Basic management

g
concepts
References
1 Daniel
1.

Kitaw
Kitaw,

Industrial

Management

and

Engineering Economy.
2. S.K. Sharma, etal., Industrial Engineering
g
g and

Operations Management.
3. Abbass

F.

Management.

Alkhafaji,

Competetitive

Global

WHAT IS MANAGEMENT?
The verb manage comes from the Italian
maneggiare
gg
(to handle especially
p
y a horse)
Which in turn derives from the Latin manus
(hand)
French word mesnagement (later
mnagement

t) influenced
i fl
d the
th development
d
l
t in
i
meaning of the English word management in
the
h 17th
h and
d 18th
h centuries

The

5/2/2012

WHAT IS MANAGEMENT?

M
Management
t is
i the
th artt of
f getting
tti things
thi
d
done
th
through
h
p p
people.

The process of setting and achieving goals through the

execution of five basic management functions
planning organizing,
planning,
organizing staffing,
staffing directing and controlling
that utilize human, financial, and material resources
in an efficient and effective manner.

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What is this little lad doing?

Do you know where he is going?
Can you see where he is going?
Can you really see what the
consequences are going to be?
Have you got the big picture in
mind?
With anything that one does in
life you start with the end in
mind You decide what you want
mind.
to achieve and then you decide
how you will work towards
achieving it. This is what
management is.
5

5/2/2012

CONTD
manage the creative tension between current
reality and Future reality

NOW

Reality

G
Greatness
t

Vision

FUTURE

Courage
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CONTD
So Th
S
Thatt You
Y and
d Your
Y
Followers Can Reach Our
Vision

Put Stepping Stones

in Place
Chart the Path
5/2/2012

CONTD
In general "management" identifies a special
group of people whose job is to direct the
effort and activities of other people toward
common objectives.

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WHY MANAGEMENT?
The
Th

I d t i l
Industrial

R l ti
Revolution

b
brought
ht

about
b t

th
the

emergence of large-scale business and its need for

professional managers
Management
M
t

b
became

more

i
important
t t

as

th
the

developments and complexities of technology and

human relationships get more challenging to those who

perform managerial functions
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CONTD
Shorterlifecyclesforinnovativetechnologies
Steam
Rail
Steel

Waterpower
Textiles
Iron

1stWave

Electricity
Chemicals
Internalcombustion
engine

2ndWave

3rdWave

Petrochemicals
Electronics
Aviation

4thWave

Digitalnetworks
Software
Newmedia

5thWave

1785184519001950 199019992020

60yrs

55yrs

50yrs

40yrs

30yrs

Source:TheEconomist,February20,1999

5/2/2012

10

WHAT MANAGEMENTS STRIVES FOR?

'Management
'
strives involving
l
a group of
f people
l work
k
together in the most effective and efficient manner
to achieve stated goals in the best and most
economical way
way'.

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11

FUNCTIONS OF MANAGEMENT
The subject of management can be
considered a p
process involving
g certain
functions that a manager performs
1. Planning
2. Leading
3 Organizing
3.
4. Staffing
5 Controlling
5.
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12

CONTD
1. Planning
Planning
Pl
i involves
i
l
th predetermining
the
d t
i i off the
th course of
f
action to be taken in relation to the known event. It
also includes anticipating the possibilities of future
problems that might appear

Failing
g to plan
p
means planning
p
g to fail
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13

CONTD
It is a systematic activity which determines
when, how and who is going to perform a
specific job.
job It is rightly said

Well
Well plan is half done
done

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14

CONTD
The increased importance of planning in a
business enterprise results from various
changes in the environment like

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changes in technology,
government p
g
policy,
y,
overall economic activity,
in the nature of competition and
in social norms and attitudes.

15

CONTD
There are different planning executed in
different level of an organization
Strategic planning
Tactic planning
Operational planning

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16

CONTD
In
I

general,
l

th
the

planning
l
i

process

may

systematically
y
y be composed
p
of five elements:
I.

