UNIT-

Contemporary Manage ment racices

Manaqement intormation Systems (MIS)

oF the
MIS Tefer to the protess Cove ring application

to Slove business
Of people,technoloqies, and procedures
are differe nt rom reqular
intormation
Problems. MIS USed t0 analyse other
in the Sense that are ochviies in
Sustems in operational
intdmaion Systems applied and
Such as DeciSion Support Systems
the Orqanisati on
ExperSystems. business
lere eavlier used tor the practical
Computers of accounts
trach
OF payro11
and keeping have
As more and more pplications
Conmpuling

payable and
recei vable.
with information
have provided manaqers would hetp irn
been cleveloped,that other data,ulhich
,and 1s being increasingl.
about Sates, inventories the tem"MIS"
nq the enterprise,
manaqing
managi these applications
used fo descri be on Su
intbrmati on
in the informah
stem
System
MIS is defined
MIS as researc the techno logical
more than just
Field hich examines
the oc tal System,
r
even both. în addi tion,
he
lhen the
nlhen tw o
two
or just- hat emerge
System, emevge
the pheromena rererS broadty toa
itInvastigates intormation System with the
intevact. Managemernt that provides managers
System and ethcientty running thein
Computeybased tbe
for oronising, evaluating es and larqe oraanizations,he
Organizations,
tDols
li thin Compani Sometimes
aemrtments. Tor Computer Sqstem iS of M1S
tments responsible ty
depar
MIS depaytment 419 the responsibli
fomats for
the reporting tormats
Cated the
to deve lopand Cesiqn Such as Production,FRinonce. e
Department
departments is increastmglu
Various tunctional MIS depart ment
HR et. isthat nece.ssary
Mar keting, Projects, of intor mation

Ought after for every type and Strategi

e decisions by usin9
tattical
for both operational, and ari hital întelligene
Ceciston Support Systems ekpertsustems
 Materials Requivement Planning CMRP)
MRp
MRp tS a Sof tware based produc tion planni nq ad invenl K
Conbrol uued to manaqe manufacturiny proesses.
System
The Main Objectives
Of MRP Sustems aYe:

) To
producion
ensure
and
the availabiliy
very to Custome1S
deli
of materials and procduct s tor

louest level tbf inven toYu

2) To maintain the possible
Schedules and
activities, delivery
3) To plan manufacwing
activittes.
purchasing
of the natume their
Manufacturing OYqanizations, ivvespec tive
Products, tace the Same proble m e vevy day ie he
Customers

want products to be available in of a

Stiorter time. This
1t1s
tates a
large deqree Planninq
bviously netessi of matevidls
Control the tybes andquantities
necessary
Purchased
to
plan
CoVre sponding
Core stpr
, the products that
mpuquantitiesthat
hhat is all
tlhat
They
al the
Qte able to meet the
more
and
procuced and
are to be Procuced

tant is
to ensure all at the lowest
impor CuStomer demand,
Curvent and tuure 13 lose money
to lose tiany
any
like
ble CostThe Compary he
The followinq example
followingeample
tums out to be lrong
Possi
decision
illustrate this point
oF
inadequate quantities
1) 1f a Company purchases item
krong item
or buys the kkong
an item used in manutac turing
the eunet deli eueA de
very Schedules
liverysche dules.

mau be able to meet

on item mbre
an more
of
2)
than
1f a
than tequired
Cornpony
money
Purchases quantities
is wasted.
n acditíon,
the cash
and Such ek Cce
Ce s
s
in exces's Quantity bought
gets tocked
be used
This
This S particulay
Particulary
nevey
Quanti by may manujactures
ano Componies
Companies
for tood
Severeproblem
with Ver Shor tpr oduct
life cycles.
 MRp is used by
a
targe
o: oF organizations
as a
a
entot
tool to deal toith these problemS
are
uestions Such as:
4 what itenms
Tequed,
answe vs
and by hthen are. they Tequire d. This
tor MO many are Tcquived
to
to item3 that are bought in and alSo
applies
into more Complex items.
I+ CoveYs
qo
Sub-asse mblies Tha of materials,
materidls that pYovides details
reg.uire d fo maKe each product
bills of

Components, Subassemblies labour and moaChine

Tmachine
Suc Has
routings,
Ourings,abour
I Cove vs items k cell and pus,Comman tot Sizing
Commands,
Standards, pull|woY and othet inputs
inputs

technigUe'S),
Scvappercentages
Outputs and 6, and a
here ate two oukputs, A
only
TeportsS
Variety
of messaqes Schecdule.
pioduction
Ouput Ais the Reto mm ended
dule of the requi red
minimum
ut a de tailed he eath Step
This lays Wi t uantities ,tor
to satisfy the
dates,
Start and Completion Yeguired
nd bill of material
ot the routing
rom the MPS.
demand Schedule.
13 ts the Recommerded purchasing items Shoul
Output the purchased
out a dates that The purchase
This lays
in
and hese date Cs) to mateh he
matth the
both facility Shoufd
Stouldoccur
oCCur
beecei ved
blanket order
rele.ase

Orders,
or
production schedules
ts
Messoge S and Kepor order to Supplier to
orders Can
These inctude

