NAME: Miyani vinod B.

ROLL NUMBER : 520780168

LEARNING CENTRE: Digital computer.

SUBJECT: All

ASSIGNMENT NO. :- 2

DATE OF SUBMISSION
AT THE LEARNING
CENTER. :- 30/05/08
 ASSIGNMENTS

MB0028

PRODDUCTION AND OPERATIONS MANAGEMENT

Q: 1 Differentiate dynamic scheduling and dynamic
inventory.
How would you integrate them to enhance
productivity?

Ans:1 A common blunder which most manufacturing

companies tend to commit is in the right judgment regarding
classification of various components which make up their
products & more importantly , items, spare parts , maintenance
products & even simple items like stationery. Some of these
organizations tend to focus more on “product” & “service”
items & ignore the others. this approach would tend to push
their overheads up & reflect poorly in their balance sheets.
ABC analysis involves classification of every single item of
the company long lead time high value items as “A” , medium
value, medium lead time items as “B”& low value but high
volume items as “C”. after this process, many organizations
tend to classify items based on total inventory values which
could lead to build up of costs. Classification should purely be
based on value & lead of single pieces or unit quantities like
per kg. or liter etc.

(1) Dynamic scheduling:

A similar dilemma occurs when planning departments try to

address pressures from marketing or finance or even
purchase departments & more often even from the very
manufacturing units which they are supposed to control.
The most common blunder committed is to plan on a first in
first out approach & later, unscientifically after under such
pressures. While many tend to take shelter behind enterprise
resource planning systems & fail to exploit the power &
potential of ERP, best business practices demand a dynamic
approach –for e.g. if a then the system should be configured
to “find” another process or activity to fit into the gap
created. Similarly such an approach is necessary when
breakdowns occur & capacities are blacked out. This would
ensure balanced utilization of capital resources. It is for this
reason that planners plan for 80 to 90% of capacity keeping
a cushion for such contingencies & also creating distributed
slack times which could be closed without affecting overall
targets. Such approach can be automated in modern ERP
systems.

(2) Dynamic control:

Most organization tend to treat inventory as an appendage

& Emphasise just minimization of inventory at any point of
time- worse, maximize at the start of the financial year &
minimize towards the end of every quarter with a focus on
the balance sheets. Little do they realize the loss due to
ignoring the aspects of inventory values in between & more
importantly, shortages caused in operations leading to
unfathomable losses. Dynamic control involves values at
every key transactional turn to optimize rather than
maximize or minimize.

→ System productivity:

With rapid technological advancement & futuristic

manufacturing equipment & process, networked systems
tend to slow down & tend to drag down the efficiency of
manufacturing along with. This has necessitated
organization to revisit their systems & procedures as to how
effective & efficient they prove to be. We look at certain
key aspects of system productivity.
Organizations today have to grapple with complex issues of
excess supply & ultimately profitability. This is perhaps one
area of management where we can not expect a plus &
minus to balance out since excess & shortage are both
negative contributors to value. A detailed approach to this
subject would be dealt in one of the later chapters. To
reduce in –process inventories improved material control is
needed. Material control includes not only traditional
inventory control, but also the location of material in
process storage and its orientation. For the automatic
factory to become a reality all three dimensions of material
control must be addressed. As was noted previously, in
batch manufacturing 95 percent of the manufacturing cycle
a part spends as in-process inventory. As such it must be
stored. Apple and Strahan note “parts that comprise these
inventories are typically stored in a manner that makes poor
use of building space, provides limited accessibility to
individual part numbers, and represents a low level of
location control. Proper planning of the location control.
Proper planning of the storage and control is the key to an
effective manufacturing system.”

In-process inventories can be reduced by doing a better job

of the system. Integration and control are the keys. In many
instances, increased integration and control will occur by
placing greater reliance on computing systems.
Q.2: List out five important management skills
associated with operation Management.

Ans.2: Different skills will be different stages, and the skill

mix will vary from project. In essence you need to
demonstrate

→) management skills:

1) Market experience:-

Experience particular to the market sector to reduce the

learning curve. If you have a new innovation like a catalyst
for the petrochemical sector, the chances of success are
greatly increased if you have someone in your team with
experience of that market sector.

2) Marketing skills:-

An ability to create an appropriate identity and effectively

communicate with the target market and other important
communities such as the investor community.

3) Sales skills:-

No matter how good the product, it will not sell itself.

Strong sales skills are an integral part of success once
products are ready to go to market

4) Financial management skills:-

Their Requirement to have someone with financial

management skills to actively consider the financial
dimension of the business, keep a tight reign on cash and be
pro active in terms of the current and future financial needs
of the project.

5) Production & operation management skills:-

If you have a product that requires to be made, or a service

delivered, then the skills to develop an efficient, appropriate
and effective production system is required. Even if you
decide to you use a production partner, you need the
knowledge to ensure that the system and process being
developed are appropriate for your needs.

Management skills are one thing capacity another. You may

find all the above skills within one or two individuals but
you need to ensure they have the time to apply those skills
and effectively address the requirements of the project.
They may have sufficient capacity to do this at pre market
stage, but may not be able to deal with sheer number of
issues that arise at market stage. You need to factor this in
your plan and increase capacity as the project requires
ensuring effectiveness. You must be realistic about what
each individual can physically do. If the one team member
has great skills in sales and in marketing, but only has the
time to deal with sales, then you need someone else ordeal
with marketing. You may well support them by using a
marketing agency which has experience of managing the
entire marketing function – which can direct.
Q.3: what are the key drivers for process improvement?

Ans.3:Rough estimate & thumb methods have always

tended to be poor reflections of the decision making ability
in management. It is becoming increasingly difficult to sell
ideas without quantification or back up calculations.
Quantitative decision making process are being given
greater emphasis by modern global enterprises.

The reactive, real- time management of mobile workforce is

a challenge to any organization of today. Most
managements today would consider work force
management as far more difficult in comparison with other
functional areas.

►Important factor for process improvement are given

below

1 Flexibility & responsiveness:

● resource pooling
● it professionalism
● common process

2 Demonstrate competitiveness:
► certification
► tickit-iso9000-3
► cmm
► spice
► benchmarking
► gartner
 3 process improvement: research has shown that major
factor that positively influences all the key drivers is
the ability to:

▪ Observe
▪ Improve

4 Process standards and metrics:

• Cell established to documenting organization
process.
• Individual process improvement projects set up and
managed like any other
• Project
• Process improvements defined by practitioners
• Existing best practice to be incorporated in the new
standards.
• Cell to prove that it “added value” to the
organization.

A) Problems encountered:
 process documentation not standard
 large, poorly index documents
 no ownership
 comments on structure not content

B) what was done: object- oriented documents were

introduce with POSITIVE RESULTS

 user friendly document

 easy to follow
 generated interest in the technique
 review of direction was incorporated
 C) further steps introduced towards improving
workforce performance:
 further process documents written
 concentrated on process
 training opened up and in-house course established
 second rethink- how to be more effective
 measurement
 review of course
 repackage
 investigation online
 integration with human computer interface principlesThere
are above factors are responsible for success of process
improvements.

Q.4: Distinguish personnel productivity from labour

Productivity.

Ans.4: Production management was & even now, very

much misunderstood as restricted to technically competent
supervisory management of various production process
starting with production engineering, followed by industrial
engineering & ending with fire fighting. Modern
engineering industries have realized that while effort
towards these archaic practices have shrunk to a great
extent due to technological advancement in some
organizations to less than 10% several new problems have
surfaced resulting in serious doubts as to the probability of
sustenance of such a highly limited approach towards
achieving business goals.in the late eighties & early
nineties, the production departments turned into hot beds of
controversies & misconceptions mainly driven by world
wide recessionary trends. This periods in the history of the
modern global enterprise, driven more by the “spare time”
that production engineering was rechristened.

1. labour productivity :

This is perhaps the most difficult aspects it addresses

involvement of labour force, which is aware & wary of the
benefits accrued by managements through their efforts.
Organizations have learnt to avoid confrontation & focus on
how easy they can make the workstations & environment to
reduce the strain & stress levels of operators & gain both in
worker confidence as well as capital productivity as an
added advantage. While such a vast subject has relevance in
this book, it would suffice to understand the following
prime aspects.

1) Balancing of operation in assembly line:

This ensure uniformity in load on workers to a great extent

& also balances work in process inventory.

2) Reallocation of workers in tune with balancing

aspects :

Job rotation is considered a universal cure for monetary &

therefore this is used to rotate workers synchronous with
balancing of production operations.

3) Evaluation of production operation operations and

introduction of productivity norms :

This is to ensure transparency in expectation from workers

in terms of production outputs to avoid disputes & conflicts.
Every operation is scientifically evaluated & standards are
set for time values & volumes expected from workers at a
100% level. This also helps in evaluation of compensation
to workers as incentives for performance in excess of such
expectations.

4) Standards for individual accountability and targets :

This would serve as additional clear information to help

workers & supervisors maintain self – driven targets &
responsibilities.

2. Personnel productivity:

While directs workers connected with manufacture of

products are pampered with incentives, indirect staff tend to
get frustrated & it becomes a challenge for managements to
maintain motivation levels of these employees while cash
incentives for performance are common, more often than
not, such rewards are misplaced with some undeserving
employees gaining more than the meek quiet hard workers,
resulting in shift in frustration but not elimination.
Managements now turn to other techniques to help reverse
these trends & look at non monetary approaches towards
motivation of these large positive contributing employees –
also to help reduce attrition.

