SVCE TIRUPATI

COURSE MATERIAL

MANAGEMENT SCIENCE
SUBJECT
(15A03503)

UNIT 2

COURSE B.TECH

DEPARTMENT ECE

SEMESTER 4-1

G Githanjali Jain
PREPARED BY Assistant Professor
(Faculty Name/s)

Version V-5

PREPARED / REVISED DATE 26-09-2023

BTECH_ECE-SEM 41
SVCE TIRUPATI

TABLE OF CONTENTS – UNIT 1

S. NO CONTENTS PAGE NO.
1 COURSE OBJECTIVES 1
2 PREREQUISITES 1
3 SYLLABUS 1
4 COURSE OUTCO MES 1
5 CO - PO/PSO MAPPING 2
6 LESSON PLAN 2
7 ACTIVITY BASED LEARNING 2
8 LECTURE NOTES 2
1.1 Introduction 5
1.2 Plant layout and plant location 5
1.3 Methods of production 6
1.4 Work study 7
1.5 STATISTICAL QUALITY CONTROL THROUGH CONTROL 7
CHARTS
1.6 OBJECTIVES AND NEED OF INVENTORY CONTROL 8
1.7 EBC&ABC ANALYSIS 11
1.8 MEANING ,NATURE,FUNCTIONS OF MARKETING 14
1.9 MARKETING MIX & STRATEGIES,CHANNELS OF 15
DISTRUBUTION
1.10 ADVERTISING AND SALES PROMOTION 16
1.11 PRODUCT LIFE CYCLE 17
9 PRACTICE QUIZ 18
10 ASSIGNMENTS 19
11 PART A QUESTIONS & ANSWERS (2 MARKS QUESTIO NS) 19
12 PART B QUESTIONS 21
13 SUPPORTIVE ONLINE CERTIFICATION COURSES 21
14 REAL TIME APPLICATIONS 21
15 CONTENTS BEYOND THE SYLLABUS 22
16 PRESCRIBED TEXT BOOKS & REFERENCE BOOKS 22
17 MINI PROJECT SUGGESTION 23

BTECH_ECE-SEM 41
SVCE TIRUPATI
1. Course Objectives
The objectives of this course is to
1. To understand the concepts of marketing management.
2. To learn about marketing process for different types of products and
services
3. To understand the tools used by marketing managers in decision
situations
4. To understand the marketing environment

5. .Prerequisites
Students should have knowledge on
1. Basics of marketing
2. Marketing management

6.Syllabus
UNIT 2
Operations Management: Plant location and Layout, Methods of
production, Work Study-Statistical Quality Control through Control
Charts, Objectives of Inventory Management, Need for Inventory
Control-EOQ&ABC Analysis (Simple Problems)
Marketing Management: Meaning, Nature, Functions of Marketing,
Marketing Mix, Channels of distribution Advertisement and sales

promotion-Marketing strategy-Product Life Cycle.

1. Course outcomes
On completion of this course, the students will beable to
1. CO1. Students will demonstrate strong conceptual knowledge in the functional
area of marketingmanagement.
2. CO2. Students will demonstrate effective understanding of relevant functional
areas of marketing management and its application.

BTECH_ECE-SEM 41
SVCE TIRUPATI
3. CO3. Students will demonstrate analytical skills in identification and resolution
of problems pertaining to marketing management.

Machi
PO PO PO PO PO PO PO PO PO P1 PO1 PO1 PS PS
ne
1 2 3 4 5 6 7 8 9 0 1 2 O1 O2
Tools
CO1 3 3 2 2
CO2 3 3 2 2
CO3 3 3 2 2
CO4 3 3 2 2
CO5 3 3 2 2

4. Lesson Plan
Lecture Weeks Referenc
Topics to be covered
No. es
1 1 INTRODUCTION T1

2 PLANT LOCATION AND PLANT LAYOUT T1, R1

3 METHODS OF PRODUCTION T1, R1

4 WORK STUDY T1, R1

5 2 STATISTICAL QUALITY & INVENTORY CONTROL T1, R2

6 OBJECTIVES & NEED OF INVENTORY CONTROL T1, R1

7 EOQ & ABC ANALYSIS T1, R1

8 SIMPLE PROBLEMS T1, R1
MEANING, NATURE, FUNCTIONS OF MARKETING
9 T1, R1
3 MANAGEMENT & MARKETING MIX
10 CHANNELS OF DISTRUBUTION&PRODUCT LIFE CYCLE T1, R1