Provide materidls)
purchase
re Schedule notices(that
ordets).
e
aeComme
Comme nd Cancel,
Cantel,

de or Speed up existind
intrease, lay the tecommended outpuls
that
It is always desirable
trained
drders
people
o goup
need to be révieuwed by as these
or in Set-p br reiqht Savings
bene fits the MRp
Of the
of MRP
linear calculations
actions Qre beyond the
Computer Softuare
 in harduvare
MRp. 1EPp eVolved with the Chanqe
inter pretations betu
Sot twarc andnterface"
Capability tinantial Constro
Consiclers financial Constro
The Sustem hthich
twareThe
SoltwarTe
Sof An MRpn System Can
has u ther evolved as MRp
71

tude initel infinite Caparity plonninq

int in tore Cast data
Cast data
fluctuati ons
MRp Conept Con Siders on Schedule,
bf he Master poducti
Simulation
by
by intludig
a long-tevm
Control.
thus Cveating to mar keting,
9/
to purc hasing,
MRp is an extension to MRP-1
The Next developmert
cndto tnance
has been tRp.
in-time CIIT)
anc hen
Just then hequired
and eauiedas
the arrivein
hthen Componenfs
itis catled just
in a manutac turing opetation, has no Yeedeed for
917 S also
time. Cbnce ptually Speaking, a JIT
JIT Suy Stem
System
inventtry
r Stock. Adopting a lear production
lean
to asadopinq
Sometimes retleved
Sste
JI1 in Japan.
t
philbsophy
is
philbsophy
J1T
a
JIT
bf
of
Driqinated uith the Touota
Toupta
wor king is associated
genevally as Production System".
ánown theToyota based on the
being initialu
a new System o produchon
J1T is
ot waste
elimination waste that Stould be
SHould
Thete are Several
Sources oowaste time
over procducHon,
Spent
The se Include in material
Ctime lost
i

eliminated.
tation movement
aiting transpos upkeeping),waste
time, inventtry
lardling, Protessing
desecti ve items.
with
associated

apaneSe Tevms
Jopanse lerms used in 11 are gven belbw
 (10Andon (
trouble lights): These immediately Siqnal to
the Producion line that there is problem to be teSlovd

(2).Jboda autonomation):This enables machines to be

autonbmbus and oble to detect defects

)
automatically
3)Muda: hlaste
MuYa Uneve nnesS
5)Mui: Erte ss
PoKa-yoke t ioolprbof ): Maintain machines and meThods
So as to mistakes in producHon prote sses
prevent

H Shojinka CSlexible): Develop wOrktorce flesible a

bugh to Cope with chanaes in ploduction and usinq
difterent machin es
()Soikufu Thinking Cte atively) having tnentive and
innovative ideas.

II1 is also Called as Stockless producti on or le.an

klhen
produ cti on JIT is Suitable production uStem
1)
4is possible to produce ctearly deined Starcdard

Product s are ade

2) A re aSonable number o units

3 Podutt is of high
talue
Kde
1) Theve is Sope or flexible tloY kinq P'acfices
.
C.an develop diciplined worktorce.

5 1here is cope for Stortse tup times

terms
on machines.
zero
6) hle Can assure quality in 0t
deteCts

hanbar
hanban is a Sioral or Message er Communicatio
used to Control ftow of tems though the productim
to
Proce SS Even klaving tlands, or Shtouting) Sending a Card
Could be a dew ekomples of kanban.
 Benefits of J1T Hou
Prodx
betleY quality
The bene fits of J1 T inctude
as his/ her
his/
won ker actepting quality
ss,
quality Con Sciousne eycle times
and reworb, reduced
Yeduced Scrap
responsibility,
Smoother low bf produc
less
wOY Ken
on,wo
Ker
Jower Setup times, hiqher
inventor y: lost Savings,higher
wosk
praductiviy wor kers
force,
fhë ctepting a
Par icipation,
mOYe Skilled to Swjtch °loles
and willing

to mpro Ve their Competencies and improvedelotiomShips

ce equitements
educeSpa
vendoYs.
otth
Total Quality Manaqement CTOM)
toltowed ornisatim
ognisatnn
TQM 1S a set ot Managqement practicees
on Consisterst ly meets
-Wide, qeaved to ensure
the orqanizati
Measuremert
mg
s. Process Of Continvous
s custorner Tequivementin os means
TM
OExceed totus
Constitute majot
Co trols

. Othe
improvement ofthe Orqani satior
Orqanisotiorn
atl membevs
In a TOM eftort,
products,
Services and
tn oproving proce ss
Pavicipote wor
in khich they provide
Cuskomers
its Customers
Ctuture to
s
Commi
tted provide
their neds.
needs.
Ithe Company
Company
ad
Services
that Staatisty
Staptisty
with products T9M tave been
ToM have
that implemented
mplemented
lo anu Companics 0f
OF Compantes
Companfes
Alo man reveal that mly 20-361
Successul.Surveys áchieved either
undertaken
TgM have in qual
qualiky,
that have improvements
or even tanqible
Brqniicant
Producivit
tor 79M
Herequisites or Successul
for Success tul
imple mentat
implementat-

there are Some prereqvisites

There driven
drive0 quali ty,top
quality,
are Customer
im CTgM. These
and Commitment
Cmtinuous

manaoement
leacdership
action s based n hacts,
tas qesponse a
improvenmert and TSM Cul tute
pation,
empolyee parici
 in T0M envronment
herHow
roduX products are develbped

I to See the process of produ

is

development
intevesting
in a T OM environment ithout a
on in a ct
T M
apponach,
is ustally Caried mosp heve
Pioduct development
acts in dependent ly.
Where each depotment

Produc developrment inToM environmet

ig a(ways
Calways
Customer driven and focused onu
on quality eams in
with
Oriented, and interact
T9M envivonment are process
Customers to delive r the required Yesults.
the ir

