Required Rate of Return for Investment or Expenditure Proposal

Engineering Economics Revision Knol Series

Each business expenditure proposal that holds forth prospects of profits can be termed as investment. Investment is defined as spending money with the expectation of profits.

Business firms are users of capital. The user of capital has to satisfy the profit motive of the suppliers of capital. There is cost for using capital.

Introduction - Business Expenditure or Investment

Each business expenditure proposal that holds forth prospects of profits can be termed as investment. Investment is defined as spending money with the expectation of profits.

Deferment of present ability to consume to a future period is done by persons due to profit motive. The profit motive can be explained as the inducement that causes man to forego satisfying his present desires based on the prospects of satisfying greater ones in the future. Thus, every individual is motivated by profit for his personal investment decisions or deferment of consumption decisions. Professional managers of corporations are being paid to perform activities that satisfy the profit motive of the corporation's shareholders.

Cost of Capital and Profit Motive

Business firms are users of capital. The user of capital has to satisfy the profit motive of the suppliers of capital. There is cost for using capital. The cost may be a contractual obligation in case of loans and bonds. It good be a good faith obligation in case of equity capital. The manager is charge of the firm is expected to undertake activities in line with the business plans and execute them to obtain the expected profit.

Sources of Return

Capital is productive. It is continuously invested in fresh investment or expenditure opportunities that yield more profit than the current projects. From this statement, the concept of opportunity cost arises. Whenever any person is contemplating a new expenditure proposal money is being diverted to the new proposal from an old project or currently planned project. The return anticipated from the current project is the floor for the new project. The new project has to give a rate of return that is higher than that of the current selected opportunity. Thus every new proposal has an opportunity cost of capital.

Every proposal that clears the test of opportunity cost of capital is giving profit. Thus owners of capital or professional managers invest their capital in efficient proposals that give profits.

Determination of Cost of Capital

A corporation's capital is sourced from variety of suppliers. Equity Capital, Preferred Share Capital, Profits Retained or Ploughed back and debt capital are the main instruments through which capital is acquired by companies or corporations. To estimate the total cost of capital, the cost of each source of capital is to be first estimated. Then the weight of each source of capital in determined and the weighted average of various costs of capital gives the company cost of capital. This exercise can be done for each proposed project.


How CEOs make Software/Technology Investment Decisions?
https://blogs.sap.com/2012/10/27/how-ceos-make-investment-decisions/

1. Does it help to solve a strategic problem? (50%)
2. ROI (40%)
3. Risk (10%)
4. Is it a cool application? (Important)

Originally posted in
http://knol.google.com/k/narayana-rao/required-rate-of-return-for-investment/2utb2lsm2k7a/ 1200


Updated on 29 June 2019, 30 November 3011

Knowledge Management Software Packages

2019

20 Best Knowledge Management Software for 2019

Zendesk
Bitrix24
Zoho Desk
ProProfs KnowledgeBase
Atlassian Confluence
ServiceNow Knowledge Management
Inkling Knowledge
Remedy Knowledge Management
Guru
Bloomfire

Inbenta Knowledge Management
Tettra
KnowledgeOwl
Helpjuice
RightAnswers
ComAround Knowledge
MyHub
eXo Platform
IntelligenceBank
Astute Knowledge

https://financesonline.com/knowledge-management/



13 April 2015

Knowledge Base Manager Pro

Knowledge Base Manager Pro is developed to support and enhance the organizational processes of knowledge creation, storage/retrieval, transfer, and application. KnowledgeBase Manager Pro is commonly used to complement a help desk or for sharing information among employees within the organization or business unit. It might store troubleshooting information, articles, white papers, user manuals, or answers to frequently asked questions. Typically, a search engine is used to locate information in the system, or users may browse through a classification scheme.

Knowledge Base Manager Pro streamlines the entire documentation and knowledge base creation process for companies to share information with employees, customers, and partners. This knowledge base software can be utilized by any company, corporation, or organization in numerous different ways:

Vending Company. Provide your customers with access to full information about products you sell, about company you run and terms of service you follow. Receive feedback from your clients with suggestions, questions and thanks to improve the quality of service.
Service Provider. This could be hosting providing, consulting, business functions, entertainment, health care consulting, information services, social services, or something else. Create web self-service help system covering special valuable topics within selected area.
Educational Organization. Provide students with centralized knowledge base with courses and learning aids. Students can participate in courses creation and improvement process.
Any Company. Get Knowledge Management Software Solution for an internal use. Reduce employee training time. Keep corporate knowledge integrity whenever employee comes or leaves.
Enterprise class Knowledge Management Software Solution

Knowledge Base Manager Pro is a Rich Internet Application, which conception relies on long-term experience of Enterprise-class software development. It has all approaches, necessary for usage in commercial purposes, implemented.

http://www.web-site-scripts.com/knowledge-management/overview.html

https://www.atlassian.com/software/confluence

KANA Knowledge Management solutions

KANA Knowledge Management solutions make your data work for you by providing access to information contextually to make search—and service—targeted and efficient.



 If your information resources aren’t well integrated with your service processes, your agents are spending their time on the search process itself, fishing for information using keywords that often bring up either too many results or tangential information. As a result, the service process is inefficient, costing agent handling time and causing customer dissatisfaction.

KANA Knowledge Management software solutions draw on customer and inquiry context to make search results and service interactions efficient and meaningful. In turn, every query and customer action feeds the search engine algorithm, continually fine-tuning search to make it better.


Knowledge Discovery, Knowledge Engineering and Knowledge Management: First International Joint Conference, IC3K 2009, Funchal, Madeira, Portugal, October 6-8, 2009, Revised Selected Papers

http://www.kana.com/knowledge-management-systems?


Ana Fred, Jan L. G. Dietz, Kecheng Liu, Joaquim Filipe
Springer Science & Business Media, Feb 4, 2011 - 411 pages


This book constitutes the thoroughly refereed post-conference
proceedings of the First International Joint Conference on Knowledge Discovery, Knowledge Engineering, and Knowledge Management, IC3K 2009, held in Funchal, Madeira, Portugal, in October 2009.

