Work Measurement and Productivity Techniques
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AI Summary
The provided assignment details include questions and answers from different subjects such as work measurement, productivity, and business process re-engineering. The answers are in the format of short notes and detailed explanations, covering topics like CRM integration with SCM, end-to-end visibility of supply chain, product creation, modification, or replacement, SKU complexity reduction, prediction accuracy increase, revenue growth, and overall supply chain cost reduction. Additionally, there is a note on work measurement, which includes analysis, measurement, and synthesis phases, as well as techniques for measuring work. The answers also cover topics like productivity, including its definition, measures, and applications in business management.
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Mechandising display & advertising
Q 1 (b) Draw a retail advertising campaign plan and evaluate it.
Ans. Now we’ve established the basics and importance of retail marketing. To get your brand, products and
services out there, it is important to consider the steps to develop an effective, feasible and unique strategy to
achieve this.
Below we’ve incorporated some aspects of retail marketing best practice to consider when constructing your plan.
1. Develop your brand
a. Create your brand story and qualities
b. Align this with your business objectives
c. Develop the assets needed to communicate your brand
2. Define your position
a. Examine what your competitors are doing
b. Assess your place in the market – where do your products fit in the landscape?
c. Use customer surveys for feedback
3. Identify your target market
a. What are the demographics of your customers?
b. Where and how do they prefer to shop?
c. What needs and wants do they have that you can resolve?
4. The benefits of your product
a. Determine the USPs of your product against the needs of your customers
b. Develop your messaging around these key advantages your products offer
5. Detail your tactics
a. How will you promote your product?
b. Which retail marketing channels will you use?
c. Will you use advertising?
6. Build a schedule
a. Create a budget for your retail marketing campaigns
b. Plan out when the various aspects of your campaign will be delivered, and through which
channels
Q 2 (b) Discuss the process of setting advertising objectives.
Ans. The advertising objectives must flow from prior decisions on target market, market positioning, and
marketing mix.
1. Informative advertising:
It is heavily used in the pioneering stage of a product category, where the aim is to build primary demand.
Ujala commercial, where the ad talks about how different it is from the age old “neel” by talking about its solution
contents and showing how different your clothes look when washed with Ujala.
2. Persuasive advertising:
It is generally used when the product is in the competitive stage, where the company’s objective is to build
selective demand for a particular brand.
Whirlpool ice magic positions itself as being a quick icemaker and was the first one of its kind to use this as a
marketing platform.
3. Reminder advertising:
It is very important to use these when the product is in the maturity stage. They are intended to remind people to
purchase your brand.These are just reminder ads to keep the brand or the company fresh in the minds of the
consumers or have the brand top of mind.
4. Reinforcement advertising:
It seeks to ensure the buyers that they have made the right choice by purchasing your brand.
Hamara Bajaj advertisements make the owner of the two wheelers of Bajaj proud of their possession by giving it a
patriotic positioning
Q 1 (b) Draw a retail advertising campaign plan and evaluate it.
Ans. Now we’ve established the basics and importance of retail marketing. To get your brand, products and
services out there, it is important to consider the steps to develop an effective, feasible and unique strategy to
achieve this.
Below we’ve incorporated some aspects of retail marketing best practice to consider when constructing your plan.
1. Develop your brand
a. Create your brand story and qualities
b. Align this with your business objectives
c. Develop the assets needed to communicate your brand
2. Define your position
a. Examine what your competitors are doing
b. Assess your place in the market – where do your products fit in the landscape?
c. Use customer surveys for feedback
3. Identify your target market
a. What are the demographics of your customers?
b. Where and how do they prefer to shop?
c. What needs and wants do they have that you can resolve?
4. The benefits of your product
a. Determine the USPs of your product against the needs of your customers
b. Develop your messaging around these key advantages your products offer
5. Detail your tactics
a. How will you promote your product?
b. Which retail marketing channels will you use?
c. Will you use advertising?
6. Build a schedule
a. Create a budget for your retail marketing campaigns
b. Plan out when the various aspects of your campaign will be delivered, and through which
channels
Q 2 (b) Discuss the process of setting advertising objectives.
Ans. The advertising objectives must flow from prior decisions on target market, market positioning, and
marketing mix.
1. Informative advertising:
It is heavily used in the pioneering stage of a product category, where the aim is to build primary demand.
Ujala commercial, where the ad talks about how different it is from the age old “neel” by talking about its solution
contents and showing how different your clothes look when washed with Ujala.
2. Persuasive advertising:
It is generally used when the product is in the competitive stage, where the company’s objective is to build
selective demand for a particular brand.
Whirlpool ice magic positions itself as being a quick icemaker and was the first one of its kind to use this as a
marketing platform.
3. Reminder advertising:
It is very important to use these when the product is in the maturity stage. They are intended to remind people to
purchase your brand.These are just reminder ads to keep the brand or the company fresh in the minds of the
consumers or have the brand top of mind.
4. Reinforcement advertising:
It seeks to ensure the buyers that they have made the right choice by purchasing your brand.
Hamara Bajaj advertisements make the owner of the two wheelers of Bajaj proud of their possession by giving it a
patriotic positioning
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Q 2( d) Briefly describe elements of merchandising plan.
Ans. Merchandise planning refers to an approach based on data to select, buy, present, and sell merchandise to
consumers so that the maximum rate of investment can be achieved and consumers demand can also be satisfied.
Important components of merchandising planning are :-
1) Product
Merchandise or product is the most basic component of merchandising planning. The retailer has to
provide products which are expected to be demanded by his consumers. He is required to keep enough inventory
of each products category so that he never runs out of it and lose business.
Seasonal products:
Staple:
Fashions:
fads:
2) Range
Range refers to breadth, width, and depth of products that you sell in your store. There should be enough choices
options for the customer so that they can choose the right products for themselves. Stores with limited width
should provide enough depth options.On the other hand, departmental stores, which deal with various categories
of products, should not only have width but also need to have depth and width.
3) Price
Price is another important component of the marketing mix. Price is an important factor when your customers are
price sensitive. It is the job of a retailer to determine different segments of consumers and which price segment
they belong to.You can make categories such as low, medium, and premium range. Customers should be offered
products of the price range they belong to.
