December 31, 2017

MBA Core Management Knowledge - One Year Revision Schedule

The blog contains articles on all management subjects developed using the most popular book on the subject. You can read articles on the sybject of your choice or use the following schedule.

One Year MBA Knowledge Revision Plan

Revision Schedule

Current Month -  April  

January  - February  - March  - April  - May   -   June

July       - August     - September  - October  - November  - December

Subject Details of Each Month

January  (Principles of Management)
February (P.of M & Marketing Management from 23 Feb 2015 )

March (Mktg. Mgmt. & Operations Management from 17 March 2015)
April  (Supply Chain Management and Financial & Cost Accounting)

May  (Management Accounting & Organizational Behavior)
June (Innovation, Industrial Engineering and Economics)

July  (Economics, Engineering Economics, & Managerial Ethics)
August    (Statistics, Quality and Six Sigma, OR & BRM)

September (HRM, Mentoring, Training, Maintenance, Energy & Environment Management)  -  October  (Information Technology and Management Information Systems, Logistics - Warehousing and Transport)

November (Strategic Management & Financial Management)
December (Business Laws, Negotiation, Taxes and Government Relations)

Subject                                               Revision Period

Principles of Management                15 January   to   19 February

Marketing Management                    22 February to   16 March

Operations Management                   17 March     to    2 April

Supply Chain Management                 3 April       to  15 April

Financial & Cost Accounting            16 April       to  12 May

I am participating in April A to Z Blogging Challenge and I am writing on the theme Top Management Challenges.

Top Management Challenges.

Article 1: Awareness of Environment

Updated 1 April 2017.  22 February 2017,  10 December 2015

October 5, 2017

Business Logistics - An Introduction

Logistics – Introduction

A dictionary definition of logistics is “the branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities.”
The definition promulgated by the Council of Logistics Management (CLM), is: “Logistics is the process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.”
Ballou explained that in the context of manufacturing it appears from the definition that the logistician is concerned with flow of goods to and from his firm. But the responsibility extends to the flow of components and goods through the production process as well. But the logistician may not deal with detailed production processes, machine scheduling, quality control etc. in the production process. Also the manufacturing logistics definition excludes maintenance which is a part of military logistics.
The mission of logistics in a business firm is to get the right goods or services to the right place, at the right time, and in the desired condition, while making the greatest contribution to the firm. Value in logistics is a combination of time, place and cost.
Logistics is about creating value – value for customers, value for suppliers and value for the firm’s stakeholders.

The Activities of Logistics Function

Council of Logistics Management identified the following:

  • Customer Service
  • Demand Forecasting
  • Distribution Communications
  • Inventory Control
  • Material handling
  • Order Processing
  • Part and Service Support
  • Plant and Warehouse Site Selection
  • Purchasing
  • Packaging
  • Return Goods Handling
  • Salvage and Scarp Disposal
  • Traffic and Transportation
  • Warehousing and Storage

Case for Organizing a Separate Logistics Department

Both marketing and production have recognized the importance of logistical activities. According to Philip Kotler, “Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges with target groups that satisfy individual and organizational objectives.”

Therefore distribution of goods is identified as an important activity in marketing. Ballou quotes, McClain and Thomas, who stated that operations management has the responsibility for the production and delivery of physical goods and services. Hence delivery of goods at destinations required by the customer or the sales department is recognized as a part of operations management function.

But Ballou argued that both marketing and production have more important core activities to perform and hence logistic activities may not get adequate attention. According to him marketing may be given the job of creating possession value and production may be given the job of creating form value. A separate logistics department would be concerned with providing time and place value. Ballou recognized the interface problems that arise as more departments are created and hence stresses the need for coordination.

Objectives of Business Logistics Function

The logistics function has to earn the highest possible return on investment over time as far as internal objective is concerned. But to achieve this internal objective it has to first achieve external objectives. It has to earn revenue and minimize costs.

Therefore a logistics system has to be designed and operated considering its impact on revenue contribution that comes through the quality of customer service provided and cost of logistics facilities, system and operation.

Costs of logistics function include capital costs are operating costs. Wages, public warehousing (rented warehouses or warehouse space) expenses, public transport expenses, financial expenses related to inventory investment, other administrative expenses are examples of operating costs. Capital costs are one time costs, own warehouse, own trucks are examples of capital costs.

The financial objective of the logistics function can be expressed as “Maximize over the time the ratio of the annual revenue (due to the customer level provided) less the operating costs of the logistics system to the annualized investment in the logistic system.”

Time value of money may be considered and the objective can be expressed in net present value (NPV) terms or internal rate of return (IRR) terms.

Study of Logistics

Study of logistics can focus on management process and the skills needed to perform the activities involved. Management process can be briefly described as planning, organizing and controlling. The three important domain areas of logistics are facilities location, inventory levels and mix, and transport facilities. Logistics function is concerned with providing service levels to customers and managing costs appropriately for the company. All decision making requires information. Study of logistics includes principles and practices related to the above issues.  Some of the issues are discussed in detail in specialized texts related to those areas and a logistician has to examine them now in the context of logistics.


The Handbook of Logistics and Distribution Management: Understanding the Supply Chain

Alan Rushton, Phil Croucher, Peter Baker
Kogan Page Publishers, 03-Jan-2017 - Business & Economics - 912 pages

The definitive guide to supply chain philosophy, strategy AND the practicalities of logistics and distribution. The Handbook of Logistics and Distribution Management is a step-by-step guide to setting up and managing supply chains to add maximum value to the organisations they serve. Benefiting from the author team's years of practical field-based experience in some of the most challenging environments across the world from developed economies to third world countries and war zones, this is a book that will enthuse students and be an invaluable desk reference throughout the careers of practitioners.