 Motivation through a scientific system to help change

mindset.
 Targets accountability of individuals through
quantified.
 System driven follow up to help enhance
effectiveness.
 Team work and continuous improvement through
CFT’s & quality circles.
 Motivation through training in self – driven targets.
Q.5: Explain the stages in strategy formulation and
implementation.

Ans.5: The crux of the strategic management process could

be outlined as follows:

 Strategy refers to the course of action desired to

achieve the objectives.
 Formulation & implementation form an integral part
of management.
 Strategies cover purpose such as competition sales,
production, motivation & so on.
 Implementation is a crucial task as formulation
 It is necessary to be very tactful the members in the
formulation of strategy to
 Facilitate implementation.

1. Stages in strategy formulation & implementation :

 Identification of mission & objectives

 Environment scanning
 Generic strategy alternatives
 Strategy variation
 Strategic choice
 Allocation of resources & formulation of
organizational structure
 Formulation of plans, policies, programmes &
administration
 Evaluation & control
When companies find themselves at a dead – end as to
many options to grow, particularly when the market
opportunities are enormous, they have to look beyond their
enterprises. Product and service alliance: companies may
got together to synergies operations seeking alliance for
their products and services promotional alliance: companies
come together to promote their products & service-to carry
out a promotion campaign during a given period for the
products and services of another company. Expansion
strategy can be adopted in highly competitive & volatile
industries if they are in the introduction stage of product
service life cycle . stability strategy is a better choice when
the firm is doing well, & the product service has reached the
stability or maturity staged of the life cycle. Retrenchment
strategy is the obvious choice when the firm is not doing
well in terms of sales & revenue.

Conventional management has been and still is the bane of

the global enterprise of today. Even companies with
presence in several major countries & globally accepted
products & service lag behind to various extent in
management skills. Ironically, firms with outstanding
technical skills are those that ignore the needs for best
practices. Over the years, experts have advocated several
theories of management, most notably management by
objectives or MBO, which sustained for several years until
a wave if new technologies in products, manufacturing &
more importantly in information technology, resulting in
widening of the gap.
When a comprehensive approach to OPERATION
MANAGEMENT took over with a totally localized,
customized & integrated approach where no packaged rules
are written, where a self styled self structured customized
set up principle tok over the gap got a lot closer.
Overall cost leadership strategy when products or service
are offered at the lowest price among competitors, thus
maintaining the largest market share. Companies have to
focus cost effective strategies in engineering, purchases,
manufacturing & physical distribution. Mergers & take
reflect the common route for companies their resources &
costs. HLL emerged stronger with the acquisition of brook
bond.

Differentiation company should demonstrate superiority of

products & services.

Focus a company may concentrate on a market segment &

obtain full information. It may pursue either cost leadership
or differentiation strategy within that segment.such
companies which pursue the same strategy to the same
target market are called a strategic group of companies. If
the relentlessly pursue it leads to benchmarking of
strategies. Danger of copying can be avoided by performing
activities innovatively quickly, which competitors cannot
catch up with.
Q.6 : Explain the importance of project management
information system.

Ans 6: Any activity starts with a description of a mission

and ends with the completion of a delivered or product.
This is how most organizations understand a project.
Project management is therefore defined as the technique or
practice of controlling the use of resources, such as cost,
time, manpower, materials, etc. bringing the above
definitions together project management can be defined as
the practice of controlling the cost, time, manpower, and
resources involved in the development activities that start
with a problem statement and end with delivery of a
complete software product. Need for project management is
emphasized by the fact that many products fail due to poor
management & consequences of failure in the project
management are far more serious. Project management
knowledge and practice in terms of their component
processes.

►Creating order in chaotic system require information,

which is an organization’s primary source of nourishment.
To make good allocation decisions, the project managers
team needs to know resources capabilities and availabilities.
They need a database of time commitments. A project
management information system also holds schedule, scope
changes, risk assessment and actual results. Usual
information system are not designed for projects. Normal
 information system tell managers if they are on budget. This
is after the fact. It is not good for real what if analysis. The
first question is who is to be served. Upper managers need
to know information on all projects regarding progress,
problems, resource usage, costs and projects goals. This is
information helps them judge the portfolio of projects. They
should review the projects at each milestone and produce a
go decision. Project manager and department managers
need to see each project schedule, priority and use of
resources to determine the most efficient use across the
organization. Project team members need to see schedule,
task lists, and specification so that they know what needs to
be done next.

• THE FOUR MAJOR SECTIONS OF A PROJECT

MANAGEMENT INFORMATION SCHEDLE
SHOULD:-

1. Answer question of the major stakeholders-the right

information at the right time.
2. Facilitate communication among team members, between
team members and other stakeholders among all project
managers and between project managers and upper
managers.
3. Help what if type analyses about project staffing proposed
staffing changes, and total allocation of resources.
4. Help organizational learning by helping the members of
the organization learn about project management.
Strangely enough, the first effective & result-oriented
responsibility for creation, administration & maintenance of
a PMIS has emerged from the team members & not from
the system administrators of the company. Organization
tend to allocate such responsibility by rotation among
members with a well designed & structured data entry &
Analytical format.

A project is a program of non routine work bringing about a

beneficial change guided by at least one well-engaged
sponsor who has both adequate authorities and resources to
charter the project effort has a start and an end date with
disciplinary team brought together for the project- with a
scope of work that is well defined but constrained by cost,
time and quality. Project manager’ duties start before
development and continue after delivery of the product. A
good project management methodology provides a
framework, process guidelines and techniques to greatly
increase the odds of being successful and therefore provides
value to the project. Key stakeholders are management level
personnel who are critical to the success of the project.

Purpose of estimation is to define the project functional

requirements not to have surprise on various fronts- effort,
schedule, cost and ultimately success of the endeavor.
Reasonable estimates tend to become a self fulfilling
prophecy. The goals of reviews are to improve quality by
finding defects in a cost effective manner. The group review
process includes several stages: planning preparation and
overview, a group review meeting, and rework
recommendations and follow up.
 MB0030

MARKETING MANAGEMENT
Q.1: Explain the different marketing concepts.

Ans.1: Marketing management is one of the key areas of

management. The marketing philosophy of business of
business assumes that an organization can best service,
prosper and profit by identifying and satisfying the needs of
its customers. Organization today strongly believe that
profit goals will be reached though satisfied customers. The
twenty first century marketing professional will need to
have the analytical capacity to handle increasing amounts of
data, possess creative talents to define products and develop
strategies to compete in global markets.

 Marketing concepts:-

Studies have revealed that different organization have

different perception of marketing. And these perception
have led to the formation of different concepts of marketing
such as the following:
1. The exchange concept
2. The production concept
3. The product concept
4. The selling concept
5. The marketing concept
6. The societal marketing concept
1. The exchange concept:-

The exchange concept of marketing, as the very name

indicates, holds that the exchange of a product between the
seller and the buyer is the central idea of marketing. While
exchange does from a significant part of marketing, to view
marketing as a mere exchange process would amount to a
gross undermining of the essence of marketing. A proper
scrutiny of the marketing process would readily reveal that
marketing is much broader than exchange. Exchange covers
the distribution aspect and the price mechanism involved in
marketing.

2. The production concept:-

This philosophy holds that customers favour those products

with low offer price and easy aaailibiity. Thus this concept
holds that high production efficiency and wide distribution
coverage would sell the product offered to the market.

Organization voting for this concept are impelled by a drive

to produce all that they can. Naturally, they get focused on
production and put all their efforts towards that aspect of
the organization. They do achieve efficiency in production.
But their thinking is guided by the assumption that the steep
decline in unit costs arising from the maximization of
output would automatically bring them all the customers
and all the profits that they need. But they do not get the
best of the customer patronage.
3. The product concept:-

This philosophy holds that customer favours quality,

performance, innovative features etc. the buyer will admire
such products. Therefore firms following this philosophy
believe that by making superior products and improving
their quality overtime, they will be able to attract customers.
The product concept is somewhat different from the
production concept. Whereas the production concept seeks
to win markets and profits via high volume of production
and low unit costs, the product concept seeks to achieve the
same result via product excellence- improved products new
products and ideally designed and engineered products. It
also places the emphasis on quality assurance. They spend
considerable energy, time and money on research and
development and bring in a variety of new products.

Organization which follow this concept concentrate on

achieving product excellence. They do not bother to study
the market and the consumer in depth. They get totally
engrossed with the product and almost forget the consumer
for whom the product is actually made. They fail to find out
what the product is actually made. They fail to find out
what the consumers actually need and what they would
gladly accept. When organizations fall in love with the
product, it leads to marketing myopia because the focus is
on the product rather than on the customer needs.
4. The selling concept:-

This philosophy holds that customer, if left alone, would not

buy enough of the company’s products. The organization
must, therefore undertake an aggressive selling and
promotion effort. As more and more markets became buyers
markets and the entrepreneurial problem became one of
solving the shortage of customers rather than that of goods,
the sales concept became the dominant idea guiding
marketing. Most firms practice this concept when they have
overcapacity. This concept maintains that a company cannot
expect its product to get picked up automatically by the
customers. The company has to consciously push its
products. Aggressive advertising high power personal
selling, large scale sales promotion, heavy price discounts
and strong publicity and public relation are the tools used
by organization that rely on this concept. As a result the
public often identifies marketing with hard selling and
advertising.