4) Assortments
Assortment means the combination of various products to be made available at retail stores. Products should be
assorted and presented department wise and category wise. For example, toiletries, cosmetics, staples, electronics,
furniture, vegetable, etc. each category of products will have different price level, brands, and size.
5) Space
The retailer should also decide the hierarchy of products and decide how to create space for different categories of
products. For example, products can be categorized as fads, new arrivals, vegetable, fashion staples, furniture’s,
electronics, kids’, etc.
It is important to priorities place for different merchandises:
It should be convenient for customers to locate and pick products.
Products should be easily visible.
Q 3 ( a ) Short Note : Reverse Logistic
Ans. Reverse logistics is for all operations related to the reuse of products and materials. It is "the process of
moving goods from their typical final destination for the purpose of capturing value, or proper
disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse
logistics." Growing green concerns and advancement of green supply chain management concepts and practices
make it all the more relevant. The reverse logistics process includes the management and the sale of surplus as
well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with
events that bring the product towards the customer. In the case of reverse logistics, the resource goes at least one
step back in the supply chain. For instance, goods move from the customer to the distributor or to the
manufacturer.
When a manufacturer's product normally moves through the supply chain network, it is to reach the distributor or
customer. Any process or management after the delivery of the product involves reverse logistics. If the product is
defective, the customer would return the product. The manufacturing firm would then have to organise shipping
of the defective product, testing the product, dismantling, repairing, recycling or disposing the product. The
product would travel in reverse through the supply chain network in order to retain any use from the defective
product. The logistics for such matters is reverse logistics.
Ans. Merchandise planning refers to an approach based on data to select, buy, present, and sell merchandise to
consumers so that the maximum rate of investment can be achieved and consumers demand can also be satisfied.
Important components of merchandising planning are :-
1) Product
Merchandise or product is the most basic component of merchandising planning. The retailer has to
provide products which are expected to be demanded by his consumers. He is required to keep enough inventory
of each products category so that he never runs out of it and lose business.
Seasonal products:
Staple:
Fashions:
fads:
2) Range
Range refers to breadth, width, and depth of products that you sell in your store. There should be enough choices
options for the customer so that they can choose the right products for themselves. Stores with limited width
should provide enough depth options.On the other hand, departmental stores, which deal with various categories
of products, should not only have width but also need to have depth and width.
3) Price
Price is another important component of the marketing mix. Price is an important factor when your customers are
price sensitive. It is the job of a retailer to determine different segments of consumers and which price segment
they belong to.You can make categories such as low, medium, and premium range. Customers should be offered
products of the price range they belong to.
4) Assortments
Assortment means the combination of various products to be made available at retail stores. Products should be
assorted and presented department wise and category wise. For example, toiletries, cosmetics, staples, electronics,
furniture, vegetable, etc. each category of products will have different price level, brands, and size.
5) Space
The retailer should also decide the hierarchy of products and decide how to create space for different categories of
products. For example, products can be categorized as fads, new arrivals, vegetable, fashion staples, furniture’s,
electronics, kids’, etc.
It is important to priorities place for different merchandises:
It should be convenient for customers to locate and pick products.
Products should be easily visible.
Q 3 ( a ) Short Note : Reverse Logistic
Ans. Reverse logistics is for all operations related to the reuse of products and materials. It is "the process of
moving goods from their typical final destination for the purpose of capturing value, or proper
disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse
logistics." Growing green concerns and advancement of green supply chain management concepts and practices
make it all the more relevant. The reverse logistics process includes the management and the sale of surplus as
well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with
events that bring the product towards the customer. In the case of reverse logistics, the resource goes at least one
step back in the supply chain. For instance, goods move from the customer to the distributor or to the
manufacturer.
When a manufacturer's product normally moves through the supply chain network, it is to reach the distributor or
customer. Any process or management after the delivery of the product involves reverse logistics. If the product is
defective, the customer would return the product. The manufacturing firm would then have to organise shipping
of the defective product, testing the product, dismantling, repairing, recycling or disposing the product. The
product would travel in reverse through the supply chain network in order to retain any use from the defective
product. The logistics for such matters is reverse logistics.
Q 3 ( b ) Short Note : Merchandising Planning
Ans. Merchandise planning is a method of selecting, managing, purchasing, displaying and pricing the products in
a manner that they bring in maximum returns on investment, value addition to the brand name by satisfying the
consumer needs while avoiding the creation of excess inventory. Moreover, merchandise planning is about
striving to make the right product available, at the right time, in the right place, in the right quantities, and at the
right price.
Merchandise planning is defined as “Planning and control of merchandise inventory of the retail firm, in a
manner, which balances between the expectation of target customer and strategy of firm”.:
Strategy of a firm may be profit maximization growth and expansion of its market. Expectation of customers is
always a product that is desired by him and that satisfies his need. There is interlink between them, i.e., a firm can
meet its target of profit or market share, when it is in a position to stock and sell the product that is liked by the
customer. This call for merchandise planning.
Supply chain management
Q 1 ( b) Describe the various strategy of supply chain management.]
Ans. Supply chain management (SCM) should enable companies to develop and execute strategies that efficiently
integrate the management of all the players in a supply chain — suppliers, manufacturers, distributors, and
customers — so that production and distribution are accomplished at the lowest possible total cost while meeting
customer needs. In reality, though, companies struggle to achieve success in managing their supply chains.
Companies with successful SCM programs employ eight basic best practices:
1. Start with strategy, but be practical. Go ahead — ask the “what if” questions about your supply chain. This will
help you assess alternatives. But remember that the best supply chain strategy is one you can accomplish. Make it
specific, not general; practical, not conceptual. Include elements of process, technology, organization, control
philosophy, and metrics. Think through the details. It’s not enough to say that you want to employ global
sourcing; to actually implement the strategy, you must specify the components, the countries, and the suppliers.
2. Manage the entire supply chain with a focus on the customer. SCM should span all links in the supply chain,
from suppliers to logistics providers to distributors to production facilities and warehouses to customers. This
entire network should be aligned to achieve the same goals: serving end customers’ needs and, to the greatest
extent possible, delivering products that customers want when they want them, and at the prices they are willing
to pay.