A
ir intevnal

Core Conceptin
Which tetev to
implementing M
is Deming's 14
the Set of Management pYactices
Points
to ncYease their qualit
and ploductivity.
to help Companies
help
Standardisat ior) Ciso) clefins
or
nternational Orqani Sation
tor an brgmi Sat ion
brami sat ion
TOM as a
Manaqtment approaCh
the bf all its
based on paticipation
entered on quality SuCtess
Suctessthrouqh
through
tmgtem at
memberS and aming all hembere
and bene fi ts to
ustomey s
CustomeYS ta Satisfaction,
of the Orqanization and to
the Society

Every
every process So that greater Consistencq ofeffort
is obtained. In Japan TOM Comprises the tolowing
four prote ss gteps:
haizen-tocuses on Cominuous proCessand Improve mernt
Visi ble ,Aepeatable measuvable.
protesses
by making as they ate
-Make thinqs wDr k
2.Atarimae ttinshiksu
meant tor Cie a pen ; is meant ovtinq
OTitin9)or
3 kansei- exanmine the klayhe user
applie the prduct s
leads to in the produet itsel
improvement
ki Hinshitsu- Should have an aesthfe
4 Mirypkute Tbingt

to instance,a pen wl write in a uay that is

Quali ty

Pleasinq to the hite).

 this
This qual
Company maintains
9M
T9M requires that the
its ss
busineTo achie ve
quoi
nuthiro
Obe
Doe
The
of
Standard in all aspecrs done tightO
the things ate
D TOM, it is
deeots
e
ce Ssaty that
and Waste are eliminafed
eliminated
time and that
CpetattionS

Six Siqma

Six Siqma is a Set ot practices deve loped byMobrola to

Susteatically improve process by elimindting defects. A

defect is

asmonConformity of a produc its

deined trServi ce to

Specifi cations.
Six Siqma toCuses on:
* Contimuous efforts to redute Vaiation in process Output
s is

.
key to business Sucte Ss

Can be meaS ure d

Manutacturina and buSiness prOCesses

Cnalysed, improved and cootrolled

ott Sustained improvement equites

quality
SucCeeding achieving
Commitment rom the entie otganisati on, particulaty from top-leve
Management

Six refers to the ability

oF Highly Capable
Siqma
The impliot qoa)
ProCe sses to
within specificatior)
produce output
all ta that level Of
is td improVe Processes
O Six siqma

qvality
or betler.

Six siama Simply eanS a measuve D quality thtt Strives

Fov ear perfecHon six Siqma is a disciplined, cata driven approath,

in any pro(ess
ethodolbgy oY eliminaling detects

The Staistical representatHon of xsiqma desci bes

quanti tatively How a process is performinq To produte a
SX Sigma a phbCess Tust DDt produce more than 34defects
Six Sigma detect is defined as
per milion bppor tunities.
 of Customer Specifications.
nythinq
alik out side
me thodolbg4 aims
implementativn at the
The Six Siqma
hat ToCuses on Proce
rocess
ss
of
of a meaSurement- based Strateqy
the applicati on of
and Vaviation feductior) Through
improve ment
Six Sigma impovement projects

This s achieve d through he use of 2 Six Siama

Sub-Me thocloloqies

1) DMAIc
2) DMA DV
analuse,
The Six Siqma DMATC proce ss Cde fine, measure, taing
sor existing process faling
an improVement Sustem .
Conhol) is
tbY incTemental improve ment
and lobking
below Specification
desiqn Veriy)
the Six Siqma DMAD Cdetine, measure, andly, s at
used to develbp new product
products
s an improvement
Siqma quality le ve ls .
&stem

DMAIC
of the tollotoinq
Steps
methodolt Consiss
Basic ology
that are Consi stent
Define the proceSS improvement poals

uhCustdhner demards and enterpise Svateg

ad Collect elevant data for fuure
Measuve the Curent Process
Comprison
to Vei and causaliky of factors. Detemine
Araly
Araly ze fy TelaHonship
ze
Whatthe and atlempt to ensure that all
Shi p is,
vebtion
Hactprs have been mSidered.

1mprove or the bphHmizebased upon the Aralysis

Analsis
process

asing technigues like Desig F txperiments

Contyol to enure tat ny ariances are Corected before

they reSult 'n dfechs. Setup pilot runs to
heu establish process
Copobilihy transtton to productibn and thereafter Continu ouslu
Tmeasure the proe ss and nstitute Control mechantsms
 o|lawin9 re
Steps
9teps
follousin
DMADV msists
Cmsists that ore
methcdology aCHviy Strateqy
activity
The basic
of the design Strategy
the oals and enterprise
Define
with custome
rdemonds product
to Qualiies), assessments.
Consistent CTOs Cciti
cal
and isk assessmerts.
and identify e high.
high-leve]
level
Measure Capabilitytess CTeat
at
es, production
pro
alternative
alternative
S,
8,Cre
the best de sign
deSign
Cpabiliti and desiqn to Se lect
lect S
Analy
raly eand
to develop
evoluate design Copability design
pan or
he design,and
dlesiqn

Des
Design
deails , optimise
may require
S
Simulations
Simulation
producti
on
This phase implement
pilot AunS,
Verification
the de siqn ,etup ss DtonerS
Veri fyand handover
Veri tD proce
for its Su
SuCcesStul
Ccesstul
process oles
Toles for
eveal
Severa key
key
idenifies
Six Sigma
SIqma
other
implementatibr). oF
oF C€o and other
Ceo
intudes the SuppoT
upport tor
are tesponsible
tesponSible
Executtve LeaderShip The dlSoo
team members. They dlS
hey top manaqenment
hey tor SiX Sigma implementation.
mplementatión. añd zeSoures
NeSources
a vtion wi th treedom he
SeHing upthe other empolyees ments.
empwer tor Dre ak Thrpugh improe
new ideas
to explore tor he &ix Siqma impementation
are tesponsi blean inteqrated way 5ns
sns
hay. Champi
Champions in inteqvated
The orqani Sationn blatk k be l-s.
belks
QCrOSS to. blac
dlSo acts as men tors
as in-house