But marketing based on hard selling carries high risks. It

assumes that customers who are coaxed into buying a
product will like it and if they don’t they won’t badmouth
about it or complain to consumer organizations, and will
forget their disappointment soon and buy it again. These
assumption do not have base. One study showed that
dissatisfied customers may badmouth the product to 10 or
more acquaintances and bad news travels fast. Selling
concept is practiced more aggressively with unsought
goods, goods that buyers normally do not think of buying
such as insurance, encyclopedias etc.
5. The marketing concept:-

The marketing concept holds hat the key to achieving its

organizational goals consists of the company being more
effective than competitors in creating, delivering and
communicating customers value to its chosen target
markets.

This concept was born out of the awareness that marketing

starts with the determination of consumer wants and ends
with the satisfaction of those wants. The concept puts the
customer both t at the beginning and at the end. It says that
any business should be organized around the marketing
function anticipating, stimulating and meeting customers
requirements. The customer has to be the center of the
business universe and not to the organization. A business
cannot succeed by supplying products and services that are
not properly designed to serve the needs of customers.
The marketing concept rests on four pillars.
They are target market:-A market has to define the market
to which it will direct its efforts. The specification and
identification of market would enable the marketer to
design specific marketing strategies. A target market is
defined as a set of actual and potential buyers of a product,
service or idea. A buyer, who has interest in the product ,
income and willingness to buy can broadly be called as
potential buyer. However, it might not be possible for the
marketer to target all of them. There might be geographical
barriers, unsuitability of product to certain climatic
conditions or inability of the marketer to reach certain hilly
or remote areas. Thus a small portion of the potential
market might become part of the target marke
a) Customer needs:-

A company can define its market but fail to correctly

understanding the customer needs. Understanding customer
needs and wants is not always simple. Some customers have
needs of which they use words that require some
interpretation.

There are five types of needs. They are stated needs, real
needs, unstated needs, delight needs and secret needs.
Responding only to the stated need may shortchange the
customer. A responsiveness marketer finds a stated need and
fills it .he is going to lose the consumer in the near future.
An anticipative marketers looks ahead into what needs
customers may have in the near future. A creative marketers
discovers and produces solutions customers did not ask for
but to which they enthusiastically respond. Therefore
companies must go beyond just asking consumers what
they want. This is necessary because a company’s sales
come from two groups, new customers and repeat
customers. One estimate shows that attracting a new
customers can cost five times as much as pleasing an
existing one and it might cost sixteen times as much to
bring the new customers to the same level of profitability as
the lost customer. Customer retention is thus more
important than customer attraction.

b) Integrated marketing:-

when all the company’s departments work together for

serving the customers, the result is integrated marketing.
integrated marketing takes place on two levels; first the
various marketing functions- sales force, advertising,
customer service, product management, marketing research
must work together. Second, marketing must be embraced
by the other departments, they must also think of the
customer. According to david Packard of hewlet- packrd,
“marketing is far too important to be left only to the
marketing department.”

To foster team work among all departments, the company

carries out internal marketing as well as external marketing
internal marketing is the task of hiring, training and
motivating able employees who want to serve customers
well. External marketing is marketing directed at people out
side the company

c) profitability:-

The ultimate purpose of the marketing concept is to help

organization achieve their objectives. In the case of non
profit and public organizations, it is surviving and attracting
enough funds to perform useful work. Private firms should
not aim for profits as such but to achieve profits as a
consequences of money by satisfying customer needs better
than its competitors.

The societal marketing concept:- this concept holds that the

organizations task is to determine the needs, wants and
interests of target markets and do deliver the desired
satisfaction more effectively and efficiently than
competitors in a way that or enhances the consumers and
the society’s well being.

The societal marketing concept calls upon marketers to

build social and ethical consideration into their marketing
practices. they must balance the often conflicting criteria of
company profits, consumer want, satisfaction and public
interest.
Q.2: Describe the stages involved in market research
process.

Ans.2: It refers to a set of sequential steps to be followed to

complete the task of research. Each steps is independent but is
closely related to other steps. It is independent in the sense that
each steps has a unique and decisive role. It is inter dependent
because the result of the preceding steps is the basis for the
succeeding step.

1. Defining the problem:-

a) identifying and defining the problem:-

Problem well defined is half solved. Therefore

defining correctly the problem is the most important
part of any marketing research. Researchers have to
identify, define conceptualise the real problem. Real
issues may not be apparent issues may be deceptive.
Care has not be taken while defining the problem.

b) Setting up specific research objectives:-

Once the problem has been defined, the researcher has

to time the specific research objectives. The are a
broad frame within which research has to be
conducted. To this, the researchers have to address
themselves to the why aspect to the study.

2. Research design:-

It the blue print of the research project and when

implemented must bring out the information required
for solving the identified marketing problem. It calls
for the following decisions.
a) Decision on data sources :-

The researcher has to decide which data sources to

use. There are two data sources available. They are:

1) Primary data or data collected for specific

purpose.
2) Secondary data which are collected for some
other purpose.

Secondary data has an advantage over primary data in

terms of cost, availability and time. It has the
drawback of relevance to specific situation. The
decision regarding data sources depends upon the
usefulness of the data and its cost.

b) Decision on research approaches: there are 5

types of research approaches. They are

1) Bbservational research:-

Fresh data is being collected by observing the

situation and the people in the situation and the people
in the situation.

2.) Focus group research:-

Collecting information from few people who are

invited to discuss the matters.
3.) Survey research :-

Collecting information by conducting elaborate survey

regarding people knowledge, beliefs, tastes and
preferences.

4.) Behavioural research:-

Information collected by learning the behaviour of the

consumer.

5.) experimental research:-

Collecting information by conducting experiment In a

controlled environment where one or two elements are
left two operate and other factors are being controlled.

c) Decision regarding research instruments: there are

mainly two types of research instruments. They are:

1) Questionnaire:-

A set of questions logically arranged presented to the

respondents to answer.
2) mechanical devices:-

Mechanical devices such as galvanometer to measure

interest and emotions, eye cameras to study eye
movement etc. can be used
d) Decision on sampling plan:-

The preparation of the sampling plan calls for the

following questions:

1) sampling unit:- The researcher has to define the

universe in which he is conducting research. He has
to answer who is to be surveyed.
2) Sample size:- he has to decide what should be the
size of the sample or answer the question how
many people need to be surveyed.
3) Sampling procedure:- further, he has to decide
what should be the method for selecting the
samples
4) Sample size:- he has to decide what should be the
size of the sample or answer the question how
many people need to be surveyed.

3. collection of information:-

For eliciting the required information, the researcher

has to pre[are the form which contains questions to be
asked to the respondents. The form should be
designed in such a way that the information can be
collected with speed and accuracy. The form of the
questionnaire depends upon the nature of the
information sought, the kind of respondents and data
collection methods.

The researcher have to appoint well trained people to

collect the information from samples selected for the
research. They must be properly trained, directed and
motivated.
4. Analyze the information.:-

a) Editing: It is done in two stages. The first stage is

the field editing which is done to detect the glaring
omission and inaccuracies, immediately after
collection because the interviewers have fresh
memory about the lapses and wrong statements.
The second stage editing is office editing to
evaluate completed return. This is done by a
complete through scrutiny of the questionnaire.
b) Coding: it consist of assigning symbols and
numericals to each answer. It is a technical
procedure for categorizing the data. It transforms
the raw data into symbols and numetals.
c) Tabulation: - it is the process of arrangement of
data in rows and columns to identify what is the
number of cases in each category.
d) Data analysis:- the tabulated data has to be
analyzed, appropriate technique of analysis should
be utilized to analyzed the data. It is a process of
converting the data into information which helps in
decision making by eliminating useless data and
making the useful data comparable.
e) Drawing conclusion:- it is converting data into
information. This is requires a high interpretations.
They are:
Induction method- in this method, a statement is
drawn from observed data to specific conclusions. It is
from observation
Deduction method- it starts from general to
particular. It is towards observation.

5. Presentation of the report:- the effectiveness of

the report depends upon the methods of
 communication and presentation of the research
report. A very useful research, if not presented
properly, may not serve the purpose.

a) Preparation of the report: the user of the data is

not the researcher him self. The managers use those
findings which are properly understood. Therefore
the report has to be prepared in such a manner
which helps the manager in understanding data and
the conclusion drawn. It should be contain the title
page, table of contents, executive synopsis,
methodology, objectives, limitations, findings,
conclusions and recommendations, appendix and
bibliography.

b)Recommendation and follow up:-

recommendation given in the report should be
practicable and implementable. The efficacy of the
researcher report can be maintained by follow up
activities. The principle researcher has to take a
careful review of the facts found in the research
report. He must try to find out the inefficiencies in the
report and make it a clear report.
This process includes control, quality appropriateness
and acceptability.
Q.3: Explain the different types of buying behavior

Ans.3: consumer decision making varies with the type

of buying decision, there are great difference between
buying toothpaste, a tennis racket, a personal
computer, and a new car. Complex and expensive
purchases are likely to involve more buyer
deliberation and more participants. Assael
distinguished four types of consumer buying behavior
based on the degree of buyer involvement and the
degree of differences among brands.
There are four types of buying behavior.

