SRIKRISHNADEVARAYA EDUCATIONALTRUST

SIR M. VISVESVARAYA INSTITUTE OF TECHNOLOGY

BENGALURU

DEPARTMENT OF MBA

Workshops &
Seminars Sports /
Certification C ultural &
courses Literary
Clubs

Projects /
Forum
C onsultancy
Activities &
&
Events
Placements

Academics Overall Industry &

& Skill Research
Training Development exposure
 UNIVERSITY COURSE STRUCTURE
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
Scheme of Teaching and Examinations – 2020 - 21
MASTER OF BUSINESS ADMINISTRATION
Choice Based Credit System (CBCS) & Outcome Based Education(OBE)
Course Title (Subject) / Course Code TECHNOLOGY & OPERATIONAL STRATEGY/ 20MBA302

Teaching Hours / Week Examination

Duration in Hrs
Component

Total Marks

Credits
SEE Marks
CIE Marks
Practical
Theory

03 02 03 40 60 100 04

Note: CIE =Cumulative of Internal Examination, SEE =Semester End Examination

 MBA – III SEMESTER

Sub: Technology and Operational Strategy

Sub Code: 20MBA302
Module -1: Introduction to Production and Operation
Management (POM)
Introduction Operations Management: Meaning, Definition, Scope and
Functions. Difference Between Production and Operations
Management. Management Guru’s and their Contribution. The Roles
and Functions of Operations Manager. Industry 4.0; Productions and
Operations Management in Indian Context.
Subject faculty name: Ms. Sheethal C Gowda
Designation: Assistant Professor
 Definition

• Production is defined as the creation of goods and

services.
• Operations management (OM) is the activities that
relate to the creation of goods and services through the
transformation of inputs to outputs.
Scope Of Operations Management

Facility layout
Functions Of Operations Management
 Difference Between Production And
Operations Management
Basic for Comparison Production Management Operation Management

Meaning Production management connotes Operation management refers to the

the administration of the range of part of management concerned with
activities belonging to the creation the production and delivery of goods
of products. and services.
Decision- making Related to the aspects of production Related to the regular business activities

Output Deals with manufacturing of Deals with both Product and Services
products (tangible) Eg: Cars,
Computers
Usage of Output Products can be used over a period of Services needs to be
time consumed immediately
Customer contacts No participation of customer Services require constant contact
during production with customer
Resources Less labour, more equipment More labour, less equipment

Found In Enterprises where production is Banks, hospitals, Companies including

 Management Gurus & their Contribution

THE CLASSICALAPPROACH
The classical approach to management focuses on centralized authority,
labor specialization and incentives to optimize productivity in an
organization and, in turn, drive profits.

SCIENTIFIC MANAGEMENT
Scientific management is a theory of management that analyzes and
synthesizes workflows. Its main objective is improving economic efficiency,
especially labor productivity. It was one of the earliest attempts to apply
science to the engineering of processes to management.
1. Frederick Winslow Taylor (1856-1915)

 Frederick Winslow Taylor was an American mechanical

engineer.
 He was widely known for his methods to improve
industrial efficiency.
 Taylor summed up his efficiency technique in his book
The Principle of Scientific Management in 1909.
1. The first principle is separation of planning and doing.
2. Second principle Taylor’s management approach is
functional foremanship.
3. Third principle is elements of scientific management.
4. Fourth principle is bilateral mental revolution.
5. Fifth principle is financial incentives.
ADMINISTRATIVE MANAGEMENT
Administrative Management is the process of managing information through people. This
usually involves performing the storage and distribution of information to those within an
organization. A large number of roles within business require some element of administrative
management.

2. Henry Fayol’s(1841-1925)
 Henry Fayol’s was a French mining engineer, mining
executive, author and director of mines who developed a
general theory of business administration that is often
called Fayolism.
 Henry Fayol’s is known as the father of Modern
Management.
 He was popular industrialist and victorious manger.
 He used the word Administration for Management.
 He gave 14 Principle of Management.
BUREAUCRATIC MANAGEMENT
Bureaucratic management looks at how large organizations with layers of management can
operate in an efficient, rational manner. Weber and Fayol, the original proponents of this style
of management, were fighting favoritism and incompetence, common in large organizations at the
time.

3. MaxWeber(1864-1920)

 Max Weber devised a theory of bureaucratic management that

emphasized the need for a firmly defined hierarchy governed by
clearly defined regulations and lines of authority.

 Like the scientific management theorists, Weber sought to advance

the performance of socially important organizations by making their
operations predictable and productive.