Setting Primary & Intermediate Goals

II. Search for Opportunities

III.Formulation of Plans
IV. Target Setting
V. Follow-up of Plans
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17

CONTD
2. Leading

For the same idea,

idea different organizations use
different terms such as
Directing, Executing, Supervising, Ordering and Guiding

What ever terms are assigned to it, the idea of

directing is to put into effect the decisions, plans
and programs that have been worked out.
out
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18

LEADERSHIP STYLES
There are four types of leadership styles
The
Th dictatorial
di t t i l leader
l d maintains
m i t i s a highly
hi hl critical
iti l and
d
negative attitude in his

relation with subordinates

and advocates the accomplishment of tasks through

fear of
f
fp
penalties

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19

CONTD
The

benevolent

autocratic

leader

assumes

paternalistic role which forces the workers to rely

p
y on
him for satisfaction.
This
Thi type
t
of
f leader
l d mustt be
b exceptionally
ti
ll strong
t
and
d
wise individual, so that his personality generates
respect and allegiance. The subordinates develop
dependence on the leader to the extent that they have
very little chance of developing leadership qualities.

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20

CONTD
The democratic leader suggests better methods and
tries to improve
p
the worker's attitude. Unlike the
others, not only he depends on his capabilities but
encourages consultation with subordinates in planning,
planning
decision making and organizing.
With this type of leadership satisfaction is gained
through a feeling of group accomplishments.
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21

CONTD
The fourth type of leadership style is a laissez faire type where the leader assumes the role of just
another member of the group and depends completely
on subordinates to establish their own goals and make
their own decision.
decision

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22

CONTD
3. Organizing
Organizing may be defined as the structure
and process by which a group allocates its
tasks

among

its

members,

identifies

relationships
l ti
hi
and
d integrates
i t
t
it activities
its
ti iti

toward common objectives

j
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23

CONTD
The organizing function of management brings
together
g
human and p
physical
y
resources in an orderly
y
manner and arranges them in coordinated pattern to
accomplish
p
planned objectives.
p
j
Each organizational resource (human, material,
f
finance
etc.)) represent an investment from
f
which
h h the
h
management system must get the return.
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24

CONTD
Some
S m of
f the
th benefits
b n fits are::
Good communication between the management and
employees,
employees
Sound basis to evaluate the performance of
individuals and groups,
g
p ,
Well defined areas of works for each employee,
Adequate
q
and effective control, and
Stimulation of independent, creative thinking and
initiative on the part of the employees.
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25

CONTD
There
h
are some principles
l
of
f organization which
h h
are guide lines for thought to operating managers
and
d researchers
h
in an organization
1. Unity of Command
2. Exception Principle
3. Span of Control
4. Scalar Principle
5. Departmentalization
6. Decentralization
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26

CONTD
Th
The steps
t
th t are important
that
i
t t when
h organizing
i i
an enterprise
Reflecting
on plans
and
objectives
Evaluating
results for
organizing
strategy

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Allocating
resources
and
directives
for
subtasks

Establishing
major tasks

Dividing
major tasks
into
subtasks

27

CONTD
4 Staffing
4.
S ffi
Staffing deals with the workers and is worker-oriented
This function includes the process of placing the right

person in the right

p
g organizational
g
position
p
The process of matching the people and the jobs is
done by careful preparation of specifications necessary
for positions and raising the performance of personnel
by training and retraining of people to fit the needs of
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the organizational position

28

CONTD
5. Controlling
Control is the p
process that measures current
activities, quantitatively if possible, and guides
it toward some predetermined goal, plan, policy,
standard, norm, decision rule and criterion or
yardstick.
The essence of control lies in checking and
correcting actions against desired results in the
planning process
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29

CONTD
Controlling includes ensuring that employees
perform the work allocated to them in the ways
laid down,
down and with no wastage or duplication of
time, effort or materials.
That involves much more than simply instructing a
given number of employees to perform work; they
must be superv
supervised
sed and managed so that the
theirr
efforts achieve the desired results.
This requires
q
that they
y are motivated,, checked,,
guided, taught and encouraged.
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30

CONTD
There are seven principles of control.
I.
II.
III.
IV.
V.
VI
VI.
VII.

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Strategic Point Control

Feedback
Flexible Control
Organizational Stability
Self-Control
Di
Direct
C
Controll
Human Factor

31

CONTD

Planning
Defining
goals,
establishing
g
strategy, and
developing
plans to
coordinate
activities

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Organizing
Determining
what needs
to be done,,
how it will be
done, and
who is to do
it

Staffing
Locating
prospective
employees
p y
to
fill the job
created by
the
organizing
process

Leading
Motivating,
leading, and
any
y other
actions
involved in
dealing with
people

Controlling
Monitoring
activities to
ensure that
they are
accomplished
as planned

Lead to

Achieving the
organizations
stated
purposes

32

WHO ARE MANAGERS?

Manager
M
Someone who coordinates and oversees the work
of other people so that organizational goals can be
accomplished.