1) complex buying behavior:-

consumers go through complex buying

behavior when they are highly involved in a
purchase and aware of significant differences
among brands. Consumers are highly involved
when the product is expensive, bought
infrequently, risky and highly self expressive.
Typically the consumer does not know much
about the product category and has much to
learn. For example, a person buying a personal
computer may not know what attributes to look
for. Many of the product features carry no
meaning: “ 16k memory”, disc storage, screen
resolution and so on.

This buyer will pass through a learning process

characterized by first developing beliefs about
the product, then attitudes, and then making a
thoughtful purchases choice. The marketer of a
high involvement product must understand the
 information- gathering and evaluation behavior
of high involvement consumers. The marketers
needs to develop strategies that assist the buyer
in learning about the attributes of the product
class, their relative importance, and the high
standing of the company’s brands features, use
mainly print media and long copy to describe
the brands benefits, and motivate store sales
personnel and the buyers acquaintances to
influence the final brand choice.

2) dissonance- reducing buying behavior:-

sometimes the consumer is highly involved in a

purchases but sees little difference in the
brands. The high involvement is again based on
the fact that the purchases is expensive,
infrequent and risky. In this case, the buyer will
shop around to learn what is available but will
buy fairly quickly because brand differences
are not pronounced. The buyer may respond
primarily to a good price or to purchase
convenience.

After the purchases, the consumer might

experience dissonance that stems from noticing
certain disquieting features of the product or
hearing favorable things about other brands.
The consumer will be alert to information that
might justify his or her decision. The consumer
will first act, than acquire new beliefs, and end
up with a set of attitudes. Here marketing
communication should aim to supply beliefs
and evaluation that help the consumer feel
good about his or her brand choice.
 3) Habitual buying behavior:-

Many products are bought under condition of low

consumer involvement and the absence of significant of
significant brand differences. Consider the purchases of
salt. Consumer have little involvement in this product
category. They go to the store and reach for the brand. If
they keep reaching for the same brand, it is out of habit,
not strong brand, it is out of habit not strong brand loyalty.
There is good evidence that consumers have involvement
with most low- cost. Frequently purchased products.

Consumer behavior in these cases does not pass through

the normal attitude sequence. Consumer does not search
extensively for information about the brands, evaluate
their characteristic, and make a weighty decision on which
brand to buy. Instead they are passive recipients of
information as they watch television or see print ads. Ad
repetition creates brand familiarity rather than brand
conviction. Consumer do not form a strong attitude
towards a brand select it because it is familiar. After
purchases, they may not even evaluate the choice because
they are not highly involved with the product. So the
buying process is brand beliefs formed by passive
learning, followed by purchases behavior, which may be
follow by evaluation. Marketers of low involvement
products with few brand differences find it effective to use
price and sales promotion to stimulate product trial, since
buyers are not highly committed to any brand. In
advertising, a low involvement product, a number of
things should be observed. The ad copy should stress only
a few key points. Visual symbols and imagery are
important because they can easily be remembered and
associated with the brand. The ad campaigns should go for
high repetition with short duration involvement medium
that is suitable for passive learning. Advertising planning
should be certain product by a symbol that is repeatedly
attached to it.

4) variety seeking buying behavior:-

some buying situation are characterized by low

consumer involvement but significant brand
differences. Here consumers are often observed
to do a lot of brand switching. An example
occurs in purchasing cookies. The consumer
has some beliefs, chooses a brand of cookies
without much evaluation, and evaluates it
during consumption. But next time, the
consumer may reach for another brand out of
boredom or a wish for a different taste. Brand
switching occurs for the sake of variety rather
than dissatisfaction.

The marketing strategy is different for the market leader

and the minor brands in this product category. The market
leader will try to encourage habitual buying behavior by
dominating the self space, avoiding out of stock
conditions, and sponsoring frequent reminder advertising.
Challenger firms will encourage variety seeking by
offering lower prices, deals, coupons, free samples, and
advertising that presents reasons for trying something new.
Q.4:-what are the bases for consumer market
segmentation? Explain.

Ans.4:-

Two broad group of variables are used to segment

consumer markets. They are consumer characteristics and
consumer response or behavior. Under consumer
characteristics are three main bases for segmentation they
are:

1) Geographic:- This calls for dividing the

market into different geographical units such
as nations, states, regions, countries, cities or
neighborhoods. The company can operate in
one or a few geographical areas or operates in
all but pay attention to local variations.
2) Demographic segmentation:- in
demographic segmentation the market is
divide into group on the basis of variables
such as age, family size, family life cycle,
gender, income, occupation, education,
religion, race, generation, nationality and
social class. Demographic variables are the
most popular bases for distinguished
customer groups. One reason is that
consumers wants, preferences and usage rates
are often associated are easier to measure.
Even when the target market is described in
non demographic terms, the link back to
demographic characteristic is needed in order
to estimate the size of the target market and
the media that should be used to reach it
efficiently. Some of the demographic
variables used are:
a) Age and life cycle stage:-

Consumers wants and abilities change with age. On the

basis if age, a market can be divided into four parts viz.
different children, young, adults and old. For consumer of
different age groups, different types of products are
produced. For instance, different types of ready made
garments are produced for consumers of different age
groups. A successful marketing managers should
understand the age group for which the product would be
most suited and determine his marketing policy, pricing
policy, advertising policy etc. accordingly.

b) Gender:-

Gender segmentation has long been applied in clothing,

hair styling cosmetics and magazines. Occasionally, other
marketers notice an opportunity for gender segmentation.

c) Income :-

Income segmentation is a long standing practice in such

product and service categories as automobiles, clothing,
cosmetics and travel. However, income does not always
predict the best customers for a given product.

d) Generation:-

Many researchers are now turning to generation

segmentation. Each generation is profoundly influenced
by times in which it grow up the music, movies, politics
and events of that period.

e) Social class:-
It has a strong influence on preference in cars, clothing,
home furnishings, leisure activities, reading habits etc.
many companies design products and services for specific
social classes.

Psychographic segmentation:-

In psychographic segmentation, buyer are classified into

different groups on the basis of lifestyle or personality and
vales. People within the same demographic group can
exhibit very different psychographic profiles.

a) Life style:-

People exhibit different life style and goods they consume

express their lifestyles. Many companies seek
opportunities in life style segmentation. But lifestyle
segmentation does not always work.

b) Personality:-

Marketers have used personality variables to segment

market. They endow their products with brand personality
that corresponds to consumer personalities.

c) Values:-

Some marketers segment by core values, i.e. beliefs

systems that underlie consumer attitudes and behavior.
Core values go mach deeper than behavior or attitude
determine, at a basic level, peoples choices and desire over
the long term. Marketers who segment by values believe
that by appealing to peoples inner selves, it is possible to
influence their outer selves their purchase behaviour.
 MB0031

MANAGEMENT INFORMATIOIN SYSTEM

Q.1:- Explain the importance of MIS in the present
scenario.

Ans.1:- Since the MIS plays a very important role in the

organization, it crates an impact on the organizations
functions, performance and productivity. The impact of
MIS on the functions is in its management. With a good
MIS support, the management of marketing, finance,
production and personnel becomes more efficient. The
tracking and monitoring of the functional targets becomes
easy. The functional managers are informed about the
targets. The managers is kept alert by providing certain
information indicating and probable trends in the various
aspect of business. This helps in forecasting and long term
perspective planning. The managers attention is brought to
a situation which is exceptional in nature, inducing him to
take an action or a decision in the matter. A disciplined
information reporting system create a structured database
and a knowledge base for all the people in the
organization. The information is available in such a from
that it can be used straight away or by blending and
analysis, saving the manages valuable time.

The MIS creates another impact in the organization which

relates to the understanding of the business itself. The MIS
begins with the definition if a data entity and its attributes.
It uses a dictionary of data, entity and attributes,
respectively, designed for information systems use the
dictionary, there is common understanding of terms and
terminology bringing clarity in the communication and a
similar understanding of an event in the organization.
The MIS calls for a systemization of the business
operations for an effective system design. This leads to
streamlining if the operation which complicates the system
design. It improves the administration of the business by
bringing a discipline in its operation as everybody is
required to follow and use system and procedures. This
process brigs a high degree of professionalism in the
business operations.
Since the goals and objectives of the MIS are the products
of business goals and objectives, it helps indirectly to pull
the entire organization in one direction towards the
corporate goals and objectives by providing the relevant
information to the people in the organization.

A well designed system with a focus on the manager

makes an impact on the managerial efficiency. The funds
of information motivates an enlightened manager to use a
variety of tools of the management. It helps him to resort
to such exercises as experimentation and modeling. The
use of computers enables him to use the tools and
techniques which are impossible to use manually. The
ready made packages make this task simpler. The impact
is on the managerial ability to perform. It improves the
decision making ability considerably.

Since the MIS works on the basic system such as

transaction processing and databases, the drudgery of the
clerical work is transferred to the computerized system,
relieving the human mind for better work. It will be
observed that a lot of manpower is engaged in this activity
in the organization. If you study the individuals time
utilization and its application.. you will find that seventy
per cent of the time is spent in recording, searching,
processing and communicating. This is has a direct impact
on this overhead. It creates an information based work
culture in the organization.
Q.2:- “ The selection of information technology is a strategic
decision in MIS development”. Explain

Ans.2:- The development of modern information system is

a complex process. It needs knowledge; know how, skills
and technology in almost all the disciplines. The
developer, the designer and the user must be
knowledgeable in their respective area of functions and
responsibilities. As information system are being
demanded for online real time usage in business
management, its development requires through
understanding of the business and the manner in which it
is executed. Further, different technologies, other than the
information technologies, other than information
technology, are used in the business for providing input to
the information systems.