This book includes revised and extended versions of a strict selection of the best papers presented at the conference; 27 revised full papers together with 3 invited lectures were carefully reviewed and selected from 369 submissions.

According to the three covered conferences KDIR 2009, KEOD 2009, and KMIS 2009, the papers are organized in topical sections on on knowledge discovery and information retrieval, knowledge engineering and ontology development, and on knowledge management and information sharing


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


Updated on 26 June 2019, 13 April 2015

Management - Definition: Koontz and O’Donnell – Narayana Rao - Slides Content

Principles of Management Revision/Review Articles - List

Management Definition: Koontz and O’Donnell – Narayana Rao

1. Koontz and O’Donnell – Weihrich – 10th Edition

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

This definition implies:
1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational levels.
Management definition implies
4. The aim of all managers is the same: to create a surplus.
5. Managing is concerned with productivity; this implies effectiveness and efficiency.

2. Shortcomings of the definition – Koontz and O’Donnell - Weihrich

The process of management is being explained as an implication.
Redefining Management to include the process in the definition is possible.

3. Management Definition – Narayana Rao

Management of an organization is the process of establishing objectives and goals of the organization periodically, designing the work system and the human organization structure, and maintaining an environment in which individuals, working together in groups, accomplish their aims and objectives and goals of the organization effectively and efficiently. (3rd December 2008)

Implications of Definition of Narayana Rao’s  Management Definition

(i) Management is a process.
(ii) Management applies to every kind of organization, government, profit making, or nonprofit making.
(iii) It applies to managers at all levels in the organization.
Management - Effectiveness and Efficiency Implication
(iv) Management is concerned with effectiveness and efficiency.

v) Management has to organize the material resources and human resources required to attain the objectives and goals of the organization. Work system is the material resources organization. Organization structure is the human resource organization.

Effectiveness is producing the product or service the customer wants in business context with the required functional benefits and product attributes at the price he is willing to pay.

Efficiency is minimization of resources to produce the saleable output.

4. Management – Efficiency – Industrial Engineering

In the case of engineering companies, Industrial Engineering, a management discipline with engineering as the primary underlying subject takes care of efficiency dimension.

Efficiency is minimization of resources to produce the saleable output.

Industrial engineering has as its focus productivity of each resource (especially engineering resources) and thus total productivity of all resources used in producing and distributing (marketing, selling, delivering and servicing) the product.

Updated on 12 June 2019, 2 May 2019

Inspection Methods Efficiency Engineering

Inspection Productivity Improvement - Inspection Industrial Engineering

Inspection of Output of Engineering Processes is Engineering Activity. Inspection of Machines is Engineering Activity. Inspection of Machine Setup is Engineering Activity. As all engineering activities and outputs are industrial engineered, inspection methods are also redesigned by industrial engineers to increase productivity.

Pioneers of industrial engineering since F.W. Taylor made contributions to improve productivity of inspection activities. 

Statistical quality control methods are promoted by industrial engineering profession as a means of increasing the efficiency of inspection methods.

Method studies were employed to improve the efficiency of inspectors. We have examples of method studies in inspection departments in texts of industrial engineering. Even F.W. Taylor did method studies in inspection departments. (Scientific Management, page 86)

The inspectors were working for ten and half hours every day with a half day Saturday holiday.

Initially the inspectors (all girls) were told that the work day can be made 10 hours and they can do the same work as they are doing now in ten hours and they will be paid the same wage for the day. The girls agreed with the change.

Mr. Thompson recognized that persons of low personal coefficient were required for inspection job.

It is necessary in almost all cases to take definite steps to insure against any falling off in quality before moving in any way towards an increase in quantity. An accurate daily record was kept for each inspector for quantity and quality.

Time study was done. It was observed that after one half hours of work they become nervous. So rest break of 10 minutes was arranged after one and quarter hour.

Differential system was put into practice.

Measurement of output was done each hour and a teacher was sent to correct shortcomings in methods.

35 girls did the work that was previously done by 120 girls. Accuracy of work was two-thirds greater at the higher productivity than at lower productivity. The inspectors received 80 to 100% more wages on average.  (Read the full description of Taylor's work on inspection in Illustrations of Success of Scientific Management - Bicycle Balls Inspection Example - Taylor

Poka Yoke is the recent contribution of industrial engineers in the inspection methods efficiency engineering.

Industrial engineers design number of jigs to make inspection faster and comfortable.



Article Part of the Industrial Engineering Course Articles
Introduction to Industrial Engineering - Course at NITIE

_______________________________________________________________
Related Articles

Statistical Quality Control – Industrial Engineering

Productivity Improving Inspection Solutions and Methods

GE Sensing and Inspection Technologies - Productivity through inspection solutions
http://www.ge-mcs.com/download/it-common/GEIT-10012EN_ndt-brochure.pdf

Increase Productivity with X-ray Inspection
http://uk.mt.com/gb/en/home/supportive_content/news/XR_Food_Produc.html

New Pipe Weld Inspection Solution from GE Increases Productivity and Reduces Inspection Constraints
http://www.ndt.net/search/docs.php3?id=10597&content=1

High Speed Inspection Systems from Olympus
http://www.olympus-ims.com/en/in-line/

Complete inspection solution for increased productivity in paper manufacturing
http://www.isravision.com/media/public/pdf2005/Papier_2_PRESSNEWS_e.pdf

Software for mechanical integrity inspection activities
http://sentinelintegrity.com/inspection-software-cui-pmi-hf-flanges-mi-optimization.html



Inspection Productivity improves with ALL NEW work holding and fixture plates!
As QC Inspectors you may be measured on contributions you make to improve your inspection process. Be the first to introduce this brand new line of inspection work holding designed with “lean” principles in mind.
http://www.massmac.org/newsline/1006/article07.htm


