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Old definitions
Management is the art of getting things done through people- Mary Parker Follett
Management consists of getting things done through others .
A manager is one who accomplishes organizational objectives by directing the efforts of
others- C.S George
Management in all business and organizational activities is the act of getting people together
to accomplish desired goals and objectives using available resources efficiently and
effectively
It does not give the functions which a manager has to perform to get results from others
the needs of the workers have been ignored .the worker are supposed to work like machines
Modern definitions
management is the creation and maintenance of an internal environment in an enterprise
where individual ,working in groups ,can perform efficiently and effectively towards the
attainment of group goals.
process
effectiveness
efficiency
organizational objectives
Objectives of industrial mgmt.
Manufacturing costs
Selection of machinery and equipments
Materials
Manpower
Product quality
Manufacturing schedule
Applications of industrial mgmt
Design and development
Plant layout and material handing
Method study and work measurement
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Production forecasting
Inventory control
Quality control
Production control
Motivate workers
Functions of mgmt.
planning is the ongoing process of developing the business' mission and objectives and
determining how they will be accomplished. Planning includes both the broadest view of the
organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific
goal.
Organizing is establishing the internal organizational structure of the organization. The focus
is on division, coordination, and control of tasks and the flow of information within the
organization. It is in this function that managers distribute authority to job holders.
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Staffingis filling and keeping filled with qualified people all positions in the business.
Recruiting, hiring, training, evaluating and compensating are the specific activities included
in the function. In the family business, staffing includes all paid and unpaid positions held by
family members including the owner/operators.
Directing is influencing people's behavior through motivation, communication, group
dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all
personnel to accomplish the organization's mission and objectives while simultaneously
helping them accomplish their own career objectives.
Controlling is a four-step process of establishing performance standards based on the firm's
objectives, measuring and reporting actual performance, comparing the two, and takingcorrective or preventive action as necessary.
Characteristics of mgmt.
Goal oriented
Mgmt. is the continuous process
Mgmt. is a coordinative force
Mgmt.is the intangiable force
Management is a part of group effort
Management accomplishes result through the cooperations of others
Mgmt is a science as well as an art
Scope of industrial mgmt
The scope of industrial mgmt. can be discussed in two broad areas
Designing of the industrial system and product
Primary task includes preparation of product profile with the help of experts of
technological department and survey
Plant location ,plant layout
Selection of the machine
Research and development activities
Human factors,i.e the impact of production system on the workers operating it
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Analyzing and Controlling the industrial mgmt
production planning
production control
a) control of static inventory such as raw materials, purchased parts, finished goods
and supplies through the inventory control technique
b) control of flow of materials
c) control of work in progress through production control
Quality control
Co-ordination with other departments
Product- In marketing, a product is anything that can be offered to a market
that might satisfy a want or need
Productivity is a measure of output from a production process, per unit of input. For
example, labor productivity is typically measured as a ratio of output per labor-hour, an input.
Productivity may be conceived of as a metric of the technical or engineering efficiency of
production
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The amount of output per unit ofinput (labor, equipment, and capital). There are many
different ways of measuring productivity. For example, in a factory productivity might be
measured based on the number ofhours it takes toproduce a good, while in the service sector
productivity might be measured based
productivity = output/input
There are two variables
Quantity of production
Quantity of resources
Productivity varies with the quantum of production and the amount of resources used.
Productivity can be increased in various ways like
By increasing production using same amount of resources
By reducing the amount of resources ,while keeping the same production
By keeping the rate of increase of output more as compared to the rate of increase in
input
According to the international labour office the ratio between output and one of the
factors of input is generally known as productivity of the factor considered.
difference b/w production and productivity
production refers to the quantity or value of output of particular goods or service produced in
a given period of time by using a specified amount of input. Productivity is related to the
efficient utilization of input resource into produced in the form of value added goods or
services.
Production is a measure of output produced. The emphasis is Not on how well the input-
resources are utilized. Productivity, on the other hand, puts emphasis on the ratio of outputproduced to the input used. Its focus is on how well the input resource is used for conversion
into output.