In the seventies, the information system were of a stand

alone type outside the mainstream of the business. In the
eighties, the information systems were looked upon as a
resources for information to support the decision making.
Still, its use was off line and was largely dependent on the
user manager in the organization. In the nineties, the
information technology developed multifold and the
business became global, strategic and competitive, with
the business focus shifting from supply management to
customer service management. In short, the nature, type
and the quality of information system has undergone an
overwhelming change.

The several systems operating in isolation as stand alone

legacy systems are rejected in favour of the enterprise
wide integrated information systems. The off line batch
processing of data bringing out reports at the end of the
period has been rejected in favour of the on line real time
systems for an access to know the current status of the
business.

The business management process has changed from

function management to process management. The
organization culture also changed from centralized,
bureaucratic, authority structure work groups were trained
and empowered to make decisions. This is called upon the
information system availability at the work place.

The nature of business is such that a lot of initiative of the

user is expected to decided his information needs at a
given point of time. Due to this, a change in the
architecture of information system is required, where by
the user requirements are made independent of data giving
him the freedom to manipulate the data using his own
methods. With such complex requirement, all around
information system development is becoming an art where
a lot of technology inputs are required. To be a successful
designer of information systems, one needs to have core
understanding of different kinds of processing.

Q.3:- Describe processing of data, transaction,

application and information for MIS.

Ans.3:- In any information system application, the method

generally followed is to design modular or hierarchical
steps of processing leading to an output in a report form or
information having certain value specific or perceived as
seen by the user. The steps involved are data processing,
transaction processing, application processing and system
processing.
Data is the smallest atomic entity in the information
system which is basic to build the information system. The
character of data decides the quality of information it
offers to the user. If the data is taken care of properly, its
usage will ensure quality output. Hence in any information
system significant care is taken in building the data as a
first level input to the system the data is built through the
data design and modeling process which provides
specification and character to the data. These
specifications and characters are used throughout the
information system of a variety of applications. Data
processing is handling raw data in a systematic manner to
confirm to the data quality standards as determined by the
designer of the information system.

The atomic data entity is defined as a attached to an

attribute which has a character, meaning and presentation
providing specific message and understanding to its
viewer or user.

Let us take a simple example of a data used extensively in

every application. Though the data is a universal entity in
nature, it still requires determination of specification,
character and presentation. A date in isolation conveys the
position of the day in a calendar. In the information system
however, it may convey a number of things to the user.
First, therefore, it needs specification. It is necessary to
specify how the data will be specified, whether in the form
of DD-MM-YY or MM-DD-YY or YY-MM-DD. So the
data date has a specific order of positioning and
presenting. It interpretation also changes beyond its
generic meaning as a day in the calendar. A date on cash
receipt means the cash received date. A date on a fixed
deposit receipt indicates the maturity date.

A date with its associated context derives its meaning for

the application in information processing. Such data
specification determination exercise leads the data design
further. The specification of data means determining its
manner of presentation its value, specific or in limits, its
validity whenever possible. The character is numeric or
alphabetical or both. Unless the data is defined in this
manner, it cannot be used effectively. Hence to summarise,
data processing to confirm its specification, character and
validity. The system support the user through checks and
controls by responding and communicating errors of
wrong specification, errors of value, errors in validity.

The designer and developer needs to have vision and

understanding of the data to implement such processing in
handling the data. If due attention is not given in this area
of design, disastrous errors would occur during its usage
in a variety of applications. A systematic approach calls
for determining definition, model, character, value, and its
aspects, its purpose and then making use of this
knowledge in processing to control its acceptance for
further use. To ensure the quality of information
considerable effort is spent on this data control aspect.
Whenever such efforts are missing, serious mistakes have
occurred. Once the data is accepted in the system then its
use becomes unabated and hence by instituting proper data
processing methods, with due regard to data definition,
character and structure, the quality of the information is
protected and assured.

2.) Transaction processing :-

After the data has been processed, the next steps is to

process transaction itself on certain lines. A transaction is
processed with reference to business rules, i.e. a
transaction is scrutinized for conformation to the rules,
policy or guidelines before it is taken up for further
processing. The rules may be directly related to the
transaction or it may have some relation and association
with other transactions. In case the transaction does not
conform the set of specified conditions governed by the
rules, the errors is displayed for user to take corrective
action.

The transaction is processed for adherence to business

rules, correctness and consistency of data vales and for
validity of transaction. It should be noted that these three
aspects are applicable to all the transactions across the
business management functions.

▪ such other condition that may be applicable.

One can add more business rules if necessary. However, if

the receipt transaction is to be processed, it will first be
processed for confirmation and conformance of these rules
before it is taken to the next stage. The rules are checked
at the entry level processing after the individual data fields
are checked. If any one rule is not possible, the receipt
transaction is rejected.

The persons designing transaction processing system must

have or acquire the knowledge of business rules for
introducing them in the transaction processing system. In
the absence of this knowledge or by not incorporating
them, the transaction would be accepted for further usage
violating the business rules.

The next check in transaction processing is to confirm

internal consistency, correctness and completeness of the
data. In our example of receipt transaction, a consistency
should be confirmed between the quantity sent, the
quantity received, the quantity accepted, and the quantity
rejected.
Another example is of the goods receipt transaction which
is in order by all dimensions but needs to be authorized by
the higher authority for excess delivery. Unless such check
is imposed all the excess delivery transaction would get
rejected. Though the transaction is invalid on the basis of
the internal consideration it is made valid by imposing
external conditions where transaction is approved by the
higher authority.
It is important to note
that the data at its element level may be correct but at the
transaction level it may go wrong. The third check after
confirming the data quality and observance of the business
rules is for validity of the transaction is checked against
and system processing.

• Application processing:-

After data and transaction processing, the data finished in

these stages gets posted on the affected files. Application
processing is designed to process more than one type of
the transaction to bring out the specific business result in
one or more business functions. This processing is carried
out once the transaction is processed for its validity.

Let us take an inventory application which requires the

receipt and issue transactions duly validated for inventory
processing. When these two transactions are processed,
the inventory is updated and issues giving the net balance
at the end of the processing for each item in the inventory.

The inventory application is designed to bring out

inventory status affected by material transactions. In
application processing, certain terminal files get updated.
In the above mentioned case, file will be updated for
changes in the stock.
The application processing means the use of transaction
data bringing out a particular status. The application could
be designed to change the number of different files
holding a variety of information. In our example, besides
the stock file updation, the store ledger will change. It
might trigger certain actions based on the inventory status.
For example, of the stock level is below reorder level, it
would raise a purchase requisition. If the below the safety
level, it would raise purchase reminder on the supplier.

The application can be designed for status updation and

the status triggered actions in the related field of the
application. For example, if the number of work order is
on hold for no material to process, then on receipt of the
material the affected work orders wick be released for
processing. Then the production schedules would also
undergo a change. A number of such examples can
illustrate that the application process can be designed for a
variety or functionalities and features which are essential
in running the business.

The scope of application processing can be made diverse

by incorporating different transactions from the same
application area or associated areas. For example, the
inventory and purchases application be processed together
for vendor evaluation, item valuation and payable
accounting. The scope of the application can be made
diverse, if it is foreseen at the design stage. At this stage
necessary inputs are provided in the transaction which can
be used at a later date in the other applications.

 Information system processing:-

The system is at a higher level, over the application
processing. The system is defined as a product made up of
several application set in orderly manner to produce a
higher level information output different than the output of
the application processing.

For example, the financial system is a product of finance,

sales and purchases accounting applications. Normally the
system processing addresses the management issues of the
business. In the financial system, processing is done for
cash management, asset and liability management,
working capita: management, etc. applications which are
used for system processing are the finance transaction
accounting, the fixed asset processing, the receivables and
payables processing, the sales and purchases accounting.
On the platform of these applications, the system is
processed for the analysis of number of aspects of the
finance management. It provides an insight into the funds
flow, the source: and the uses of funds, profitability and
productivity of the business. It throws light on growth,
through the analysis of various trends. The system outputs
are generally by the top management responsible for the
strategic management of the business.

The nature, role and the type of the system is such that its
design is very complex and sensitive to the business needs.
The system designer, therefore, must have a good insight
into the business for which the system is being designed.
The understanding of the business in terms of its
orientation focus, critical success factors and knowledge
of mission critical application is absolutely essential for
effective system design. The basic management functions
are same, i.e. finance, materials production or service,
personnel and sales, etc. in all the business.
Hence at the lower level transaction processing and
application processing may look similar but when it comes
to the system design, it is influenced by the factors
mentioned above. In all business organizations, the basic
application deck may be the same but its input process
output would be the different. The third technology
consideration is on communication. A wide range of
technology on communication are available for choice
between the electronic data interchange to fax modem data
transfer. System engineering handles the total scope as
covers processing design it application.

The information system engineering methodologies which

are capable of dealing with the data acquisition
technologies, processing technologies, processing
technology and architecture, networking technologies and
communication. The system processing Is efficient and
effective provided an appropriate choice of technologies is
used and they are blended together properly to produce the
necessary information output.