Packed with worked examples and real-world data The Handbook of Logistics and Distribution Management offers complete coverage on all the key aspects of distribution, logistics and supply chain planning and management with clear and straightforward explanations. This is not a compilation of work drawn from a disparate collection of research papers and miscellaneous projects but a logical and complete holistic view of how supply chains fit together including the detailed, nitty gritty of the distribution and logistics.

Globalisation, increased competition and new technologies have all changed the landscape in which supply chains operate. This fully revised 6th edition of The Handbook of Logistics and Distribution Management provides solutions to the key challenges. With new material on international freight forwarding, environmental best practice, cool chain, intermodal shipping and outsourcing and a new, detailed index of contents this is the ultimate study/reference companion.

Ronald H. Ballou, Business Logistics Management, Fourth Edition,  Prentice Hall Int. Inc., USA,  1999.
Joh O. McClain and L. Joseph Thomas, Operations Management: Production of Goods and Services, Second Edition, Prentice Hall, USA, 1985. 2utb2lsm2k7a/ 1384

Updated 6 October 2017, 30 May 2012

October 4, 2017

October - Management Knowledge Revision

October  (Information Technology and Management Information Systems, Logistics - Warehousing and Transport)

October 1 to 5

Principles of Information Systems - Ralph M. Stair and George W. Reynolds

An Introduction to Information Systems

Foundations of Information Sytems


Competitive advantage with information systems

IT Infrastructure


Communication and Networking

Improving decision making and managing knowledge

Enterprise Applications

Economics of Information Technology - Hal Varian

October 8 - 12

Logistics - Warehousing and Transport

October 15 - 19

October  22 - 26

October 23  - 29

Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems

One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December

Updated 6 October 2017, 6 June 2014

October 2, 2017

Product Management in Digital World - Recent Trends

What Makes a Truly Great Product Great - Digital Products Related
Published on March 2, 2015
Jeff Weiner
CEO at LinkedIn

The one-stop product management guide

Down the Book - Strategic Role of Product Management

The evolving role of product management
What product management is and why it’s so relevant today.
By Martin ErikssonRichard BanfieldNate Walkingshaw June 22, 2017
Excerpt from Chapter 1 of “Product Leadership.

“The job of a product manager is to discover a product that is valuable, usable, and feasible.”
Product management is the intersection between business, user experience, and technology

Product managers for the digital world
By Chandra Gnanasambandam, Martin Harrysson, Shivam Srivastava, and Yun Wu
May 2017

Product managers connect many functions related to  a product— market research, design, engineering,  marketing, sales, marketing, operations, finance, legal, and more. They are involved in the decisions about what gets built but also influence every aspect of how it gets built and launched.

The product manager of today is increasingly given the role of  the mini-CEO of the product.

16 Killer Videos on Product Management Essentials
June 9, 2016

A Panel Discussion on Product Management
12 March 2010
Stanford Graduate School of Business
Features executives formerly at Apple Computer, Hewlett-Packard, PeopleSoft, and Sybase:
Rita Iorfida, VP Products, Liquid Engines;
Rich Mironov, former VP Product Marketing, AirMagnet;
Tiffany Riley, VP Marketing at Nextance;
David Straus, SVP Worldwide Sales and Marketing, Corticon.


Product Management At Google

Updated 3 October 2017, 15 July 2017

October 1, 2017

Power - The Concept and Theory in Organizational Behavior

Power is an important dynamic (concept or variable) in organizational behavior.

Power - The Concept

Max Weber: "The probability that one actor within a social relationship will be in a position to carry out his own will despite resistance."

Pfeffer: "The potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do."

The concept of power needs to be distinguished from authority and influence.

The concept of power needs to be distinguished from authority and influence.

Authority is the right to direct others and ask them to do things which they would not otherwise do, but it is legitimate and is exercised in the working of organizations.

Influence is conceived as more broader and it is the ability to alter actions of other people in general ways by changing their satisfaction criteria and thus improve their performance. Authority is different from power because of its legitimacy and acceptance in an organizational context and leadership is broader than power and indicates a willingness on the part of the follower to follow in the absence of authority.

Luthans remarked that operational definition of power is still lacking.

The classifications of Power

Psychologists John French and Bertram Raven provided five categories

1. Reward power
2. Coercive power (punishment power)
3. Legitimate power
4. Referent power
5. Expert power

Contingent Explanations of Power

Power comes to people from being in the right place.

1. Power comes to people who have control over resources such as budgets, physical facilities and can allocate them with discretion.
2. Control over access to information can give power.
3. Formal authority and legitimate power comes from organizational positions.

Some of the propositions related to power in contingent explanations are:

1. The greater the professional orientation of group members, the greater relative strength referent power has in influencing them.
2. If the high ranking participants show less interest in managing a task, low ranking participants obtain more power.
3. The greater the target's dependency on agent, the more targets are manipulated against their will.
4. If people are uncertain about the appropriateness or correctness of their behavior, they allow the powerful people to manipulate them.

Fred Luthans, Organizational Behavior, 9th Edition, McGraw-Hill International,

New Theory of Power - Dacher Keltner

People who attain enduring power today exhibit five behaviors

1.    Enthusiasm: They express interest in others, advocate on their behalf and take joy in their achievements.
2.    Kindness: They cooperate, share, express appreciation and dignify other people.
3.    Focus: They establish shared goals and rules, a clear purpose and keep people on task.
4.    Calmness: Through their actions and communication, they instill calm and perspective.
5.    Openness: They display empathy and a disciplined process of listening attentively.

