Notes

========== Supply Chain Management

What is Warehousing Management?

Warehouse management is the control of the day-to-day operations of a warehouse, such as the shipping, receiving, put-away, and picking of goods. The term is sometimes used interchangeably with the ‘stock control’ or ‘inventory control’. However, we would argue that they differ in a number of respects. Stock control aims to maximize profit by getting inventory right, whereas WM aims to maximize the efficiency and effectiveness of warehouse operations. Put another way, stock control means you know how many of a particular product you have and when to order more; WM tells you which bins those items are in and the order in which they need to be picked. Warehouse management software typically includes a stock control module.

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What is reverse logistics management?

Reverse logistics comprises the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. Hence the name reverses logistics. This can encompass anything from returned goods, inward disposal/recycling of packaging materials, the recycling/responsible disposal of materials from previously sold products, etc. The full definition of reverse logistics, according to The Council of Logistics Management, is the process of implementing, controlling, and planning the cost-effective flow of finished goods, raw materials, and in-process inventory. The flow is from the point of consumption (i.e. the customer) to the point of origin (i.e. the manufacturer), to properly dispose of these or to recapture value.

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What are the different steps of purchasing?

Purchasing, which associated with identifying needs, locating and selecting suppliers, negotiating terms, and following up to ensure supplier performance, is very important to a firm. Now purchasing goods, low material became globalize which a company should consider making global purchasing system in order to deal with global suppliers. (Bozarth and Handfield) The issues are how the company can maintain the quality of goods from suppliers, and reduce its cost at the same time. If a company decides to only consider the quality of goods, its cost may increase dramatically. Because the cost of purchasing is the big portion from a financial standpoint if the company only considers its cost, the quality of goods may reduce. This may causes the company more cost due to the cost of returning defective goods. The purchasing process has two important factors. First, the firm should consider how much effort it spends on purchasing goods, and how much different from one purchase to the next step. Therefore, the firm should think that how big its profit will be from the purchase. The second is that competitive advantage. A company usually gains the advantage from better-performing from other competitors, such as installing Information Technology, Six Sigma to improve its performance. (Bozarth and Handfield)

The 8 steps for the purchasing process.

1. A Problem Is Identified
2. General Need Description
3. Product or Service Specification
4. Potential Supplier Search
5. Request for Proposals
6. Supplier Evaluation and Selection
7. Establishing Credit and Order Specification
8. Supplier Performance Review

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What is meant by ‘Economic order quantity’?

Definition: Economic Order Quantity (EOQ) is a production formula used to determines the most efficient amount of goods that should be purchased based on ordering and carrying costs. In other words, it represents the optimal quantity of inventory a company should order each time in order to minimize the costs associated with ordering and holding inventory. The benefit for an organization to spend time calculating EOQ is to minimize its inventory costs and, in turn, make strides toward being as efficient as possible. A business can use this calculation to determine exactly when an order needs to be placed and exactly how much should be ordered so that the company can continue normal production and minimize inventory costs. EOQ is an extremely effective tool for managers because they can use it to figure out what is the optimal amount of inventory to hold on hand as well as to calculate when to order more merchandise because new sales should be generated.

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What is CSM
Firms that have linked their supply chain management and marketing management capabilities have created “Convergence of Supply Chain Management and Marketing (CSM)”. CSM helps supply chain and marketing managers reconcile the issues between opportunity losses due to insufficient capacity for meeting unexpectedly high demand and real losses due to excess capacity for meeting forecasted demand that is not realized. CSM approach is a broader picture, taking a view that supply chain and marketing management overlap, and that effective management is to integrate the two. If this is achieved, it results in bringing often conflicting objectives more closely together.

The goal of CSM is to create unique competitive advantages by linking together customer values with a more effective flow of products and goods. The flow must always be refined and create a customer value proposition in a constantly changing market. By encouraging supply chain and marketing people to meet in the new interesting scenarios, firms can develop unique competitive advantages. The paper also highlights the role of CSM in resolving the conflict between supply chain and marketing.

===============Management Information System
Q1. Describe the types of Information Systems

An information system is a set of interrelated components that work together to collect, process, store, and breakdown the information to support decision-making.

Following are the DIMENSIONS of information system:
1.ORGANIZATIONAL DIMENSION: Information systems are part of the organization. The information system will have the standard operating procedure and culture of an organization embedded within them. This involves:
a)Functional specialties b)Business processes c)Culture d)Political interest groups

2.MANAGEMENT DIMENSION: Managers perceive business challenges in the environment. Information systems supply tools and information needed by the managers to allocate, coordinate and monitor their work, make decisions, create new products and services and make long-range strategic decisions.