 Although bureaucracy has been successful for many companies.

BEHAVIORAL APPROACH
The Behavioral Approach brings psychological, social, and contextual
explanations of human behavior to policy design and provides innovative,
complementary and usually inexpensive solutions for policy improvement.

The Human Relations Movement

 The Human relations movement emerged in part because managers found that
Taylor’s scientific management and Fayol’s administrative management
did not quite achieve complete production efficiency and work place harmony.
 Managers still faced difficulties because employees did not always follow
predicted or rational patterns of behaviour.
 The real inspiration for the movement. However, came from the Hawthorne
experiments which were done by Prof. Elton Mayo and his colleagues at the
western Electric company’s plant in Cicero, Illinois from 1927 to 1932.
THE MODERN MANAGEMENT APPROACH
The modern approach to management represents the latest development in the
field of management that took place after 1950.

The modern approach has three streams, namely :

(i) System approach
(ii) Contingency approach
(iii) Operation research approach
 The Roles and Functions of Operations M anag er
1.Design of goods and services:
 Defines much of what is required of operations in each of the other OM
decisions.
 For instance, product design usually determines the lower limits of cost and
the upper limits of quality, as well as major implications for sustainability and
the human resources required.
2. Managing quality:
 Determines the customer’s quality expectations and establishes policies
and
procedures to identify and achieve that quality.
3. Process and capacity strategy:
 Determines how a good or service is produced (i.e., the process for production)
and commits management to specific technology, quality, human resources, and
capital investments that determine much of the fi rm’s basic cost structure.
4. Location strategy:
 Requires judgments regarding nearness to customers, suppliers, and talent,
while considering costs, infrastructure, logistics, and government.
5. Layout strategy:
 Requires integrating capacity needs, personnel levels, technology, and
inventory
requirements to determine the efficient flow of materials, people, and
information.
6. Human resources and job design:
 Determines how to recruit, motivate, and retain personnel with the
required talent
and skills. People are an integral and expensive part of the total system design.
IN D USTRY 4.0
INDUSTRY 4.0 TECHNOLOGIES
Generally speaking Industry 4.0 describes the growing trend towards automation
and data exchange in technology and processes within the manufacturing industry,
including:
 The internet of things (IOT)
 The industrial internet of things (IIOT)
 Cyber-physical systems(CPS)
 Smart manufacture
 Smart factories
 Cloud computing
 Cognitive computing
 Artificial intelligence
• Industry 4.0 has been defined as “a name for the current trend of automation and data
exchange in manufacturing technologies, including cyber-physical systems, the Internet of
things, cloud computing and cognitive computing and creating the smart factory”.
• Industry 4.0 is a vision that evolved from an initiative to make the German
manufacturing
industry more competitive (‘Industrie 4.0’) to a globally adopted term.
• The goal is to enable
• autonomous decision-making processes,
• monitor assets and processes in real-time, and
• enable equally real-time connected value creation networks through early involvement of
stakeholders, and vertical and horizontal integration.
• Industry 4.0 is the information-intensive transformation of manufacturing (and related
industries) in a connected environment of big data, people, processes, services, systems
and IoT-enabled industrial assets with the generation, leverage and utilization of
actionable data and information as a way and means to realize smart industry and
ecosystems of industrial innovation and collaboration.
 A P P L I C AT I O N OF I N D U S T RY 4.0
• The application of the Fourth Industrial Revolution operates through:
1. Mobile devices
2. Internet of things (IoT) platforms
3. Location detection technologies (electronic identification)
4. Advanced human-machine interfaces
5. Authentication and fraud detection
6. Smart sensors
7. Big analytics and advanced processes
8. Multilevel customer interaction and customer profiling
9. Augmented reality/ wearables
10. On-demand availability of computer system resources
11. Data visualization and triggered "live" training
 Production and Operation management in
Indian context

“Operations management (OM) has always been an important field of management in India,
given the size of the company and the scarcity of resources.”
 However, Narendra Modi’s Make in India campaign has according to Saranga. Led to an
increased focus on and promotion of Indian manufacturing. The critical role of supply chain
and logistics management in the e-commerce industry along with the Make in India campaign,
has recently helped operations management become a more prominent in recent years.
 In India due to the significant role that the IT services sector has played
during the two decades starting from early 1990’s the business schools to
some extent offered courses that help adopt operations management
concepts for the services sector.
 The application of operations to manufacturing is still relevant.

Operations roles offered across all of these industries above include:

•Vendor management
•Sales operations
•Procurement
•Delivery and returns management
•Customer service
•Production planning
•Supply chain management