Remote Visual Inspection — A Technical Solution to Improve Inspector Safety and Productivity
http://www.pharmamanufacturing.com/wp_downloads/GE_Sensing_WP_070827.html

GE’s Pipe Weld Inspection Solution Now Offers Greater Productivity and Scope
http://www.pandct.com/media/shownews.asp?ID=32818


As a leading provider of innovative heat exchanger inspection solutions for a wide variety of industries, AcousticEye is changing the way the world inspects and monitors its heat exchanger tubes. Our products utilize cutting-edge technologies to deliver value, enhance productivity and ensure safety for our global customer base.
http://www.acousticeye.com/en-us/product/industries-served.asp

Rudolph Technologies Launches High-Productivity AXi 940 Inspection Module
http://www.rudolphtech.com/newsroom/rudolph-technologies-launches-high-productivity-axi-940-inspection-module/






Originally posted at
http://knol.google.com/k/narayana-rao/inspection-methods-efficiency/2utb2lsm2k7a/ 2595#
Published on the blog in 2011
Updated 22 July 2013

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December


Updated 9 June 2019,  9 June 2017, 23 July 2013

Resource and Capacity Management

Book Manufacturing Systems: Foundations of World Class Practice (1992)
Taylorism and Professional Education of Engineers
https://www.nap.edu/read/1867/chapter/18


Capacity Planning
https://courses.lumenlearning.com/suny-opmanagement/chapter/7-1-capacity-planning/
-----------

Recent Papers and Articles - Year-Wise

Capacity planning in a digital age KPMG
Today’s digital capabilities are enabling capacity planning to go to new levels.
2019
https://advisory.kpmg.us/blog/2019/mc-capacity-planning-in-a-digital-age.html

Technology optimization and change management to improve strategic, tactical, and operational supply chain processes KPMG
2019
https://advisory.kpmg.us/articles/2019/digital-supply-chain.html


Strategic Capacity Management When Customers Have Boundedly Rational Expectations
Tingliang Huang,  Qian Liu
 Production and Operations Management
Volume24, Issue12, December 2015, Pages 1852-1869
https://onlinelibrary.wiley.com/doi/abs/10.1111/poms.12420

Dekkers 2012

Dekkers 2009

Capacity Management - A Practitioner Guide
Adam Grummit
Van Haren, 29-Jul-2009 - Education - 234 pages
Capacity Management is described in most key ITSM frameworks: ITIL, ISO 20000 Microsoft Operations Framework (MOF) and the Application Service Library (ASL) all note the importance of Capacity Management. This major title meets the need for an in-depth practical guide to this critical process. Written and reviewed by some of the world’s most respected experts in this field it shows how Capacity Management best practice can support provision of a consistent, acceptable service level at a known and controlled cost. Practical advice covers the essential control of two balances: Supply versus demand and resources versus cost. In times of mean, frugal economic measures, it is essential to focus on those practices that are effective and yield practical results. In enlightened times of sustainability, it is also a requirement to find solutions that satisfy the criteria for 'greenness'. This excellent title shows how Capacity Management works not only within an IT environment but also why it is pivotal in meeting high profile business demands. Aligns with ISO/IEC 20000 and ITIL® ­ISO/IEC lists a set of required capacity management deliverables ­ITIL outlines what should be done in capacity management ­this book starts to describe how to do it Covers details of what capacity management is all about: ­what is capacity management ­why do it – benefits and cost-benefit analysis ­how to do it – data-flows and activities ­who does it – roles and perspectives ­implementation, maintenance, improvement, tools Provides comprehensive templates and checklists: ­objectives, interfaces and data-flows, sub-practices and activities ­metrics, application sizing parameters, data for modelling ­deliverables, reports, CMMI levels, KPIs, risk matrix sample capacity plan
https://books.google.co.in/books?id=fN1EBAAAQBAJ


Operations Management Body of Knowledge (2008)
Table of Contents
http://www.castlequality.com/OMBOK/#_Toc188845189


Dekkers 2000


John Hill, Ricardo Costa, Eduardo Jardim, (1992) "Strategic Capacity Planning and Production Scheduling in Jobbing Systems", Integrated Manufacturing Systems, Vol. 3 Issue: 3, pp.22-26, https://doi.org/10.1108/09576069210015874

Describes a package which uses discrete event simulation as an aid to managers/planners in this area. This computer system makes it possible to describe the workload of a jobbing firm, together with the constraints imposed by product structure and manufacturing capacity. The manager is able to test alternative Queue Disciplines, priorities and extensions to capacity, in order to find a schedule of work which balances the strategic objectives of the firm and the requirements of the customer.
https://www.emeraldinsight.com/doi/abs/10.1108/09576069210015874

Marketing Communication: Channels and Promotion Tools

_________________________________________________________________________________

Marketing Communication: Definition

"Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers - directly, or indirectly - about the products and brands that they sell." (Kotler and Keller)

Marketing: Communicating Value

Marketing Communication for "Communicating Value."

Kotler and Keller in the 15th Edition of "Marketing Management" devoted Part 6 to the topic "Communicating Value."

Chapter 17. Designing and Managing Integrated Marketing Communications, 
Chapter 18. Managing Mass Communications: Advertising, Sales Promotions,Events and Experiences, and Public Relations, 
Chapter 19. Managing Digital Communication: Online, Social Media, and Mobile, and 
Chapter 20. Managing Personal Communications: Direct and Database Marketing and Personal Selling constitute Part 6. "Communicating Value."

In this article, all the communications channels indicated by Kotler and Keller are described for their characteristics and benefits.

Personal and nonpersonal communication channels can be used for marketing communications. Within both of them there are many subchannels. The marketing communications mix is presented as mix of eight major modes or types of communication alternatives by Kotler and Keller in the 13 Edition.

