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Contemporary management practices

  2. MIS  What is MIS?  MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions.  MIS is the acronym for Management Information Systems. In a nutshell, MIS is a collection of systems, hardware, procedures and people that all work together to process, store, and produce information that is useful to the organization.
  3. The need for MIS  The following are some of the justifications for having an MIS system  Decision makers need information to make effective decisions. Management Information Systems (MIS) make this possible.  MIS systems facilitate communication within and outside the organization – employees within the organization are able to easily access the required information for the day to day operations.
  4. The need for MIS: cont  Facilitates such as Short Message Service (SMS) & Email make it possible to communicate with customers and suppliers from within the MIS system that an organization is using.  Record keeping – management information systems record all business transactions of an organization and provide a reference point for the transactions.
  5. Components of MIS  The major components of a typical management information system are  People – people who use the information system  Data – the data that the information system records  Business Procedures – procedures put in place on how to record, store and analyze data  Hardware – these include servers, workstations, networking equipment, printers, etc.  Software – these are programs used to handle the data. These include programs such as spreadsheet programs, database software, etc.
  6. MATERIAL REQUIREMENTS PLANNING (MRP)  Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product.  It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.
  7. OBJECTIVES OF MRP  To ensure the availability of materials and products for production and delivery to the customer.  To maintain lowest possible level of inventory  To plan manufacturing activities , delivery schedules and purchasing activities.
  8. JIT  What is 'Just In Time’  JIT' The just-in-time inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules.  Companies use this inventory strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process, which reduces inventory costs.  This method requires producers to forecast demand accurately.
  9. Total Quality Management  (TQM • Total Quality Management (TQM) describes a management approach to long-term success through customer satisfaction.  In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. 
  10. Six Sigma (6σ)  Six Sigma (6σ) is a set of techniques and tools for process improvement.  It was introduced by engineer Bill Smith while working at Motorola in 1986.  Jack Welch made it central to his business strategy at General Electric in 1995.  A six sigma process is one in which 99.9999998027% of all opportunities to produce some feature of a part are statistically expected to be free of defects.  Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.
  11. SIX SIGMA Contd…  It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization who are experts in these methods.  Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets  for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.
  12. CMM  What is Capability Maturity Model?  The Software Engineering Institute (SEI) Capability Maturity Model (CMM) specifies an increasing series of levels of a software development organization.  The higher the level, the better the software development process, hence reaching each level is an expensive and time-consuming process.
  13. CMM Contd…  Levels Briefly eplained CMM's Five Maturity Levels of Software Processes:  At the initial level, processes are disorganized Success is likely to depend on individual efforts, and is not considered to be repeatable, because processes would not be sufficiently defined and documented to allow them to be replicated.  At the repeatable level, basic project management techniques are established, and successes could be repeated, because the requisite processes would have been made established, defined, and documented.
  14. CMM Contd…  At the defined level, an organization has developed its own standard software process through greater attention to documentation, standardization, and integration.  At the managed level, an organization monitors and controls its own processes through data collection and analysis.  At the optimizing level, processes are constantly being improved through monitoring feedback from current processes and introducing innovative processes to better serve the organization's particular needs.
  15. CMM Contd…  Level One :Initial - The software process is characterized as inconsistent, and occasionally even chaotic.  Defined processes and standard practices that exist are abandoned during a crisis.  Success of the organization majorly depends on an individual effort, talent, and heroics.  The heroes eventually move on to other organizations taking their wealth of knowledge or lessons learnt with them.
  16.  Level Two:  Repeatable - This level of Software Development Organization has a basic and consistent project management processes to track cost, schedule, and functionality.  The process is in place to repeat the earlier successes on projects with similar applications. Program management is a key characteristic of a level two organization. •
  17.  Level Three:  Defined - The software process for both management and engineering activities are documented, standardized, and integrated into a standard software process for the entire organization and all projects across the organization use an approved, tailored version of the organization's standard software process for developing, testing and maintaining the application.
  18. CMMContd… •  Level Four:  Managed - Management can effectively control the software development effort using precise measurements. At this level, organization set a quantitative quality goal for both software process and software maintenance. At this maturity level, the performance of processes is controlled using statistical and other quantitative techniques, and is quantitatively predictable.
  19. CMM Contd…  Level Five:  Optimizing - The Key characteristic of this level is focusing on continually improving process performance through both incremental and innovative technological improvements. At this level, changes to the process are to improve the process performance and at the same time maintaining statistical probability to achieve the established quantitative process-improvement objectives.
  20. SCM  supply chain management (SCM)  The management of the flow of goods and services , involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.  Interconnected or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain .
  21. Enterprise resource planning (ERP)  ERP • Enterprise resource planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology.  ERP is usually referred to as a category of business- management software — typically a suite of integrated applications—that an organization can use to collect, store, manage, and interpret data from these many business activities.  ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system.
  22. ERP Contd…,  ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll.  The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.  ERP facilitates information flow between all business functions and manages connections to outside stakeholders.
  23. Performance Management  Keeping the Right People  Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization.  More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on- going coaching and feedback to ensure that employees are meeting their objectives and career goals.
  24. BPO  What does Business Process Outsourcing (BPO) mean?  Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third- party provider.  BPO services include payroll, human resources (HR), accounting and customer/call center relations. BPO is also known as information technology enabled services (ITES).  BPO includes back office outsourcing(billing and purchasing) and front office outsourcing(marketing and technical support).
  25. BPR  Business process reengineering is the act of recreating a core business process with the goal of improving product output, quality, or reducing costs.  It is also called business process redesign  Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality.  In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer.
  26.  They typically adopt a new value system that places increased emphasis on customer needs.  Companies reduce organizational layers and eliminate unproductive activities in two key areas.  First, they redesign functional organizations into cross-functional teams.  Second, they use technology to improve data dissemination and decision making.
  27. BENCHMARKING  The search for best practice can exist inside a particular industry and also in other industries - are there lessons to be learned from other industries?  The Benchmarking Process Benchmarking involves looking outward (outside a particular business, organisation, industry, region or country) to examine how others achieve their performance levels, and to understand the processes they use.  In this way, benchmarking helps explain the processes behind excellent performance. When lessons learned from a benchmarking exercise are applied appropriately, they facilitate improved performance in critical functions within an organisation or in key areas of the business.
  28. BENCHMARKING contd…,  The application of benchmarking involves four key steps:  Understand in detail existing business processes Analyse the business processes of others  Compare own business performance with that of others analysed  Implement the steps necessary to close the performance gap Benchmarking should not be considered a one-off exercise.  To be effective, it must become an integral part of an ongoing improvement process, the goal being to abreast of ever-improving best practice.
  29. BALANCE SCORECARD  What is a 'Balanced Scorecard' A balanced scorecard is a performance metric used in strategic management to identify and improve various internal functions of a business and their resulting external outcomes.  It is used to measure and provide feedback to organizations.  Data collection is crucial to providing quantitative results, as the information gathered is interpreted by managers and executives, and used to make better decisions for the organization
  30. Four balanced scorecard perspectives  The balanced scorecard approach examines performance from four perspectives.  Financial analysis, which includes measures such as operating income, sales growth and return on investment.  Customer analysis, which looks at customer satisfaction and retention.  Internal analysis, which looks at how business processes are linked to strategic goals.  Learning and growth analysis, which assesses employee satisfaction and retention, as well as information system performance.