Using the system engineering methodologies, when all the

information system in the organization are covered, a
stage is reached where the system are integrated for a still
higher level information output required by all the levels
of the management. The system so design through an
integration process are called enterprise resource planning
systems the business as a whole by way of functions and
process management as also by providing support through
the DSS. It is a total solution to meet the business
information needs, irrespective of the function, process,
location, for all the level of management and people.

The total realistic is possible if the system design in

information system processing is all real time system. The
real time system are open in nature having a relational
exchange with external world realities. The real time
system integrated the hardware, human and database to
capture data, validate transaction process, application and
execute the system to produce a business result.
Q.4:- Distinguish between closed decision making
system and open decision Making system.

Ans.4:- The decision making system can be classified in a

number of ways. There are two types based on the
managers on the managers knowledge about the
environment. If the managers operates in a known
environment then It is a closed decision making system.
The conditions of the closed decision making system are:

a) the manager has a known set of decision

alternatives and known their outcomes fully
in terms value, if implemented.
b) The managers has a model, a method or a rule
where by the decision alternatives can be
generated, tasted, and ranked for selection.
c) The managers can choose one of them, based
on some goal or objective criterion.

Few examples are a product mix problem, an examination

system to declare pass or fail, or an acceptance of the fixed
deposits.

If the manager operates in an environment not known to

him, then the decision making system is termed as an open
decision making system. The conditions of this system in
contrast closed decision making system are:
a) the managers does not known all the decision
alternatives.
b) The outcome of the decision is also not known fully.
The knowledge of the outcome may be probabilistic
one.
c) No method, rule or model is available to study and
finalise one decision among the set of decision
alternatives.
d) It is difficult to decide an objective or a goal and,
therefore, the manager resort to that decision, where his
aspirations or desire are met best.

Deciding on the possible product diversification lines, the

pricing of a new product, and the plant location, are some
decision making situations which fall in the category of
the open decision making systems.

The MIS tries to convert every system to a closed decision

making system by providing information support for the
best decision the MIS gives the information support,
whereby the manager knows more and more about
environment and the outcomes, he is able to generate the
decision alternatives, test them and select one of them. A
good MIS achieve this.

The types of decision are based on the degree of

knowledge about the outcomes or the events yet to take
place. If the manager has full and precise knowledge of
the event or outcome which is to occur, then the decision
making is not a problem. If the manager has full
knowledge, then it is a situation of certainty. If he has
partial knowledge, then it is decision making under risk. If
the managers does not have any knowledge whatsoever
then it is decision making under uncertainty.
Q.5:- Explain the impact of IT on quality of life.

Ans.5:- Use of information technology is now being

experienced at home, in public institutions, business
organizations, education, health care, transportation,
manufacturing and services. It has not only touched our
personal life but also affected social life of everybody.
Following four main areas are seen as affected by impact
of information technology:

 People are empowered with information and

knowledge. It has changed the decision making
hierarchy structure in the organization. Many
operational decisions are passed on to lower level in
the organization. Only high risk strategic decisions
are in the hands of senior and top management.

 Internet and web technologies affected individuals in

terms of job and the manner in which the job is
executed. The work and workplace location became
separate.

 Business dynamics and competition is changing so

fast that response time to a change has to be much
less than before. It is capable of giving strength to
respond quickly, smartly and on time. In such
scenario people affected by impact have to adjust
very fast to faster pace of working. Those who can
not adjust suffer from work stress.

 The concept of houses, family and life is slowly

getting vanished because technology exposes you to
work any time anywhere in single mode or in virtual
mode. This means your home could be your office.
When you are in family gathering you can still pay
 divided attention to the family and office work. The
result is relation with family members, friends and
colleagues will be strained and may become weak
over a period of time. You may beisolated from
family and friends.

 Information technology has given birth to new

crime, called as internet crime or cyber crime, a
result of widespread abuse of information
technology. The list of abuses is as given below

 Spamming: sending unsolicited mail.

 Jamming: disabling the site so that authorized
viewers cannot use website.
 Hacking: obtain illegal access to personal,
commercial data.
 Sending viruses: inserting and sending viruses
through internet to disable the computers and
networks.
 Sniffing: intercepting and collecting personal
or key information using software in
communication network.

Impact on social or on society is large due to ease of

access to information technology. The society is divided
broadly into two parts: having access to technology and
the other with no access enjoy its benefits, and those who
so not have are left behind. The digital divided is similar
to divided known as have and have nots causing social
tension.
Q.6:- Write a short note on A E- business

Ans.6:- The scope of E-business is limited to executing

core business process of the organization. These process
would have external interface like suppliers, customer,
contractors, consultants and so on. The core business
process of the organization are procurement,
manufacturing, selling, distribution, delivery and
accounting. These core processes are best run by
application packages like enterprise resources planning. If
enterprise definition is made wider including customer,
suppliers and distributors, application packages like
supply chain management is best suited for planning and
execution of entire business process.

Transaction processing, workflow, work group and

process control application are the backend system to main
ERP enterprise management systems.
For example, when a supplier sends goods, it is received in
the warehouse. This event is processed E-way using E-
business system are suite. The receipt, documents and
packages are read by bar coding system or RFID. Then
receipt processing is done to confirm the validity of
dispatch by the inventory, communication of receipt to
manufacturing, updating the purchases order, effecting
material accounts and supplier accounts, creating a
liability in payables and posting it into cash flow
projections. You will observe that receipt processing is
first done at locations like warehouse, and “procurement”
module of ERP takes over to effect seamlessly all updates
and changes.

In this event processing, workflow, system is used where

quality of goods is checked, confirmed and certified in
stages by three agencies in the organization, this event is
processed by a work group, which includes receiver at the
warehouse, QA inspector, and warehouse manager playing
their respective role in the receipt processing as specified
in the workgroup application. Having accepted the goods,
automated and process controlled goods movement,
warehouse system takes over, and reads the receipt record
o move the goods physically to assigned bin in rack.

E-business system use internet capabilities to process an

event in seamless manner covering all technical,
commercial, business aspects and implications of an event.
Hey perform internal business operations and interface
with external agencies. E-business system scope manages
cross functional application system as a single business
process. It integrates cross functions seamlessly, automates
the tasks, and updates the information in real time. The
ERP and now customer relation management system is a
family of software solution packages dedicated to core
management functions of business. They are supported by
front end and back end system and applications designed
transaction processing, workflow management, work
group processing control. E-business system lay
foundation for other enterprise applications, namely E-
commerce, E-communications, and E-collaboration.

The current E-business system scope is built through ERP

dedicated to manufacturing resources management for
effective use of capacity and enhancing productivity. SCM
is dedicated to logistic and distribution management and
CRM is dedicated to customer relation management for
customer satisfaction.

E- business essentially concentrates on functional business

information system and their integration. Traditionally,
five business system are recognized as marketing,
production, procurement, of human resource, and
accounting & finance. These functional system in E-
business have become more intelligent and knowledge
driven as against information driven in traditional way of
doing business. In marketing system, it helps to reach
customer directly and is in the position to understand
customer behaviour, customers demographic
psychographic profile; it then helps to segment market by
customer for advertising, promotion, and contract.

In manufacturing system, it helps to automate number of

management process relating to resource, capacity,
engineering & design, maintenance, and support. The
application of it is so strong that is termed as computer
integrated manufacturing or computer added
manufacturing.

CIM adds value in the manufacturing by way of

simplification of processes in production and design.
Automation of simplified processes using process control
devices, numerically controlled machines and robots and
lastly integration of all core and support processes
contributes to manufacturing excellence.

In human resource management system extensive use of

internet is made to automate of HR planning, scheduling,
requirement analysis, training and development. The entire
chain of HR planning, advertising, recruitment and
selection is an automated one. HR administration is a huge
area of application which is wholly it enabled. It handles
payroll, leave planning, document, career planning and
succession.
The architecture of these process enables to receive inputs
from other functional systems like marketing,
manufacturing, and HR, and process the same account and
analyze the impact on the business performance, be it cost,
profit or productivity. An integrated E-business system is
capable of forecasting resources requirement managing
resources, budgeting capital, sales and manpower, and
measuring financial performance.

B. E- Communication.
Ans.6(B):- In E- business world, E-communication
system is a back bone of all processes whose role is to
share information by messages or store information to
download on access by the customer. This is done through
many applications and systems. Most popular and widely
used messaging system are E-mail & voice mail. Through
these system both parties communicate on ongoing basis.
It provides provides facilities to store delete and search
mails supporting the reference needs of the user. This
system is popular when one to one communication is
needed.

When there is need for communication in real time,

system available are voice conferencing, video
conferencing and electronic meeting. Voice conferencing
is conducted on telephone network using speaker phones
or networked PCs with internet telephone connectivity.
Video conferencing provides capabilities of video and
audio for participants situated at different locations. Video
conferencing also becomes an interacting and effective
communication system when it has a feature of white
boarding and document sharing. In electronic meeting
system, participate sit in a meeting room with networked
PCs and online screen projector to discuss the meeting
agenda. PC network is chosen for communication, and
access the databases and processing and projecting on the
screen for common viewing. This system is useful to solve
some problems, and communication within small groups.