3.TECHNOLOGY DIMENSION: Management uses technology to carry out their functions. It consists of – computer hardware/software, data management technology, networking/telecom technology. It's one of the many tools managers use to cope with the change.

Information Systems are classified by organizational levels, mode of data, processing, system objectives, and type of support provided.

Following are the TYPE of information system:

1. Transaction Processing System (TPS).
Transaction Processing System are information system that processes data resulting from the occurrences of business transactions
Their objectives are to provide transaction in order to update records and generate reports i.e to perform storekeeping function
The transaction is performed in two ways: Batching processing and Online transaction processing.
Example: Bill system, payroll system, Stock control system.

2. Management Information System (MIS).
Management Information System is designed to take relatively raw data available through a Transaction Processing System and convert them into a summarized and aggregated form for the manager, usually in a report format. It reports tending to be used by middle management and operational supervisors.
Many different types of reports are produced in MIS. Some of the reports are a summary report, on-demand report, ad-hoc reports, and an exception report.
Example: Sales management systems, Human resource management system.

3. Decision Support System (DSS).
A Decision Support System is an interactive information system that provides information, models, and data manipulation tools to help in making the decision in a semi-structured and unstructured situation.
Decision Support System comprises tools and techniques to help in gathering relevant information and analyze the options and alternatives, the end-user is more involved in creating DSS than an MIS.
Example: Financial planning systems, Bank loan management systems.

4. Experts System.
Experts systems include expertise in order to aid managers in diagnosing problems or in problem-solving. These systems are based on the principles of artificial intelligence research.
Experts Systems is a knowledge-based information system. It uses its knowledge about a specific area to act as an expert consultant to users. Knowledgebase and software modules are the components of an expert system. These modules perform inference on the knowledge and offer answers to a user’s question.
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Q1 Explain organizational planning

Organizational planning is the process of defining a company’s reason for existing, setting goals aimed at realizing full potential, and creating increasingly discrete tasks to meet those goals. Each phase of planning is a subset of the prior, with strategic planning being the foremost. There are four phases of a proper organizational plan: strategic, tactical, operational, and contingency. Each phase of planning is a subset of the prior, with strategic planning being the foremost.

Strategic
A strategic plan is the company’s big picture. It defines the company’s goals for a set period of time, whether that’s one year or ten, and ensures that those goals align with the company’s mission, vision, and values. Strategic planning usually involves top managers, although some smaller companies choose to bring all of their employees along when defining their mission, vision, and values.

Tactical
The tactical strategy describes how a company will implement its strategic plan. A tactical plan is composed of several short-term goals, typically carried out within one year, that support the strategic plan. Generally, it’s the responsibility of middle managers to set and oversee tactical strategies, like planning and executing a marketing campaign.

Operational
Operational plans encompass what needs to happen continually, on a day-to-day basis, in order to execute tactical plans. Operational plans could include work schedules, policies, rules, or regulations that set standards for employees, as well as specific task assignments that relate to goals within the tactical strategy, such as a protocol for documenting and addressing work absences.

Contingency
Contingency plans waiting in the wings in case of a crisis or unforeseen event. Contingency plans cover a range of possible scenarios and appropriate responses for issues varying from personnel planning to advanced preparation for outside occurrences that could negatively impact the business. Companies may have contingency plans for things like how to respond to a natural disaster, malfunctioning software, or the sudden departure of a C-level executive.

=================What are the challenges to Global Information Systems?

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What do you mean by Information Systems, explain its importance?

Information system, an integrated set of components for collecting, storing, and processing data and for providing information, knowledge, and digital products. Business firms and other organizations rely on information systems to carry out and manage their operations, interact with their customers and suppliers, and compete in the marketplace. Information systems are used to run interorganizational supply chains and electronic markets. For instance, corporations use information systems to process financial accounts, to manage their human resources, and to reach their potential customers with online promotions. Many major companies are built entirely around information systems. These include eBay, a largely auction marketplace; Amazon, an expanding electronic mall and provider of cloud computing services; Alibaba, a business-to-business e-marketplace; and Google, a search engine company that derives most of its revenue from keyword advertising on Internet searches. Governments deploy information systems to provide services cost-effectively to citizens. Digital goods—such as electronic books, video products, and software—and online services, such as gaming and social networking, are delivered with information systems. Individuals rely on information systems, generally Internet-based, for conducting much of their personal lives: for socializing, study, shopping, banking, and entertainment.