7. Activity Based Learning

1. CASE STUDY
2. MANAGEMENT GAMES

BTECH_ECE-SEM 41
 8. Lecture Notes
1.1 INTRODUCTION

OPERATIONS MANAGEMENT :
Plant Location And Plant Layout, Methods Of Production, Work Study , Statistical
Quality Control Through Control Charts, Objectives Of Inventory Management, Need
For Inventory Control, Economic Order Quantity (EOQ), ABC Analysis, Meaning Of
Marketing, Nature Of Marketing Management, Functions Of Marketing Management,
Marketing Mix , Channels Of Distribution , Advertisement And Sales Promotion,
Marketing Strategies, Product Life Cycle

OUTCOME OBJECTIVE
Assess the basic concept of Operation management and basics of marketing. To be
able to discuss and tackle with the present challenges of inventorymanagement.

UNIT OBJECTIVE
• Plant Location And Plant Layout
• Methods Of Production
• Statistical Quality Control Through Control Charts
• Economic Order Quantity (EOQ)
• ABC Analysis,
• Marketing Management - Functions Of Marketing Management
• Advertisement And Sales Promotion
• Product Life Cycl
-PLANT LOCATION AND PLANT LAYOUT
• Meaning and significance
• Factors affecting plant location
• Need, importance, objectives of plant layout
• Types of plant layout
-METHODS OF PRODUCTION
• Job production
• Batch production
• Mass production
-STATISTICAL QUALITY CONTROL THROUGH CONTROL CHARTS
• Descriptive Statistics , Acceptance Sampling and,
• Statistical Process Control (SPC)
-ECONOMIC ORDER QUANTITY (EOQ)
-ABC ANALYSIS
-MEANING OF MARKETING
• NATURE OF MARKETING MANAGEMENT
-MARKETING MANAGEMENT
• FUNCTIONS OF MARKETING MANAGEMENT
-MARKETING MIX
-CHANNELS OF DISTRIBUTION
-ADVERTISEMENT AND SALES PROMOTION
-MARKETING STRATEGIES
-PRODUCT LIFE CYCLE
PLANT LOCATION AND PLANT LAYOUT
Plant location refers to the choice of the region where men, materials, money,
machinery and equipment are brought together for setting up a business or factory.
A plant is a place where the cost of the product is kept to low in order to maximize
gains.
FACTORS AFFECTING THE PLANT LOCATION
PRIMARY FACTORS: • Availability of raw materials • Nearness to the market • Availability of
labor • Transport facilities • Availability of fuel and power • Availability of water
NOTES SECONDARY FACTORS • Suitability of climate • Government policies • Availability of
finance • Competition between states • Disposal of waste
PLANT LAYOUT
MEANING AND DEFINITION OF PLANT LAYOUT:
Plant layout is the most effective physical arrangement, either existing or in plans of
industrial facilities i.e arrangement of machines, processing equipment and service
departments to achieve greatest co-ordination and efficiency of 4M’s (Men,
Materials, Machines and Methods) in a plant.
According to James Lundy, “Layout identically involves the allocation of space and
the arrangement of equipment in such a manner that overall operating costs are
minimized.”