Another E-communication system which is a kind of

offline is known ass web publishing, web publishing uses
website and portals for storing documents, catalogues,
drawings, pictures and so on for sharing. Such information
is stored on documents. In this is system, a user searches,
navigates, selects and downloads document for self use.
Web publishing is popular amongst research organizations,
educational bodies, government organizations have large
information set and document to share with the
community.

E-communication system are capable of sending

messages, documents, and files in any format over
internet. The communication could be online in offline
mode and online in real time mode. All E-communication
systems have sufficient safeguards, which make them
secured for use. Internet and web technologies are used for
forming different interest groups to communicates and
share the information. These groups are popularly known
as ‘user groups’ who have common interest in subject,
technology or tool, and come together with the objective
of improving the quality of subject of interest by sharing
the experience.

Enterprise information portal is another tool used for

information posting and communication to user or
customers. Portal is a web based interface on an integrated
market platform allowing customers to use application and
other services. It provides secured access to all user
consumer to search information analyses the situation and
communicate.
 MB0033

PROJECT MANAGEMENT
Q.1 Briefly explain the project management process and
principles

A.1 Project management is composed of interacting processes

organized in groups.

▪ Project processes

▪ Process groups

▪ Process interactions

▪ Customization

1. Project processes
A project processes is a series of action to achieve a result.
Project process is classified into 2 main categories:

 Project management processes

 Product oriented processes

Project management processes:

 Describing and organizing the work project

 Defined by the organization.

Product- oriented processes:

 Specifying and creating the project product and related

work products

 Defined by the life cycle.

2. Process groups
  Initiating processes: Recognition to start and establishing
commitment

 Planning processes: Devising and maintaining a

workable scheme to accomplish the business need

 Executing processes: Co-ordinating people to carry out

the plan

 Controlling process: Monitoring and measuring progress

and taking remedial action

 Closing processes: Formalizing acceptance and bringing

project to an orderly end

 The process groups are linked by the result they produce.

The result or the outcome of one becomes input to
another often with overlaps in terms of time & content.

3. Process interaction
The individuals processes are linked by their inputs and
outputs.

 → Inputs: client documentations converted to action

plans to be acted upon

 → Tools and techniques: mechanisms applied to inputs

to create outputs

 Output: documentables that are a result of the process

 Intiating processes- management group decision to begin
the next phase of the project.

 Planning processes
  planning has a major importance

 Plans are nothing planning is everything

 Panning processes are highly interdependent

 If the cost is unacceptable, scope and time may need to

be redefined

Core processes

 Have clear dependencies

 Facilitating processes

 Interaction depends on the nature of the work

 They are dynamic & dependent on team innovations.

Controlling processes

 Measuring project performance(time, cost, quality)

 Identifying variances from the plan

 Updating project plans

 Taking corrective action

5. Customization:-

● Larger projects may need relatively more details

○ A configuration management plan might be necessary
● Smaller projects may need relatively less details
○ Communication plan is not required if there are only 4
stakeholders.
● process detail might change for other reasons.
○ Resources identification might be required for scope
definition
○ Some process outputs may be predefined as constraints
● Project management team should identify and manage all
the processes required

Project management principles:

Five dimensions that must be managed on a project:
 Features

 Quality

 Cost

 Schedule

 Staff

These dimensions are dependent on one another- if you add

staff, the schedule may shorten and the cost will increase.
The trade offs among these five dimensions are not linear.
For each project, we need to decide which dimensions are
critical and how to balance the others so as to key project
objectives. Each of these five dimensions can take one of
three roles on any given project:

A driver, a constraint, or a degree of freedom.

An important aspects of this model is not which of the five

dimensions turn out to be drivers or constraints on any
given project, but that the relative priorities of the
dimensions be negotiated in advance by the project team,
the customers, and the management.

A graphical way to depict these points to use a diagram

which allows us to plot several values as an irregularly
shaped polygon on a set of normalized axes. The position of
each point on its axis indicates the relative degree of
flexibility of that dimensions for a particular project, on an
arbitrary scale of zero to ten.
 Q.3:- Explain the PERT model with the suitable example

A.3:- Purpose
○ boxes or nodes containing essential information about
the project represent activities
● critical path planning and scheduling.

○ Inter dependencies between the activities are represented

by arrows to show the flow of the project through its
various paths in the logic diagram.

EST EFT
12 10 22

LST Activity LFT

16 4 26

So we conclude that the earliest time small project can finish

in14 units of time. The world process is now reversed
► Look at each box in turn and identify those where the
difference between the time figure in the upper and lower LH
corner is EQUAL to the difference between the time figures in
the UPPER and LOWER RH corners.

►These boxes in your diagram are the critical elements and

from the critical path of the logic diagram.
 11
14 13

DIFFERENCE=0
40

● Finally enter the above calculated DIFFERNCE in the

MIDDLE part of the box. This is the spare time or FLOAT
TIME.

11 3
14

40

→ Then calculate the times for all the boxes in the diagram.
→ The logic diagram analysis is now complete. Record the
data in tabular format.
TERMINOLOGY Duration

Earliest finish
time

11 3 14 Earliest start time

40

Latest finish time

Latest start time

Total float
Q.3:- Enumerate the 3S of six sigma strategy

A.3:- A sort label for the list of prerequisites for achieving

world class quality. Use began in the last half of the twentieth
century. Although there is no agreement on what were is no
agreement on what were the essential elements of TQM, many
use the criteria of the Malcolm Baldrige National Quality
Award.

A conceptual and a philosophical context requires

management and human resources commitement

● to adopt a perpetual improvement philosophy, through

succinct management of all processes, practices and systems
throughout the organization

● To achieve effectiveness in the organizational performance

and fulfilling or exceeding the community expectations.

Six sigma:-

The goal of six sigma is to increase profits by eliminating

variability defects and waste that underline customer loyalty.
Six sigma can be understood at three levels:

1. Metric:-Defects per million opportunities. DPMO allows

you to take complexity
of product into account. Rule of thumb is to consider atleast
three opportunities physical part- one for form, also you want
to be six sigma in the critical to quality characteristics and not
the whole unit/ characteristics.

2. Philosophy:- Reduce variation in your business and take

customer focused data driven decisions. Six sigma is a
methodology that provides business processes. This increases
in performance and decreases in process return variation leads
to defect reduction and vast improvement in profits, employee
moral and quality.

Six sigma is a rigorous and a systematic methodology that

utilizes information and statistical analysis to measure and
improve a company’s operational performance, practices and
system by identifying and preventing defects in manufacturing
and service related processes in order to anticipate and exceed
expectations of all stakeholders to accomplish effectiveness.

3. Methodology:- DMAIC / DFSS structured problem solving

roadmap and tools.

Six Sigma Strategy:-

Strategy of improvements through six sigma can be summed

up as any one or combination of the following 3 S.

 Shift:- if the central tendency of the process is outside

the specification limits and spread is well within these
limits, we need to shift the process within these limits.

 Shrink:- if the central tendency of the process is within

limits but the spread of the process is beyond the limits,
shrink the process within the limits

 Stabilise:- If both central tendency and spread are as

desired, stabilize the process by monitoring,
standardizing and documenting the process.

However, it is common knowledge that many organizations

which plan their projects exceedingly well fail miserably
during the implementation process. Experience shows the
company or the organizations is fundamentally good enough to
handle such projects or not.
Q.4:- Describe the recent revolutions in project management.

A.4:- Evolutionary companies always valued their people, as

indicated by their high investment in education & training.
Teamwork was fostered in those companies some decades
before the concept became fashionable. Quick-fix
revolutionary companies tend to view technology & the
concept of self directed teams with an entirely different
motivation. They are usually both seen as providing the
opportunity to get rid of people & reduce costs. Using
technology to redesign processes & to enable creation of self-
directed teams is the principle elements in reengineering &
downsizing. Revolutionary companies generally succeeded in
their short team objectives, but the concept of using team work
over an extended period failed & the long term success of
those companies was put peril. In one sense, this is an obvious
conclusion that should have been clear from the outset.

In that environment, asking people to work together for the

greater good of the company is like asking turkeys to thanks
giving & Christmas. Self directed teams succeed If the
environment or organizational values system are conducive to
success: if not, they fail. The reasons identified for why teams
don’t work have a direct relationship to the values of
evolutionary companies. Lack of vision, confused objectives,
personality conflicts, weak leadership & lack of team trust are
directed opposites to or more accurately the result of lack of
the evolutionary values & a clear focus in customers &
processes.

Six evolution to watch:-

There are six distinct but linked evolutions that influence the
nature of business the organizational structure, the behavior,
attitude of managers and employees. Understanding the nature
& effects of these evolutions helps companies anticipate &
make decisions.
1. Demographic Evolution:-

Substantial changes are taking place in the composition of

people across the world. These changes are likely to affect the
nature work & the migration of companies across continents.
Though the movement differs from nation to nation, it can be
broadly summarized as a major changes in population numbers
& balance between young & old.

2. Competitive evolution:-

The evolution is inextricably intertwined with the collapse of

collectivism & intellectual acceptance of a market led
economy or society. This combination clearly influences the
thinking of managers.

3. Evolution of rising expectations:-

Rising expectations are not confined to the stronger economies

or the third world but in all societies. With some, it may be
confined to lifting their heads above mere survival: with
others, it is expressed in terms of quality of life or a desire in
terms of quality of life. This evolution is most powerful in
modifying the structure & managerial principles while
planning country specific projects.