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33

CHARACTERISTICS OF A GOOD MANAGER

The Dual Aspects of any Manager's Job
The modern 'world of industry' is very complex, and this
very complexity has led to what is called specialization
and to the "division of labor by which different people
specialize
i li
i performing
in
f
i
and
d become
b
specialists
i li
i
in
different types of work.
It follows, therefore, that the technical or "functional,
i.e. the specific work of different managers can and does
vary enormously.
l
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34

CONTD
Nevertheless,

all

those

different

types

of

g
, and all others,, should have considerable
managers,
knowledge of the technical aspects of their jobs in
addition
dditi to
t being
b i proficient
fi i t managers

of
f people.
l
y case, not easy
y to train, supervise
p
and
It is, in any
control the work of others without knowing what
th are or should
they
sh ld be
b doing.
d i
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35

CONTD

Some estimates show that a managing director may spend between

80% and 90% of his working hours on managerial matters and only
10% to 20% of
f his
hi time
i
on the
h technical
h i l activities.
i i i

Whilst senior managers may spend approximately 50% of their

work time on managerial activities and 50% on technical activities;
and

Supervisors and foremen may spend some 70% to 75% of their

ti
time
on technical
t h i l activities
ti iti and
d only
l 25% to
t 30% of
f their
th i time
ti
att
work on the supervision of their subordinates

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36

CONTD
How The Managers Job Is Changing

The Increasing Importance of Customers

Customers: the reason that organizations exist
Managing customer relationships is the responsibility of all managers and
employees.
Consistent high quality customer service is essential for survival.

Innovation
Doing things differently, exploring new territory, and taking risks
Managers should encourage employees to be aware of and act on opportunities
for innovation.

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37

CONTD

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38

PERSONAL QUALITIES NEEDED

S
Some
of
f the
th more important
i
t t personality
lit traits
t it of
fa
successful manager are the following:
1. Ability to Think Clearly and Logically: A
manager needs to be able, as the result of training,
to approach each situation and problem positively
and objectively, without prejudgment or being
distracted by irrelevancies. This requires him to
think in a clear, orderly fashion and to marshal and
arrange logically in his mind all the facts and
information available to him.

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39

CONTD
2. The Abilities to Make Decisions and to Act
y
Decisively:

These

follow

on

from

the

foregoing, and also require a measure of

y
self-confidence;; a belief in one's own ability
to succeed in solving problems in the right
way, and in one
one'ss own ability to deal
effectively with different situations and
sets of circumstances.
circumstances
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40

CONTD
1 Defining as accurately as possible the problem which
1.
needs to be solved.
2.. Obta
Obtaining
n ng all relevant information
nformat on about the problem
3. Breaking down the problem into parts very often
the solution to one part is obvious and leads, logically,
to the solving of other parts or the whole problem.
4. Comparing and judging the probability of success of
any possible different solutions to the same problem,
problem
and their possible consequences on other areas.
5 Selecting the most attractive solution making the
5.
decision
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41

CONTD

The Ability to Use Initiative: from time to time a manager is

bound to come across problems or situations which are outside his
range of experience or outside the normal scope of his responsibly;
the latter can, perhaps, arise when a senior is away or is unavailable
for some reason. In such circumstances, particularly if action is
urgently needed, the manager must not simply leave the matter until
his senior is available or wait to be told what to do, but must initiate
- that is, lead the action without waiting to be prompted.

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42

CONTD
Ability to Handle Conflict: A good manager is calm, able
to listen, is p
positively
y responsive
p
to criticism and is able
to handle conflicts and differences in a constructive
manner In order to handle conflicts well,
manner.
well a manager must
be confident, self-assertive, fair and dominant. He
should be highly tolerant of stress, as conflicts generally
lead to stress and tension. This would require
q
a sound
mind in a sound body.
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43

CONTD
Ability to Adapt Change and be Flexible: Any manager
must be able to adapt to changes and, if necessary, to
cope with changed circumstances, and ensure that his
subordinates
b di t also
l do
d so.
Adaptability to different situations and flexibility of
mind are also necessary in the routine, day-to-day
running of a section,
section department or an entire enterprise.
enterprise
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44

CONTD

Ability to Be Emotionally Stable: In dealing with different

problems and situations, some of which might be irritating, annoying,
worrying or heated or include emotional displays (e.g. tearful
women, angry voices, etc.) by others a manager must be
sufficiently mature to keep calm and collected. He must be able to
keep control over his own emotions and his temper whatever may the
provocation be, and be able to concentrate his attention on the
matter in hand, thinking clearly, logically, and avoiding hasty
reactions.
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45

CONTD

Stamina and Concentration: mental fitness to work long and hard

without undue stress or strain.