3. Get on the CEO’s agenda. A top-down SCM approach — that is, an initiative endorsed and led by the chief
executive officer — is critical to securing senior management buy-in and ensuring that the strategy will yield
good results. A Booz Allen Hamilton survey found that companies that assign SCM to functional leaders achieve
55 percent less in savings than those whose CEO plays a hands-on role in linking SCM to overall corporate
strategy.
4. Control trade-offs between cost and service. Smart trade-offs between cost and service are critical to the
effective design of the supply chain network and to achieving the goal of satisfying customer needs.
5. Ensure that key stakeholders communicate. The objectives of business functions frequently conflict. This can
weaken the supply chain so much that in short order it affects the company’s performance
6. Be smart about customization. Customers are demanding ever more customized products and services, but
customization adds expensive and wasteful complexity to the supply chain if it is not carefully planned for and
managed. More part and product configurations mean more suppliers, more inventory, and shorter production run
times. Before burdening the supply chain with these costs, assess the value of the additional products or services
to the customer and the company. Complexity can be reined in through effective product architecture and by fully
understanding all associated costs.
7. Understand the value and risks of technology. Information technology should not be used to replace broken
links in the supply chain. Processes complementing the company’s SCM strategy must be designed first — then
the right technology infrastructure can support the strategy. Managers may be tempted to eliminate the critical
human element and rely only on software to manage the supply chain. But software can’t possibly understand a
Ans. Merchandise planning is a method of selecting, managing, purchasing, displaying and pricing the products in
a manner that they bring in maximum returns on investment, value addition to the brand name by satisfying the
consumer needs while avoiding the creation of excess inventory. Moreover, merchandise planning is about
striving to make the right product available, at the right time, in the right place, in the right quantities, and at the
right price.
Merchandise planning is defined as “Planning and control of merchandise inventory of the retail firm, in a
manner, which balances between the expectation of target customer and strategy of firm”.:
Strategy of a firm may be profit maximization growth and expansion of its market. Expectation of customers is
always a product that is desired by him and that satisfies his need. There is interlink between them, i.e., a firm can
meet its target of profit or market share, when it is in a position to stock and sell the product that is liked by the
customer. This call for merchandise planning.
Supply chain management
Q 1 ( b) Describe the various strategy of supply chain management.]
Ans. Supply chain management (SCM) should enable companies to develop and execute strategies that efficiently
integrate the management of all the players in a supply chain — suppliers, manufacturers, distributors, and
customers — so that production and distribution are accomplished at the lowest possible total cost while meeting
customer needs. In reality, though, companies struggle to achieve success in managing their supply chains.
Companies with successful SCM programs employ eight basic best practices:
1. Start with strategy, but be practical. Go ahead — ask the “what if” questions about your supply chain. This will
help you assess alternatives. But remember that the best supply chain strategy is one you can accomplish. Make it
specific, not general; practical, not conceptual. Include elements of process, technology, organization, control
philosophy, and metrics. Think through the details. It’s not enough to say that you want to employ global
sourcing; to actually implement the strategy, you must specify the components, the countries, and the suppliers.
2. Manage the entire supply chain with a focus on the customer. SCM should span all links in the supply chain,
from suppliers to logistics providers to distributors to production facilities and warehouses to customers. This
entire network should be aligned to achieve the same goals: serving end customers’ needs and, to the greatest
extent possible, delivering products that customers want when they want them, and at the prices they are willing
to pay.
3. Get on the CEO’s agenda. A top-down SCM approach — that is, an initiative endorsed and led by the chief
executive officer — is critical to securing senior management buy-in and ensuring that the strategy will yield
good results. A Booz Allen Hamilton survey found that companies that assign SCM to functional leaders achieve
55 percent less in savings than those whose CEO plays a hands-on role in linking SCM to overall corporate
strategy.
4. Control trade-offs between cost and service. Smart trade-offs between cost and service are critical to the
effective design of the supply chain network and to achieving the goal of satisfying customer needs.
5. Ensure that key stakeholders communicate. The objectives of business functions frequently conflict. This can
weaken the supply chain so much that in short order it affects the company’s performance
6. Be smart about customization. Customers are demanding ever more customized products and services, but
customization adds expensive and wasteful complexity to the supply chain if it is not carefully planned for and
managed. More part and product configurations mean more suppliers, more inventory, and shorter production run
times. Before burdening the supply chain with these costs, assess the value of the additional products or services
to the customer and the company. Complexity can be reined in through effective product architecture and by fully
understanding all associated costs.
7. Understand the value and risks of technology. Information technology should not be used to replace broken
links in the supply chain. Processes complementing the company’s SCM strategy must be designed first — then
the right technology infrastructure can support the strategy. Managers may be tempted to eliminate the critical
human element and rely only on software to manage the supply chain. But software can’t possibly understand a
company’s strategic plan, or intelligently adjust the supply chain when it fails to match customers’ needs. In
SCM, there is no substitute for knowledgeable, hands-on managers; technology can help provide data to make
good decisions.
8. Adapt to changing business realities. Many SCM initiatives fail because they’re constrained by the existing
supply chain structure. In those cases, the supply chain is tweaked, based on a limited short-term perspective,
when it needs to be optimized by radically altering practices and processes. Frequent reexamination of the supply
chain, with no limits placed on the assessment, is necessary if companies are to ensure that the supply chain
strategy remains effective. Economies evolve, markets evolve, and channels evolve, and so must the supply chain.
What works in one business environment may be unsuccessful in another. Continual adaptation of the supply
chain to support frequently changing business realities — particularly new product introductions and new
business launches — is a critical step to enduring market leadership.
Q 2 ( a) Explain the role of IT in supply chain management.
Ans. Companies that opt to participate in supply chain management initiatives accept a specific role to enact.
They have a mutual feeling that they, along with all other supply chain participants, will be better off because of
this collaborative effort. The fundamental issue here is power. The last two decades have seen the shifting of
power from manufacturers to retailers.
When we talk about information access for the supply chain, retailers have an essential designation. They emerge
to the position of prominence with the help of technologies. The advancement of inter organizational information
system for the supply chain has three distinct benefits. These are −
Cost reduction − The advancement of technology has further led to ready availability of all the products
with different offers and discounts. This leads to reduction of costs of products.
Productivity − The growth of information technology has improved productivity because of inventions of
new tools and software. That makes productivity much easier and less time consuming.