Master Bock lts, e

idenhfied by Chompions,
for the organisationand
acks
on SiX Siqma They
belts.
asSTt

expert CDaches belts qreen

and quide black
champions Services,
acrbss Cormpany improving
boundaries,
htorh
Experts for Their Supplier S, their
Campu ses,
entiré Campu sesS

proce Sses,
and product
Their CustomevS
and for
Bock Delts operate under master black belts to apply
Six Sioma methodology to Speci-fic projects. They primanly
focuses on Six Sionma project executi on, heve aS Champims
ster Black belts totus on identifying project-s| functions for
for

Ax Siaroa
dre talse up Six Sigrma
Green Belts empolyee s klho
Implementoation alonq
withb their other job hespongbiliH es. They
belts and &upport the
operate under the quidance of blach
in achieving the bvevall esolts
traired in
yellou Belts empolyees, ulho have been
ave
iniiative,
Six Siqma techngues 0s
ParoF Corporate-wide, initiative,
and are not
but have ndtCompleted a Six 6iqma project aCtivies.
in quality improvemert aCtiviHes.
ex pected to acHVely engage
engoge

In many Black belFs are

ecen proqtam s, Gre en belts and
in Their area
empowered to ini tiate, expand and lead projects
of re
spbnsibi lity

Capability MakuikyModel Cc MM)

Maturity Mdel is a Colecti on of inStructions an

Capability
with the pupose to qain betler Control bVer
DYopnisaH on Can tollbw
its Softwave develbproent protess.

The CMMTanks Softuware development Orqanisattonbs in a

Df five levels Each level has a proqre ssively qreater
hierarchy
Softw0te Eac h le vet is describecd
Copability o produCing quali ty
Five levels Ave eauipped uith diffeent
OS alevel of aturi y.
Those

mumber of instvuct onš to tollou.

Maturity Model

AMaturiy Model is a Structure.d collectior of

elements that desSCvi be Characterstics OF
effect ve proce$ses
a to Start,the benefits of a
Maturiy Madel provides place
a (ommon languoge and a Shared Vis/brn,
Communi y's prior experientes, hlhat
a ttame hlork for prioritisi ng actions anda way to define

improvements meams for your organisatiow

Stutture of c MM ty
ople

maturi ty levels,
Comprises
The
The Strucure and Key praciceS
areas qoals, Commbn teatureS Succe

Levels oF C MMM
he predic tabi
of the CMM.
lily

The
heve
re Qre five
five levels
Softunhe processS
of an organisation's
moVes up the Se five
ettctiene ss ,and
Contr ol

are belie to improve os the organisation

ved
tevels
Level-1

Orgamisatfon
7
Initial

Makuri
uSually
y
does not
le vel , Proceses
provide a
ave sually
9table envi rormer
ard the
adhoc and
he.

Level-2 Repeata ble SvcceSSes

re
Ore
Sofwate developrnentt
At MatuYihy level,
Some basic projeC Manaqement
use
may
e peatable
beThe organisation .
to
to trac h Cost and Schedule

- Deined are ctaracterisedd

Ctiaracterise
are well
Levef-3 wel1
level, processes
it
At this Maturily
in Stanards, proCedures,
tools,
described
ond unde1stood, and are

and me hods.
Level-4 - Manoged Can
measute men ts, the management effort
USing precise twate development the
e and Control the Sof odapt
effectively manaqe st and
st odapt
ettecively manag to adju and
losses of
In Porticular, it Can identi fys ways
without meaSurable
to paricular project
Proess
F rom Specifications.
quali y deviation s

Level-5- bptimiSing
matyriy level
focuses on Continuallymproving
This in oVati ke
and innovati
ss ce thrbugh
bot inctemental
Proce performon

technoloqy fmprovemen ts.

 ople Capability Matuity Model
C
pc MM)
Pro
People CMM is a hame htor h that helps organisations
their (7itical People 155ues. In tuman ReSouvce
Successfully addvess
and organisattonal development,
Manageme nt ,hnowledge Manaqement
onagenment in their processes
improVing
People C MM guides Orani sations S
for and developing
their ktbrkfore
managing

Maturity Levels

people CMM Consists oF

Maturity levels that
five
establish toundatH on tor Continuously
Successive improvinq
etfecti ve te.ams, mottVa ting
individual Competencies ,developing
and Shaping the ktor k for ce the Orqani sation
ImptoVed pertornMance,
needs tt ac(dmlish its tuture business Plans

initial tevels
This Level is Characte rised by
by inConSiste ncin
Pertorming
Pertorming pracHces, dispbcement 0 esponsibili y, titualistc

detached woT kforce

PracH ces and emotionally

Managed Level
This Level is
idenitied by klork OVevload,
environmet
distractivns, untlear performance objecti ves or feedbac6, lach of relevant
and louw morale.
hhouledge or Shilu, poor Communi cation

Defined Level

Here, Ahough the are pertomni ng Dasic upr force

PracHite s, thete is in how these pracices dre Performec
intonsistenc
acroSs units and iHle syneTgy acrosS the organisation. the Pro Ces n
of andardising br
kforce Pprctices,
the
organi sotion mi sses oppor funi ties
be Couse the Common hnowledge ond Shillk eeded tor Conductina its
buSine ss acfivities have
not been identi ied.

