Articles on Management Subjects for Knowledge Revision and Updating by Management Executives ---by Dr. Narayana Rao, Professor (Retd.), NITIE---3.80 MILLION Page Views---
Global Top Blog for Management Theory---Management for Effectiveness, Efficiency and Excellence.
A New CEO's Turnaround Success Based on Listening to Employees and Customers
A New CEO's Turnaround Project - Important Points
I spent most of my first 90 days out in operations and in the field listening — to my employees, to customers, to suppliers. Listening, watching, evaluating the situation, the opportunity, the constraints and the possible solutions to decide the steps were that needed to be taken. The decision making was made into a more decentralized model.
You should not attempt to fix a company without data from the trenches. You have get into your employee’s shoes, and your customer’s shoes. Know what problems are to be solved and then only come with solutions.
People at their core want to be part of something successful. To make them a part of successful venture from now make them believe that they’re part of planning the venture. Make them feel good of their 5, 10, 15 years of experience. Tell them it is worth something. Their opinions were worth something. You give that respect to an equipment operator, a plant foreman, and plant manager. Make them feel proud of their knowledge and skill.
As a CEO who joined recently, trust them first. Back them in their routine activities and they will trust you and participate in strategy development. Make progress and share the benefits of the progress with all employees.
The new CEO has to harvest the collective wisdom gained over years of experience by large number of employees, and then motivate them through good leadership demonstrated to the next level of managers and asking them to exhibit similar style down the line. A CEO can’t be everywhere. But leadership style, performance culture, and a work environment that was supportive of each other can be everywhere in the organization.
Negotiation skills are becoming increasingly recognized as important to effective management and personal success.
Research at one time identified some common mistakes being made in negotiations.
1. Negotiating persons tend to be overly affected by the frame, or form of presentation, of information in a negotiation.
2. Even when a course of action is no longer the most reasonable alternative, negotiators tend to nonrationally escalate commitment to a previously selected or advocated course of action.
3. Negotiators tend to assume that their gain must come at the expense of the other party and thereby miss opportunities for mutually beneficial trade-offs between the parties.
4. Negotiators judgments tend to be anchored on irrelevant information, such as initial offer.
5. Negotiators tend to rely on readily available information.
6. Negotiators tend to fail to consider information that is available by focusing on the opponent's perspective.
7. Negotiators tend to be overconfident concerning the likelihood of attaining outcomes that favor the individual(s) involved.
Traditionally, negotiators have depended on distributed and positional bargaining. Distributed bargaining assumes a "fixed pie" and focuses on how to get the biggest share, or "slice of the pie" for the benefit of the negotiating party. Positional bargaining approach involved successively taking and then giving up, a sequence of positions. A position involves telling the other side what you want.
Strategies called soft and hard are used in traditional ways of negotiating. Characteristics of the "hard strategy" include the following: the goal is victory, distrust others, dig into your position, make threats, try to win contest of will, apply pressure.
Soft strategy includes characteristics: The goal is agreement, trust others, change your position easily, make offers, try to avoid a contest of will, and yield to pressure.
The traditional approach is now being challenged by more effective alternative negotiation skills.
Whetten and Cameron suggest an approach that takes an "expanding the pie" perspective and advocates finding win-win outcomes. The approach recommends:
1. Establishing superordinate goals.
2. Separating people from the problem
3. Focusing on interests, not positions
4. Inventing options for mutual gain.
5. Using objective criteria.
In terms of negotiation techniques or manoevres the following are identified as in use by negotiators.
Practical low-risk strategies include flattery, addressing the easy points first, silence, inflated opening position, and "oh, poor me."
High-risk strategies include unexpected temper losses, high-balling, Boulwarism, and waiting until the last moment.
Harvard Negotiation Project came up with principled negotiation approach or negotiation on the merits approach. This is an integrative approach, which uses a problem-solving, collaborative strategy, and the principled, or negotiation on the merits approach, which emphasizes people, interests, options, and criteria. These negotiation skills change the game, leading to a win-win, wise agreement.