According to Keltner over 70 studies have shown that people who rise in power – whether it be in business, education or the military – consistently embody these qualities.

Modern concept of power as a social and economic theory

The Concept of power

Power and Politics - Basic Concepts

Updated 2 October 2017, 23 November 2011

September 18, 2017

10 - 15 - 20 - 25 Activities and Skills for Success as Manager at All Levels

4P Model of Management

I developed 4P Model of Management. Managers have to undertake Four major activities.

Providing Value  - They have to identify opportunities to add value to potential consumers, communicate value to them and exchange value with them.

Purchase Inputs - Managers have to purchase inputs to provide value.

Process Inputs and Convert them into Valuable Outputs

People Relations - Business is for People, Business is by People and Business is with People

The 4Ps fall into Business Skills, Process Skills and People Skills.

Detailed article

You can see how various authors only prescribe these skills in their articles.

Peter Economy - 10 things that super successful leaders do.

It was published in the Corporate Dossier of Economic Times (22 May 2015). Peter Economy was the author.

The 10 things listed were:

1. Acknowledge
2. Motivate
3. Be Decisive
4. Communicate
5. Trust
6. Be Confident
7. Develop
8. Direct
9. Partner
10. Be Honest and Transparent.

Jack Zenger and Joseph Folkman wrote in article in HBR Blogs.

The Skills Leaders Need at Every Level

The list given by them

Inspires and Motivates others
Displays High Integrity and Honesty
Solves Problems and Analyzes Issues
Drives for Results
Communicates Powerfully and Prolifically
Collaborates and Promotes and Teamwork
Builds Relationships
Displays Professional or Technical Expertise
Develops Others
Takes Initiative
Champions Change
Connects the Group to the Outside World
Establishes Stretch Goals
Practices Self Development.

Updated 19 September 2017, 21 May 2015

Principles of Management - Subject Update

Basic Chapter Summaries of Principles of Management Based on Koontz and O'Donnell's Book

4 Ps of Management - 4 Essential Tasks in Business Management
Provide value - Procure inputs - Process inputs (Produce output) - People focus

Productivity Focus of Management  - Industrial Engineering

Taylor - Narayana Rao Principles of Industrial Engineering

Download full paper: Full Paper -

June 2017

Change Management - How to manage the eight ‘change personalities’ at work?

Making Decisions in Meetings

May 2017

How to Retain Employees Through 'Servant' Leadership

April 2017

By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering.

Basic and Detailed Principles of Industrial Engineering

March 2017

Leaders have to manage the current activity to change it to make it better

March 2016

Seven Quality management principles (QMPs) 

by ISO  - Read them compulsorily if you have not read so far.

One of the definitions of a “principle” is that it is a basic belief, theory or rule that has a major influence on the way in which something is done. “Quality management principles” are a set
of fundamental beliefs, norms, rules and values that are accepted as true and can be used as a basis for quality management.

The QMPs can be used as a foundation to guide an organization’s performance improvement. They were developed and updated by international experts of ISO/TC 176, which is responsible for
developing and maintaining ISO’s quality management standards.

The seven quality management principles

QMP 1 – Customer focus
QMP 2 – Leadership
QMP 3 – Engagement of people
QMP 4 – Process approach
QMP 5 – Improvement
QMP 6 – Evidence-based decision making
QMP 7 – Relationship management

These principles are not listed in priority order.  All are important and the relative importance
of each principle will vary from organization to organization and can be expected to change over time in the same organization.

Seven Principles of Supply Chain Management

Principle 1: Segment customers based on the ser­vice needs of distinct groups and adapt the supply chain to serve these segments profitably.

Principle 2: Customize the logistics network to the service requirements and profitability of customer segments.

Principle 3: Listen to market signals and align demand planning accordingly across the supply chain, ensuring consistent forecasts and optimal resource allocation

Principle 4: Differentiate product closer to the customer and speed conversion across the supply chain

Principle 5: Manage sources of supply strategically to reduce the total cost of owning materials and services

Principle 6: Develop a supply chain-wide technology strategy that supports multiple levels of decision making and gives a clear view of the flow of products, services, and information

Principle 7: Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently

Seven Principles of Change Management

Senders and Receivers
Authority for Change
Value Systems
Incremental vs. Radical Change
The Right Answer Is Not Enough
Change Is a Process

The APICS Principles of Operations Management consists of five classroom-based, instructor-led courses.

         The Principles of Inventory Management

         The Principles of Operations Planning

         The Principles of Manufacturing Management

         The Principles of Distribution and Logistics

         The Principles of Managing Operations

A HBR article on Negotiation

Free Open Access Book


Source: In the World of Scientific Discoveries / V Mire Nauchnykh Otkrytiy . 2014, Vol. 60 Issue 11.11, p4244-4261. 18p.
Author(s): Danakin, N. S.; Shutenko, A. I.; Ospishchev, P. I.

Developing a Theory and Philosophy of Management
Chapter 1 of Pearson Book

November 2015

Innovation Excellence requires Ambidextrous Management

September 2015
New and Updated articles in area

Systems Approach in Management - Very detailed treatment is now posted

Execution is an important function of management

Planning and Execution - Theory and Practice

Resourcing is an important activity for all managers to accomplish set goals

May 2015

Negotiation: What Makes the Right Business Deal

Get the Boss to Buy In.

By: Ashford, Susan J.; Detert, James. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p72-79.

Middle managers  gather valuable intelligence from direct contact with customers, suppliers, and colleagues; they can often see when the market is ripe for a certain offering, for instance, or spot signs that a partnership won't work. But in a top-down culture, they may not voice their ideas and concerns -- and even when they do, they often struggle to persuade the people at the top.