Predictable Level

At this level, the 6rgania tt on manages and exploits he

Capabi lity Cteated by its ttame-wo k of wor kforce
Competencies.
he Organi Sotion is now able of
manging its
Capabilty and
Peytormance uanti tati velu
 optimi zinq Level ur
in
In the
When he improVerments are rade apabilit,
Capabilihy
indi viduals and lorkqroups, to the performance of ompe te nq.
ba sed proce sses, and to toorkforce pracHces and ac tiviHes in i
the ofgonizatior is
directHon of the Coninuoud imptovement,
e vel.
aid to have reac hed bptimising

Maturity Level 5 Orqanisations treat Change Monagemenla s

an ordinary business process to be performed in an Orderly ua

n a tegular basis

Supply Chain
Management
of
Supply hainManoge ment CScM) is the prDLess
Planning implemen ti ng
and Contolling the opera fions of the suPPy
Chain aS eFficienty as poSSi ble

woY
to
- I+
in- proce
Spans
ss
point-of- Consurm ption
all

inventory
moement Ond Storaqe
Ond finished
of raw
good s trom point
materials,

of-0riqin

ScM en(ompa ses the planning and management Of all

Octivi ties
hvol ved in 'Sourcing, procure ment,Conver Šion ,and (og1sticS
manag ement acivi ties Impbrtantty it also inttudes Coordination
1

and collaboration with Chonnel partners,Which Can be ppliers,

intermedirari es, third-Rarty ervice providers and Custbmers.

Supply Chain Management

problems
must address the tollouoing
Supply Chain Managemen
follouoing

Pro blemS:

*Distribution Aletwor y Confiquration AlumbeT and locafion of

Ware house
Centers, hlare housess
SupplierS, production faciliHes, distribution
and Cu stomers
di rect
*DistibuHonStrategy
Centralised VerSusdeCentralised,
third par hy
CrOSS locki ng pul or push 5rateqi es,
Shipment,
logistics.

Informati on Toteqrate ystems and processes through The

Supply chain to Share Valua be information, intudinq demand
Signals, foecasts, 'nuentory
and transportation tc e
lity
raw Materials,w0Y -
JnVentory Manaqement: uantitu and lotaton of inventovy includinq
In-proc ess
and inistied oods

teims amd oovcinating9

*Ca sh-F ow: Anang ing the Payment
Me thod for funds aC Y05S enlilies uith ín Suppl
ologies exchanging
chain

Supply chain ekecution is Manoqi ng and Coodinalin he

the
move ment of materials, information ard funds actoss he Supp
Chai in a bi-directiornal flou.

Actiyities Funcions

SupplyChain Manaqement is a Cross- funcional

appovach
appovac to manaqinq the move nernt of raw materials intd ar
Oroanisation and the move ment of finisthed qoods out of the
Oraanisation tDward the end -Con Sumer
more arnd more
As
the tofus of the Companies
1S

on core com pe te ncie s the y have re duced their Ouner Ship of raw
materidls Sources and distibuti on Channets. These functions
tunct{ons Cre
OAre
to other tirms That can peTform
Out SouiCed
intreaSingly being
has resolted
the activities betler or more costeffectively. This
of Componines invotWed in Satisfying
in an inttease in number
ConSumer demand, While eduing
he manaqement Cortrol of dai y
loqistics oration.

Strateqic loca ion,

h the number,
opimisati on, inctuding
Stra teqic Networ
karetiouses,distibuti
on Ceryters am facilities.
and Size of
CustomeY S,
distri butiors and Customers,
with uppliers,
Strategie partrer ship and
on channels for Critical informaion
Cte otinq Communi catí
doc hinq, direct Shpping
Sucth as Cross
operational impYOve me nts
and thi
rd par y logistics

* produ Ct neuw and existing product s

design Coordinati on, So that
chain, load Manoqemet
Can be opimally integated into the Supply
infrastructure to Support 5upplychain
Intomation echology
operations.

Where to make and What to maKe or buy decisions

 with
with SupplystYate
Supply strate De
Strategy casSt
*Align overall Organisational
ove
Strateqic Supple
nddne
the number
networl% mi sati on, includirng
ond
ond facil
rateqic opti centers
Centers tacilih.

distri butiorn
Size of klare. houses, and
OCofibnand dishibuors,
dishibutors,
Custorn
Custorn,
withb Suppliers, and
Strategic Partner ship tical information
Strategic for CYi
channets
CYeati ng Communicatton s Such as CYOSS doc.hi ng directSiipping
improve ment
OPeatio nal
and third-Corty toqistrcS ad existing produtds
products
existing
So that neuo
desiqn Coordi nation, load Manoqements
Manogement=
chain,
*product desion into the Supply Chain,
Can be optimally integrated
Chain
y intrastructure
,to Suppor
Intovmation technolog Supp
dns.
Operati

Tactical
decisions
and other purchasinq
A Sourcing
Contracts
locati ons, 5cheduling
Cbntracting
on decisions, indudinqg
producti
definiti on.
process and
and planning
ons, including
quanti y, location,
Inventory de cisi
of inventory
quality
including treque
ney,YOutes and
* TranSporta tior Strateqy

Contracting ti tbrs Qrd

aaainst Compe
opeati ons
Bench Markig of
all
the enterpri
tati on of best practice S throughout
implemen
* Milestone poyments

operaional al)
distibuhion planninq, including

odes
Daily
in

ProducHon
fhe supPly
produchion
the Supply chain

Shecali ng
and

for

Chain tminute by Tminu te).