Improvement and product/market strategies − Recent years have seen a huge growth in not only the
technologies but the market itself. New strategies are made to allure customers and new ideas are being
experimented for improving the product.
It would be appropriate to say that information technology is a vital organ of supply chain management. With the
advancement of technologies, new products are being introduced within fraction of seconds increasing their
demand in the market. Let us study the role of information technology in supply chain management briefly.
The software as well as the hardware part needs to be considered in the advancement and maintenance of supply
chain information systems. The hardware part comprises computer's input/output devices like the screen, printer,
mouse and storage media. The software part comprises the entire system and application program used for
processing transactions management control, decision-making and strategic planning.
Q 2 (c) What are the features of supply chain management?
Ans. The most common features of supply chain management software include:
Inventory management - for tracking and managing the availability of raw materials, stocked goods or
spare parts. This feature can also help with asset management, barcode integration and future inventory
and price forecasting.
Order management - for automating purchase order processes. For example, generating and tracking
purchase orders, scheduling of supplier deliveries, and creating pricing and product configurations.
Logistics and shipping status - for coordinating transportation channels, improving delivery performance
and boosting customer satisfaction. Warehouse management features can help with storage optimisation,
labelling, labour management and more.
Forecasting - for anticipating customer demand and planning procurement and production processes
accordingly. Efficient forecasting can help remove the need to buy unnecessary raw materials or store
excess finished goods on warehouse shelves, hence reducing costs.
SCM, there is no substitute for knowledgeable, hands-on managers; technology can help provide data to make
good decisions.
8. Adapt to changing business realities. Many SCM initiatives fail because they’re constrained by the existing
supply chain structure. In those cases, the supply chain is tweaked, based on a limited short-term perspective,
when it needs to be optimized by radically altering practices and processes. Frequent reexamination of the supply
chain, with no limits placed on the assessment, is necessary if companies are to ensure that the supply chain
strategy remains effective. Economies evolve, markets evolve, and channels evolve, and so must the supply chain.
What works in one business environment may be unsuccessful in another. Continual adaptation of the supply
chain to support frequently changing business realities — particularly new product introductions and new
business launches — is a critical step to enduring market leadership.
Q 2 ( a) Explain the role of IT in supply chain management.
Ans. Companies that opt to participate in supply chain management initiatives accept a specific role to enact.
They have a mutual feeling that they, along with all other supply chain participants, will be better off because of
this collaborative effort. The fundamental issue here is power. The last two decades have seen the shifting of
power from manufacturers to retailers.
When we talk about information access for the supply chain, retailers have an essential designation. They emerge
to the position of prominence with the help of technologies. The advancement of inter organizational information
system for the supply chain has three distinct benefits. These are −
Cost reduction − The advancement of technology has further led to ready availability of all the products
with different offers and discounts. This leads to reduction of costs of products.
Productivity − The growth of information technology has improved productivity because of inventions of
new tools and software. That makes productivity much easier and less time consuming.
Improvement and product/market strategies − Recent years have seen a huge growth in not only the
technologies but the market itself. New strategies are made to allure customers and new ideas are being
experimented for improving the product.
It would be appropriate to say that information technology is a vital organ of supply chain management. With the
advancement of technologies, new products are being introduced within fraction of seconds increasing their
demand in the market. Let us study the role of information technology in supply chain management briefly.
The software as well as the hardware part needs to be considered in the advancement and maintenance of supply
chain information systems. The hardware part comprises computer's input/output devices like the screen, printer,
mouse and storage media. The software part comprises the entire system and application program used for
processing transactions management control, decision-making and strategic planning.
Q 2 (c) What are the features of supply chain management?
Ans. The most common features of supply chain management software include:
Inventory management - for tracking and managing the availability of raw materials, stocked goods or
spare parts. This feature can also help with asset management, barcode integration and future inventory
and price forecasting.
Order management - for automating purchase order processes. For example, generating and tracking
purchase orders, scheduling of supplier deliveries, and creating pricing and product configurations.
Logistics and shipping status - for coordinating transportation channels, improving delivery performance
and boosting customer satisfaction. Warehouse management features can help with storage optimisation,
labelling, labour management and more.
Forecasting - for anticipating customer demand and planning procurement and production processes
accordingly. Efficient forecasting can help remove the need to buy unnecessary raw materials or store
excess finished goods on warehouse shelves, hence reducing costs.
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Return management - for inspection and handling of damaged or faulty goods, and processing of refunds
or insurance claims.
Many supply chain systems also include extra options or modules that can support other processes, such as
contract management, product life cycle management and more.
Q 3 ( b ) Short Note : Bulk contracts
Ans. Bulk Contract means those Contracts with Commercial Customers that provide for provision of services to
all units in the Property owned by the Commercial Customer and a monthly payment to Borrower from such
Commercial Customer covering all units in the Property regardless of whether the Consumer Customer or resident
in the individual units in such Property elect to utilize the services provided by Borrower and all rights, title and
interest in and payments under any of the foregoing.
For Example Borrowers shall use the proceeds of all Loans made subsequent to the Effective Date solely to
make Bulk Contract Purchases permitted in accordance with the terms hereof, and to provide funds for their
working capital needs and general corporate purposes in the ordinary course of business.
Q 3 ( d ) Short Note : Supply chain drivers
Ans. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency. As you
investigate how a supply chain works, you learn about the demands from the downstream links and optimize your
efficiency accordingly.
• Facilities
– places where inventory is stored, assembled, or fabricated
– production sites and storage sites
– Decisions regarding location, capacity and flexibilities of facility have a significant impact on SC
performance
• Inventory
– raw materials, WIP, finished goods within a supply chain
– Changes in inventory policies can dramatically alter the efficiency and responsiveness of a SC
• Transportation
– moving inventory from point to point in a supply chain
– combinations of transportation modes and routes can affect the performance of SC
• Information
– data and analysis regarding inventory, transportation, facilities throughout the supply chain
– potentially the biggest driver of supply chain performance
– This driver allow the management with the better opportunity to make the SC more responsive and
efficient
• Sourcing – Distinguish the functions a firm performs and functions that are outsourced
• Pricing – Price associated with goods and services provided by a firm to the supply chain
Logistics & Supply Chain Management
Q 1 ( b) What is supply chain management? How it is important in competitive global environment?
