Customer relationship management (CRM) is a management science process that helps businesses

improve their relationships with customers. CRM systems use data analysis to help businesses
understand their customers' needs and preferences, and to create more effective strategies to reach
them.

How CRM works

 Centralizes customer information

CRM systems store customer data in one place, including contact information, purchase history, and
communication preferences.

  Analyzes customer data

CRM systems use data mining, correlation, and pattern recognition to identify customer behaviors
and preferences.

  Creates targeted strategies

CRM systems help businesses create targeted marketing campaigns and advertisements based on
customer data.

  Improves customer service

CRM systems help businesses identify and solve problems that may be affecting customer
satisfaction.

Benefits of CRM

 Increases sales

CRM systems help businesses attract more profitable customers and drive sales growth.

  Improves customer retention

CRM systems help businesses build customer loyalty and improve customer satisfaction.

  Streamlines processes

CRM systems help businesses automate tasks like email campaigns and social media outreach.

Types of CRM systems

 Operational CRM: Focuses on streamlining day-to-day customer interactions

 Analytical CRM: Focuses on analyzing customer data to improve decision-making

 Collaborative CRM: Focuses on enha

In management science, MRP stands for Material Requirements Planning, which is a system that
helps businesses plan, schedule, and control inventory for manufacturing processes. MRP is usually a
software-based system, but it can also be done manually.

MRP helps businesses:

 Ensure that raw materials are available for production

 Ensure that products are available for delivery to customers

 Maintain low levels of materials and products in storage

 Plan manufacturing activities, delivery schedules, and purchasing activities

The MRP process typically involves the following steps:

1. Identifying requirements to meet demand

2. Checking inventory and allocating resources

3. Scheduling production

4. Identifying issues and making recommendations

4.

The three basic inputs for an MRP system are: Master Production Schedule (MPS), Inventory Status
File (ISF), and Bill of Materials (BOM).

Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers
only as they are needed. The main objective of this method is to reduce inventory holding costs and
increase inventory turnover.

What is JIT?

JIT is a management strategy that involves receiving goods from suppliers when they are needed,
rather than keeping them in stock.

  How does JIT work?

JIT involves working closely with suppliers to ensure that raw materials arrive when production is
scheduled to begin.

  What are the benefits of JIT?

JIT can help reduce inventory holding costs, increase inventory turnover, free up physical space, and
reduce defect rates.

  How is JIT used?

For example, a car assembly plant might use JIT to receive airbags as they are needed to install them
on the assembly line.

  What are the elements of JIT?

The three basic elements of JIT are just-in-time manufacturing, total quality management, and
respect for people.

Management Information Systems (MIS) is a field that studies how people, technology, and
organizations interact with each other. It also refers to the systems that provide managers with the
information they need to make decisions about their organization.

What does MIS do?

 Gathers data from various sources

 Processes data to provide information tailored to the needs of managers and their staff

 Helps managers track performance indicators

 Helps managers identify trends

 Helps managers make informed decisions about resource allocation

What are some types of MIS?

 Transaction processing systems (TPS)

Process day-to-day transactions like sales, purchases, and inventory changes

 Executive information systems (EIS)

Provide a summary of an organization's operations to help senior executives make strategic decisions

 Decision support systems (DSS)

Use data mining, machine learning, and other analytical techniques to help managers make informed
decisions

What are the benefits of MIS?

 Helps businesses realize the maximum benefit from their investments in personnel,
equipment, and business processes

  Helps businesses make better decisions in a fast-paced environment

TQM
 Steps of TQM

 Plan: Develop and deploy policies and strategies

 Do: Implement plans

 Check: Assess the results

 Act: Take action based on the evaluation

Six Sigma is a quality management methodology that helps businesses improve their processes,
products, and services by reducing defects and errors. The goal is to achieve a level of quality where
there are only 3.4 defects per million opportunities.

Here are some key aspects of Six Sigma:

 Name

The term comes from the Greek letter sigma, which represents a standard deviation in a data set. A
process that has six Sigmas has three standard deviations above and three below the mean, which is
considered to have an extremely low defect rate.

  Methodology

Six Sigma uses a structured approach called DMAIC, which stands for Define, Measure, Analyze,
Improve, and Control.

  Benefits

Six Sigma can help businesses improve their quality, reduce costs, and increase profitability. It can
also help businesses reduce waste, improve employee morale, and enhance their competitive
position.

  Principles

Some key principles of Six Sigma include customer focus, using data, improving continuously,
involving people, and being thorough.

Six Sigma was originally developed for manufacturing, but it has since been adopted by many
organizations across a wide range of industries.
Enterprise resource planning (ERP) is a software system that helps businesses manage their core
processes and day-to-day activities. ERP systems are used by organizations of all sizes and industries.

How ERP works

 Centralizes data

ERP systems gather data from multiple sources and store it in a single database. This eliminates data
duplication and provides a single source of truth.

  Automates processes

ERP systems automate data collection and other business processes, which can help improve
efficiency and reduce costs.

  Improves collaboration

ERP systems integrate teams, which can help with knowledge sharing and workplace cohesion.

  Provides insights

ERP systems provide real-time visibility into key business areas, such as inventory, and can help with
reporting and planning.