As major new technologies for recording and processing information were invented over the millennia, new capabilities appeared, and people became empowered. The invention of the printing press by Johannes Gutenberg in the mid-15th century and the invention of a mechanical calculator by Blaise Pascal in the 17th century are but two examples. These inventions led to a profound revolution in the ability to record, process, disseminate, and reach for information and knowledge. This led, in turn, to even deeper changes in individual lives, business organizations, and human governance.

The first large-scale mechanical information system was Herman Hollerith’s census tabulator. Invented in time to process the 1890 U.S. census, Hollerith’s machine represented a major step in automation, as well as an inspiration to develop computerized information systems.

One of the first computers used for such information processing was the UNIVAC I, installed at the U.S. Bureau of the Census in 1951 for administrative use and at General Electric in 1954 for commercial use. Beginning in the late 1970s, personal computers brought some of the advantages of information systems to small businesses and to individuals. Early in the same decade the Internet began its expansion as the global network of networks. In 1991 the World Wide Web, invented by Tim Berners-Lee as a means to access the interlinked information stored in the globally dispersed computers connected by the Internet, began operation and became the principal service delivered on the network. The global penetration of the Internet and the Web has enabled access to information and other resources and facilitated the forming of relationships among people and organizations on an unprecedented scale. The progress of electronic commerce over the Internet has resulted in a dramatic growth in digital interpersonal communications (via e-mail and social networks), distribution of products (software, music, e-books, and movies), and business transactions (buying, selling, and advertising on the Web). With the worldwide spread of smartphones, tablets, laptops, and other computer-based mobile devices, all of which are connected by wireless communication networks, information systems have been extended to support mobility as the natural human condition.

As information systems enabled more diverse human activities, they exerted a profound influence over society. These systems quickened the pace of daily activities, enabled people to develop and maintain new and often more-rewarding relationships, affected the structure and mix of organizations, changed the type of products bought, and influenced the nature of work. Information and knowledge became vital economic resources. Yet, along with new opportunities, the dependence on information systems brought new threats. Intensive industry innovation and academic research continually develop new opportunities while aiming to contain the threats.

Components Of Information Systems
The main components of information systems are computer hardware and software, telecommunications, databases and data warehouses, human resources, and procedures. The hardware, software, and telecommunications constitute information technology (IT), which is now ingrained in the operations and management of organizations.

Computer hardware
Today throughout the world even the smallest firms, as well as many households, own or lease computers. Individuals may own multiple computers in the form of smartphones, tablets, and other wearable devices. Large organizations typically employ distributed computer systems, from powerful parallel-processing servers located in data centres to widely dispersed personal computers and mobile devices, integrated into the organizational information systems. Sensors are becoming ever more widely distributed throughout the physical and biological environment to gather data and, in many cases, to effect control via devices known as actuators. Together with the peripheral equipment—such as magnetic or solid-state storage disks, input-output devices, and telecommunications gear—these constitute the hardware of information systems. The cost of hardware has steadily and rapidly decreased, while processing speed and storage capacity have increased vastly. This development has been occurring under Moore’s law: the power of the microprocessors at the heart of computing devices has been doubling approximately every 18 to 24 months. However, hardware’s use of electric power and its environmental impact are concerns being addressed by designers. Increasingly, computer and storage services are delivered from the cloud—from shared facilities accessed over telecommunications networks.

Computer software
Computer software falls into two broad classes: system software and application software. The principal system software is the operating system. It manages the hardware, data and program files, and other system resources and provides means for the user to control the computer, generally via a graphical user interface (GUI). Application software is programs designed to handle specific tasks for users. Smartphone apps became a common way for individuals to access information systems. Other examples include general-purpose application suites with their spreadsheet and word-processing programs, as well as “vertical” applications that serve a specific industry segment—for instance, an application that schedules, routes, and tracks package deliveries for an overnight carrier. Larger firms use licensed applications developed and maintained by specialized software companies, customizing them to meet their specific needs, and develop other applications in-house or on an outsourced basis. Companies may also use applications delivered as software-as-a-service (SaaS) from the cloud over the Web. Proprietary software, available from and supported by its vendors, is being challenged by open-source software available on the Web for free use and modification under a license that protects its future availability.

Telecommunications
Telecommunications are used to connect, or network, computer systems and portable and wearable devices and to transmit information. Connections are established via wired or wireless media. Wired technologies include coaxial cable and fibre optics. Wireless technologies, predominantly based on the transmission of microwaves and radio waves, support mobile computing. Pervasive information systems have arisen with the computing devices embedded in many different physical objects. For example, sensors such as radio frequency identification devices (RFIDs) can be attached to products moving through the supply chain to enable the tracking of their location and the monitoring of their condition. Wireless sensor networks that are integrated into the Internet can produce massive amounts of data that can be used in seeking higher productivity or in monitoring the environment.