Besides mental alertness, a manager needs to be able to concentrate

his mind on the matter in hand even under the most tiring
circumstances and/or when he is under pressure; to focus or keep
one's mind intently fixed over a long period can be tiring,
particularly as there will be many different matters requiring
attention and concentration during a manager's working day.

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46

CONTD
Drive and Determination: A manager needs the urge and
enthusiasm to stimulate action,
action not only by himself,
himself but
by other people as well. He also needs the determination
to keep going whatever the difficulties, adapting his
actions and decisions to overcome p
problems encountered,,
and pressing on to a successful conclusion.

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47

CONTD
Leadership: Leadership is the ability of a person to
exert a p
positive influence over the thoughts,
g
behavior
and actions of others, and then to direct their thoughts,
behavior and actions towards a common goal or objective.
objective

5/2/2012

48

CONTD
Skills Needed at Different Management Levels

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49

ORGANIZATION STRUCTURE
The
Th stages in
i the
h setting
i up of
f an effective
ff
i organizational
i
i
l
structure are
The activities which will be necessary to achieve the
objectives of the business must be established.
The various related activities should be grouped together into
departments; the most logical grouping is by 'function', that
is, by type of activity: production, marketing, finance, etc.
The activities of a p
particular department
p
will be further

divided, and grouped together into sections;

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50

CONTD
An organization chart should be produced to depict
the proposed organization
Based on estimates of the volume of work, which will
performed by
y each section,, the number of staff
be p
required must be determined. Depending on the type
of work to be performed and on other factors,
factors the
numbers of supervisors, junior and middle managers
per section and department must be given thought
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51

CONTD
The
Th special
sp ci l knowledge
kn l d
orr talents
t l nts required
r quir d by
b departmental
d p rtm nt l
and sectional managers must be laid down.
The equipment necessary for the proper functioning of each
section and department must be decided upon, and provision
made for its positioning when considering the layout of the
accommodation for each unit.
unit
To ensure effective coordination of all parts of the
enterprise,
5/2/2012

effective

procedures

and

communication must be devised and installed.

systems

of
52

TYPES OF ORGANIZATIONAL STRUCTURE

There are four different types of organizations,
namely
I.

line,

II. functional,
III line and staff,
III.line
staff and
IV. matrix organization.
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53

CONTD
I. Line organization
military organization
organization', because
Sometimes called 'military
it is how the armed forces are organized.
There is a clear 'line' of responsibility and
authority

right

through

the

management

structure from the board to the lowest level of

supervision, and
d below.
l
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54

CONTD
The 'chain
chain of command
command is direct and so decisions can
usually be made quickly and implemented rapidly, because
of
f the
th directness
di
t
of
f the
th control,
t l the
th coordination
di ti of
f the
th
activities of all those employed in a department is
simplified.
The p
position (and status) of all the different p
people
p
working in a department can be easily seen, and so the
extent of their responsibilities,
responsibilities authority and duties can,
can
be clearly defined and understood.

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55

CONTD

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56

CONTD
II. Functional Manager
It is the function (the type of activity),
activity) which
determines the areas of authority and responsibility.
An expert or specialist is placed in charge of each
function,, and will have direct control of
f
f that f
function
wherever it is undertaken within the enterprise.

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57

CONTD

As the functional specialists are not involved in the day-to-day

day to day running
of the enterprise (which is the domain of the line managers) they are
free to the concentrate on their particular functions that produce
many benefits for the enterprise.

However,, this form of organization

g
makes control difficult as there are
no clear lines of authority and it is similarly difficult to establish
responsibility when things do not go right.

Furthermore, staff as well as supervisors and junior managers become

confused at being subject to the authority of more than one superior.