The authors suggest that middle managers should tailor their pitch to the goals, values, and knowledge of decision makers; frame the issue to show how it supports a strategic goal; manage emotions (their own and their audience's); get the timing right by, say, attending to a boss's preoccupations or watching larger trends; involve others, both in and out of their networks; and  adhere to organizational norms, such as how leaders prefer to receive information.


By: IHRIG, MARTIN; MACMILLAN, IAN. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p80-87. 8p. 2 Color Photographs, 2 Diagrams.

Large-scale, sustainable growth is  possible when people take insights from one knowledge domain and apply them in another -- when deep technical expertise in one business unit is applied in a different business unit, for example, or when a best-in-class marketing group pulls a product development unit into the 21st century by sharing market insights gleaned from customer data.

The authors describe how to map your organization's strategic knowledge.  When knowledge assets are placed in a grid along two dimensions -- unstructured (tacit) versus structured (explicit) and undiffused (restricted) versus diffused (shared) -- it becomes easier to manage them for future competitive advantage.

Playbook - AMA NET

Interesting Source for Management Articles

Managing Power Dynamics in International Negotiations
About The Author: Yadvinder S. Rana is Professor of Cultural Management at the Catholic University in Milan, Italy, lecturer on intercultural negotiation and influence in leading international business schools, and founder of Neglob, a management consultancy firm that assists companies in international negotiations and global teams performance improvement. For more information about Rana and his new book, The 4Ps Framework: Advanced Negotiation and Influence Strategies for Global Effectiveness, please visit

The New Rules of Motivation: Unleash Employee Reciprocity
About The Author: Rodd Wagner is the New York Times bestselling author of the new book Widgets: The 12 New Rules for Managing Your Employees As If They’re Real People (McGraw-Hill, April 2015).

Only 10% are great managers.
Around 35% OK.

Principles of Management - Subject Update - 2014

Updated 19 Sep 2017,  7 June 2017,  7 May 2017,  8 April 2017,   12 March 2017, 26 Mar 2016, 16 Feb 2016, 11 Dec 2015

4 Ps of Management - 4 Essential Tasks in Business Management - Production or Service Businesses

Provide value - Procure inputs - Process inputs (Produce outputs) - People focus

Providing Value to Customers
Purchasing or Procuring Input Resources
Processing the Inputs into Outputs
People Relations

Every business manager has to do these four essential tasks. 
Every MBA must learn these four tasks.

They are classified by some management scholars as conceptual skills (business conceptual skills), technical skills (process skills) and people skills.

This blog,"Management Theory Review" provides you knowledge in all the essential activities through subjects - Principles of Management,  Marketing Management,  Supply Chain Management, Operations Management, Industrial Engineering and Organizational Behavior.

In the blog, chapter summaries of chapters from world famous textbooks are provided. Additionally, important developments and articles of each subject are provided as subject updates of the year.  Readers comments are invited as suggestion, feedback, questions etc. for improving the content to make it more useful to the readers to utilize the ideas in practice and increase production and profits for the organization and the society. Management as a profession must increase pleasure of the society and reduce pain of the society. Management as a profession has social purpose. But we need to fulfill organizational purpose and purposes of individuals working for the organization to fulfill the social purpose.

Business is done by people, Business is done for the people , Business is done with the people.
People dimension is important for business.

But there is no business if someone cannot find a business opportunity. Marketing is important. Providing value to people is marketing and sales.

If unfulfilled demand for a category is found, there have to be sources of inputs and a process to convert inputs into useful products. Supply chain and  production process are important.

2Ps  of Industrial engineering - Productivity and Profits

Industrial engineering is profit engineering. Industrial engineers analyze systems and make them more productive and profitable. Industrial engineering is concerned with 2Ps - Productivity and Profits

An effective and efficient business organization or an industrial organization is created by managers or entrepreneur managers using multiple skills.   Acquire the knowledge, use the procedures under guidance for some time and become proficient in them. Have a successful managerial career.

Principles of Industrial Engineering



Download full Paper -

Updated 19 September 2017, 17 May 2015

September 11, 2017

Lean Management - Management for Value and Productivity Enhancement

Lean Management for Productivity Enhancement
Presentation at Tata Steel
Dr. K.V.S.S. Narayana Rao, Professor , NITIE, Mumbai
Industrial Engineering Knowledge Center



Lean Management

Lean management gives importance to both effectiveness and efficiency.

Lean Managers simultaneously take care of customer satisfaction and productivity/ cost reduction responsibilities.

Hence lean management leads to more productivity in the organization.

It is appropriate that NPC came out with the theme “Lean Management for Productivity Enhancement”

"The core idea of the lean management system is to maximize customer value while minimizing waste." (7.3.2014)


Management is achieving objectives prescribed by owners/superiors, set by the manager himself and set in collaboration with the team members, together with the team with the resources provided to the team or acquired by the manager/team.

Soldier and Commander
Commander is a manager.
He may be a very good soldier himself.
Management is a lot more than being an expert doer.
But managers require the technical skills of a function they are managing.

Management Process

Resourcing (Acquiring various resources including human resources known as staffing)
Directing (Executing describes the management steps at this stage better)

Effectiveness and Efficiency

Managers have to be effective and efficient.
Effectiveness is achievement of objectives.
Efficiency is effectiveness combined with minimum consumption of resources.

No effectiveness - no efficiency.
Effectiveness first, efficiency next.