What ERP systems do

 Manage finances: ERP systems can help with accounting, budgeting, and cash management

 Manage human resources: ERP systems can help with recruiting, payroll, and benefits
  Manage manufacturing: ERP systems can help with engineering, work orders, and quality
control

 Manage supply chain: ERP systems can help with supply chain planning, purchasing, and
inventory

 Manage projects: ERP systems can help with project planning, resource planning, and
project costing

Performance management is a process that helps managers evaluate and monitor employee
performance to ensure that employees are performing to their best and in line with the
organization's goals. It is a continuous process that involves a number of practices, including:

 Goal setting: Aligning individual objectives with the organization's strategic goals

  Communication: Clarifying job responsibilities, priorities, and performance expectations

  Development planning: Supporting employees' career development needs

  Feedback: Providing constructive, real-time feedback to employees

  Performance appraisal: An objective assessment of an employee's strengths, weaknesses, and

areas for improvement

Performance management is different from performance appraisal, which is a specific event that
provides formal feedback and evaluation. Performance management is an ongoing process, while
performance appraisal is typically conducted annually or biannually.
A continuous performance management (CPM) approach involves more frequent interactions
between managers and employees, such as regular one-on-one discussions. This approach allows for
more timely feedback and quicker improvement cycles.

Business Process Outsourcing (BPO) is a management strategy that involves contracting out a
business process to an external provider. BPO can help companies improve their efficiency, reduce
costs, and gain a competitive advantage.

What is BPO?

 BPO involves transferring responsibility for a business process to a third-party provider

  The provider manages the people, technology, and assets involved in the process

  BPO can be used to outsource a single process or an entire function

How does BPO work?

 The provider assesses the client's needs and sets expectations

  The provider uses technology to manage the process and deliver outcomes

  The provider is responsible for meeting the client's needs and delivering business outcomes

Benefits of BPO

 Cost reduction: Companies don't need to hire extra employees or buy tools

  Efficiency: Providers have qualified staff and use the latest technologies

  Scalability: Companies can expand by handing over non-essential responsibilities to a provider

  Flexibility: Companies can focus on their core competencies

When did BPO start?

 BPO originated in the manufacturing industry, where companies outsourced supply chain
management

 Today, BPO is used in many industries, including healthcare, energy, and pharmaceuticals

7 Essential Steps for Business Process Re-engineering

 Step 1: Identify the Process to Re-engineer. ...

 Step 2: Analyze the Process. ...

 Step 3: Redesign the Process. ...

 Step 4: Test the New Process. ...

 Step 5: Implement the New Process. ...

 Step 6: Monitor and Evaluate. ...

 Step 7: Continuous Improvement.

 What is Business Process Reengineering?


 What Is Business Process Reengineering? Business Process Reengineering is the
radical redesign of business processes to achieve dramatic improvements in
productivity, cycle times, quality, and employee and customer satisfaction.


Benchmarking is a management science process

that helps businesses improve their performance by comparing their products, services, and
processes with those of other organizations:

 Identify areas for improvement

Benchmarking helps businesses identify areas where they can improve their performance by
comparing themselves to other organizations.

  Learn best practices

Benchmarking helps businesses learn best practices from other organizations and incorporate them
into their own operations.

  Increase competitive advantage

Benchmarking helps businesses increase their competitive advantage by identifying gaps in their
products, services, and processes.

  Adapt and grow

Benchmarking helps businesses adapt and grow through change.

Here are some steps in the benchmarking process:

1. Select a product, service, or process to benchmark

2. Identify key performance metrics

3. Choose companies or internal areas to benchmark

4. Collect data on performance and practices

5. Analyze the data and identify opportunities for improvement

6. Adapt and implement the best practices

6.

There are four main types of benchmarking: internal, external, performance, and practice.

BALANCED SCORECARD
 A balanced scorecard (BSC) is a strategic management
tool that measures an organization's performance and helps improve it:

 What it is

A BSC is a system that translates an organization's goals into performance objectives, which are then
measured and monitored. It provides feedback on internal processes and external outcomes.

  How it works

A BSC includes financial and non-financial targets and goals. It views the organization from different
perspectives, such as:

 Financial: The perspective of shareholders

  Customer: What customers experience and perceive

  Business process: The key processes used to meet customer and shareholder requirements

  Learning and growth: How to foster ongoing change and continuous improvement

 

 Benefits

A BSC helps companies:

 Identify and improve internal business functions

 Reduce reliance on inefficiencies in processes

  Provide a more comprehensive view to stakeholders

 

 Who developed it

Robert S. Kaplan and David P. Norton are widely credited with developing the BSC system. They
published their business performance management framework in a 1992 paper in the Harvard
Business Review.

  How to create a BSC

You can create a BSC by:

 Creating a purpose statement

  Designing a change agenda

  Drawing a strategy map with strategic objectives

  Choosing measures to help drive the strategy

  Aligning initiatives or key projects to the strategy

Knowledge management (KM) is a business process that involves identifying, organizing, storing,
sharing, and analyzing an organization's knowledge to improve its performance. The goal of KM is to
retain important information and improve efficiency and productivity.

KM can help an organization:

 Improve decision-making

By enabling collaboration and the exchange of ideas, KM can lead to faster and better decision-
making. This can help improve customer experience and business prospects.

  Increase employee satisfaction and retention

By streamlining processes like training and onboarding, KM can lead to higher employee satisfaction
and retention.

  Shorten development cycles

By putting content at the fingertips of those who develop and provide products and services, KM can
help shorten development cycles.

  Increase connectivity

KM can increase connectivity between internal and external personnel.

  Leverage intellectual capital

KM can help leverage the intellectual capital and assets in an organization's workforce.

KM can be supported by a knowledge management system (KMS), which provides a centralized place
to store and access information. A knowledge base usually supports these systems.

Knowledge management (KM) is the process of organizing, creating, using, and sharing collective
knowledge within an organization. Successful knowledge management includes maintaining
information in a place where it is easy to access, like a wiki or employee intranet.