each manudacuring facility
tacility
)
i
 Demand the demord
planning and forecasting,Coordinaing
the tore Cas wi th al
of ali customeYs and Sharing
TONE Cast
Supplier s and ttreCast derrord,
t Sourcing
urring planning, including
Currentt
s
inventorq
all
in collabonation with Supplier
trom Syppliers
includinq transportation
+Inbound operations,
nventoru
and reeiving
the consumpion of materials
including
ProducHon ope1ations,
of finished goods.
and ftouw
ond
and
aCH
actviHes
viHes
Outbound opeation s,inctuding a tullIment

to CuStdmTS
transportation in the Supply
for all Con sihaints
accounting dishri louton
*order promisinq, manu factute ng facilities,
Supplievs,
Chain, inttuding at
Centers,and
bther cuStomers SuCh as
chain partners
between Supply
intprmation only through
Shored be
etc, om kully levevaged
nly inteqratio
Procesš
Prcducrbn depoment, Ctain business
Supply and Suppievs, join
inteqration
ProCess wor5 between buyersStared inttumati on
Colaborative and
involves tommbn Sustems
Produ tt development,
Busines Process outsourcing CBPo2 is
Sub
are SubCorstia
dare cted, it
lorstiacted,
it

When Some Or The Main aim of Bpo

non-Core protess
all
amd
process out
Soutcinq. hmoney
Called BuSiness
to invest more time,
allouo the Conmpany Strateqies,
and Duilding Strategies,
SS to
reSourtes into Cbre acti viies
numan
Whith fuel Compony Grooth. he vibront global
View of the qlobal
in trend
Bp
BP is the Curent
and hiqHly Competi A Companuy
tive ,A
Competitive
Comfpany
Whi Ch are dunemic down tosts
may and yet, Cut
may kei
ke+s
must toCus
on improUinq productivity
up preciou
S time Source s e
SuCh tasks that use
There fore ,al
ave being out Sourced.
and ererqy

free a Hrm'S capital hile reduting

Bpo helps up trom
ce sses bing outSourced Tanqe
Losts. The funtibns tr pro
+0 (uetomers Service to Softuware deve lopment
manu tocturing
ond m0re
 6P the Contracting of a Speciffc business tosk
O.s
is

Payro1, to a thivd.par
Service

implemented as a Cost. Saving meaSure

phovideYy
tosh,
USually
7or taSks that
. Gp
to maintain i
Dmpany Yequive 8 but does not olepend upon
Companu
Positionb in the market place
s often
) bac
Bpo
of fice
divided

OutSourC ino
1tinttudes intema
into two Cateqovies

buSiness un Ctions
tunCtions
Such aS billing b purchasing
2) hont ofice
out SouYCinq
I+ in ludes CuStumer telated Services
Such aS maketinq or tech
Support

Bpo that is Contracted

outside a Compony's
Own
is Some time s Called offshore outsourcing. That
Bpo that
Country
is
Conta cted to
a Cormpanys Teigh bour irng Country s Some times
Colled near-8hore Outsoucing, and Bpo tha is Cmtracte d
ih in the Cormpanu's ouwn Country is Sonetimes Called
On Shore out-
SourCing
The Most Cornnon eramples of Bpo are Called Centers,
Centers,
hu
Turnon 1eSoutces ,accounting and pay roll out Sourcina
Business Hocess
Keengineeving CBPR)
BPR S a marmagemert appovach aimig a
improvements by
means oF elevati ng effciency Ond effecti veress Of the process

hat exist oith 1 and across orqanisati ns.

he hey pe
to s
0Y
Orgonisations to loob at their busine ss Drocesses trom a Clean
slate perspective and determine how they Can Dest Construct
Conduct business.
businesS.
hese proce sses to improve houwhey
Business process Reengineeving 1s atso Anowr as
6PR Busine ss Proce ss
Redesign, Busine ss TranSformation, Or
Business process Change VeYe Vit MManagement
 SIn
sl,
Bpo the hhbrds of mer and Chornpy Bpr is the
tundamental ethining and Yadi cal Yecdesiq of business processes
to actue Ve diarmattc improve ment s in Crittcal ContemporaTq meaSuves

of perdov rmonC e, Sucth as oSt,qualiy Service ond Speed.

is poce ss innbvation that
Thomas Saus BPR
t1
Davenport
actual
eLormpasse sthe envisioning of new woY 5trateq ies,the
of the Chanqe
P'oCess de Sign acivitu and the implementaton
in all iuls Complex technologiCal, huma ns and Orqoni Soional
dimenSibns.

Addishallu Daven Port explains the Major ditference

between to Orgonisatton Develbpment.
BpR ang other appora ches
BPR is
Inovder to achieve the major improvemenrs
ables,
Ovqani Satfonal aria
Seehing for, the change b Structuval
often
of Managinq and perfoming wor is
and other ways
Consideved as be ina
inSuffi ci ent

BPR deives its existence trom itferen disciplines,

to
and
as being Subjected
fou ma jor Areas con be idenHiec ant people
n BPR orqonisation, tectinolbgy
,stiategy
tamew br k for
change is Sed as Common
Where a proce ss riew
.
Considering these dimensions
tec hnolbgy is qenerally ComSidered
In BpR, intoimation and
as a role as enabler oF new torms 0f orqanizinq
plauinq Dusiness fubc
business tions
tubc tions
,ra ther than Supporting ekIsting
Colla bovating oea ls uith aspeCES
The people human e Sources climension
moti vation and ne ward Sytems.
I

Such as educoti 6n, training,

Se ve val
S1ouorn huge returns to
has
SUcess es BpR proCtor
and
it has been well implemented
ConPani es here hWete Some
the Companies klhere
o
Motors
Gamble and Cjeneval trunaOund atfer
to trunatound after financial
financi@al