NEED OF PLANT LAYOUT

Many situations give rise to the problem of plant layout. Two plants having similar
operations may not have identical layouts. This may be due to size of the plant,
nature of the process and management’s calibre.
IMPORTANCE OF PLANT LAYOUT • The Weight, Volume or Mobility of the Product •
Complexity of the Final Product • The Length of the Process in Relation to Handling Time • The
Extent to which the Process Tends towards Mass Production
OBJECTIVESOF GOOD PLANT LAYOUT • Should provide overall satisfaction to all concerned.
• Should provideworker’s convenience, promote job satisfaction and safety for
them. Should avoid unnecessary investment of capital. • Should help in effective utilization of
labour.
TYPES OF PLANT LAYOUT
I. PRODUCT OR LINE LAYOUT
II. PROCESS OR FUNCTIONAL LAYOUT
III. FIXED POSITION LAYOUT
This type of layout is the least important for today’s manufacturing industries. In
this type of layout the major component remain in a fixed location, other
materials, parts, tools, machinery, manpower and other supporting equipment are
brought to this location.
IV. COMBINATION TYPE OF LAYOUT
Flexibility is a very important factor, so layout should be such which can be
moulded according to the requirements of industry, without much investment. If
the good features of all types of layouts are connected, a compromise solution can
be obtained which will be more economical and flexible.
METHODS OF PRODUCTION
JOB PRODUCTION
Job Production is used when a product is produced with the labor of one or few
workers and is rarely used for bulk and large scale production. It is mainly used for
one-off products or prototypes (hence also known as Prototype Production), as it is
inefficient; however, quality is greatly enhanced with job production compared to
other methods.
BATCH PRODUCTION
Batch production is the method used to produce or process any product in groups
or batches where the products in the batch go through the whole production
process together. An example would be when a bakery produces each different type
of bread separately and each product(in this case, bread) is not produced
continuously
MASS PRODUCTION
Mass production is the manufacture of large quantities of standardized products,
frequently using assembly line or automation technology. Mass production refers to
the production of a large number of similar products efficiently.
WORK STUDY
Fig. Framework of work study
STATISTICAL QUALITY CONTROL THROUGH CONTROL CHARTS
Statistical Quality Control (SQC) is the term used to describe the set of statistical tools
used by quality professionals. SQC is used to analyze the quality problems and solve
them
SQC uses different tools to analyze quality problem.
1) Descriptive Statistics
2) Statistical Process Control (SPC)
3) Acceptance Sampling
Descriptive Statistics involves describing quality characteristics and relationships. SPC
involves inspect random sample of output from process for characteristic. Acceptance
Sampling involve batch sampling by inspection.
ECONOMIC ORDER QUANTITY (EOQ)
Economic order quantity is defined that quantity of materials, which can be
ordered at one time to minimize the cost of ordering and carrying the stocks. In
other words, it refers to size of each order that keeps the total cost low.
Where S is the Economic order quantity, A is the annual demand in units, O is the ordering cost
per order and C is the carrying costper unit
ABC ANALYSIS
ABC analysis is a technique of controlling inventories based on their value and
quantities. It is more remembered as an analysis for ‘Always Better Control’ of
inventory. Here all items of the inventory are listed in the order of descending values,
showing quantity held and their corresponding value. Then, the inventory is divided
into three categories A, B and C based on their respective values
A - Refers to high value item B - Refers to medium value item C - Refers to low value item
MEANING OF MARKETING
Marketing: Marketing as a social process by which individuals and groups obtain what
they need and want through creating, offering exchanging products and services of
value with others.
NATURE OF MARKETING MANAGEMENT
• Human activity • Consumer-oriented • Art as well as science • Exchange Process • Creationof
Utilities • Goal oriented
FUNCTIONS OF MARKETING MANAGEMENT
MARKETING MIX
It refers to the combination of four basic elements, viz., product, price, promotion
and the place, known as the four P’s of marketing.
Product Mix: It is used to describe the assortment of different product types
(product lines) and their varieties (product depth). In addition, different tangible
and intangible features of the product also form the product mix.
Price Mix: Price mix refers to the decisions relating to the price chargedfor the
product, service or idea.
Promotion Mix: Refers to the activities relating to promotion of the product,
service or idea.
Place Mix: Place or physical distribution mix refers to the activities that are involved
in transferring ownership to consumers at the right time and price.
CHANNELS OF DISTRIBUTION
LEVEL – 1 Manufacturer – consumer
LEVEL – 2 Manufacturer - wholesaler – consumer
LEVEL – 3 Manufacturer - retailer – consumer
LEVEL – 4 Manufacturer - wholesaler - retailer - consumer
ADVERTISEMENT AND SALES PROMOTION
Advertising is an audio or visual form of marketing communication that employs an openly
sponsored, non-personal message to promote or sell a product, service or idea.
TYPES OF ADVERTISING •Newspaper. Newspaper advertising can promote your business to a
wide
range of customers. ...
•Magazine. Advertising in a specialist magazine can reach your targetmarket
quickly and easily. ...
• Radio. ... , Television. ...
• Directories. ...
• Outdoor and transit. ...
• Direct mail, catalogues and leaflets. ...
• Online.
SALES PROMOTION
Sales promotion is the process of persuading a potential customer to buy the
product. Sales promotion is designed to be used as a short-term tactic to boost sales
– it is rarely suitable as a method of building long-term customer loyalty. Some sales
promotions are aimed at consumers
fig. sales promotion types
MARKETING STRATEGIES
Marketing strategy is a long-term, forward-looking approach to planning with the
fundamental goal achieving a sustainable competitive advantage. Strategic planning
involves an analysis of the company's strategic initial situation prior to the
formulation, evaluation and selection of market-oriented competitive position that
contributes to the company's goals and marketing objectives.
Strategic marketing, as a distinct field of study emerged in the 1970s, and built on
strategic management that preceded it. FEW MARKETING STRATEGIES LIKE • Use social
media • Create video tutorials • Start blogging now • Leverage influencers • Use LinkedIn the right
way.