Various computer network configurations are possible, depending on the needs of an organization. Local area networks (LANs) join computers at a particular site, such as an office building or an academic campus. Metropolitan area networks (MANs) cover a limited densely populated area and are the electronic infrastructure of “smart cities.” Wide area networks (WANs) connect widely distributed data centres, frequently run by different organizations. Peer-to-peer networks, without a centralized control, enable broad sharing of content. The Internet is a network of networks, connecting billions of computers located on every continent. Through networking, users gain access to information resources, such as large databases, and to other individuals, such as coworkers, clients, friends, or people who share their professional or private interests. Internet-type services can be provided within an organization and for its exclusive use by various intranets that are accessible through a browser; for example, an intranet may be deployed as an access portal to a shared corporate document base. To connect with business partners over the Internet in a private and secure manner, extranets are established as so-called virtual private networks (VPNs) by encrypting the messages.

A massive “Internet of things” has emerged, as sensors and actuators have been widely distributed in the physical environment and are supplying data, such as acidity of a square yard of soil, the speed of a driving vehicle, or the blood pressure of an individual. The availability of such information enables a rapid reaction when necessary as well as sustained decision making based on processing of the massive accumulated data.

Extensive networking infrastructure supports the growing move to cloud computing, with the information-system resources shared among multiple companies, leading to utilization efficiencies and freedom in localization of the data centres. Software-defined networking affords flexible control of telecommunications networks with algorithms that are responsive to real-time demands and resource availabilities.

Databases and data warehouses
Many information systems are primarily delivery vehicles for data stored in databases. A database is a collection of interrelated data organized so that individual records or groups of records can be retrieved to satisfy various criteria. Typical examples of databases include employee records and product catalogs. Databases support the operations and management functions of an enterprise. Data warehouses contain the archival data, collected over time, that can be mined for information in order to develop and market new products, serve the existing customers better, or reach out to potential new customers. Anyone who has ever purchased something with a credit card—in person, by mail order, or over the Web—is included within such data collections.

Massive collection and processing of the quantitative, or structured, data, as well as of the textual data often gathered on the Web, has developed into a broad initiative known as “big data.” Many benefits can arise from decisions based on the facts reflected by big data. Examples include evidence-based medicine, economy of resources as a result of avoiding waste, and recommendations of new products (such as books or movies) based on a user’s interests. Big data enables innovative business models. For example, a commercial firm collects the prices of goods by crowdsourcing (collecting from numerous independent individuals) via smartphones around the world. The aggregated data supplies early information on price movements, enabling more responsive decision making than was previously possible.

The processing of textual data—such as reviews and opinions articulated by individuals on social networks, blogs, and discussion boards—permits automated sentiment analysis for marketing, competitive intelligence, new product development, and other decision-making purposes.

Human resources and procedures
Qualified people are a vital component of any information system. Technical personnel include development and operations managers, business analysts, systems analysts and designers, database administrators, programmers, computer security specialists, and computer operators. In addition, all workers in an organization must be trained to utilize the capabilities of information systems as fully as possible. Billions of people around the world are learning about information systems as they use the Web.

Procedures for using, operating, and maintaining an information system are part of its documentation. For example, procedures need to be established to run a payroll program, including when to run it, who is authorized to run it, and who has access to the output. In the autonomous computing initiative, data centres are increasingly run automatically, with the procedures embedded in the software that controls those centres.

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Q5 Write a short note on MIS structure.

A Management Information System is an integrated user-machine system, for providing information, to support the operations, management, analysis & decision-making functions in an organization. In other words, The System utilizes computer hardware & software, manual procedures, models for analysis, planning, control & decision making, and a database.

Management Information System: MIS provides information to the users in the form of reports and output from simulations by mathematical models.

Management Reporting Alternatives MIS provides a variety of information products to managers which includes 3 reporting alternatives:

Periodic Scheduled Reports
Exception Reports
Demand Reports and Responses
Management Reporting Alternatives

MIS provides a variety of information products to managers which includes 3 reporting alternatives:
Periodic Scheduled Reports: E.g. Weekly Sales Analysis Reports, Monthly Financial Statements etc.

Exception Reports: E.g. Periodic Report but contains information only about specific events.

Demand Reports and Responses: E.g. Information on demand.
MIS Characteristics:

Management Oriented/directed
Business Driven
Integrated
Common Data Flows
Heavy Planning Element
Subsystem Concept
Flexibility & Ease of Use
Database
Distributed Systems
Information as a Resource

MIS Support for Decision Making:

Structured / Programmable Decisions: Decisions that are repetitive, routine and have a definite procedure for handling them.