BPR helped the Companines PR helped tmericon tir lanes

due to Compe tiion. bad de bts
drawbackS incutred Several
it
fo eCover after
Bench Mavking
of Cornpavinq
is the proless
Bench May King 5ses aqainst
Th
intenal proce
OvqaniSation's Opevations
and ne 01,
side its industy
of othev OVQani Sation within or out
s are made, Known
wht h the CompaviSions
to
Ovqoni Sat fovis aqainst that are per cCeived
thoSe
as berhMay b pytner3 ave usuall The Pupose oF
bench

e
be best pev formers in
marinq is to identify the and
ing to
their C la.ss.
adopt best hnbuwn practi ces

thaE Can lead to Supevdr pertor ance

Bench May king is a
proceSs it must Have a
Sustematc s that are
tYame lorh and use a
StandaYd Set of atttibute
measurable to Compare muttiple. orqanisati ons objecOr tiely
Dn aSpeciHc drea otivity
Bech Mar kinq must be perforned
bestt practi Ces, intdrmnation technolog
onlu, SuCm asopeiati onal ,and budgetin
diStibut8 Systems
packages,
Staffinq Compen Sation the
the
the SCope of benchmarking activity allows more
Limiting
on df a move tocuse d aqenda hat provides
tormulati benchmark Partners.
usetyl on rom bette rtarqeted
informati

partners Ore Classi fied into

in qeneralbenChmar kinq
tour Cateqories

1) Internal
hich peytains to depa trnerst s, toc tories, etc. bh the

)
Sane ompamu

)
Who
Corppeitve
Which

Functivra)
pertains
tb direct Coopetitors-

Which pertains to best-in-class orani sations

are in the Same field or activifties

4 Genericc
lhich pertain s to leading Ovgonisations rom
fr om

varipus fields and industies

 Balanced SCore Cavd CBSC)
H SCore Cavd
s a new apporach
to Strategie
Batanced
in 996s by Robert Kaplan
ad
David Norton.
manaqement developed
phatle of
iS apporaCh repaces he Custbmary

of an orqani Satior or indi vidual

Fvoluati nq the per for mance
in terms of Profit
s mode tr market Share
inhe OYni Satiorn
ained efc
Sustems arournd the
De
DeSigninq
Siqning pertoimance
the Managtment
Strort term,
budget and opeYatinq plan. The se promote
annual
tnCtemental ta ctical behaviOuV

Constitute a cessaty parf o marogement,

Thougb
Thouah these
with in a
implement ed justt
is not nough Strateqy
tor tatics. There
Connbt be
is a need tor oo) thatt
Suystem ceSigned Share a vieco of the
tarious da ctors ulhich
Con balante Qmong nt This tool is Called
called
for 4S tuture deve lopme
organisation Strateqy
Batanted Score Card

Balanced Score Cord defined as a Strategic teedack

Deter
ranage ys to make
Sustem that enables progams
faster,Smarter,and easie tthn e ven be fore
decisions
maHers as Seen
Bscaims at tocusing on mettics that
TO avoid toCusing only on
|from a Srategic point oFView.
SCore Card Compriset metics
Short terminancial meaSures The and learning
Such as Customer, Inte tna proce sses,
Htom areas
ntegrates, tnalyses,
and perspecHves respectively
qrowth
intormatiorn
to Supportotal performance
and disributed
manoqement O he Orojec

Benefits
The Bene fits oF Bsc are given below

1t focuses o fe key tings meedec to Create

break though performance m the emtire Orcgini satton.
 Cor porate progams,
progranos, Ano
Corporate terr
1+ heps to inteqrate and Various
CustomerService
ini Hati
ini iat
s quali ty, re-enqineering to loCal leVels
Tmea Sure S
down Sttateqic ees Can Se,
Se,
1 break and empoly ees
emp0oly
S0 that unitmana qer S, oPeiators, bout ex Cellernt
level
to bring
Whats eguited at their
pertormance Overall

BsC is a tlexi ble tool . 1t Can be

through
USed to descri
Ased
bganibarr o
an
on.
be,
describe,

t9
and inmpement Strategy Strategic dire
ag
inhinq
inking
Cuttome s and meaSures to
team and
Ction
direCi
idividuG objecti
ves

Store Card brings

level, proce
$s,
top
Imteqrotes
and measure s. The.
balanted and peopleinto
OutComs process
inteTnal rS to
YS
tinantial,
Custompr, It enables manag
together Sustemy. adThem
helps them
Dne peYormande
Tnoirtoring
these areas
the linkages between
undustand
fotus their etfor
S
ment System,
hle have
ha ve le
In the traditional Manage The balanced
6core ard brings
Treports. qun their
to 2un
monthly perfov rmanCe for management
indicafbrs
the hey
Key
tooether
CYqani Sati on.
the
the innovation
clesCribe
and Nor ton
haplan
asfollous
alanced ScoreCard

the batance
The SCore Carcd etains traditional inancial

the Stovy tetl Of

OF past
meaSures But financial measures
for industrial age Compamines
Companines
verts, an adequate Story and Custo mer
s in long-term Capabilih' es
tor wich investment for SuccesS. These
tor SuccesS.
firancial
inancial
uee no Critical
ad eva luatinq
relationships tor Guidinq
measues are inadequate, Mouwe ver, must maketo
aqe companines
the Jpumey fhat Information
in Custpmers.
tnvest mernt
Cveatefuture
Yalue brough
ProteJses
technolo9y
c nnovation
Suppliers empolyees,