Practice Quiz

1. Which of the following is (are) important consideration(s) concerning activity times?

A. Activity time should be obtained from the person responsible for the completion of an
activity
B. Activity time must be independent of any influence which the preceding or succeeding
activity may have on it.
C. Activity time may assume that just the normal quantity of resources required to carry out
the activity are available.
D. All of the above

2. Objective of Work Study is to improve ---------

A. Cycle time
B. Productivity
C. Production
D. All of the above

3.The following is not a major contributor in the development of Control Charts and Sampling
plan
A. F H Dodge
B. H G Roming
 C. Walter Schewhart
D. J M Jura

4. Organizational models are

A. multinational model
B. international model
C. global organizationalmodel
D. All of the above

5. The ––––––––– is the defect level for which lots are regarded as bad lots.

A. Acceptable quality level

B. Consumer’s risk
C. Producer’s risk
D. Lot Tolerance Percentage Defective
6. What are the advantages of templatesover diagrams?

A. Can be conveniently moved on the graph paper

B. Less laborious
C. Saves time
D. All of the above
7. Attack strategiesare

A. Frontal attack
B. Flank attack
C. Encirclement attack
D. All of the above

8. Which of the following are assignable cause?

A. Large variations in hardness of material

B. Tool wear
C. Errors in setting
D. All of the above

9. Which of the following are activities of corrective maintenance?

A. Overhauling
 B. Emergency repairs
C. Modifications and improvements
D. All of the above
10. Limitations of Traditional cost accounting are

A. Assumes factory as an isolated entity

B. It measures only the cost of producing
C. both (A) and (B)
D. none of the above

1. Assignments

S.No Question BL CO
1 Explain the plant location and plant layout? 2 1
2 Objectives and needs of inventory control? 2 1
3 EOQ&ABC analysis 2 1
4 aning &nature of marketing management 2 1
5 Channels of distribution 3 1
6 oduct life cycle 3 1

11. Part A- Question & Answers

Question & Answers

o O
efine product life cycle?
Ans. A product life cycle is the amount of time a product goes from being introduced into the market
until it's taken off the shelves. There are four stages in a product's life cycle—introduction,
growth, maturity, and decline.
DefineProductionManagement
It is theprocessby which raw material and other inputsare converted into finished goods.
What are the Functional subsystems of the any organization?

Production Management

Marketing Management

Personnel Management

ancemanagement
 Whataretheneeds orObjectives ofProductionManagement.

To manufacturethe productsas per thespecification

To effectively manage the available resources and facilities

To produceproductsas per the market requirement .

What are the major managerial decisions to be taken while managing the
functionalsubsystems?

Strategic decision

Tactical decision

Operational decision

Define Product Planning.

P r od u c t p lan n in g is p roc es s of s ear c h in g id e as f or n ew p rod u c t s , s c ree n in g t h e
m systematically, converting them into tangible products and introducing the new products intomarkets.

What arethe strategic decisions need to be taken in Production Management?

Alternative manufacturing approaches and alternative approaches to automation

DefineOperations Management
This is concerned with the management of the resources and processes required by anorganization to
producegoods or services for customers.
Name the different types of inventories.
• Raw materials
• Bought outcomponentsor subassemblies
• Goods ofwork in progress.
• Consumables
• Finishedgoods.
Explaintheterm strategy andtactics
Strategies are plans to achieve organizational goals. Tactics are methods and actions o accomplish strategies.