Scientific Management

F.W. Taylor advocated scientific management that highlighted the importance of efficiency in production shops.
Development of science of using machines and men in productive work is the theme of his management thought – scientific management
Taylor was responsible for development of industrial engineering discipline.

Principles of Management – Fayol

Management as a subject to be taught was advocated by Henri Fayol.
He gave 14 principles of management and explained management process.
He appreciated Taylor’s thought and advocated its wide adoption.

Principles of Management – Koontz

Koontz extended the 14 principles of management to around 30 and  embedded them in the five functions.
He stressed importance of effectiveness and efficiency in his first chapter. Also included some principles of efficiency in his list.

Koontz – Definition of Management
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

Koontz on Productivity
In a real sense, this book (Management) is about the improvement of productivity.
But  still, efficiency got neglected on a holistic basis in his book.
Industrial engineering is not mentioned in the book

Effectiveness and Efficiency as opposing ideas – An Error in Management Thought

Certain management authors positioned effectiveness and efficiency as opposing concepts.
They created tables showing differences between them.
Managers became isolated from the efficiency dimension.

Lean Management

Lean management philosophy brings efficiency back into the management discipline as a major component.
Managers must also have efficiency/productivity improvement skills
The Toyota Motors’ managers are to be given credit for this development.

Developments in Japan

Japanese executives captured the spirit of scientific management and industrial engineering almost from its birth in USA.
Industrial engineering was given a Buddhist religious dimension in the slogan-
Eliminate muda, mura, muri

Kiichiro Toyoda – Toyota Motors Founder
Kiichiro Toyoda was sure of the quality of his car.
But he was worried about its price.
He said unless its cost was reduced and price was reduced Toyota motors will not survive.

Effectiveness is there but Efficiency is the need.
So according to Kiichiro Toyoda, effectiveness was there.
Japanese customer is happy with the car.
But efficiency is not there.
Cost of production is high and hence price is high.

Manager’s Focus on Productivity/Efficiency
Therefore Kiichiro Toyoda’s focus shifted to productivity.
More and more managers were asked to focus on productivity.
Productivity in other words is cost reduction

Taichi Ohno
Taichi Ohno is a production manager.
Started concentrating on cost reduction.
Used Industrial Engineering.
Toyota Style Industrial Engineering.

Industrial Engineering

Industrial engineering is reducing cost of a product and increasing profit by increasing sales due to low prices.
Industrial engineering is profit making engineering (Ohno).
The other engineering is market-establishing and fulfilling engineering.

Industrial Engineering –  Definition or Explanation by Narayana Rao K.V.S.S. 

Industrial Engineering is Human Effort Engineering and System Efficiency Engineering.

JIT Systems - Lean Management

Kiichiro Toyoda looked around his production-distribution system for eliminating muda (excess resources).
Inventory seemed to him an excess resource.

He told his managers, that they have to think of JIT systems or low inventory systems.
Thus Kiichiro Toyoda is the man who first advocated JIT.

Taichi Ohno – JIT, IE and Productivity Activities

Reduce inventory – Create flow production.
Increase worker productivity
Use more automatic machines
 Make a worker attend more machines.
Make machines intelligent. No defective unit production

The change must be good.
The change must be profitable.
Do proper economic analysis.
Importance of Engineering Economic Analysis.
Low “lot size” inventory requires lower setup times.
Reduce setup times.

Shigeo Shingo, now a famous industrial engineer, helped Ohno.
Setup times for big presses were reduced to 3 minutes from earlier 2 to 4 or even 8 hours.

Low Safety Stocks
Systems have to be reliable and production should not result in defective parts.
Involve people in process quality improvement - TQM
Machines should not breakdown.
Improve maintenance and involve production workers also in machine upkeep

Emphasize on high availability of machines for production.
Do preventive and planned maintenance.
Condition monitoring employed for planned maintenance.
Maintenance for high available production time.
Total productive maintenance.

Low Inventory
Only a day’s inventory as buffer
Between components and assembly section only a days maximum consumption of each item is kept (as an illustration).
Components are made in small batches as per the use on that day.
Communication by Kanban.
Low inventory systems are lean systems

What is a lean system?

A system that satisfies customer requirements with a very low level of inventory.
It is a system that uses less resources than mass production systems based on traditional inventory principles.
Hence lean systems produce products at lower costs vs. high inventory systems.

Lean Manager

Lean managers use all management principles and techniques along with all the industrial engineering tools and also tools specially developed in Toyota Production System and its further development as Lean Enterprise System (Womack and Jones, The Machine that changed the World)

Is Lean Applicable to Steel Plants?
Tata Steel is itself following some lean practices.
Its managers are talking of lean at least since 2001. May be lean movement started some time before.

Recent Publications
2003 Phd thesis on application of lean in a steel plant.
Lean supply chain practices in steel plants
Value stream mapping and reduction of production lead time in steel plants.
Optimizing inplant supply chain(PPC) using Lean.

Traditional Industrial Engineering Tools Applied in Lean Systems

Value engineering
Process and Operation Analysis (Method Study )
Standardization of Processes and Working Conditions
Motion Study and Principles of Motion Economy (5S)
Standardization of the Process
Time Study and Time Standards

Optimization and Operations Research
Statistical Methods to Control Variation
Engineering Economics

A Different IE Tool Classification
Product Design Efficiency Engineering
Process Efficiency. Engg.
Human Effort Eff. Engg.
Efficiency Engg. Of Various Resources

Process Efficiency Engineering - Classification
Technical Processes
Business Processes
Managerial Processes

New Ideas and Tools in Lean Systems

Just in Time Production - Change in Inventory Control Practices
Just in Time Supply
Kanban Communication System - Change in Production Planning and Control Procedure
Special Focus on Seven Wastes
Zero Defect Movement

Total Quality Control (Inspection by production persons only - no additional inspector) Total Productive Maintenance (Involving production operators significantly in preventive maintenance) Aggressive Kaizen (Team leaders responsible for monthly improvement in processes)

Visual Communication (Standard Work Sheets, Daily Targets and Production, and Problems)
Value Stream Mapping to identify and remove obstructions to flow
SMED (Application of methods study to setup time reduction)
U-shape layouts
Poka Yoke

Leveled production or production smoothing
Mixed model assembly or flexible production facilities
Supplier process improvement
Supply chain cost reduction led by Assembler.