Along with social, emotional, behavioral, leadership, team, and communication skills, negotiation skills are becoming increasingly recognized as important to effective management.
Principled Negotiation Approach
Positional style of negotiation,
With the positional style of negotiation, each party starts with an extreme (may be unjustified) position. The basis for this approach is the belief that the ultimate solution will be favorable only if the initial offer is extreme and concessions are done. But it is zero-sum game. One party will win and one will lose and in many case of street buying situations, seller comes down drastically.
But deals and settlements in positional negotiations come with a steep non- monetary price. Trust becomes the victim and in the next negotiation also both parties bargain heavily. Thus, the process creates (or perpetuates) an adversarial relationship between the two parties.
Principled negotiation seeks to establish a foundation and climate where parties can be creative in searching for mutually beneficial solutions to a shared problem. This approach preserves, and may even enhance, ongoing relationships.
Four basic elements of principled negotiation were put forth by Fisher and Ury (1991) in their book Getting to Yes (1981).
FOUR PRINCIPLES - PRINCIPLED NEGOTIATION
People -- Separate the people from the problem.
Interests -- Focus on interests, not positions.
Options -- Generate a variety of possibilities before deciding what to do.
Criteria -- Insist that the result be based on some objective standard.
Negotiating at Work: Turn Small Wins Into Big Gains
Deborah M. Kolb, Jessica L. Porter
John Wiley & Sons, 27-Jan-2015 - Business & Economics - 288 pages
Understand the context of negotiations to achieve better results
Negotiation has always been at the heart of solving problems at work. What has been missed in much of the literature of the past 30 years is that negotiations in organizations always take place within a context—of organizational culture, of prior negotiations, of power relationships—that dictates which issues are negotiable and by whom. When we negotiate for new opportunities or increased flexibility, we never do it in a vacuum. We challenge the status quo and we build out the path for others to negotiate those issues after us. In this way, negotiating for ourselves at work can create small wins that can grow into something bigger, for ourselves and our organizations.
Negotiating at Work offers practical advice for managing your own workplace negotiations: how to get opportunities, promotions, flexibility, buy-in, support, and credit for your work. It does so within the context of organizational dynamics, recognizing that to negotiate with someone who has more power adds a level of complexity.
Negotiating at Work is rooted in real-life cases of professionals from a wide range of industries and organizations, both national and international.
Strategies to get the other person to the table and engage in creative problem solving, even when they are reluctant to do so
Tips on how to recognize opportunities to negotiate, bolster your confidence prior to the negotiation, turn 'asks' into a negotiation, and advance negotiations that get "stuck"
A rich examination of research on negotiation, conflict management, and gender
By using these strategies, you can negotiate successfully for your job and your career; in a larger field, you can also alter organizational practices and policies that impact others.
Preview https://books.google.co.in/books?id=F7FYBQAAQBAJ
The McKinsey Global Institute finds that the United States could boost annual manufacturing value added by up to $530 billion (20 percent) over current trends by 2025.
By 2025, consumption in emerging markets will hit $30 trillion.
Industry 4.0, is driven by developments in data aquisition, storage and analytics, machine learning, new forms of human–machine interaction (such as touch interfaces and augmented-reality systems), and the ability to transmit digital instructions to the physical world. In combination, the technologies can run smart, cost-efficient, and automated plants that produce large volumes—or, conversely, plants that turn out highly customized products.
Master's Thesis from the year 2017 Friedrich-Alexander University Erlangen-Nuremberg
The goal of this Master’s thesis is to examine the relationship between managerial Opportunity Recognition (OR) and business model innovations (BMIs) in established organizations. In order to meet the complexity of the topic, this thesis is focused on factors that hinder or help managers in recognizing business opportunities. Focusing on incumbent firms, this paper conducts further research to identify the main influencing factors, including challenges, vulnerabilities, and obstacles. The thesis is divided into six parts, starting with a brief description of the research topic, including the problem position and objective.
