities to identify cost take-out, rethink operational efficiency and fund growth from the inside out.
https://www.ibm.com/thought-leadership/institute-business-value/report/cognitive-cost

How do you take your enterprise cost reduction strategy from alienating to engaging?
https://consulting.ey.com/take-enterprise-cost-reduction-strategy-alienating-engaging/


February 5, 2019

IMA Releases Enhanced Management Accounting Competency Framework for Professionals in the Digital Age


IMA® (Institute of Management Accountants) has released its enhanced Management Accounting Competency Framework. The updated Framework reflects the skills management accountants will need to remain relevant and be future-ready.
https://www.imanet.org/about-ima/news-and-media-relations/press-releases/2019/2/5/ima-releases-enhanced-management-accounting-competency-framework?ssopc=1

IMA Management Accounting Competency Framework 


Strategy, Planning & Performance
The competencies required to envision the future, lead the strategic planning process, guide decisions, manage risk, and monitor performance.

Reporting & Control
The competencies required to measure and report an organization’s performance in compliance with relevant standards and regulations.

Technology & Analytics
The competencies required to manage technology and analyze data to enhance organizational success.

Business Acumen & Operations
The competencies required to contribute as a cross-functional business partner to transform company-wide operations.

Leadership
The competencies required to collaborate with others and inspire teams to achieve organizational goals.

Professional Ethics & Values
The competencies required to demonstrate the professional values, ethical behavior, and legal compliance essential to a sustainable business model.
Download full framework from https://www.imanet.org/career-resources/management-accounting-competencies?ssopc=1

2018

Strategic Cost Transformation

by Dr. Reginald Tomas Lee
Publisher: Business Expert Press
Release Date: December 2018
https://www.oreilly.com/library/view/strategic-cost-transformation/9781631578809/

Virtual Issue on Empirical Management Accounting Research

Journal of Accounting Research, August 2018
Margaret A. Abernethy
University of Melbourne, Department of Accounting
Dennis Campbell
Harvard University - Accounting & Control Unit

Review of empirical papers published in JAR over the past 10 years examining management accounting and control systems in organizational contexts that are complex, ambiguous and where performance is difficult to measure. These papers use a variety of newer economic models of organization culture, relational contracts and related theories from sociology and psychology to provide a direction to management accounting.

2015

Cost Transformation Model of CGMA

http://www.cgma.org/Resources/Tools/pages/cost-transformation-model.aspx

Cost Transformation - Tata Steel Europe Case Study

http://www.cgma.org/Resources/Tools/Documents/Cost_Transformation_COL_TATA.PDF


2014

May 2014
Corporate and Integrated Reporting
HBS working paper
http://hbswk.hbs.edu/item/7502.html


Jan 2014
Environmental Accounting - ACCA
http://www.accaglobal.com/zw/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f5/technical-articles/Env-MA.html


2009

How to Cut Cost Strategically

Harvard Business Review
Published on 22 Sep 2009
Cesare Mainardi, managing director of Booz & Company, details how executives should cut costs--but often dont.
______________

______________


1997

Effective Management of Future Costs through New Product Target Costing

Effective cost management must start at the design stage. As much as 90-95% of a product's costs are added in the design process. That is why effective cost management programs focus on design and manufacturing. The primary cost management method to control cost during design is a combination of target costing and value engineering.
Target Costing and Value Engineering - Robin Cooper - 1997
https://nraoiekc.blogspot.com/2019/07/target-costing-and-value-engineering.html
Value Analysis and Engineering - Online Book



Financial, Cost and Management Accounting - Review Notes List




Updated on 28 July 2019,  29 May 2019,  10 December 2015













June 28, 2020

2.9 Million Cumulative Page Views Registered on 28 June 2020



28 June 2020
2.9 million


28 June 2018
2.41 Million Page Views Registered on 28 June 2018

At 10.38 pm IST
2,418,131 page views


28 June 2014

Million Page Views Registered on 28 June 2014

At 9.09 pm Indian Standard Time

http://nraomtr.blogspot.com  registered 1,000,000 page views

____________________




____________________

Million Page Views for the Blog - Top Posts
____________________




____________________

Audience - Country Breakup
80% global audience

____________________




____________________

Got a message from Google+ that the photos are awesome.

Updated on 28 June 2018, 28 June 2014

Brain Stilling - Brain Storming for Effective Decisions




Brain stilling is allowing unconscious mind to work on the problem. The unconscious mind provides intuitive solutions. Brain stilling is also used to understand the others' viewpoint with full concentration on the description provided. Ability to suspend judgment till the other person presents his view completely is important. Top managers need to cultivate the ability to combine intelligences of many people. Spirituality scholars with focus on management even talk of utilizing the universal intelligence in decision making.