Ans. Supply chain management is the handling of the entire production flow of a good or service — starting from
the raw components all the way to delivering the final product to the consumer. To accomplish this task, a
company will create a network of suppliers (the “links” in the chain) that move the product along from the
suppliers of raw materials to the organizations who deal directly with users.
Importance of competitive global environment :
Effective supply chain management minimizes cost, waste and time in the production cycle. The industry standard
has become a just-in-time supply chain where retail sales automatically signal replenishment orders to
manufacturers. Retail shelves can then be restocked almost as quickly as product is sold. One way to further
improve on this process is to analyze the data from supply chain partners to see where further improvements can
be made.
or insurance claims.
Many supply chain systems also include extra options or modules that can support other processes, such as
contract management, product life cycle management and more.
Q 3 ( b ) Short Note : Bulk contracts
Ans. Bulk Contract means those Contracts with Commercial Customers that provide for provision of services to
all units in the Property owned by the Commercial Customer and a monthly payment to Borrower from such
Commercial Customer covering all units in the Property regardless of whether the Consumer Customer or resident
in the individual units in such Property elect to utilize the services provided by Borrower and all rights, title and
interest in and payments under any of the foregoing.
For Example Borrowers shall use the proceeds of all Loans made subsequent to the Effective Date solely to
make Bulk Contract Purchases permitted in accordance with the terms hereof, and to provide funds for their
working capital needs and general corporate purposes in the ordinary course of business.
Q 3 ( d ) Short Note : Supply chain drivers
Ans. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency. As you
investigate how a supply chain works, you learn about the demands from the downstream links and optimize your
efficiency accordingly.
• Facilities
– places where inventory is stored, assembled, or fabricated
– production sites and storage sites
– Decisions regarding location, capacity and flexibilities of facility have a significant impact on SC
performance
• Inventory
– raw materials, WIP, finished goods within a supply chain
– Changes in inventory policies can dramatically alter the efficiency and responsiveness of a SC
• Transportation
– moving inventory from point to point in a supply chain
– combinations of transportation modes and routes can affect the performance of SC
• Information
– data and analysis regarding inventory, transportation, facilities throughout the supply chain
– potentially the biggest driver of supply chain performance
– This driver allow the management with the better opportunity to make the SC more responsive and
efficient
• Sourcing – Distinguish the functions a firm performs and functions that are outsourced
• Pricing – Price associated with goods and services provided by a firm to the supply chain
Logistics & Supply Chain Management
Q 1 ( b) What is supply chain management? How it is important in competitive global environment?
Ans. Supply chain management is the handling of the entire production flow of a good or service — starting from
the raw components all the way to delivering the final product to the consumer. To accomplish this task, a
company will create a network of suppliers (the “links” in the chain) that move the product along from the
suppliers of raw materials to the organizations who deal directly with users.
Importance of competitive global environment :
Effective supply chain management minimizes cost, waste and time in the production cycle. The industry standard
has become a just-in-time supply chain where retail sales automatically signal replenishment orders to
manufacturers. Retail shelves can then be restocked almost as quickly as product is sold. One way to further
improve on this process is to analyze the data from supply chain partners to see where further improvements can
be made.
By analyzing partner data, Perkins and Wailgum² identify three scenarios where effective supply chain
management increases value to the supply chain cycle:
Identifying potential problems. When a customer orders more product than the manufacturer can deliver,
the buyer can complain of poor service. Through data analysis, manufacturers may be able to anticipate
the shortage before the buyer is disappointed.
Optimizing price dynamically. Seasonal products have a limited shelf life. At the end of the season, these
products are typically scrapped or sold at deep discounts. Airlines, hotels and others with perishable
“products” typically adjust prices dynamically to meet demand. By using analytic software, similar
forecasting techniques can improve margins, even for hard goods.
Improving the allocation of “available to promise” inventory. Analytical software tools help to
dynamically allocate resources and schedule work based on the sales forecast, actual orders and promised
delivery of raw materials. Manufacturers can confirm a product delivery date when the order is
placed — significantly reducing incorrectly filled orders.
Q 2 (b) Why is CRM important in supply chain management? Explain.
Ans. The complete supply chain network must include different management systems such as ERP and CRM
system.
The CRM system provides the ability to the organization for managing the customer orders, delivery of
products, revenue, marketing, order management, products information along with strategies for reaching
the target market in timely and efficient manner.
The supply chain integrates the CRM for making the database of customer information and collecting
valuable data to show the current needs and wants of the customers.
The CRM ensures good customer relationships as the right product for the right customer at the right time
in right quantity, condition, and cost.
The CRM segments the each of the customer needs and supports the relationship marketing/cross selling.
The CRM integration in supply chain leads to forecast the customer behavior and retains customers by
analyzing the likelihood of customer purchases.
Furthermore, the CRM can be used to run the sales promotions under any specific customer groups using
the business analytics tools.
However, there can be certain challenges for integration the CRM with the SCM at the practical level. The two
environments cannot be exactly same for the same phase or process. The integrated system can give end to end
visibility of the supply chain for the SCM with precision ability for the product creation, modification, or
replaced. The CRM also reduces the SKU complexity, increases the prediction accuracy, revenue growth, and
overall supply chain cost reduction.
Q 2 ( d) Explain the 5 R’s of supply chain management in detail.
ANS. Five R’s of reverse logistics – returns, recalls, repairs, repackaging and recycling/disposition :
Returns
Returns are almost always the first stage or part of the reverse logistics flow. In every industry or sector, products
can be defective, damaged, seasonal, or fail to meet expectations or simply represent excess inventory and
customers just return them to their suppliers. The reasons are not important on why the product was returned,
what is important is to handle the issue of returns efficiently by having processes in place for receiving, inspecting
and testing products. To complement the previous, the company should have return material authorization (RMA)
verification and tracking systems to make the information flow smoothly.
Recalls
management increases value to the supply chain cycle:
Identifying potential problems. When a customer orders more product than the manufacturer can deliver,
the buyer can complain of poor service. Through data analysis, manufacturers may be able to anticipate
the shortage before the buyer is disappointed.