Second, a literature review is conducted to summarize the state of research, including theoretical foundations. The results are then synthesized into a summary
The third part of the thesis consists of expert interviews. Derived from the literature review, a guideline for interviews is developed to treat the research gaps in an appropriate way and to meet the complexity of the task setting. The explorative survey aims to identify the challenges and drivers of managerial OR in BMI and to identify approaches that have not yet been addressed in scientific literature to a significant extent.
The core of the analysis is the splitting of the BM into the elements value proposition, value creation, and value capture. This ensures that all the facets of a company ́s BM are accurately addressed and form the basis for high-quality results.
The 40 principles for innovation, based on TRIZ adjusted for business problems, is the result of an analysis of close to three million successful inventive solutions from areas such as science, arts, politics.
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.
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.
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.
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.
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.
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.
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
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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”
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
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.
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
In "The New New Way of Working Series," BCG.com published the article, "Boosting Performance Through Organization Design" dated JULY 17, 2017 authored by By Fabrice Roghé , Andrew Toma , Stefan Scholz , Alexander Schudey , and JinK Koike.
The authors reported that analysis of the same survey results suggests that six specific factors in organization design can make a company more likely to become a top performer, with faster growth and higher profits than its peers. The six factors are:
Agile ways of working
A value-adding corporate center
Clearly delineated profit and loss (P&L) responsibilities
A flat management structure with a strong frontline focus
Effective use of shared services
Strong support for people and collaboration
Any activity can be analysed by its costs and the ’output’ it generates. A business might want to know the cost of running a production line compared to other production lines or ways of producing things. Similarly, a firm might want to look at the total cost of running training courses (salary, rents, training materials, utilities and so on) compared to the number of people actually trained.
Cost centre analysis tries to attribute all costs involved in a particular activity to one ’location’ or ’cost centre’. To calculate costs involved in a particular activity it is necessary to calculate the cost of:
Materials
All materials used directly and materials used indirectly (for instance packaging).
Labour
All labour costs directly involved and the proportionate cost of any supporting labour (for instance
administrative staff).
Sales And Marketing Costs
Regular, on-going costs of advertising and promotion of that activity’s product or service.
Overheads
Proportionate costs of regular expenses associated with that activity such as rent, rates, power, interest repayments, other charges.
Additional Costs
Other costs solely attributable to the activity (for instance higher insurance costs for a new machine).
Example
ABC Novelties company management want to know the real cost of manufacturing toys. Materials used cost $2,000 per year. Production involves 5 trainees paid $500 expenses each per year. The single machine
used is used for toy production 20% of the time and full depreciation is valued at $1,000 per year. Electricity costs $600 a year and toy production takes up half of a workshop costing $2,000 in rent, rates and repairs
per year. The paid administration worker calculates that he spends 30% of his time on book-keeping, sales and marketing toys. He is paid $8,000 per year. The total income of the project is $25,000 per year
and sales of toys contribute $5,000 to this.
Its total costs are $24,500 per year.
Cost Centre Analysis
Materials = $2000
Labour (5 x $500) = 2500
Depreciation ($1,000 x 20%) = 200
Electricity ($600 x 20%) = 120
Rent ($2,000 / 2) = 1000
Administration ($8,000 x 30%) = 2400
Total = 8220
From these figures we can calculate the following:
Toy making is responsible for 34% of all costs ($8,220 / $24,500 x 100)
Toy making generates only 20% of all income ($5,000 / $25,000 x 100)
In his 1969 seminal text on design methods, “The Sciences of the Artificial,” Nobel Laureate Herbert Simon outlined one of the first formal models of the Design Thinking process. Simon's model consists of seven major stages, each with component stages and activities, and was largely influential in shaping some of the most widely used Design Thinking process models today.
A five-stage model was proposed by the Hasso-Plattner Institute of Design at Stanford (d.school). d.school is the leading university when it comes to teaching Design Thinking. The five stages of Design Thinking in this model are as follows:
Empathise, Define (the problem), Ideate, Prototype, and Test.