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58

CONTD

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59

CONTD
III.Line and staff organization
g
control the
In such a structure, the line managers
primary

functions,

such

as

marketing

and

production,
product
on, wh
which
ch are d
directly
rectly concerned w
with
th
achieving the objectives of the business; whilst the
staff

managers

are

generally

involved

with

secondary functions which assist the smooth and

efficient running of the primary functions.
functions
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60

CONTD
MANAGINGDIRECTOR
DIRECTOR

WORKS
MANAGER

SALES
MANAGER

L
SECTION
MANAGERS
SUPERVISORS &
OPERATORS

ACCOUNTS
MANAGER

L
SECTIONMANAGERS
SUPERVISORS&
SALESMEN

SECTION
MANAGERS
SUPERVISORS &
CLERKS
S

L Linerelationship:S staffrelationship
Responsibility and authority shown by
Responsibilityandauthorityshownby
Staff.Advisoryrelationshipshownby
5/2/2012

PERSONNEL
MANAGER

EMPLOYMENT
OFFICER
SUPERVISORS
&CLERKS

TRAINING
OFFICER
SUPERVISORS
&CLERKS
61

CONTD
IV. Matrix organization(Project Organization)

These are temporary organizational structures formed for

specific projects for a specific period of time and are
dismantled, once the required goal is achieved.

A typical example for this kind of organizational structure can

be the goal to design and build a new power plant station.

The specialists are selected primarily on the basis of task-

related skills and expertise

p
rather than decision making
g
experience or planning ability.
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62

CONTD
These
Th
structures are very useful
f l when:
h
The project is clearly defined in terms of objectives to
be achieved and the target date for completion of the
p j
project.
The project must be separate and unique and not be a
part of daily work routine of the organization.
organization
The project must be temporary in nature and not
extended into other related projects.
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63

CONTD
This
h kind
k d of
f organization occurs frequently
f
l in:
Construction ( e.g.
g building
g a bridge)
g )
Aerospace engineering ( i.e. designing and launching
weather
th satellite)
t llit )
Marketing( e.g. advertising company for new product)
Installation of an electronic data processing system,
etc
etc.
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64

CONTD
G en eral
M an ag er

L ab o r

R esearch

F in an ce

P erso n n el

T ech n ical
S erv ices

P ro jec t A M an a g er
P ro jec t B M an ag e r

P ro jec t C M an ag e r

5/2/2012

65

CONTD
In matrix organization,
organization it is possible for the
individual employee to have two managers. However,
proponents of matrix organization believe that it
provides an agency
p
g
y with the f
flexibility
y to work on
critical projects.
Matrix

organization

also

brings

together

the

p
talent that is often necessary
y to
specialized
complete a project

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66

CONTD
Other advantages
g of matrix organization:
g
Decision making is decentralized to a level where information
is processed properly and relevant knowledge is applied.
Extensive communication networks help
p to p
process large
g
amount of information.
With decisions delegated to appropriate levels, higher
management levels are not over loaded with operational
decisions.
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67

CONTD
Resource

utilization

is

efficient,

because

key

resources are shared across several important

programs or products at the same time.
Employee learns the collaborative skills needed to
function
f

in

an

environment
m

characterized

by
y

frequent meeting and more informal interactions.

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68

PRODUCTIVITY

5/2/2012

69

THE BASICS OF PRODUCTIVITY

In most businesses, competition for the available
market, forces the management of each enterprise to
seek
k competitive
i i advantage
d
through
h
h the
h use of:
f
product improvements
lower
l
costs
sts
lower selling prices for the same or better quality and
better service to customers

Productivity is defined as the ratio of value of output

to the value of input
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70

CONTD
Productivi

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value of output
ty =
value of input

71

CONTD

An increase in production does not necessarily by

itself indicate an increase in productivity.

If the input of resources goes up in direct

proportion to the increase in output the productivity
remains the same

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72

CONTD

If input increases by a greater percentage than

output, higher products will be achieved at the
expense of reduction in productivity

In short higher productivity means to produce

more with the same expenditure, or with a

minimum increase in expense, or the same amount
is produced at less cost in terms of resources.
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73

CONTD
The outputs may be products or services and the
inputs
p
or resources may
y be land,, materials,, p
plant
machineries, tools and a series of man.
Land Productivity: Better seed, fertilizer and
better method of cultivation may increase the
yield from two quintals to three quintals. Hence
l d productivity
land
d ti it has
h increased
i
d by
b 50 percent.
t
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74

CONTD
Material Productivity: If a skillful worker is able
to produce 300 formworks from 400 pieces of
2m 1m sheet metal, while an unskillful worker
can only produce 250 out of the same material,
then with the skilful worker the material was
used with 20 percent greater productivity
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75

CONTD
Machine Productivity: If a machine tool has
been producing 100 pieces per a working day,
day
and through the use of improved cutting tool
and/or

proper

maintenance

procedure

its

output
tp t in
i the
th same
s m period
p i d is increased
i
s d to
t 120
pieces, the p
p
productivity
y of that machine has
been increased by 20 percent.