Seven Waste Model – Waste and Elimination Principle or Technique
Waste of overproduction - One cannot produce without a production Kanban
Waste of time on hand (waiting)  - Multiple machines to an operator, all producing as per tact time.
Waste in transportation - Machines in line or flow placed close together

Waste of processing itself - Standardized Methods
Waste of stock on hand - JIT system
Waste of movement (of workers) - Machine layout changes
Waste of making defective products - Problem solving approach to produce zero defects. 5 Why’s?-Poka Yoke

Let us Hope

Hope Management Professors, Managers, Executives, Supervisors and Operators learn the new development in management – Lean Management.
High Customer Satisfaction and High Productivity  (No tradeoff).
Hope Industrial Engineers become Lean System IEs and Support Managers at all levels.

Thank You

Additional reading:

Toyota Production System - IE Point of View - Shigeo Shingo

Industrial Engineering - Foundation of Toyota Production System Chapter 1 to 3 of the book - Presentation
Toyota Production System Industrial Engineering - Shigeo Shingo Chapters 4 to 10
Introducing and Implementing the Toyota Production System - Shiego Shingo Chapter 11 of the book

Presentation was done on 14 February 2014 at Tata Steel, Jamshedpur, Steelenium Hall

A McKinsey Article - Next Frontiers for Lean - Feb 2014 - Ewan Duncan and Ron Ritter

The further development in lean has to provide more scientific insight into how product and service attributes contribute to customer value; what matters most for improving classic lean variables, such as lead time, cost, quality, responsiveness, flexibility, and reliability; and new opportunities for cross-functional problem solving to eliminate anything that strays from customer-defined value.

Principles of Industrial Engineering - Presented by Dr. K.V.S.S. Narayana Rao in the 2017 Annual Conference of IISE



Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December

Updated 12 September 2017, 18 February 2014

August 26, 2017

Digital Transformation of Business and Industrial Organizations - Subject Update


KPMG declared leader in digital transformation consulting
Jul 12, 2017

KPMG was recently named a leader in the IDC MarketScape awards titled “Worldwide Digital Transformation Consulting and Systems Integration Services 2017 Vendor Assessment”. The award process noted that under times of turbulent change and economic challenges many firms around the world were calling upon KPMG to help them through the process challenges. KPMG have been identified for their strength in aiding organizations to begin the transformation process, and the disruptions this can bring, while maintaining their place within a competitive market.

Evolve Or Die: Why Digital Transformation Is More Important Than Ever
Four areas of focus for Digital transformation

Davos 2017 - Preparing for the Fourth Industrial Revolution

World Economic Forum


Published on 19 Jan 2017
What is needed from the public and private sectors to ensure that the Fourth Industrial Revolution benefits all of humanity?

- Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries, India
- Mary Barra, Chairman and Chief Executive Officer, General Motors Company, USA
- Marc R. Benioff, Chairman and Chief Executive Officer, Salesforce, USA; Young Global Leader Alumnus
- Shu Yinbiao, Chairman, State Grid Corporation of China, People's Republic of China
- Vishal Sikka, Chief Executive Officer, Infosys, USA

Chaired by
- Ngaire Woods, Dean, Blavatnik School of Government, University of Oxford, United Kingdom

Davos 2017 - Press Conference: The Digital Transformation of Industries


World Economic Forum,  Published on 19 Jan 2017

The World Economic Forum launched the multi-year Digital Transformation of Industries Project in 2015 in partnership with Accenture. The project looks at how digital technologies like machine learning, cloud computing, and the internet of things are changing existing industries and creating entirely new ones. It makes recommendations to incumbents on how they can thrive in the new digital environment.

There are now hundreds of startups attacking traditional markets as a result of the democratization of technology, increased access to funds and a rising entrepreneurial culture. Start-ups are achieving scale far quicker than analogue companies ever did. Average Fortune 500 companies took 20 years to reach a market cap of $1 billion, Google managed it in eight years, and the likes of Uber, Snapchat and Xiaomi in three years or less. 88% of Fortune 500 companies from 1955 – 2015 no longer exist. Digital disruption has been a major driver of this, consequently Fortune 500 companies must use their considerable resources to fight off the attacks of leaner challengers and remain relevant in a digital age.

- Bruce Weinelt, Head of Digital Transformation, World Economic Forum
- Peter Lacy, Global Managing Director, Strategy and Sustainability, Accenture
- Stephanie Linnartz, Global Chief Commercial Officer, Marriott International Inc.
- Jean Philbert Nsengimana, Minister of Youth and Information Communication Technology,        Ministry of Youth and Information and Communication Technology of Rwanda

Moderated by
- Alem Tedeneke, Media Specialist, World Economic Forum LLC


3 Industries That Will Be Transformed By AI, Machine Learning And Big Data In The Next Decade
Bernard Marr
SEP 27, 2016
Healthcare - Finance - Insurance

Digital Transformation Playbook

Prof. David Rogers, Columbia Business School

June 2016, Columbia Business School

Updated on 26 Augsut 2017,   22 August 2017, 7 June 2017, 14 April 2017

Organization Design - New Ideas


In "The New New Way of Working Series," published the article, "Boosting Performance Through Organization Design" dated JULY 17, 2017 authored by By Fabrice Roghé , Andrew Toma , Stefan Scholz , Alexander Schudey , and JinK Koike.