Unstructured / Non-Programmable Decisions: Non-routine decision in which the decision maker must provide judgment, evaluation, and insights into the problem definition.

Semi-Structured Decisions: Decision where only part of the problem has a clear cut answer provided by an accepted procedure.

======================= Strategic Management


What is a strategy Management?

Strategic management is the ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives. Changes in business environments will require organizations to constantly assess their strategies for success. The strategic management process helps organizations take stock of their present situation, chalk out strategies, deploy them and analyze the effectiveness of the implemented management strategies. Strategic management strategies consist of five basic strategies and can differ in implementation depending on the surrounding environment. Strategic management applies both to on-premise and mobile platforms.

Benefits of strategic management
Strategic management is generally thought to have financial and non-financial benefits. A strategic management process helps an organization and its leadership to think about and plan for its future existence, fulfilling a chief responsibility of a board of directors. Strategic management sets a direction for the organization and its employees. Unlike once-and-done strategic plans, effective strategic management continuously plans, monitors, and tests an organization's activities, resulting in greater operational efficiency, market share, and profitability.

Strategic management concepts
Strategic management is based around an organization's clear understanding of its mission; its vision for where it wants to be in the future; and the values that will guide its actions. The process requires a commitment to strategic planning, a subset of business management that involves an organization's ability to set both short- and long-term goals. Strategic planning also includes the planning of strategic decisions, activities, and resource allocation needed to achieve those goals.

Having a defined process for managing an institution's strategies will help organizations make logical decisions and develop new goals quickly in order to keep pace with evolving technology, market, and business conditions. Strategic management can, thus, help an organization gain a competitive advantage, improve market share and plan for its future.

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Q Explain environment threat and opportunity profile (ETOP

The Environmental factors are quite complex and it may be difficult for strategy managers to classify them into neat categories to interpret them as opportunities and threats. A matrix of comparison is drawn where one item or factor is compared with other items after which the scores arrived at are added and ranked for each factor and total weightage score calculated for prioritizing each of the factors.

This is achieved by brainstorming. And finally, the strategy manager uses his judgment to place various environmental issues in a clear perspective to create the environmental threat and opportunity profile.

Although the technique of dividing various environmental factors into specific sectors and evaluating them as opportunities and threats is suggested by some authors, it must be carefully noted that each sector is not exclusive of the other.

Each of the major factors pertaining to a particular sector of environment may be divided into sub-sectors and their effects studied. The field force analysis goes hand in glove with ETOP, as here also the contribution with regard to opportunities and threats posed by the environment is also a necessary part of study.

ETOP Preparation:
The preparation of ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization. A comprehensive ETOP requires subdividing each environmental sector into sub factors and then the impact of each sub factor on the organization is described in the form of a statement.

The market environment would still be favorable, much would depend on the extent to which the company is able to ensure the supply of raw materials and components, and have access to the latest technology, and have the facilities to use it. The preparation of an ETOP provides a clear picture for the organization to formulate strategies to take advantage of the opportunities and counter the threats in its environment.

The strategic managers should keep the focus on the following dimensions,

1. Issue Selection:
Focus on issues, which have been selected, should not be missed since there is a likelihood of arriving at incorrect priorities. Some of the impotent issues may be those related to market share, competitive pricing, customer preferences, technological changes, economic policies, competitive trends, etc.

2. Accuracy of Data:
Data should be collected from good sources otherwise the entire process of environmental scanning may go waste. The relevance, importance, manageability, variability, and low cost of data are some of the important factors, Which must be kept in focus.

3. Impact Studies:
Impact studies should be conducted focusing on the various opportunities and threats and the critical issues selected. It may include the study of probable effects on the company’s strengths and weaknesses, operating and remote environment, competitive position, the accomplishment of mission and vision, etc. Efforts should be taken to make assessments more objective wherever possible.

4. Flexibility in Operations:
There are a number of uncertainties that exist in a business situation and so a company can be greatly benefited buy devising proactive and flexible strategies in their plans, structures, strategy etc. The optimum level of flexibility should be maintained.

Some of the key elements for increasing the flexibility are as follows:

(a) The strategy for flexibility must be stated to enable managers adopt it during unique situations.

(b) Strategies must be reviewed and changed if required.

(c) Exceptions to decided strategies must be handled beforehand. This would enable managers to violate strategies when it is necessary.

(d) Flexibility may be quite costly for an organization in terms of changes and compressed plans; however, it is equally important for companies to meet urgent challenges.

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