Brain storming is a group creativity enhancing technique. In this technique, the members of the group are provided continuous stimulation in the form of ideas presented by others. Some of these ideas may provide the stimulus to bring forth new ideas. Every idea is recorded without any evaluation to encourage further participation by others. Top managers will get the benefit of conscious effort by many in the organization by holding brain storming sessions. The brain storming sessions can be followed by individual suggestions that are communicated after providing more time for external search and individual thinking. There is scope for intuitive suggestions also when time is provided to many for thinking.

After brain storming, some time can be given for brain stilling to allow time for the unconscious to bring out from the depths of one's mind and brain some thing interesting that is of use to solve the problem under investigation.


Meditation and Brain Stilling

Patanjali

The definition of meditation (or yoga) by Patanjali as “restriction (or stilling) of the fluctuations of the mind” (cf, Woods, 1927/2003, p. xxx, 8).

According to Patanjali, five types of fluctuations of mind should be overcome in order to attain concentration (meditation): (1) veridical cognition on the basis of perception, logical reasoning, and verbal communication, (2) illusory imagination, (3) linguistic conceptualizations, (4) sleep, and (5) memory (Woods, 1927/2003; Rao, 2011, p. xxx, 17ff). These fluctuations corresponds to, roughly speaking, the full range of mental states which the mind may pass through during normal life activity as they are described in modern psychology.

Although different schools of meditation use specific techniques and procedures (Focused Attention, Open Monitoring, Nondual Awarenes etc., cf, Josipovic, 2014), the ultimate aim always includes some form of “restriction (or stilling) of the fluctuations of the mind.”

Meditation is a whole-brain (body) activity and needs characterization in terms of whole brain dynamics. The research strategy might follow the non-reductionist proposal of Edelman (2003) and Edelman and Tononi (2000 p. 18f) and concentrate on the brain processes, not just the brain areas, that support consciousness, and examine what kind of neural interactions may explain the fundamental properties of consciousness such as phenomenological unity, differentiation, variability and informativeness, that may reveal characteristics conforming to the phenomenological descriptions of the target states (e.g., rest vs. various forms and states of meditation).

Front. Psychol., 03 July 2015 | https://doi.org/10.3389/fpsyg.2015.00915
Patanjali and neuroscientific research on meditation
Klaus B. Bærentsen*
Department of Psychology and Behavioral Sciences, University of Aarhus, Aarhus, Denmark
https://www.frontiersin.org/articles/10.3389/fpsyg.2015.00915/full

Joseph Goldstein - Insight Meditation Society, USA
Updated on 14 May 2019, 3 April 2017

Behavioral Issues in Operations Management

#AtoZChallenge 2019 badge


Online MBA Management Theory Handbook 






The subject "Organizational Behavior" discusses behavioral issues related to organizations and their management.

The textbook on the subject by Fred Luthans covers the following topics under the major areas.

Cognitive Processes


Perception and Attribution
Personality and Attitudes
Motivational Needs and Processes
Positive Psychology Insights: Optimism, Emotional Intelligence and Self Efficacy


Dynamics of Organizational Behavior


Communication
Decision Making
Stress and Conflict
Power and Politics
Groups and Teams


Managing Organizational Behavior


Managing Performance through Job Design and Goal Setting
Behavioral Performance Management
Effective Leadership Process

Operating departments employ the maximum man power in organizations generally. Therefore issues of people behavior have to be understood by them to select, train, and direct people effectively and efficiently. All the above behavioral issues are relevant in operations management and business education programs include the subject of organizational behavior as a core course.

As an illustration, the issue of downward communication can be examined.

Downward Communication


Luthans cited Katz and Kahn and gave five basic purposes of downward communication.

1. To give specific directives and instructions related to tasks and jobs.
2. To give information about organizational procedures and practices.
3. To provide information about the rationale of the job.
4. To tell subordinates about their performance (give feedback)
5. To provide ideological information to facilitate the indoctrination of goals.

Luthans says, managers are undertaking only the first two types of communication. Such a practice is having negative effect. Communicating the ideology of the organization (mission and vision), explaining the role of the job in the vision achievement and feedback about job performance greatly benefit the organization. Visionary Leadership for Operations Management explains how aligned vision is important dimension for effective organizational performance. In the downward communication, concern for the task, concern for people and mechanism to align vision are to be there.