The authors reported that analysis of the same survey results suggests that six specific factors in organization design can make a company more likely to become a top performer, with faster growth and higher profits than its peers. The six factors are:

Agile ways of working
A value-adding corporate center
Clearly delineated profit and loss (P&L) responsibilities
A flat management structure with a strong frontline focus
Effective use of shared services
Strong support for people and collaboration

For more information on agile read the article

Related articcle

Leadership - Subject Update


August 2017

 Leadership Instincts: Listen, Amplify, Include
General Martin E. Dempsey
August 25, 2017

22 Qualities That Make a Great Leader

June 2017

The 10 (and a Half) Commandments of Leadership

10 Questions Great Bosses ask periodically

The Dynamics of 8 Different Styles of Leadership
April 11, 2017 - by  Paul E. Fein

Four Behaviors That Define Successful Leaders
Elena Lytkina Botelho

May 2017

45 Questions Every Leader Should Answer

By Frank Sonnenberg

Good Bosses Switch Between Two Leadership Styles

Jon Maner
Jon Maner is a professor of management and organizations at Kellogg School of Management, Northwestern University.
DECEMBER 05, 2016, HBR Article

The two styles are termed Dominance and Prestige. They could have been termed Single Person Dominance (Lone Boxer) and Team Decision Making (Foot Ball Team).



Leadership Freak - A popular blog on leadership

What Great Managers Do Daily

Ryan Fuller & Nina Shikaloff
DECEMBER 14, 2016

Decoding Leadership: What really matters

Our most recent research, however, suggests that a small subset of leadership skills closely correlates with leadership success, particularly among frontline leaders. Using our own practical experience and searching the relevant academic literature, we came up with a comprehensive list of 20 distinct leadership traits. We did a survey and  found  that leaders in organizations with high-quality leadership teams typically displayed 4 of the 20 possible types of behavior; these 4, indeed, explained 89 percent of the variance between strong and weak organizations in terms of leadership effectiveness .

• Solving problems effectively: The process that precedes decision making is problem solving, when information is gathered, analyzed, and considered.

• Operating with a strong results orientation: Leadership is about not only developing and communicating a vision and setting objectives but also following through to achieve results. Leaders with a strong results orientation tend to emphasize the importance of efficiency and productivity and to prioritize the highest-value work.

• Seeking different perspectives: This trait is conspicuous in managers who monitor trends affecting organizations, grasp changes in the environment, encourage employees to contribute ideas that could improve performance, accurately differentiate between important and unimportant issues, and give the appropriate weight to stakeholder concerns. Leaders who do well on this dimension typically base their decisions on sound analysis and avoid the many biases to which decisions are prone.


The Art of Giving and Receiving Advice.

By: Garvin, David A.; Margolis, Joshua D. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p60-71.

Seeking and giving advice are central to effective leadership and decision making, and they require emotional intelligence, self-awareness, restraint, diplomacy, and patience on both sides. In this article, the authors argue that they are practical skills one  can learn and apply to great effect. The most common obstacles to effectively seeking and giving advice are  thinking one already has the answers, defining the problem poorly, and overstepping boundaries.  They  offer practical guidelines for getting past them.

Five stages of advising are identified: (1) finding the right fit; (2) developing a shared understanding; (3) crafting alternatives; (4) converging on a decision; and (5) putting advice into action. Each stage includes suggestions for seekers and for advisers.

The Authenticity Paradox. 

By: Ibarra, Herminia. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p52-59.

INSEAD professor Herminia Ibarra argues, a simplistic understanding of what authenticity means can limit leaders' growth and impact.  In this article, Ibarra explains how leaders can develop an "adaptively authentic" style.  It's OK to change tactics from one day to the next, she says by figuring  out what's right for the challenges and circumstances we face.



The Skills Leaders Need at Every Level

by Jack Zenger and Joseph Folkman
HBR Blog Post
16 Skills are listed in order of importance. Top 7 are said to be important.

1. Inspires and motivates others.
2. Displays high integrity and honesty
3. Solves problems and analyzes issues
4. Drives for results
5. Communicates powerfully and prolifically
6. Collaborates and promotes teamwork
7. Builds relationships

Leadership Development Beyond Competencies: Moving to a Holistic Approach
Marian N. Ruderman, Cathleen Klerkin, and Carol Connelly
Center for Creative Leadership - White Paper

Book review of Jane Dutton and Gretchen Spreitzer, How to Be a Positive Leader: Small Actions, Big Impact.



How to be a better boss?

Ask a person whether he wants to recommend his boss to his friends as the ideal boss to work under.

Knowledge@Wharton article
Social Technology and the Changing Context of Leadership
Social technology is changing the way leaders do conversations with their group members especially in large organizations. The article presents ideas on this issue

Sloan Management Review Article Spring, March 2012

How to Become a Better Leader

The article describes Big 5 Personality factors and use of them in developing oneself as a better leader.