The Bsc Suggests that te Viewthe orqani Sation rom

 four perspectives.
aty EaCh t the aboVe perspecti veS uwi ll

initiati ves
be
analysed

in terms 0bjective s,meoaSures, tarqets

OF
and (N
with Vision and Strategy
P theSe are inteqrated
involves
The pro(ess o preparation obalance d Store Card

data and andyslnq

it lative
zelati vee e
de Merics, Collech nq
veloping
s :
fo each of theSe per Specti ve
h0w we
wif
P Gow th: This explains Our
DheLeaning fo Chage ancd improve
to aChieve
Sus tain I Our abili y
uiSio. lhat busineSs prote
nlhat busness sSe
protesSey

Protess This nalyses 1

to SRtES
2 The BuSiness pro Cess
e muSt ercel at in
f
interna) business
Customers
OUY Share hoderS
Satisfy
te SHould appear to
5)The Custo mey: his exphins
hrou
re lattons to Mhieve our
in improving Custormer
our CuStomeYS
ViSion
: This Outlines tow we Siould appear
how aprar
4) The Financial perspecti ve
enterpriSe
to SucCeed
Shta retolders in tinancing
to our
i nancially
Ent eprise Re6ouYce planmtng(E RP):
Enterprise Resour ce planning market, is one of a mature
Solution segmen ts for the reason s
well knouon. Mature ERP
Custpmers looking to improue theis return on inves tment (RoI)
in eRP-related mainte
nance and Support
Enterprise Resource planning systems (ERPs)integrate al
data and processes D
an organisation into a unihed
system
A typical ERP system wil use
multiple components of tomputey
Softw ave and harduare to achieve the
intaration
ERP 5ystems cover all basic functions oF an
organisation
Tegarele5s of thé OTgani
satins bu siness or chaTter whether
It is
bu5iness, non Pprofit
orqanisation,non governmenta
0Ygonisatioo ov qouernment
Ideally, ERP delivers a singe
database that (ontains
all data for the boftware mocdules, which would
incla
anutacturing fngineering, bils of materlal, 5chedul
g,wokflow Management, auality ton bol,
ost
Management
Manu Manufac tuaing process, Manufacturing Projés
a. facturing flou
floo
Supply chain
Management TnuentoTy, order éntry,
Chasin9, procduct lonhq uratoY,Supply chain
Supplier plannng,
stheduling,
lommi SsiDn 6pection Df goods, claim Processing
calculation
3.hnancials:
Payable , eneral
Alcounts
Ledger, cash
manaqement, A(counts
Receivable, ixed
4Projects loshng, Assets
billinq, Time
Mancgement
5. and
Human expense,Actu
Time and Resources Human TeSOUTCE5
,Payroll,Training
Attendance,
CustomET enehtb
Relationship Manage
LommisSions,Service,
1 Data mentsales and Masketingng,
Ceustomer (ontact and
call
wovehouse centersupport
CustomerS, àydoussel ZefVite
suppliers and tnttacesbi
Peformnance employ ees
Manaqement:
Pertormance
a Pproach to managemert sa shrateqic and n
delivernng sustained keqaked
sutcess to
PUimprouing that OYganisa tions
oYganisa
in them and performance of the ahD wOrk
by people ahd w0rk
And developing their
apabilitiS 0s
as keams
teams
individuals.
Jt is an (apabilitis
Vision
Df the approach
to reating a
helping each purpose and aims off
the
Past in employee unders tand organisations,
organisations,
undexstand and
and recoqnise tnen
Contributing to vecognse theh
and
and enhancing the
them and in s0 dn
so doina,
managng
managing
and the perfomance of both
individual
orqanisation
 pertomance managerment protesses should operate in
accordance with agreed ethital principles: vespect for the
hdivdual, mutual respect, Procedural
faine and s
transparency
Pertoimance management atm6 to fmproue 6 ra egie
tous and
organisational effectiveness through Lontinously
Seturing
improvements in the performance of individuals
and teams
rertomance manaaement as an interlin ked prDCe55

Pertornane manogement should be ntegra ted into he

dy the pevforman ce of the busin ess s
managed and it
Should be linked oith dther key processeb uch as business
rategyemployee development, and total qualut
manoqement
Pertormance measurement is the protes5 aessin9
Progress touward achieving predetermined goals Performane
manaoement and improvement can be thought of asa
Cycle

per fotmance planning where gals and objectiues

are establishea.
a. Pevtomane
Coaching where a manager intervenes to
8i ve teedback and acdjust pertor mance.

3-Performance appraisal where indiutdua l pertormance

tormally documented and leedback eleliveved
Coaching and tounselling:
To bridge the qap betuoeen the actual pertormane
and desied pevtommanee, employees requve Suppit in tems
of
mentoring,toaching ,touselling and the vembual o ang
baries that may prevent Pertormance
excellent
 erms
in
ermns
Can be eplained
Pertormance management
[APM), Business
Of Applica
tion perorm ance Management
lesM.) and operabional
Peroro ance Management
Pevformance Hanagement (oPM). to
performance Management(APM)Teks
focuses on
HPplrcation

the dis cipline wtthin 6ystems rnanagement.JE auai ability

the pevtormance and
moniterng and managing
as woTktew
f 5oftware applicahions AP can be dehned

and related 1T tools deployed to detect,diagnose

6sues to
on application performance
Temedy and report or exceeds
ensure that application performance meets
end-users and businese5 expectattons.
is a set
D
Business performance Manngement
Use o
distoveY efficienE
Proe5ses that help businesses
human and maerial rsoutes
thei business unit6,hinancial,
and Predic table
OPM focus is on Creating methodical
results, OY pertotmance,aCross
ways to business
improve
Organisations

ceg luahivih oieiorg

nfsti9

n agtn