Summary of each chapter of Organizational Behavior is available in:
Organizational Behavior Book by Fred Luthans - Review Notes



The Human Factor in Works Management - 1912


Operations management began in the later years of 19th century as shop management and works management. It is interesting to note that issues related to managing men were treated as the most important area in management and early papers presented in American Society of Mechanical Engineers were in the area of managing men. In 1912, James Hartnell, a member of ASME authored the book, The Human Factor in Works Management. He covered two topics, The value of Habit and The inertial of Habit in that book.

The human factor in works management
by Hartness, James, 1861-1934
Publication date 1912
https://archive.org/details/humanfactorinwo01hartgoog/page/n7


THE PSYCHOLOGY OF MANAGEMENT 

The Function of the Mind in Determining,Teaching and Installing Methods of Least Waste
BY
L. M. GILBRETH, M. L.
STURGIS & WALTON COMPANY
1914

CONTENTS

CHAPTER I DESCRIPTION AND GENERAL OUTLINE OF THE PSYCHOLOGY OF MANAGEMENT

Definition of Psychology of Management Importance of the Subject Purpose of this Book
Definition of Management The Three Types of Management Possible Psychological Studies
of Management Plan of Psychological Study Here Used Underlying Ideas or Divisions of
Scientific Management Outline of Method of Investigation Conclusions to be Reached.

CHAPTER II

INDIVIDUALITY

Definition of Individuality Place of Individuality in Psychology Individuality Under Tradi-
tional Management Individuality Under Transitory Management Individuality Under Scientific
Management Selection of Workers Separating Output Recording Output Separately Individual Tasks Individual Instruction Cards Individual Teaching Individual Incentives Individual Welfare Summary: (a) Effect of Individuality upon Work; (b) Effect of Individuality upon Worker.

CHAPTER III

FUNCTIONALIZATION

Definition of Functionalization Psychological Use of Functionalization Functionalization
in Traditional Management Functionalization Under Transitory Management Functionaliza-
tion Under Scientific Management Separating the Planning From the Performing Functional-
ized Foremanship The Function of Order of Work and Route Clerk The Function of In-
struction Card Clerk > The Function of Time and Cost Clerk The Function of Disciplinarian
The Function of Gang Boss The Function of Speed Boss The Function of Repair Boss
The Function of Inspector Functionalizing the Worker Functionalizing the Work Itself
Summary: (a) Effect of Functionalization upon the Work; (b) Effect of Functionalization upon
the Worker.

CHAPTER IV

MEASUREMENT

Definition of Measurement Importance of Measurement in Psychology Relation of Measurement in Psychology to Measurement in Management Importance of Measurement in Management Measurement in Traditional Management Measurement in Transitory Management

Measurement in Scientific Management Qualifications of the Observer Methods of
Observation 'Definitions of Motion Study and Time Study Methods of Motion Study and
Time Study Summary: (a) Effect of Measurement on the Work ; (b) Effect of Measurement
on the Worker; (c) Future Results to be Expected; (d) First Step Toward Obtaining These
Results.

CHAPTER V

ANALYSIS AND SYNTHESIS

Definition of Analysis Definition of Synthesis

Use of Analysis and Synthesis by Psychology

Importance of Analysis and Synthesis in Management Place in Traditional Management
Place in Transitory Management Place in Scientific Management The Work of the Analyst

Determining Factor in Amount of Analysis Field of Pyschology in Analysis Qualifications
of an Analyst Worker's Interest in AnalysisThe Work of the Synthesist Results of Synthesist's Work The Task Discussion of the Name " Task " Definition of " Task " in Scientific Management Field of Application of the Task Idea Qualifications of the Synthesist
Summary: (a) Effect of Analysis and Synthesis on the Work; (b) Effect of Analysis and Syn-
thesis on the Worker.

CHAPTER VI

STANDARDIZATION

Definition of Standardization Relation of the Standard to the Task and the Incentive Relation of the Standard to Psychology Purpose of Standardization Standardization Under Tradtional Management Standarization Under Transitory Management Value of Systems Standardization Under Scientific Management

Relation of Standard to Measurement Scope of Standardization Under Scientific Management

Permanence of Results Needs of Standardization Likened to Needs in Field of Spelling -
Standard Nomenclature Advantages of Mnemonic Symbols Standard Phraseology The
Standard Man Standard Means of Conveying Information Definition of the Instruction Card

Detailed Description of the Instruction Card Value of Standard Surroundings Necessity for
Proper Placing of the Worker Standard Equipment Standard Tools and Devices Standard
Clothing Standard Methods Rest from Fatigue Standardization of Work with Animals
Standard Quality Standard "Method of Attack" 'Summary: (a) Effect of Standardiza-
tion on the Work; (b) Effect of Standardization on the Worker; (c) Progress of Standardization
Assured.