Optimizing price dynamically. Seasonal products have a limited shelf life. At the end of the season, these
products are typically scrapped or sold at deep discounts. Airlines, hotels and others with perishable
“products” typically adjust prices dynamically to meet demand. By using analytic software, similar
forecasting techniques can improve margins, even for hard goods.
Improving the allocation of “available to promise” inventory. Analytical software tools help to
dynamically allocate resources and schedule work based on the sales forecast, actual orders and promised
delivery of raw materials. Manufacturers can confirm a product delivery date when the order is
placed — significantly reducing incorrectly filled orders.
Q 2 (b) Why is CRM important in supply chain management? Explain.
Ans. The complete supply chain network must include different management systems such as ERP and CRM
system.
The CRM system provides the ability to the organization for managing the customer orders, delivery of
products, revenue, marketing, order management, products information along with strategies for reaching
the target market in timely and efficient manner.
The supply chain integrates the CRM for making the database of customer information and collecting
valuable data to show the current needs and wants of the customers.
The CRM ensures good customer relationships as the right product for the right customer at the right time
in right quantity, condition, and cost.
The CRM segments the each of the customer needs and supports the relationship marketing/cross selling.
The CRM integration in supply chain leads to forecast the customer behavior and retains customers by
analyzing the likelihood of customer purchases.
Furthermore, the CRM can be used to run the sales promotions under any specific customer groups using
the business analytics tools.
However, there can be certain challenges for integration the CRM with the SCM at the practical level. The two
environments cannot be exactly same for the same phase or process. The integrated system can give end to end
visibility of the supply chain for the SCM with precision ability for the product creation, modification, or
replaced. The CRM also reduces the SKU complexity, increases the prediction accuracy, revenue growth, and
overall supply chain cost reduction.
Q 2 ( d) Explain the 5 R’s of supply chain management in detail.
ANS. Five R’s of reverse logistics – returns, recalls, repairs, repackaging and recycling/disposition :
Returns
Returns are almost always the first stage or part of the reverse logistics flow. In every industry or sector, products
can be defective, damaged, seasonal, or fail to meet expectations or simply represent excess inventory and
customers just return them to their suppliers. The reasons are not important on why the product was returned,
what is important is to handle the issue of returns efficiently by having processes in place for receiving, inspecting
and testing products. To complement the previous, the company should have return material authorization (RMA)
verification and tracking systems to make the information flow smoothly.
Recalls
It is just the same as the typical returns but with the difference that they typically involve a product defect or
potential hazard and may be subject to government regulations, liability concerns or reporting requirements,
which makes them more delicate to handle.
The process to deal with these issues is the same as the returns but with the difference that a company tries to
salvage revenues and turn a potentially negative customer experience into a positive one that builds brand trust.
Repair, refurbishment, re-use and remanufacturing
When a product is returned, it not always goes directly to the landfills. Manufacturers have the task of identifying
the problem and repairing it if possible.
In the era of recycling and the trend or reusing products and materials, these practices are very common and
manufacturers recognize the value of re-using materials from returned goods. If the company lacks these
processes, these Rs will make the company invest too much time and money on repair parts or labor. The reasons
are very convincing as you can now see shelves with both new and re-used or remanufactured products.
Repackaging for restock or resale in secondary channels
95% of the products that are returned are based on customer satisfaction and not exactly on faults or because there
is something that does not work properly. When testing reveals “no trouble found,” these products are typically
repackaged and returned to inventory as quickly as possible. In addition, parts or products with minor flaws may
be repaired, reconditioned and repackaged for resale. With correct co-locating logistics, the same facilities used to
produce the product can be used to repackage returns for resale using secondary channels.
Recycling, disposal and disposition
When products reach the end of their useful lives and must be scrapped, companies are finding environmentally
friendly ways to dispose of them. That might mean hiring recycling companies to collect waste and dispose of
assets for them. A good example of this is in high-tech devices like mobile phones or circuit boards, where
companies recover rare earth metals like gold, silver, titanium, palladium or copper.
The supply chain is not just about going forward. Reverse logistics is making a big comeback in the corporate
world and it is better to understand how the supply chain can benefit from this trend.
Q 3 ( a ) Short Note : Economic order quantity
Ans. Economic order quantity (EOQ) is the ideal order quantity a company should purchase to
minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model
was developed in 1913 by Ford W. Harris and has been refined over time.1 The formula assumes that demand,
ordering, and holding costs all remain constant.
The EOQ is a company's optimal order quantity that minimizes its total costs related to ordering,
receiving, and holding inventory.
The EOQ formula is best applied in situations where demand, ordering, and holding costs remain constant
over time.
Q 3 ( c ) Short Note : Logistics
potential hazard and may be subject to government regulations, liability concerns or reporting requirements,
which makes them more delicate to handle.
The process to deal with these issues is the same as the returns but with the difference that a company tries to
salvage revenues and turn a potentially negative customer experience into a positive one that builds brand trust.
Repair, refurbishment, re-use and remanufacturing
When a product is returned, it not always goes directly to the landfills. Manufacturers have the task of identifying
the problem and repairing it if possible.
In the era of recycling and the trend or reusing products and materials, these practices are very common and
manufacturers recognize the value of re-using materials from returned goods. If the company lacks these
processes, these Rs will make the company invest too much time and money on repair parts or labor. The reasons
are very convincing as you can now see shelves with both new and re-used or remanufactured products.
Repackaging for restock or resale in secondary channels
95% of the products that are returned are based on customer satisfaction and not exactly on faults or because there
is something that does not work properly. When testing reveals “no trouble found,” these products are typically
repackaged and returned to inventory as quickly as possible. In addition, parts or products with minor flaws may
be repaired, reconditioned and repackaged for resale. With correct co-locating logistics, the same facilities used to
produce the product can be used to repackage returns for resale using secondary channels.
Recycling, disposal and disposition
When products reach the end of their useful lives and must be scrapped, companies are finding environmentally
friendly ways to dispose of them. That might mean hiring recycling companies to collect waste and dispose of
assets for them. A good example of this is in high-tech devices like mobile phones or circuit boards, where
companies recover rare earth metals like gold, silver, titanium, palladium or copper.
The supply chain is not just about going forward. Reverse logistics is making a big comeback in the corporate
world and it is better to understand how the supply chain can benefit from this trend.
