Sasi Intitute of Technology & Enginnering

BY

CONTEMPORARY ISSUES OF MANGEMENT

N. DURGA CHAITANYA PRASADAsst. Professor, DMA, SITE

PRESENTATION ON

VIII UNIT OF MANAGEMENT SCIENCE

Contemporary Issues of Managment:Basic Concepts of Balance Score Card, Bench Marking, BPO, BPR, ERP, CMM, Six Sigma, TQM, JIT, MRP, MIS, Performance Management, Supply Chain Managment.

Meaning & Definition:Balance score card is a management technique use to identify and improve various international functions and their resulting external outcomes

The balanced scorecard is performance measurement system which creates a balance between financial and operating measure connects performance to rewards and gives explicit recognition to the delivery of stake holders interest. ----- Horngren

BALANCE SCORE CARD

FRAME WORK OF BALANCE SCORECARD

Financial ProspectivesInternal Business process prospectivesLearning Innovation & Growth

prospectivesCustomer Satisfaction Propecitves

ADVANTAGES OF BALANCE SCORE CARD

Includes Short and Longrun ObjectivesAs per Financial & Non Financial PerspectivesConcentrate on Factors to achieve goalsHelps in setting individual or organisational

goalsImplementing organisation vision and StrategyMon itoring

CONCEPTS OF BALANCE SCORECARD

Bench Marking is a measured best in class achievement recognised as the standard of excellence for the business process

Bench Marking is a continous process of measuring products, services and practice against the top competitors are those companies recognised as industry leadersDefinition:Benchmarking is a waSy of comparing a product or process against other, with reference to specified standards. ----WebstarObjectives:It helps the organisation focus on the external environment and improve process efficiencyBench Marking promots a climate for change by allowing employees to gain an understanding of their performanceBench marking aim is to provide a realistic and achievable targetsIt allows employees to visualise the improvcement which can be a strong motivation for change

BENCHMARKING

STEPS IN BENCHMARKING

Information useful for traning of the employeesKnow about competitorsUnderstand the strength & weakness of the

companyHelps in taking corrective measuresHelps in redesigning

ADVANTAGES OF BENCH MARKING

BPOBPO means Business Process OutsourcingBPO is the process of hiring another company to

handle business activities, that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider

Functions of BPOData ProcessingBasic Data EntryProvides Technical SupportProvides Email support to its customersSetting up of a Bank Account

TYPES OF BPOWork Point

1. Back Office outsourcing2. Front office outsourcing

Destination Point1. Offshore outsourcing2. Near shore outsourcing3. Onshore Outsourcing

Advantages of BPOSaves costProvides quality serviceFeasibility for CustomersPrimary emphasis on core competenciesTime saving

BPRBusiness process reengineering is also known as Business Process redesign, business transformation, or business process change management.

BPR is a management approach aiming at improving by means of elevating efficiency and effectiveness of the processes that exist within and actross organisations.

Needs Objective of BPR:To reinvent the way they do work to satisfy their

customersTo be competitiveTo cure systematic process and behavioural

problemsTo enhance their capability to expand to other

industriesTo accommodate an era of change

PROCESS OF BPR

ADVANTAGES OF BPR

SatisfactionIncrease effectivenessReduces costsGrowth of business

Peroformance management is the process of creating a work environment of setting in which people are anabled to perform to the best of their abilities.

Definition:“Performance management is a means of getting better results from the organisation, teams and individuals by understading and managing peroformance within an afteed framework of planned goals, standards and competence requirements”

--- ArmstrongObjectives:

Increases two way communicationClarify MissionIdentifies and resolves problemsRecognize performanceProvide a basis for decision

PERFORMANCE MANAGEMENT

Managing the organisationMeaning within the context of businessConcerns everyoneInvolves customersInvolves managers and their teamsInvolves Holistic Approach

FUNCTION OF PERFORMANCE MANAGEMENT

Benefits of Performance ManagementMaintain ongoing dialoguePM focuses on results, rather than behaviours

and activitiesProvide protection against legal activitiesEnhance self respectKnowledge of self capabilities and

developmental needs

ERPERP stands for Enterprise resource planning,

which originally implied systems design to plan the use of enterprise wide resources. It is the softwre for running a business.

ERP is a way to integrate the data and processes of an organisation into one single system

Definition:Enterprise resource planning is an accounting oriented information system for identifying and planning the enterprise wide resources to make, ship and account for customer orders.(American Prodiction and Inventory Cotrol Society)

----APICS

ERP MODULESManufacturing systemFinancial systemHuman resource systemMarketing systemCustomer relationship management

Advantage of ERP:Automataic updation of new technologyImproved customer satisfactionWorkflowReportingBusiness intelligence

SUPPLY CHAIN MANAGEMENTSupply chain management is a praocess which coordinate and integrates all of the activities such materials, information and finance, to perform into a steamless process resulting customers and economic value.

Definition:“SCM is the management of upstream and downstrem relationship with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole”

---- ChristopherSupply Chain Management is the process of planning, implementing and controlling the operations of the supply chain with the purpose of satisfying customers requirements as efficiently as possible.

SUPPLY CHAIN MANAGEMENT

Objective os SCM:Service orientation Systems orientationCompetitiveness and efficiencyMinimising the timeManimising work in progress

Funtions of SCM:Supplier ManagementInventory managementDistribution managementChannel ManagementPatyment managementFinancial Managment

CAPABILIT MATURITY MODEL CMM developed by software engineering

institute of carnegie mellon university in August, 1986.

CMM is a maturity framework strategy, that focus on continuously improving the management and development of the organisational workforce

This model, provides organisation with guidance for measuring the software process maturity and establish process improvement programs

CAPABILIT MATURITY MODEL