CHAPTER VII

RECORDS AND PROGRAMMES

Definition of Record Records Under Traditional Management Records Under Transitory
Management Records Under Scientific Management Criterion of Records Records of Work
and Workers Records of Initiative Records of Good Behavior Records of Achievement
Records of " Exceptions " Posting of Records

Summary of Results of Records to Work and Worker Definition of Programme Programmes Under Traditional Management Programmes Under Transitory Management 'Programmes Under Scientific Management Programmes and Routing Possibility of Prophecy Under Scientific Management Summary of Results of Programmes to Work and Worker

Relation Between Records and Programmes Types of Records and Programmes Interrelation of Types Illustrations of Complexity of Relations Possibilities of Eliminating Waste
Derivation of the Programme Summary: (a) Effect of Relations Between Records and Pro-
grammes on the Work; (b) Effect on the Worker.

CHAPTER VIII

TEACHING

Definition of Teaching Teaching Under Traditional Management Faults Due to Lack of
Standards Teaching Under Transitory Manageagement Teaching Under Scientific Management

Importance of Teaching Conforming of Teaching to Psychological Laws Conservation
of Valuable Elements of Traditional and Transitory Management Scope of Teaching Source
of Teaching Methods of Teaching Instruction Cards as Teachers Systems as Teachers
Drawings, Charts, Plans and Photographs Functional Foremen as Teachers Object Lessons as Teachers Training the Senses Forming Good Habits Importance of Teaching
Right Motions First Stimulating Attention Forming Associations Educating the Memory

Cultivating the Imagination Developing the Judgment Utilizing Suggestion Utilizing Native Reactions Developing the Will Adaptability of Teaching Provision of Places for
Teaching Measurement of Teaching Relation of Teaching to Academic Training and Vocational Guidance Summary: (a) Result of Teaching in the Work; (b) Result of Teaching to
the Worker; (c) Results to be Expected in the Future.

CHAPTER IX

INCENTIVES

Definition of Incentive Importance of Incentives Direct and Indirect Incentives Definition of Reward Definition of Punishment Nature of Direct Incentives The Reward Under Traditional Management The Punishment Under Traditional Management The Direct Incentive Under Traditional Management Incentives Under Transitory Management Rewards
Under Scientific Management Promotion and Pay Relation of Wages and Bonus Day
Work Piece Work Task Wage - Gain Sharing Premium Plan Profit Sharing Differential Rate Piece Task Work with a Bonus Differential Bonus Three Rate Three Rate with Increased Rate Other Rewards Negative and Positive Punishments Fines and Their Disposal Assignment to Less Pleasant Work Discharge and Its Elimination Use of Direct Incentives Summary: (a) Effect of Incen-
tives upon the Work; (b) Effect of Incentives upon the Worker.

CHAPTER X

WELFARE

Definition of Welfare " Welfare " and "Welfare Work" Welfare Under Traditional Management Welfare Work Under Traditional Management Welfare Under Transitory Management Welfare Work Under Transitory Management Welfare Under Scientific Management Physical Improvement Mental Development Moral Development Interrelation of Physical, Mental and Moral Development Welfare Work Under Scientific Management Summary: (a) Result of Welfare to the Work; (b) Result of
Welfare to the Worker.

Chapter summaries are being prepared for Lilian Gilbreth's Book

1. The Role of of the Mind - Psychology in Productivity Management - Scientific Management - Lilian Gilbreth
https://nraoiekc.blogspot.com/2019/04/the-role-of-of-mind-psychology-in.html


Introduction to Organizational Behavior - Online Book

May - Management Knowledge Revision - Cost and Management Accounting and Organizational Behavior

Updated on 19 May 2019, 2 April 2019









Zero-Based Productivity Management

Online MBA Management Theory Handbook 



Last Post of Operations Management A to Z Articles - 2019 A to Z Blogging Articles

_____________

_____________

Zero-Based Productivity - Cost Savings


When implemented throughout the enterprise, zero-based productivity can not only create a fit-for-purpose cost structure but also free up funds to invest in strategic growth initiatives. When zero-based productivity is rolled out as an overarching philosophy to promote a high-performance culture, an organization can achieve cost savings of 10 to 40 percent (depending on the spending area) while allocating more resources to strategic priorities. - McKinsey Consultants


Zero-Based Productivity Management


McKinsey consultants provided the concept of zero-based productivity based on zero-based budgeting to provide a new direction to productivity management.

The idea of zero-based productivity proposed by them has application in planning, organizing, resourcing, directing, and control, the five functions of management.