1. Advertising

2. Sales promotion

3. Events and experiences

4. Public relations and publicity

5. Direct marketing
6. Interactive marketing
7. Word-of-mouth marketing

8. Personal selling

Marketing 4.0 is the new communication manifesto of marketing. The manifesto was released by Kotler in 2017. Go through the write-up and the book.

Advertisement - Is the only Way?

Personal Communication Channels

Personal communication is communication between two or more persons with a specific person communication with others. The message emanates from a specific person. It can be done face to face, or by a person to audience, over telephone, or through post or couriers or through emails or through mobile messages.

The personal communications in the case of marketing can also be categorized as communications from advocate, expert and social contacts. The company salespersons’ communication to customers is communication from advocates of the product.

An independent expert communicating to prospective buyers about the merits of the product is classified as expert communication. A neighbor saying good things about a brand is social channel of communication.

Companies take various steps to stimulate personal communications about their products and brands.

1. They identify influential individuals and devote extra effort on them.

2. Create opinion leaders by supplying possible opinion leaders with the product on attractive terms.

3. Use influential or believable people in testimonial advertising.

4. Develop word of mouth publicity by requesting satisfied clients to promote their product among their friends.

5. Establish online discussion groups and communities

Nonpersonal Communication Channels

They include media, atmospheres, and events.

Media channels include print media (newspaper, magazines, souvenirs, proceedings of conferences), broadcast media (radio, television), display media (billboards, signs, posters) and electronic media (audiotape, videotape, videodisk, CD-ROM).

Atmosphere is what firms create in their office environment. The office interiors and exteriors have a meaning to the potential buyers.

Events are occurrences designed to communicate particular messages to target audiences or audiences. Company arranged news conferences, opening ceremonies of various kinds, and sponsorships of various events come under event communications channels.

Communication through mass media stimulates personal communication channels.

The Promotional Tools

The characteristics of various promotional tools are as follows:

Advertising

Advertising is a public mode of communication. Because it is communicated simultaneously to large number of people and people know that the same communication is going to many people, they feel their motives for buying are understood by the advertiser.

Advertising messages can be repeated number of times. Buyers also can compare advertisements of various companies selling the same product. The media offers the facility to add color, sound etc. to the message and dramatize the message. But advertising cannot have dialogue with the people. People may not see and pay attention to the advertisement.

Advertising is an efficient way to reach geographically dispersed potential buyers at a low cost per exposure.

Advertising has two recent variants. Advertorials are offer editorial content and while it is paid for by the advertiser and it will be difficult for the reader to easily make out that it is an advertisement. Similarly infomercials are TV programs that are meant for promoting the products of the company. They discuss the working of the product, benefits of the products, and user experience etc. and they may beam the message to buy the product and the address to be contacted.

Sales promotion

Sales promotion tools like coupons, contests, premiums, and the like act as communication medium and also promote sales.

They gain attention and provide information that may lead the consumer to the product. They include a distinct invitation to the consumer to do the transaction in a short period of time.

Public relations and publicity

News stories and feature articles are more authentic and credible than advertisements to readers. The articles act as testimonials. The message gets through to the potential buyers as news and they may not turn away from it as they turn away from the advertisements.

Personal selling

Personal selling as a communicative channel involves a live, immediate, and interactive relationship between persons. Personal selling leads to relationships. The listener feels obligated to respond to the salesman at least with a polite “thank you.”

Direct Marketing

The alternatives are direct mail, Email, and telemarketing. In these cases the message is addressed to a specific person. The message can be customized. Even though mailing folders and email are normally standardized to gain efficiency. The message can be up to date.  In case of telemarketing, message can be altered depending on the response. In the case of other alternatives subsequent communication can be altered depending on the response. 

Events and Experiences

They include sponsorships of sports, arts, entertainment and cause events as well as activities that create novel interactions of consumers with product or brand. An example of experience can be providing airconditioned bus ride to potential consumers to make them excited about buying an airconditioner. Another example is internet companies providing internet at airports for free use by travellers.

Source

Philip Kotler, Marketing Management 

American Marketing Association Marketing Communications Toolkit
https://www.ama.org/marketing-communications-toolkits/

Books on Marketing Communication.

Advertising Promotion and Other Aspects of Integrated Marketing Communications

Terence Shimp, J. Craig Andrews

Cengage Learning, 16-Jan-2013 -  752 pages

Table of Contents

PART I: THE PRACTICE AND ENVIRONMENT OF INTEGRATED MARKETING COMMUNICATIONS (I.M.C.).

1. An Overview of Integrated Marketing Communications.

2. Enhancing Brand Equity and Accountability.

3. Brand Adoption, Brand Naming and Intellectual Property Issues.

4. Environmental, Regulatory and Ethical Issues.

PART II: FUNDAMENTAL I.M.C. PLANNING BACKGROUND AND DECISIONS.

5. Segmentation and Targeting in I.M.C.

6. The Communications Process and Consumer Behavior.

7. The Role of Persuasion in I.M.C.

8. I.M.C. Objective Setting and Budgeting.

PART III: ADVERTISING MANAGEMENT AND NEW MEDIA CHOICES.

9. An Overview of Advertising Management.

10. Effective and Creative Ad Messages.

11. Endorsers and Message Appeals in Advertising.

12. Traditional Ad Media.

13. Online Advertising.

14. Social Media.

15. Direct Advertising and Other Media.

16. Media Planning and Analysis.

17. Measuring Ad Message Effectiveness.

PART IV: SALES PROMOTION MANAGEMENT.

18. Sales Promotion Overview and the Role of Trade Promotion.

19. Consumer Sales Promotion: Sampling and Couponing.

20. Consumer Sales Promotion: Premiums and other Promotions.

PART V: OTHER I.M.C. TOOLS.