Leadership Basic Articles

Organizational Behavior Articles

Theories of Leadership 
Cognitive Resources Theory of Leadership
Leadership Styles, Roles, Activities, Skills and Development

Principles of Management Articles

Updated  22 August 2017,  24 June 2017,  6 June 2017,  29 May 2017,  22 February 2017, 6 December 2016, 12 October 2016, 10 December 2015

August 25, 2017

Cost Center Reports and Analysis

Cost Center Reports and Analysis

Any activity can be analysed by its costs and the ’output’ it generates. A business might want to know the cost of running a production line compared to other production lines or ways of producing things. Similarly, a firm might want to look at the total cost of running training courses (salary, rents, training materials, utilities and so on) compared to the number of people actually trained.

Cost centre analysis tries to attribute all costs involved in a particular activity to one ’location’ or ’cost centre’. To calculate costs involved in a particular activity it is necessary to calculate the cost of:

All materials used directly  and materials used indirectly (for instance packaging).

All labour costs directly involved and the proportionate cost of any supporting labour (for instance
administrative staff).

Sales And Marketing Costs
Regular, on-going costs of advertising and promotion of that activity’s product or service.

Proportionate costs of regular expenses associated with that activity such as rent, rates, power, interest repayments, other charges.

Additional Costs
Other costs solely attributable to the activity (for instance higher insurance costs for a new machine).

ABC Novelties company  management want to know the real cost of manufacturing toys. Materials used cost $2,000 per year. Production involves 5 trainees paid $500 expenses each per year. The single machine
used is used for toy production 20% of the time and full depreciation is valued at $1,000 per year. Electricity costs $600 a year and toy production takes up half of a workshop costing $2,000 in rent, rates and repairs
per year. The paid administration worker calculates that he spends 30% of his time on book-keeping, sales and marketing toys. He is paid $8,000 per year. The total income of the project is $25,000 per year
and sales of toys contribute $5,000 to this. 

Its total costs are $24,500 per year.

Cost Centre Analysis
Materials            =    $2000
Labour (5 x $500) =   2500
Depreciation ($1,000 x 20%)   =  200
Electricity ($600 x 20%)   =  120
Rent ($2,000 / 2) =           1000
Administration ($8,000 x 30%) = 2400
Total                 =   8220
From these figures we can calculate the following:
Toy making is responsible for 34% of all costs ($8,220 / $24,500 x 100)

August 21, 2017

Supply Chain Management - Subject Update

Supply Chain Management - Revision Notes of All Chapters Based on Chopra and Meindl's Book

August 2017

10 ways big data is revolutionising supply chain management

March 2016

Procurement Trends in India - ISM - India - 2016 Survey

Smart Supply Chains - IBM Paper

Adoption ABC Costing

Supply Chain Cost Cutting  - 2007

M2M Model and Supply Chains

About Access Sup Chain Software

May 2015

Supply Chain Engineering - Activity Based Cost Management

April 2015

Supply Chain Management - Coordination - Updated

March 2015

Selection of Supplier in a Two Stage Supply Chain - An Integer Linear Programming Approach
A. John Rajan, K. Ganesh, and K.N. Balan

Uploaded by A. John Rajan

Cost-effective supply chains: Optimizing product development through integrated design and sourcing

PWC Sup Chain survey results

Efficient Transportation Logistics Can Reduce Other Supply Chain Costs

January 2015

Top 25 Supply Chains of 2014

25 Nestle

Innovative Methods in Logistics and Supply Chain Management

August 2014 book - Collected articles. Appx 500 pages
You can download the full book from

IRMS|360 Enterprise Supply Chain Management Software

irms|360 Enterprise is designed to optimize efficiency at every level of the distribution supply chain. End-to-end visibility of products, people and process helps your organization achieve an unprecedented level of accountability. Higher visibility leads to absolute efficiency, improving customer satisfaction and increasing profits.

With off-the-shelf integration to industry leading manufacturing (MRP), enterprise (ERP), customer relationship management (CRM) solutions, irms|360 Enterprise is a cloud-based solution that can be delivered over the web as Software-as-a-Service (SaaS) or can be delivered as an on-premise solution.

Best and All Time Best Supply Chain Management Books

- Clockspeed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine

- Designing and Managing the Supply Chain by David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi

- Essentials of Supply Chain Management by Michael H. Hugos

- Logistics and Supply Chain Management by Martin Christopher

- Logistics Management and Strategy: Competing through the Supply Chain   by Alan Harrison and Remko Van Hoek

- Purchasing and Supply Chain Management by Robert Monczka, Robert Handfield, Larry Giunipero and James Patterson

- Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice by Arjan J. Van Weele

- Strategic Supply Chain Management: The Five Core Disciplines for Top Performance by Shoshanah Cohen and Joseph Roussel

- Supply Chain Logistics Management by Donald Bowersox, David Closs and M. Bixby Cooper

- Supply Chain Management, Strategy, Planning and Operation by Sunil Chopra and Peter Meindl

- The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage  by Yossi Sheffi

Supply Chain Management  Subject Update - 2014

Updated on   22 August 2017,  8 March 2016, 8 Dec 2015

Design Thinking - Introduction

Design Thinking: Understand Phase

Design Thinking: Explore Phase

In his 1969 seminal text on design methods, “The Sciences of the Artificial,” Nobel Laureate Herbert Simon outlined one of the first formal models of the Design Thinking process. Simon's model consists of seven major stages, each with component stages and activities, and was largely influential in shaping some of the most widely used Design Thinking process models today.

A five-stage model was proposed by the Hasso-Plattner Institute of Design at Stanford ( is the leading university when it comes to teaching Design Thinking. The five stages of Design Thinking in this model are as follows:

Empathise, Define (the problem), Ideate, Prototype, and Test.

A process guide describes the stages in more detail. Download: An Introduction to Design Thinking - Process Guide

Five stage explanation - Another article

IBM Design Thinking