12. Part B- Questions

S.No Question BL CO
1 Define operations management ?discuss its nature and scope? 1 1
2 Define plant layout? discuss briefly? 2 1
3 EOQ& ABC analysis?discuss? 2 1
4 Define marketing management?discuss marketing mix? 3 1
5 Briefly discuss product life cycle? 3 1

13. Supportive Online Certification Courses

 1. Operations management By christian terwiesch conducted by Wharton-4weeks.
2. Analysis and improvement methods by uddatta palekhar conducted by ILLINOIS – 12 weeks.

14. Real Time Applications

S.No Application CO
1 ocess and technology selection 1
2 Manufacturing resourcesplanning 1
3 tal productivemaintenance 1
4 pplier selection and evaluation 1

15. Contents Beyond the Syllabus

List Of Operations Management Dissertation Topics

 The list is accumulated after through research to assist you with the best dissertation topics in
operations management. You can select any of them and modify a bit to make an absolutely new
topic for your research. By adding specific sector, industry, or country can help you make the topic
more focused. Either you are pursuing an undergraduation student looking for dissertation topics
in operations management.
 Evaluation of the supply chain function of operations management in the UK service sector.
 A review on the identification of risk and management of disaster through operations management
literature.
 A comparative analysis of operations management for products and services.
 A comparative analysis of the different forecasting methodologies used in product operations
management.
 A systematic review of current mediation models in operations management literature.
 An analysis of provisional strategies for management of quality failure in oil and gas operations
management.
 How does management decide whether to manufacture in house or outsource? Lessons from the
textile industry.
 A systematic review of the practical efficacy of Resource Based Theory in strategic operations
management.
 A review of the scope of operations management in the finance sector of UK's healthcare systems.
 An analysis of the tools and models used in operations management and their contribution to
management quality.
 Can operations management strategies effectively cater to Home Care Organization requirements?
A global perspective.
 Operations management in times of crisis- a review of possibilities based on current literature.
 A review of the most prevalent research methods employed in operations management research.
 The science of supply chains and procurement functions in management of construction operations.
 The scope and context of operations management in the tourism and travel industry- evidence
from the top ten global travel destinations worldwide.
 Humanitarian operations management- review of current literature.
 Financial management of sports facilitiesworldwide- an empirical overview.
 The contextual relevance of supplier integration in operations management- evidence from the
construction industry.
  The relevance of economic policy structures on strategic operations management- review from
literature.
 An empirical study testing practical applicability of theoretical concepts of operations management
in selected manufacturing companies.
 The role of company employee base in effective strategy implementation- lessons from the
healthcare sector.
 The relationship between performance management and company objectives- review of the HR
Division of audit firms.
 Employee management and its impact on successful operations management- the case of the Toyota
company.
 Where do companies tradeoff between originality and standardization? Answers from the IT
sector.
 An exploration of the advantages that Big Data and complex data algorithms can provide to
revolutionize operations management.
Prescribed Text books and Reference books:
1. Anderson, D. R., D. J. Sweeney, and T. A. Williams. An Introduction to Management Science: Quantitative
Approaches to Decision Making, 7th edition, West Publishing, Minneapolis 1994.
2. Anderson, D. R., D. J. Sweeney, and T. A. Williams. Quantitative Methods for Business, 6th edition, West
Publishing, Minneapolis 1995

3. Eppen, G. D., F. J. Gould, and C. P. Schmidt. Introductory Management Science, 4th edition, Prentice Hall,
Englewood Cliffs, New Jersey 1993
4. Taha, H. A. Operations Research: An Introduction, 3rd edition, MacMillan Publishing, New York 1982.

5. Turban E., and J. R. Meredith. Fundamentals of Management Science,4th edition, BPI/Irwin, Homewood
1988.
6. Marketing: 10Case Studies, Claire Garcia Jean-Louis Martinez, DUNOD.

Mini project suggestion:

The success recipe for retail: Integrated sourcing and supply chain.
A study on implementation of TQM in an origination
Process steps in six sigma – an overview