21. Public Relations, Buzz Marketing, and Sponsorships.

22. Packaging, POP Communications, and Signage.

23. Personal Selling.

You can preview the book https://books.google.co.in/books?id=HTcWAAAAQBAJ

MBA Core Management Knowledge - One Year Revision Schedule

Social Media Marketing
Social Media Marketing - Online Book by Narayana Rao

________________________________________________________________________

Article on differentiating and positioning http://nraomtr.blogspot.com/2011/11/marketing-strategy-differentiating-and.html

Planned Revision schedule for marketing chapters is in February and March

____________________________________________________________________________

Related Articles

Marketing Management Article Series Directory

______________________________________________________________________________

Article originally posted in
http://knol.google.com/k/     marketing-communication-channels-and-promotion-tools

Updated 6 June 2019,   8 May 2019,   31 March 2019,  28 Jan 2015, 17 Dec 2014, 9 June 2014

Management - Definition and Process

Definition of Management: Its Nature and Purpose

Management of an organization is the process of establishing objectives and goals of the organization periodically, designing the work system and the organization structure, and maintaining an environment in which individuals, working together in groups, accomplish their aims and objectives and goals of the organization effectively and efficiently (Narayana Rao). (3rd December 2008, Version 1 of this article)

Management of an organization is the process of establishing objectives and goals of the organization periodically, designing the work system and the organization structure, and maintaining an environment in which individuals, working together in groups in combination with capital equipment and current assets (working capital), accomplish their aims and objectives and goals of the organization effectively and efficiently (Narayana Rao). (24 January 2016).

The above definition was a modification of the definition given by Koontz and O'Donnell.

The definition implies the following.

(i) Management is a process.
(ii) Management applies to every kind of organization, government, profit making, or nonprofit making.

(iii) It applies to managers at all levels in the organization.

(iv) Management is concerned with effectiveness and efficiency.  Effectiveness is producing the product or service the customer wants in business context with the required functional benefits and product attributes at the price he is willing to pay. Efficiency is minimization of resources to produce the saleable output.

Weirich and Koontz

Weihrich and Koontz defined Management and explained it as follows in the tenth edition of their book Management: A Global Perspective (p.4).

"Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims." This definition needs to be expanded:

1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational levels.
4. The aim of all managers is the same: to create a surplus.
5. Managing is concerned with productivity; this implies effectiveness and efficiency.

Functions of Management

The process of management can be better understood by breaking it down into the five basic functions of a manager – planning, organizing, staffing, leading and controlling. All the management concepts, principles, theories and techniques can be grouped under these five functions.

Professor Narayana Rao suggests planning, organizing, resourcing, executing and controlling as the appropriate steps for operational approach.

Management Functions at Different Organizational Unit Levels

All managers carry out managerial functions. However the proportion of time spent for each function may differ from level to level. The top managers may spend more time on planning in choosing the corporate objectives and business unit objectives and in developing the work system and the organization structure. The first level supervisors may spend more time in leading the staff under them and in doing operational control.

Managerial Skills

Managers require four kinds of skills: technical, human, conceptual and design.

1. Technical skills are knowledge of and proficiency in working with the tools and specific techniques on given processes. For example, mechanics work with tools, and their supervisors should have the ability to train them how to use these tools and periodically evaluate and improve the skills of the staff under them. Similarly accounts use various formats of accounting records like journal, ledger, trial balance, balance sheet and use various procedures like entry, posting, reconciliation and reversing etc. and the supervisor of the accountants has to know these records and procedures to train the staff under him and evaluate their work for accuracy. The first level supervisors have to demonstrate or use their technical skills on a day to day basis as managers.  In an MBA curriculum number of technical disciplines are taught like marketing, purchasing, production, accounting, human resource recruiting and training, industrial engineering etc.

2. Human skills are the concepts, methods and techniques that facilitate working with people. Managers have to create an environment in which people feel comfortable, motivated, secure, and committed to the objectives and goals of the group or the organizational unit in which they are members. Organizational behavior is the subject taught in MBA curriculums to provide human skills.

3. Conceptual skill is the ability to see the “big picture.” It is the ability to recognize significant issues or elements in a situation and to understand the relationships among these key issues.

Concept skills are better understood or interpreted as business conceptual skills. Every manager at every level must be able to see his customer, his suppliers and his associates in the organization, superiors, subordinates and peers. He should be able to visualize the motivations of these agents to engage with him and the value that they are seeking and the value that they are willing to exchange. Every manager must be able to visualize how the business of the group he is managing is going to survive and prosper. Whenever managers cannot see this clearly, he will be failing in his managerial responsibility and the group is going to suffer.

4. Design skill is the ability to solve problems in ways that benefit the enterprise. To be effective managers in the organization must be capable of doing more than just seeing a problem (If they merely confine their attention to the problem, they become ‘problem watchers’ and they will not fulfill their responsibility). They Must have, in addition to the skill of identifying key problems, the skill of a good design engineer to work out a practical solution to a problem in the light of the realities they face in the situation. Solution design skills are synthesis skills. When a problem arises analytical skills may be used to identify various dimensions of the problems and possible solutions to each of these dimensions. But to solve the problem, a synthesis of all possible and useful alternatives has to be developed. Skills of synthesis are important in solution design.

The intensity or frequency with which these groups of skills are applied varies with the managerial level.

First line supervisors use their technical skills on a day to day to basis to observe the working of the staff in the department or section and guide them in carrying out the allotted tasks as per the specification of the customer or the design and in proper use of machines and tools. Quality and quantity control on a continuous basis becomes the important responsibility of first line supervisors and technical skills play a very important part in this role. Human skills are also important to both to get the task done and to make the operator feel happy and satisfied in completing the task, receiving the reward and also by the various physical facilities provided to him to take care of his professional and personal needs at the work place.

At the top level, conceptual skills and design skills have to be employed to recognize the opportunities and threats that keep on emerging in the environment. Solutions to benefit from the opportunities and contain the ill effects of threats have to be developed.