Budgeting basically is planning. The consultants published an article explaining its role in organizing. Resources have to removed from low value generating activities and have to be allocated to new strategic initiatives. That is the main theme of zero-based productivity. The culture of the organization needs to be changed. Culture is basically behavior and hence it is part of directing function of management. The whole exercise is aimed at increasing effectiveness and efficiency. Hence control action is required to see that new plans are implemented through new organizations, newly acquired or modified resources, new behavior or processes. Also measurement of results has to be done and to take feedback based action to move the enterprise in the desired direction.


Zero-based Productivity - Basic Concept

Zero-based productivity: The power of informed choices

July 2018  Article

In this article, the first in a series, we examine the distinctive elements of zero-based productivity.

When implemented throughout the enterprise, zero-based productivity can not only create a fit-for-purpose cost structure but also free up funds to invest in strategic growth initiatives. When zero-based productivity is rolled out as an overarching philosophy to promote a high-performance culture, an organization can achieve cost savings of 10 to 40 percent (depending on the spending area) while allocating more resources to strategic priorities.

Internal and external benchmarks, from relevant peers as well as across internal markets and functions, are used to intelligently challenge current spending levels. These comparisons provide business leaders with the perspective to gauge the full potential savings available to their company and turn that potential into year-over-year targets for each function and market. 

Zero-based productivity is an exercise to realign a company’s profit-and-loss statement with its strategic priorities. The organizaton may decide to operate  with a smaller cost base or by redirect spending to more productive investments. The structural and cultural elements of zero-based productivity help to guide organizations and their management teams to achieve performance improvements. The journey toward productivity is more than a planning and budgeting activity, Executives should view it as a significant mind-set shift initiative that requires change management and system improvements to help employees deliver more than they ever thought possible.

About the author(s)
Søren Fritzen is a senior partner in McKinsey’s Copenhagen office; Matt Jochim is a partner in the London office; Carey Mignerey is a partner in the Atlanta office; and Mita Sen is an associate partner in the Zurich office.
https://www.mckinsey.com/business-functions/operations/our-insights/zero-based-productivity-the-power-of-informed-choices


Building the zero-based culture
November 2018  Article
By Ronald Falcon, Hanspeter Hueter, Matthew Maloney, and Abhishek Shirali

ZBB evolves into zero-based productivity (ZBP), a performance-improvement dynamo that transforms the entire enterprise—achieving the ideal of fact-based, data-driven decisions that boost sales, reduce waste, and accelerate improvement year after year.

Zero-based productivity—Marketing



Zero-based productivity—Marketing: Measure, allocate, and invest marketing dollars more effectively
August 2018  Article
By Jeff Jacobs, Roberto Longo, Mita Sen, and Björn Time

Marketing is a function for consumer engagement,sales and revenue. Its costs can account for more than 10 percent of revenues in many consumer-facing businesses and this cost has to be understood and spent wisely. Waste in marketing cost has to be identified and eliminated.


Zero-based Productivity - Organization Redesign


Zero-based productivity—Organization: Using zero-based principles to forge a purpose-built organization
December 2018| Article
By Onno Boer, Shaun Callaghan, Mita Sen, and Alexander Thiel


McKinsey consultants have published a series of articles on zero-based productivity. This article is on zero-based organization.

Using zero-based principles as a lens to assess organization combines planning for  effectiveness  and efficiency. With this approach, companies can capture significant efficiencies while upgrading capabilities and increasing effectiveness across functions. These principles also can ensure that the highest-value roles within the organization are clearly identified and staffed with the most qualified workers.

Traditional approaches to operations can miss opportunities to harness technology to boost efficiency. Assuming the current organizational structure as a starting point  can hinder efforts to improve efficiency and reduce costs. Zero-basing organization, using  zero-based principles as a lens to reshape organizational structure and operations, can unleash greater productivity. In the zero based organized structure,  enterprise ensures that staff and resources are allocated to the highest-value areas of the business.


Zero-based Productivity - The Supply Chain Redesign



Zero-based productivity: Going granular and end-to-end across the supply chain
March 2019  Article
By Matt Jochim, Rehana Khanam, Cecilia Martensson, and Curt Mueller


By undertaking zero-based productivity improvement programes in supply chain, businesses have achieved overall cost savings of up to 50 percent. Rigorous productivity management and the right productivity improvement methods and techniques have to be in place to capture and sustain this level of improvement.
https://www.mckinsey.com/business-functions/operations/our-insights/zero-based-productivity-going-granular-and-end-to-end-across-the-supply-chain



Related article

Productivity Management in Operations Management