101 Design Methods: A Structured Approach for Driving Innovation in Your Organization
Vijay Kumar
John Wiley & Sons, 09-Oct-2012 - Design - 336 pages https://books.google.co.in/books?id=WJQmHlsDhQUC
Selling Skill - Service to Customer and Follow Up After The Sale
A satisfied customer is the best advertisement to you as a salesman and to your product. But if you make a sale and runaway, you do not know the feelings of your customer. The prospect became your customer after buying from you. High performing salespersons do the follow up and provide any service the customer requires and convert this interaction into further sales to the customer or to his friends and acquaintances through referrals.
Service to Customer
A satisfied customer is the best advertisement to you as a salesman and to your product. But if you make a sale and runaway, you do not know the feelings of your customer. The prospect became your customer after buying from you. High performing salespersons do the follow up and provide any service the customer requires and convert this interaction into further sales to the customer or to his friends and acquaintances through referrals.
Service will keep customers and increase sales. Use your company’s goods return policies judiciously to replace defective products with customers. Go back to the customer, check the product that you have sold and make sure that the customer is getting the expected services from it.
Become a customer benefit oriented salesman, your profits swell through your efforts to make the benefits of customers swell. Develop your reputation from providing benefit to customers. Provide service above and beyond the call of duty. Always schedule some time in your daily sales plan for delighting customers. Delight comes to a customer when you deliver something beyond expectations.
Unmet needs of people always exist. Companies can make fortunes if they can find a solution to problems of people like cancer, mental diseases, nonfattening but tasty food etc. There are many more problems awaiting a solution. Marketers have to scan the environment and find out problems requiring solutions and report them back to their product development specialists to facilitate focused efforts to develop solutions for them.
For this purpose marketing executives scan macro environment. Macro environment is further divided into different environments for study purpose.
Demographic Environment
The first macro environment that marketers monitor is global and domestic population and trends in it. The parameters they look for are worldwide population growth, population age mix, and geographical shifts in population, household patterns, educational groups and ethnic groups.
Economic Environment
An exchange market requires purchasing power for transactions to take place along with people who want goods. The available purchasing power in an economy depends on parameters like current income, prices, savings, current debt levels and credit availability. Marketers have to identify major trends in income and spending patterns.
Natural Environment
Marketers need to consider the threats and opportunities associated with four trends in the natural environment: the shortage of raw materials, the increased cost of energy, the increased levels of pollution, and the changing role of governments.
Technological Environment
There is a rapid technological change. Technology is creating opportunities for new products and services. Research and development expenditure is an important variable that determines development of new technologies. Marketers have to promote R & D activities both at company level and country levels through government funds. Government regulation of technology has increases to assure public safe technologies.
Political/Legal Environment
Regulation of various businesses by government and liberalization of some businesses are issues that need to be monitored by marketers.
Social/Cultural Environment
There is high persistence of core cultural values of societies. There are subcultures in every society. There are shifts in secondary cultural values through time. Marketers have to be alert to such changes and analyze marketing implications of such changes.
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US6651071 *Aug 4, 2000Nov 18, 2003Alverno CollegeUser interface educational database system for monitoring proficiency, performance and evaluation of student
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REFERENCED BY
Citing PatentFiling datePublication dateApplicantTitle
US20100293492 *May 12, 2010Nov 18, 2010Lewis FarsedakisSystems, Web Sites, Games, Calculators, Meters and Other Tangible Items for Measurement of Love
US20140032277 *Jul 18, 2013Jan 30, 2014Infosys LimitedMethods, systems and computer-readable media for computing performance indicator of a resource
Method for improving the emotional quotient in infants and children
US 20080268408 A1
ABSTRACT
This invention is a method to teach emotional awareness to children. The method uses a video to increase the child's emotional quotient. The emotional quotient is a measure like intelligence quotient that measures sensitivity to emotions. Because the video uses images it can be used with pre-literate or even pre-language children. It can also be used as a tool for teachers, parents and therapists who are using a larger education system or the video can be used by the child as a primary educational tool.
Publication date30 Oct 2008 https://www.google.co.in/patents/US20080268408