My article in my blog on the same topic

http://nrao-mgmt-smi-handbook.blogspot.com/2007/10/principles-of-management-chapter-1.html

____________________________________________________________________________


References

Seven Strategy Questions: A Simple Approach for Better Execution

Robert Simons, Professor, HBS
2010
https://books.google.co.in/books?id=tIYrly9QjTIC




Video Introduction to Management

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Related Knols

Principles of Management Revision/Review Articles - List

Principles of Management – Koontz and O’Donnell

Planning - A Management Process

Decision Making

Resourcing - A Function of Management

The concepts of Leadership and Management

Leardership

Gestalt Techniques in Supervision and Management

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Original post - http://knol.google.com/k/narayana-rao/management-definition-and-process/ 2utb2lsm2k7a/ 547

Revision Article for 22 January
2nd article: Global and Comparative Management

January - Management Knowledge Revision Schedule


Updated  4 June 2019  22 January 2017, 24 Jan 2016,  19 July 2014, 2 Dec 2013

Maintenance - Industry 4.0 Transformation - Digital Transformation of Maintenance Management

Predictive maintenance - Stay up and running. Control costs.
By IBM Services, 21 January 2019

What is predictive maintenance?
Predictive maintenance is the asset management practice of repairing an asset or piece of equipment before it fails based on data received about it. It is the third phase in asset management:

Corrective maintenance: repairs made after a problem or failure occurs
Preventative maintenance: scheduled repairs made based on experience
Predictive maintenance: repairs made because data for an asset indicates that a failure is imminent
Detailed article: https://www.ibm.com/services/technology-support/multivendor-it/predictive-maintenance


A solution for implementing industrial predictive maintenance: Part I    Part II     Part III
Google Cloud Team

Industry 4.0 Transformation - Digital Transformation of Maintenance Management

XMaintain - The optimal CMMS for the maintenance of production plants and Industry 4.0
Electrolux Poland fully implemented XMaintain as CMMS and Workplace of the future
https://intec.de/wp-content/uploads/2017/03/Article_PL.pdf


NEXGEN ASSET MANAGEMENT / COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM
https://www.nexgenam.com/cmms-software/

Making maintenance smarter
Predictive maintenance and the digital supply network
Chris Coleman, Satish Damodaran, Mahesh Chandramouli, Ed Deuel
May 09, 2017
https://www2.deloitte.com/insights/us/en/focus/industry-4-0/using-predictive-technologies-for-asset-maintenance.html


Industry 4.0: What it means for Maintenance & Engineering
8th February 2017,  Liam Fitzpatrick
https://pemac.com/updates/industry-4-0-maintenance-4-0/


Updated on 5 June 2019, 27 January 2018

Motion Study - Human Effort Industrial Engineering

Human effort industrial engineering is a focus area of industrial engineering.
Functions and Focus Areas of Industrial Engineering

Relevant Principles of Industrial Engineering

Human effort engineering for productivity - Principle of Industrial Engineering

In the resources used in engineering systems, human resource is important because all economic activity is to satisfy needs of various categories of persons. Human resources employed in engineering systems have their own needs. Industrial engineers are unique in engineering disciplines in taking up the engineering of human effort. They have to synthesize the theories of human sciences, some of which are developed by industrial engineering also, to design human work for an optimal combination of productivity, income, comfort, health, safety and satisfaction of the employed.

Motion economy - Principle of Industrial Engineering

Operators use motions to do work directly or indirectly through machines. Principles of motion economy were developed by Frank Gilbreth initially. The set of principles is being extended by further research studies.  They need to be employed in all industrial engineering studies in the redesign of human work in engineering systems of all branches.

Operator comfort and health - Principle of Industrial Engineering

As human effort engineers, industrial engineers are also concerned with comfort and health of operators. The productivity improvement should not lead to discomfort, fatigue and musculoskeletal disorders. Each human effort redesign project must be accompanied by an assessment of the comfort, fatigue and health dimensions

Selection of operators - Principle of Industrial Engineering

Different types of engineering trades and work require different types of proficiency from operators. Industrial engineers as well as managers have to identify the proficiency required and select persons for specific operations. Science provides the basis for identifying the proficiencies required for a trade and also the method of evaluating various persons.

Training of operators - Principle of Industrial Engineering

Industrial engineers have to train the operators in the new machine methods proposed by them and in the new man motions. The need to demonstrate the expected output from new methods by specially trained IE department operators is to be emphasized for acceptance of the new methods and resulting higher output.

Motion Study

Motion study is the basic method to study the effort of men in using hands, hand tools and machines and machine tools. Stop watch time study is used to determine the best practice of doing any element of work and such best elemental movements are incorporated in various tasks and operators are trained in the new productive way. Operator comfort, safety, and health are given due consideration in redesigning work in human effort industrial engineering.

Purpose: The goal of motion study is to enhance work performance (quantity and quality of output) of the human operator through analysis and improvement of body and hand movements. Motion study can be thought of system improvement at a micro level  and is a part of human effort  industrial engineering.

 

In the contemporary work environment, motion study also involves reducing the ergonomic stresses associated with a job. This reduces costs (medical treatment and time lost) associated with work injuries. It may also reduce production losses associated with hiring and training replacement workers as well as rehabilitation of persons with work-related injuries.



Motion economy was proposed and developed by Frank Gilbreth through various articles and books and became an important subject of industrial engineering as Time and Motion Study or Motion and Time Study. This subject was modified by European thinkers and practitioners of productivity improvement as Work Study, by proposing methods study as an additional component.

Principles of Motion Economy are to be used in motion design, motion analysis, motion study of human operators. Motion design is a technique of Human Effort Industrial Engineering, a core focus area of Industrial Engineering. They can also be used in robot motion design.

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Use of the Human Body

1. The two hands should begin as well as complete their motions at the same time.

2. The two hands should not be idle at the same time except during rest periods.

3. Motions of the arms should be made in opposite and symmetrical directions and should be made simultaneously.

4. Hand and body motions should be confined to the lowest classification with which it is possible to perform the work satisfactorily.