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76

CONTD
Productivity of Man: If a shoe maker has
b
been
producing
d i 30 pieces
i
of
f leather
l
h parts per
hour,, and if
f improved
p
methods of
f work enable
him to produce 40 pieces per hour the
productivity of that man has increased by 33.3
percent
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77

CONTD
To sum up, a low level of productivity implies a low
growth of economy.
economy
A low growth of economy meant, low income leading
to low standard of leaving and a low level of savings,
resulting in low level of investment and low
productivity
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78

Global
Higher
Quality

Higher
productivity

Higher
competitiveness

International
multinational

Export

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79

Standard of living
Economic Growth
Productivity
r u
y Gr
Growth
w

TFP Growth
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Emp ym n
Employment
Growth

Capital Intensity
G
Growth
th
80

PRODUCTIVITY IMPROVEMENT
Productivity is affected by many external and internal
factors. Some of the external factors, influencing
productivity to mention are:

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the national and international policies

p

infrastructure supports

cultural practices

the availability of technology and natural resources

organizational
i ti
l policies
p li i s

Climate, incentives and information

81

CONTD
Examples of internal factors that are identified
to as hindering the rise of productivity are:

unsuitable personnel policies leading to a low level of

satisfaction and involvement;

poor maintenance system and low level of maintenance

awareness;

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improper selection and training of personnel;

82

CONTD
inappropriate choice of design,
q p
;
tools,, material and equipment;
undefined standardization and quality policies;
inadequate plant layout and materials handling
systems;
poor planning,
planning
systems;

controlling

and

communication

unsafe
uns fe and
nd unhealthy
unhe lth working
rkin environment
envir nment
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83

PRODUCTIVITY IMPROVEMENT STRATEGIES

A. Short term Strategy
The
Th first
fi t strategy
t t
i improving
is
i
i organizational
i ti
l planning
l
i
and control, to implement planned maintenance of
machinery and effective production system in plants
would show an increase in machine productivity and
reduction in maintenance cost.

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84

CONTD
The second action is increasing manpower efficiency and
effectiveness at all levels. Effectiveness and efficiency
are the main tools of productivity.

Efficiency
ff
y
Doing things right
Getting the most output for the least inputs

Effectiveness
Doing
g the right
g things
g
Attaining organizational goals
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85

CONTD
Efficiency (Means)

Effectiveness (End)

Resource

Goal

Usage

Attainment

Low Waste

High Attainment

Management Strives for:

L
Low
R
Resource
s
W
Waste
st (High
(Hi h Efficiency)
Effi i
)
High Goal Attainment (High Effectiveness)

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86

CONTD
To be able to increase manpower efficiency and
effectiveness at all levels of an organization
what is required is motivation, training and
education. This method has proved itself
s
successful
ssf l in
i Japan.
J p

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87

CONTD
The third short term line of attack is improving
operation
p
methods. The techniques
q
of method
study involve breaking a process into detailed
components.
components
The study may result in elimination of an
activity, combination of several activities,
g of sequence
q
of activities, shortening
g
change
duration of activities etc.
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88

CONTD
As Frederik Taylor said "Most of us can do
three or four ttimes
thr
m s as much as w
we or
ordinarily
nar y do
o
without lengthening working hours or even
driving ourselves to exhaustion by the day
day'ss
end".
In

fact,

to

implementation
required.

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achieve
of

method

this,

effective

engineering

is
89

CONTD
B. Medium Term Strategy
At this stage the firm may require capital to simplify
and improve the products, and reduce variety.
The analysis consists of common sense questions to
come up with effective solutions like substitution of
alternative materials, elimination of parts where
special designs have been specified, redesign, etc.
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90

CONTD
C. Long Term Strategy

Properly

selected

new

machineries
machineries,

well

organized departments and proper layout will

undoubtedly contribute to an increase in
productivity.
productivity

Furthermore, research and development is the

backbone for productivity increment.

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91

5/2/2012

Productivity improvement techniques

92

FUNCTIONS OF AN INDUSTRIAL ENTERPRISE

Manufacturing functions

Receiving,
Shipping

Warehousing,

Transportation,

Production,

Engineering Functions

Product design,
design Process design,
design Plant engineering,
engineering Cost
estimation

Control Functions

Production control, Quality control, Cost control,

Support Functions

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Purchasing, Sales, Maintenance, Personnel

93