4. The technology evolution:-

The pace of technology changes has been unimaginable. The

evident truth is that we have to adapt to changes and the
changes themselves provides the ability to handle its pace and
enormity.

5. The educational evolution:-

The rise in standards of evolution is obvious from the very fact
that the young ones of the present know far more than those of
the same age in the past generations. Opportunities to learn are
far more than mere formal education. Any approach to project
management requires congnisance of this fact.

6. Knowledge evolution:-

Enhanced by technology evolution, it is also linked to

education evolution. Making a golden cultural triangle. This
acts as a driver to meet rising expectations & practical
experimenting to meet challenges.

Six key trends in a revolutionary workplace:-

 Automation of physical work

 Elimination of traditional jobs & work structure

 Empowered knowledge holders

 Domination of knowledge work teams

 Workplace flexibility- no work is location specific any

more

 Virtual knowledge teams: resources any time anywhere

Q.5:- Elucidate the organizational issues in project management

A.5:- This is issue assumes greater significance during

implementation when a large number of participants are
required to work within a complex matrix. Coercion, personal
relationships, cross functional teams & the most modern HR
concept can yield no result unless every employee understands
where he or she stands in relation to the project management
processes. A processual approach to an organization is known
as yield better results.

Various sections & subsections of this issue cover as part of

organizational issue in project management. The following key
aspects.

 Organizational change- a processual approach

 Traits of the professional manager in changing scenario

 Projectized technology based organizations in the

century of changes and challenges

 Project & programme management for enterprise

innovation

 Enterprise project management capability development

objectives

 Technology substitution & guidelines for development of

high.
nario

These managers lead by example i.e. they practice what they

preach. besides they are clear about their vision both from
individual and organizational point of view. it is this vision
that comes out as their mission and objectives at the
workplace. another related quality is that of conviction and
courage to fight the obstacle and work with single minded
dedication towards the goal.

b) People relationship:-

Any leader without followers is not a successful leader. hence

the second quality of professional managers is their human
relationship skills. this managers builds up his team based on
the core values of sincerity, objective and dedication. he
ensures that his subordinates are provided opportunity for
growth based on performance. he ensures their participation in
decision making and its implementation. he delegates
effectively and supports it with both praise and reprimanded as
a feedback for work done. thus, his subordinates work clarity
of purpose and direction.

c) Integrity:-

This quality is a must for a professional manager which

can not be done away with. highest levels of trust.
fairness and honestly are expected while dealing with
people both within and outside the organization. this
includes the customers, shareholders, dealers, employees,
the government and the society at large. the professional
managers of the company should ensure that their
organization functioning is so clean that it cold be
 transparent to any one such that ethical standards become
a reality and not a myth.

d) Quality :-

The watchword of every professional managers should be

quality. this quality philosophy should not only encompass
product quality but quality as a way of organization life.
highest levels of quality of work done, of all processes in the
organization, a continuous and constant monitoring of all such
practices would ensure the quality culture in the orgnisation.
the focus would be on everything. from the quality of
stationary used right up to the quality of manpower hired in
the organization.

e) Customer orientation:-

Every professional manager has two sets of customer whom he

must try to satisfy to the fullest possible extent namely: the
external customer and the internal customer. it is often
observed that an organization goes to any length to satisfy the
former and regularly ignores the latter. the professional
manager ensure that the internal customers are given their due
and takes care of he needs, desire and problems. thus, he
builds up a customer orientation within the organization too.
which is quite infectious and provides the entire organization.

f) Innovation management:-

The professional manager not only ensures that his

performance is at peak but motivates his entire team to do the
same. this is done by ensuring a consistent quality of hard
work & sincerity. besides they are encouraged to undergo
training, updating as necessary so as to have their skills &
develop conducive attitudes at work. besides he provides
objective performance appraisal criteria by work.
g) Performance & creativity:-

Professional managers think beyond the obvious and

encourage their people to do the same. they ensures that
employee have a keenness for exploration and keep and open
mind. as a good old quote goes “ the human mind is like a
parachute, it is useful only if it is open.” such a work culture is
very conducive since there exists a minimal resistance to
change & people look at innovation as a way of life. this
ensure that the organization is always ready to look at
practices, new products and new ways of doing things goes on
continuously.

h) Identification with the organization:-

Professional managers need to develop a sense of pride with

their organizations as a whole. the tendency seen is most
managers strongly identify with their own departments. units
or divisions and they lack a sense of identify with the
organization per se. in the sight of increased competition and
ever changing strategies to develop a business orientation
which in effect means every manager should be aware of the
company’s plans, products, policies, and such. an obvious
corollary to this is that the organizations communication
policy too should be conductive for such information sharing.

I) Empowering employees:-

The professional manager should possess the ability to

empower his employee down the line. many managers are not
even ready to delegate their authority to subordinates and end
up only delegating responsibility. empowerment is the process
by which employees are encouraged to take decisions
pertaining to their area of work. empowerments ensures in
execution of his duties. this leads to employee developing a
sense of pride in their jobs. but managers often hesitate to
empower their subordinates as they feel insecure and show a
sense of uncertainity.

J) Coping with changes :-

It is often said “ the only constant in this world is change.” a

professional manger has the ability and capacity to cope with
change. he accepts the fact that change is inevitable and is
ready to implement change at the work place. to implement
change successfully. it is essential that employees are involved
in the implementation of change.
Q.6:- Enumerate the basic management issues in project
management

A.6:- Having learnt the basic of PM & the prerequisites, it

becomes equally important to climb up the ladder to the
management levels so as to understand some basic issue of
management can neutralize the benefits of good planning &
excellent prerequisites. Many organization fall in PM once
they assume a dominant rather than a proactive or participative
role. Having adopted archaic methods for many years, many
managements are not even aware of the philosophy of PM.
experience has shown that PMO or project management office
is a powerful concept to change the way such managements
work. this approach has resulted in the emergence of new
trends in the very perception of PM.
project success rates have shot up due to the effective
absorption of these new trends. organization of today are made
to think far beyond a PERT- CPM approach.

Improving project performance through the PMO

The project management office must create and maintain the

ability for the project manager to keep focused on the client
and perform high quality project managements towards him,
facilitating the necessary methods, tools and support. to do it. a
project review is a process where we capture information from
the team experience and see the variance and deviation from
the project plan. this kind of reviews should us to increase our
productivity and improve our organizational success as well.
the purpose if these reviews is:
1. Creating an environment for successful projects:-

Recent experience indicate that project work is fast becoming

a majority of the work performed in modern organizations,
especially for product development in high technology
companies. project based organizations spend enormous
amounts of project management training, they also question
the benefits. given the experience, executives realize that
additional steps must be taken, but they are often unsure of
how to help. too much project work also appears chaotic- void
of order and predictability.

2. Taming the project based organization:-

One of the challenges of moving to a project based

organization is the time and process necessary to change
behavior. A revitalization model describes a society moving
through a series of temporary overlapping but distinct phase if
change. few believe in the benefits of change until they
actually experience them. the revitalization process describes
the stages an organization goes through until the majority of
the members are ready for change. the model is consistent with
chaos theory, which says there is disorder before order.

3. Linking projects to strategy :-

Once the upper management team is established, a process

must be developed to select those projects which will achieve
the organizational strategy. in addition, these projects which
will achieve the organizational strategy. in addition, these
projects needs to have a consistent priority across departments.
What the organization should do:-

One of the first steps is to identify who is leading the process

and who should be on the portfolio team that decides and
controls resources for multiple projects. the leader needs get an
explicit commitment from all these people to participate
actively in the portfolio managements process and to use the
resulting portfolio plan when making decisions. the team
begins by clarifying or developing its purpose, vision and
mission. these identify the goals of the organization and where
it wants to go. do this before limiting the discussion to
capabilities within the organization. then, iterate between gals
and capabilities within the organization.

What the organization can do:-

The next steps for the portfolio team is to gather data on all
projects. this is a time to ask basic questions about product and
project types and how they contribute to a diversified
portfolio. constantly apply screening criteria to reduce the
number of projects that will be analysed in detail.

The next steps is to estimate the time and resources required

for each project. then identify expected resource capacity both
within and outside the organization to do projects.

4. Decide on projects:-

The team can now prioritize remaining projects. focus first on

project benefits, then costs. that way the merits of each project
get full consideration; later include costs to determine the
greatest value for the money. compute overall return from the
portfolio and not individual project because some projects may
have greater strategic value than monetary. causing each and
every project to promise a high financial return is a sure fire
way to diminish cooperation across an organization.
Complete the process:-

After completing the above steps, record projects that are fully
funded in an aggressive project plan. in a separate section or
another document, list projects for future consideration, also
capture and communicate reasons for delaying or not funding
projects. the plan of record is both a process and tool used by
some organizations at Hewlett Packard to keep track of the
total list of projects. it lists all projects underway or under
resources assigned. it has achieved in plan status. projects
below the cut line of available resources or which have not yet
achieved priority status are on the out-plan.

when a new product is needed, it must often pass through all

departments until it is ready for market. as it passes through, it
encounters the over the wall problem, where it is passed back
and forth from one departments to the next, and often back to
the previous department. with all the transits time and with
every handoff from one department to the next, there is
information loss. this information loss contributes to a
decrease in final product quality. obviously the over the wall
method is not good project manageament.