5. Momentum should be employed to assist the worker wherever possible, and it should be reduced to a minimum if it must be overcome by muscular effort.

6. Smooth continuous motion of the hands are preferable to straight line motions involving sudden and sharp changes in direction.

7. Ballistic movements are faster, easier and more accurate than restricted (fixation) or controlled movements.

8. Work should be arranged to permit an easy and natural rhythm wherever possible.

9. Eye fixations should be as few and as close together as possible.

Arrangement of the workplace

10. There should be a definite and fixed place for all tools and materials. (5S)

11. Tools, materials and controls should be located close to the point of use.

12. Gravity feed bins and containers should be used to deliver material close to the point of use.

13. Drop deliveries should be used wherever possible.

14. Materials and tools should be located to permit the best sequence of motions.

15. Provisions should be made for adequate conditions for seeing. Good illumination is the first requirement for satisfactory visual perception.

16. The height of the work place and the chair should preferably arranged so that alternate sitting and standing at work are easily possible.

17. A chair of the type and height to permit good posture should be provided for every worker.

Design of tools and equipment

18. The hands should be relieved of all work that can be done more advantageously by a jig, a fixture, or a foot-operated device.  (Jig and Fixture Design)

19. Two or more tools should be combined wherever possible. (Combination Tools)

20. Tools and materials should be prepositioned whenever possible.

21. Where each finger performs some specific movement, such as in typewriting, the load should be distributed in accordance with the inherent capacities of the fingers.

22. Levers, hand wheels and other controls should be located in such positions that the operator can manipulate them with the least change in body position and with the greatest speed and ease.

References

Ralph M. Barnes, Motion and Time Study Measurement of Work, 

John Wiley & Sons, New York, 1980

Principles of motion economy are utilized in motion study. A modified list of principles given by  Mullee and Porter [2] are:

1. Begin each element simultaneously both hands.

2. End each element simultaneously with both hands.

3. Use simultaneous arm motions, in opposite and symmetrical directions.

4. use had motions of lowest classification for satisfactory operations.

5. Keep motion path within normal working area.

6. Avoid share changes of direction. Plan a smoothly curved motion path.

7. Slide small objects. Avoid pickup and carry

8. Locate tools and materials in proper sequence, at fixed work stations.

9. Use fewest elements to obtain shortest time.

10. Use rhythm and automaticity to increase output and lessen fatigue.

11. Relieve both hands with foot pedals where possible.

12. Avoid holding. Use vise or fixture, freeing hands to move pieces.

13. Provide ejectors to remove finished pieces.

14. Use drop deliver where possible.

15. Shorten transports by keeping materials nearby in gravity-feed hoppers.

16. Pre-position tools for quick grasp.

17. Pre-position product for next operation.

18. Locate machine controls nearby for each of operation.

19. Design workplace height of sitting-standing arrangement, and provide proper height chair with comfortable seat and backrest for good posture.

20. Provide pleasant working conditions considering illumination, temperature, humidity, dust, fumes, ventilation, noise level, color scheme, orderliness, and the like.

Right- and Left Hand Chart [2]

In this chart, the activities of the right and left hand are expressed as operations, transportations or moves, holds, and delays and these are represented by the flow-process chart symbols. This chart is also called as a workplace chart or an operator process chart.

The layout of the workplace is indicated by a grid of 1/4 - inch squares, against which the arrangment of bins, fixtures and parts may be shown. The normal working area is indicated by two semicircles described by the operator's forearms when seated at the workplace. The sketch of the part being handled or processed is shown on the chart in the top right hand corner.

The parts and  positions to the left of the operators are shown with the symbols L1, L2 etc. and to the right are shown by the symbols R1,R2 etc.

References

1. http://ioe.engin.umich.edu/ioe567/motion.pdf

2. Mullee, William Robert and David B. Porter, "Process Chart Procedure", Chapter 3 in Industrial Engineering Handbook, Ed. H.B.Maynard, 2nd Edition, McGraw Hill, 

Books

Motion study : a method for increasing the efficiency of the workman (1911)
Author: Gilbreth, Frank Bunker, 1868-1924
Subject: Motion study
Publisher: New York : Van Nostrand
Possible copyright status: NOT_IN_COPYRIGHT

http://www.archive.org/details/motionstudymetho00gilbrich

The book gives all examples of Bricklaying

Applied motion study; a collection of papers on the efficient method to industrial preparedness (1917)

http://www.archive.org/details/appliedmotionstu00gilbrich

Fatigue study; the elimination of humanity's greatest unnecessary waste, a first step in motion study (1919)

http://www.archive.org/details/studyfatigueelim00gilbrich

Films of Frank Gilbreth

Part 1

http://www.archive.org/details/OriginalFilm

Part 2

http://www.archive.org/details/OriginalFilm_2

Articles

Therblig Analysis

http://homepage.mac.com/allanmcnyc/textpdfs/Therblgs.pdf

Research Papers

A 36-Hospital Time and Motion Study: How Do Medical-Surgical Nurses Spend Their Time?http://www.rwjf.org/files/research/060908timeandmotion.pdf

Lenin's notes http://www.marxists.org/archive/lenin/works/1916/ni-beta/gilbreth.htm

Journals

Gait and Posture

Journal of Applied Biomechanics

Journal of human movement studies

Journal of motor behavior

MTM journal of methods-time measurement
Motor control: the international journal for the multidisciplinary study of voluntary movement.
Biomechanics: the journal of lower extremity movement

 

Originally posted at
http://knol.google.com/k/ motion-study-human-effort-engineering

Knol Number 1140

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December

Updated on 4 June 2019,  28 May 2019, 2 May 2019

Ergonomics - Introduction

Ergonomics is the study of the interaction between people and machines and the factors that affect the interaction.

The purpose of ergonomics is to enable a work system to function better by improving the interaction between users and machines.
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Ergonomics is the study of the interaction between people and machines and the factors that affect the interaction.