Q 3 ( a ) Short Note : Economic order quantity
Ans. Economic order quantity (EOQ) is the ideal order quantity a company should purchase to
minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model
was developed in 1913 by Ford W. Harris and has been refined over time.1 The formula assumes that demand,
ordering, and holding costs all remain constant.
The EOQ is a company's optimal order quantity that minimizes its total costs related to ordering,
receiving, and holding inventory.
The EOQ formula is best applied in situations where demand, ordering, and holding costs remain constant
over time.
Q 3 ( c ) Short Note : Logistics
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Ans. Logistics is generally the detailed organization and implementation of a complex operation. In a general
business sense, logistics is the management of the flow of things between the point of origin and the point of
consumption to meet the requirements of customers or corporations. The resources managed in logistics may
include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
The logistics of physical items usually involves the integration of information flow, materials
handling, production, packaging, inventory, transportation, warehousing, and often security.
In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy,
since an armed force without resources and transportation is defenseless. Military logistics was already practiced
in the ancient world and as the modern military has a significant need for logistics solutions, advanced
implementations have been developed. In military logistics, logistics officers manage how and when to move
resources to the places they are needed.
Logistics management is the part of supply chain management and supply chain engineering that plans,
implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and
related information between the point of origin and point of consumption to meet customer's requirements. The
complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software.
The minimization of the use of resources is a common motivation in all logistics fields. A professional working in
the field of logistics management is called a logistician.
Industrial management
Q 1 ( b) What is Productivity? Explain the factors affecting productivity.
Ans. Productivity describes various measures of the efficiency of production. Often, a productivity measure is
expressed as the ratio of an aggregate output to a single input or an aggregate input used in a production process,
i.e. output per unit of input, typically over a specific period of time.
The various decisions with respect to the factors are mentioned below:
1. Man Power:
Selection i.e. selection of right man for a specific job Applying well known saying division of labour. Training i.e.
consideration of training requirements whether to be imparted training in the plant itself or to be sent for training
outside the unit to other plants within the country or abroad or training institutes. Number of personnel required
i.e. man power requirement planning in each of the departments of required skill.
2. Equipment and Machines:
The number of machine tools, their capacity and accessories required, replacement policy of the organization and
maintenance schedules etc.
3. Input Materials:
i. Appropriate quality of materials
ii. Material requirement planning (M.R.P.)
iii. Substitute of materials being used
iv. Inspection of input materials at various points
v. Cost of materials procurement and handling up to stores.
4. Time:
Time is significant for the following reasons:
i. Inspection of input materials i.e. raw material and semi finished or finished items required for assembly.
ii. Time for inspection of finished products.
iii. Production time (total time of manufacturing).
iv. Time for repair and maintenance of machines and equipment.
business sense, logistics is the management of the flow of things between the point of origin and the point of
consumption to meet the requirements of customers or corporations. The resources managed in logistics may
include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
The logistics of physical items usually involves the integration of information flow, materials
handling, production, packaging, inventory, transportation, warehousing, and often security.
In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy,
since an armed force without resources and transportation is defenseless. Military logistics was already practiced
in the ancient world and as the modern military has a significant need for logistics solutions, advanced
implementations have been developed. In military logistics, logistics officers manage how and when to move
resources to the places they are needed.
Logistics management is the part of supply chain management and supply chain engineering that plans,
implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and
related information between the point of origin and point of consumption to meet customer's requirements. The
complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software.
The minimization of the use of resources is a common motivation in all logistics fields. A professional working in
the field of logistics management is called a logistician.
Industrial management
Q 1 ( b) What is Productivity? Explain the factors affecting productivity.
Ans. Productivity describes various measures of the efficiency of production. Often, a productivity measure is
expressed as the ratio of an aggregate output to a single input or an aggregate input used in a production process,
i.e. output per unit of input, typically over a specific period of time.
The various decisions with respect to the factors are mentioned below:
1. Man Power:
Selection i.e. selection of right man for a specific job Applying well known saying division of labour. Training i.e.
consideration of training requirements whether to be imparted training in the plant itself or to be sent for training
outside the unit to other plants within the country or abroad or training institutes. Number of personnel required
i.e. man power requirement planning in each of the departments of required skill.
2. Equipment and Machines:
The number of machine tools, their capacity and accessories required, replacement policy of the organization and
maintenance schedules etc.
3. Input Materials:
i. Appropriate quality of materials
ii. Material requirement planning (M.R.P.)
iii. Substitute of materials being used
iv. Inspection of input materials at various points
v. Cost of materials procurement and handling up to stores.
4. Time:
Time is significant for the following reasons:
i. Inspection of input materials i.e. raw material and semi finished or finished items required for assembly.
ii. Time for inspection of finished products.
iii. Production time (total time of manufacturing).
iv. Time for repair and maintenance of machines and equipment.
5. Floor Area or Space:
i. Total area covered by the administrative block, production shop and inspection & quality control departments
etc.
ii. Location of different departments and shops etc.
iii. Other space covered by plant layout.
6. Power or Energy:
i. Maintenance of equipment for saving energy
ii. Use of renewable energy devices
iii. Use of biogas, photovoltaic cells, solar energy and other non conventional techniques.
7. Finance:
Finance is required to maintain all the above requirements. The management should be for minimum rather
optimum finance.
8. Movement of Man and Materials:
i. The required motion of manpower within the plant
ii. The motion of raw material semi finished and finished products/items within the plant.
Q 2 (b) Why is CRM important in supply chain management? Explain.
Ans. The complete supply chain network must include different management systems such as ERP and CRM
system.
The CRM system provides the ability to the organization for managing the customer orders, delivery of
products, revenue, marketing, order management, products information along with strategies for reaching
the target market in timely and efficient manner.
The supply chain integrates the CRM for making the database of customer information and collecting
valuable data to show the current needs and wants of the customers.
The CRM ensures good customer relationships as the right product for the right customer at the right time
in right quantity, condition, and cost.
The CRM segments the each of the customer needs and supports the relationship marketing/cross selling.
The CRM integration in supply chain leads to forecast the customer behavior and retains customers by
analyzing the likelihood of customer purchases.
Furthermore, the CRM can be used to run the sales promotions under any specific customer groups using
the business analytics tools.