Factors of production
A) Internal factors
Technological factors
size and capacity of plant
production design and standardization
Human factors (blue-collar ,white collar)
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Ability to work
Willingness to work
Financial factors
Materials and energy
B)External factors
Natural factors (geographical ,climate ,minerals ,forests fertile land)
Government policy
Sociological factors
Measuring productivity of resources
Productivity of labour
productivity of labour= output no. of workers or no. of Man-hoursMan- hours= no. of workers employed *no.of hours worked
Productivity of capital
Productivity of capital = output/ capital employed
Productivity of other factors
Productivity of materials= output/ materials
Productivity of machine= output/machine hours worked
Productivity of land=output / area of land usedtotal productivityindex
TPI= total output/total inputs
=Total production of goods and services/ labour+ materials+ capital+ power
this index measures the efficiency of the entire organization in the use of all the
resources
importance of productivity
increase in production
reduction in costs
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increasein profits
competitive advantage
better quality of life
increasing industrial productivity
improved raw materials
better technology
scientific selection and training of workers
work study
research and development
good working condition
provision of incentives
Job Production
Associated with small firms (making railings for a specific house, building/repairing a
computer for a specific customer, making flower arrangements for a specific wedding etc.)
but large firms use job production too. Examples include:
Designing and implementing an advertising campaign
Auditing the accounts of a large public limited company
Building a new factory
Installing machinery in a factory
Machining a batch of parts per a CAD drawing supplied by a customer
Key benefits of job production include:
work is generally of a high quality
a high level of customization is possible to meet the customer's exact requirements
significant flexibility is possible, especially when compared to mass production
workers can be easily motivated due to the skilled nature of the work they areperforming
Disadvantages include:
higher cost of production
requires the use of specialist labour (compare with the repetitive, low-skilled jobs in
mass production)
slow compared to other methods (batch production and mass production)
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Batch production is the manufacturing technique of creating a group of components
at a workstation before moving the group to the next step in production. Batch
production is common in bakeries and in the manufacture of sports shoes,
pharmaceutical ingredients (APIs), inks, paints and adhesives. In the manufacture of
inks and paints, a technique called a colour-run is used.
There are several advantages of batch production; it can reduce initial capital outlay because
a single production line can be used to produce severalproducts. As shown in the example,
batch production can be useful for small businesses who cannot afford to run continuous
production lines. If a retailer buys a batch of a product that does not sell, then the producer
can cease production without having to sustain huge losses. Batch production is also useful
for a factory that makes seasonal items, products for which it is difficult to forecast demand, a
trial run for production, or products that have a high profit margin.
Batch production also has disadvantages. There are inefficiencies associated with batch
production as equipment must be stopped, re-configured, and its output tested before the next
batch can be produced. Idle time between batches is known as downtime. The time between
consecutive batches is known as cycle time. Cycle time variation is a Lean Manufacturing
metric.
Continuous production is used for products that are made in a similar manner. For example, a
certain car model has the same body shape and therefore, many of the same model cars can
be made at the same time without stop, reducing manufacturing cost
Flow production Flow production is also a very common method of production. Flow
production is when the product is built up through many segregated stages; the product is
built upon at each stage and then passed directly to the next stage where it is built upon again.
The production method is financially the most efficient and effective, because there is less of
a need for skilled workers
Intermittent manufacturing
used by mass production
known as large production
mixture of continuous and job production
large variety of products are made in small quantities
both general and special purpose machines are used
sole proprietorship, also known as a sole trader or simply a proprietorship, is a type of
business entity that is owned and run by one individual and in which there is no legal
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distinction between the owner and the business. The owner receives all profits (subject to
taxation specific to the business) and has unlimited responsibility for all losses and debts.
Every asset of the business is owned by the proprietor and all debts of the business are the
proprietor's. This means that the owner has no less liability than if they were acting as an
individual instead of as a business. It is a "sole" proprietorship in contrast withpartnerships
features
A cooperative (also co-operative; often referred to as a co-op) is a business organization
owned and operated by a group of individuals for their mutual benefit.[1] Cooperatives are
defined by the International Cooperative Alliance'sStatement on the Cooperative Identity as
autonomous associations of persons united voluntarily to meet their common economic,
social, and cultural needs and aspirations through jointly owned and democratically
controlled enterprises.[2] A cooperative may also be defined as a business owned and
controlled equally by the people who use its services or by the people who work there.
Cooperative enterprises are the focus of study in the field ofcooperative economics
A partnership is an arrangement where entities and/or individuals agree to cooperate to
advance their interests. In the most frequent instance, a partnership is formed between one or
morebusinesses in which partners (owners) co-labor to achieve and share profits or losses
joint hindu family
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