The purpose of ergonomics is to enable a work system to function better by improving the interaction between users and machines.

Relevant Principles of Industrial Engineering

Human effort engineering for productivity - Principle of Industrial Engineering

In the resources used in engineering systems, human resource is important because all economic activity is to satisfy needs of various categories of persons. Human resources employed in engineering systems have their own needs. Industrial engineers are unique in engineering disciplines in taking up the engineering of human effort. They have to synthesize the theories of human sciences, some of which are developed by industrial engineering also, to design human work for an optimal combination of productivity, income, comfort, health, safety and satisfaction of the employed.

Operator comfort and health - Principle of Industrial Engineering

As human effort engineers, industrial engineers are also concerned with comfort and health of operators. The productivity improvement should not lead to discomfort, fatigue and musculoskeletal disorders. Each human effort redesign project must be accompanied by an assessment of the comfort, fatigue and health dimensions

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Evolution of Ergonomics

It owes its development to the same historical processes that gave rise to other disciplines such as industrial engineering and occupational medicine.

Scientific management, developed by F.W.Taylor, and motion study, developed by Gilbreth are precursors of ergonomics. Work study and scientific management were the forerunners of human engineering.

In 1857, Jastrzebowski produced a philosophical treatise on 'An Outline of Ergonomics or the Science of Work' but it seems to have remained unknown outside Poland. The name was re-invented by Murrell in 1949.

An important role for ergonomics generally and for the ergonomist working in a large organization is to act as an interface between developments in basic human and biological sciences and organizational needs. Ergonomics has generated many design guidelines and recommendations, which are made available to engineers and designers.




Some of the guidelines are as following;



12 Principles of Ergonomics

1.Work in neutral postures: Maintain the back with its natural “S-curve” intact during work
2.Reduce excessive force: Use minimum mass; use mechanical assists
3.Keep everything in easy reach: Design workplace according to human body dimensions, avoid over stretching of back and shoulder.
4.Work at proper heights: Elbow height (sitting); waist height (standing); avoid repeated bending of back during work.
5.Reduce excessive motions: Let the tool do the work; design for motion efficiency
6.Minimize fatigue and static load: Workload imposed during work is combination of postural load and metabolic load; Rotate with less demanding tasks, Provide frequent, short rest breaks
7.Minimize pressure points: Avoid concentrated pressure on skin areas; provide padding; provide anti-fatigue mats (half inch thick mat with 3-4 % compressibility)
8.Provide clearance: Design for 95th percentile and provide adjustability
9.Move, exercise, and stretch: Take “Energy Breaks”; allow for alternate postures; alternate between sitting and standing; change chair positioning; periodical monitoring of fitness. Introduce stretching exercises before shift
10.Maintain a comfortable environment: Provide appropriate lighting, task lighting, avoid temperature extremes, isolate vibration, reduce sources of noise.
11.Make displays and controls understandable: Design for expectations.
12.Improve work organization: Design task – Plan, Be involved, Communicate, Enlarge jobs, Be part of the team, Be considerate. Be a good manager.

Visit for more details

http://www.danmacleod.com/ErgoForYou/10_principles_of_ergonomics.htm
http://ergonomics.about.com/od/ergonomicbasics/qt/ep_1st_fit.htm
http://www.cdc.gov/niosh/mining/pubs/pdfs/2011-191.pdf

Rules of Ergonomics

1.Belly button rule: Loads that are held, lifted and carried should be kept closer to the belly button to avoid extended arm posture
2.Straight wrist rule: Avoid bending of the wrist, in jobs requiring frequent pushing or pulling, use thumbs instead of other fingers
3.Eye rule: Displays within visual field, avoid excessive neck tilt
4.Skin rule: Work area free from obstruction; avoid concentrated pressure on small skin areas
5.Straight back rule: Avoid bending of the body, keep your back straight, bend your legs, not your back.








Workers or operators should sit when:


1. They must work at the same task for an extended time period (30 min or more).

2. Task demands steadiness for the operator as well as the devices being used.

3. They need to be restrained to prevent their displacement by dynamic environmental forces.





Operators should not have to sit or stand for long periods with their head, torso, or limb positions skewed; they should be able to keep their heads, necks, torsos, and limbs in a symmetrical relationship as much as possible.



Operators should not be forced to work frequently or for long periods with their hands and arms above normal elbow level.



Avoid positioning operators in supine or prone positions.



Repetitive arm and leg motions should be in the direction that limbs articulate normally about typical shoulder, elbow, wrist, hip, knee, or ankle pivot points.



When both hands or both feet are involved simultaneously, create a configuration in which the motions are opposite rather than in the same direction; i.e., the right hand should rotate in the opposite direction to the left, and the right foot should push forward while the left relaxes in the aft direction.



Provide backrests for seated operators.



Provide arm rests.



Provide hand rests, when operators are using a continuously operated controller, such as desk-mounted joy stick or roller-ball control.



For computer data entry, the center of the key board should be at about elbow level. The associated visual display should positioned so that the operator’s line of sight is perpendicular to the face of the CRT.



Computer work station design guidelines are given in the “American National Standard for Human Factors Engineering of Visual Display Terminal Work Stations,” ANSI/HFS 100-1988, February 1988.



When the package (e.g., a suitcase) has smooth sides, it can be carried against the person’s hip or leg without too much stress. The weight should not exceed more than about 20 kg for males and 14 to 18 kg for females. For backpacks also similar weights are recommended.

Video - Introduction to Ergonomics by Prof Debkumar Chakraborty, IIT Guwahati
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Uploaded by NPTELHRD
http://www.youtube.com/user/nptelhrd?feature=watch

For further reference on design guidelines


Human Factors Design Handbook, Second Edition, McGraw Hill, 1992.

Originally posted at
http://knol.google.com/k/  ergonomics-introduction
Knol Number 5

Updated  4 June 2019,  10 March 2013

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December