However, there can be certain challenges for integration the CRM with the SCM at the practical level. The two
environments cannot be exactly same for the same phase or process. The integrated system can give end to end
visibility of the supply chain for the SCM with precision ability for the product creation, modification, or
replaced. The CRM also reduces the SKU complexity, increases the prediction accuracy, revenue growth, and
overall supply chain cost reduction.
Q 2 ( d) Write a detailed note on work measurement.
Ans. Work measurement is the process of establishing the time that a given task would take when performed by a
qualified worker working at a defined level of performance.
There are various ways in which work may be measured and a variety of techniques have been established. The
basic procedure, irrespective of the particular measurement technique being used, consists of three stages ;
an analysis phase in which the job is divided into convenient, discrete components, commonly
known as elements;
a measurement phase in which the specific measurement technique is used to establish the time
required (by a qualified worker working at a defined level of performance) to complete each
element of work;
i. Total area covered by the administrative block, production shop and inspection & quality control departments
etc.
ii. Location of different departments and shops etc.
iii. Other space covered by plant layout.
6. Power or Energy:
i. Maintenance of equipment for saving energy
ii. Use of renewable energy devices
iii. Use of biogas, photovoltaic cells, solar energy and other non conventional techniques.
7. Finance:
Finance is required to maintain all the above requirements. The management should be for minimum rather
optimum finance.
8. Movement of Man and Materials:
i. The required motion of manpower within the plant
ii. The motion of raw material semi finished and finished products/items within the plant.
Q 2 (b) Why is CRM important in supply chain management? Explain.
Ans. The complete supply chain network must include different management systems such as ERP and CRM
system.
The CRM system provides the ability to the organization for managing the customer orders, delivery of
products, revenue, marketing, order management, products information along with strategies for reaching
the target market in timely and efficient manner.
The supply chain integrates the CRM for making the database of customer information and collecting
valuable data to show the current needs and wants of the customers.
The CRM ensures good customer relationships as the right product for the right customer at the right time
in right quantity, condition, and cost.
The CRM segments the each of the customer needs and supports the relationship marketing/cross selling.
The CRM integration in supply chain leads to forecast the customer behavior and retains customers by
analyzing the likelihood of customer purchases.
Furthermore, the CRM can be used to run the sales promotions under any specific customer groups using
the business analytics tools.
However, there can be certain challenges for integration the CRM with the SCM at the practical level. The two
environments cannot be exactly same for the same phase or process. The integrated system can give end to end
visibility of the supply chain for the SCM with precision ability for the product creation, modification, or
replaced. The CRM also reduces the SKU complexity, increases the prediction accuracy, revenue growth, and
overall supply chain cost reduction.
Q 2 ( d) Write a detailed note on work measurement.
Ans. Work measurement is the process of establishing the time that a given task would take when performed by a
qualified worker working at a defined level of performance.
There are various ways in which work may be measured and a variety of techniques have been established. The
basic procedure, irrespective of the particular measurement technique being used, consists of three stages ;
an analysis phase in which the job is divided into convenient, discrete components, commonly
known as elements;
a measurement phase in which the specific measurement technique is used to establish the time
required (by a qualified worker working at a defined level of performance) to complete each
element of work;
a synthesis phase in which the various elemental times are added, together with appropriate
allowances (see below), to construct the standard time for the complete job.
The techniques used to measure work can be classified into those that rely on direct observation of the work, and
those that do not. For example, some techniques, such as predetermined motion-time systems and the use of
synthetic or standard data can provide times from simulation or even visualisation of the work. However, the data
on which such techniques are based were almost certainly based on earlier observation of actual work.
Q 3 ( c ) Short Note : Productivity
Ans. Productivity describes various measures of the efficiency of production. Often, a productivity measure is
expressed as the ratio of an aggregate output to a single input or an aggregate input used in a production process,
i.e. output per unit of input, typically over a specific period of time.[1] Most common example is the
(aggregate) labour productivity measure, e.g., such as GDP per worker. There are many different definitions of
productivity (including those that are not defined as ratios of output to input) and the choice among them depends
on the purpose of the productivity measurement and/or data availability. The key source of difference between
various productivity measures is also usually related (directly or indirectly) to how the outputs and the inputs are
aggregated into scalars to obtain such a ratio-type measure of productivity.
Q 3 ( c ) Short Note : Business process re-engineering
Ans. Business process re-engineering (BPR) is a business management strategy, originally pioneered in the early
1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR
aimed to help organizations fundamentally rethink how they do their work in order to improve customer service,
cut operational costs, and become world-class competitors.[1]
BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of
their business processes. According to early BPR proponent Thomas H. Davenport (1990), a business process is a
set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized
a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of
processes rather than iterative optimization of sub-processes.[1]
Business process reengineering is also known as business process redesign, business transformation, or business
process change management.
allowances (see below), to construct the standard time for the complete job.
The techniques used to measure work can be classified into those that rely on direct observation of the work, and
those that do not. For example, some techniques, such as predetermined motion-time systems and the use of
synthetic or standard data can provide times from simulation or even visualisation of the work. However, the data
on which such techniques are based were almost certainly based on earlier observation of actual work.
Q 3 ( c ) Short Note : Productivity
Ans. Productivity describes various measures of the efficiency of production. Often, a productivity measure is
expressed as the ratio of an aggregate output to a single input or an aggregate input used in a production process,
i.e. output per unit of input, typically over a specific period of time.[1] Most common example is the
(aggregate) labour productivity measure, e.g., such as GDP per worker. There are many different definitions of
productivity (including those that are not defined as ratios of output to input) and the choice among them depends
on the purpose of the productivity measurement and/or data availability. The key source of difference between
various productivity measures is also usually related (directly or indirectly) to how the outputs and the inputs are
aggregated into scalars to obtain such a ratio-type measure of productivity.
Q 3 ( c ) Short Note : Business process re-engineering
Ans. Business process re-engineering (BPR) is a business management strategy, originally pioneered in the early
1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR
aimed to help organizations fundamentally rethink how they do their work in order to improve customer service,
cut operational costs, and become world-class competitors.[1]
BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of
their business processes. According to early BPR proponent Thomas H. Davenport (1990), a business process is a
set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized
a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of
processes rather than iterative optimization of sub-processes.[1]
Business process reengineering is also known as business process redesign, business transformation, or business
process change management.
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