Applications Of IT in Management

Mr.V.P.Sobhage7112

Contents:-

• Project Management• Finance & Accounting• Product Design & Development• Quality Control• Purchase• Logistics• Marketing• Stores

Project Management:-

A project is a temporary endeavor undertaken to create a unique product or service. It implies– a specific timeframe– a budget– unique specifications – working across organizational boundaries

Why Projects Succeed?• Project Sponsorship at executive level• Good project charter• Strong project management• The right mix of team players• Good decision making structure• Good communication• Team members are working toward common

goals.

Core Project Management Tools• Project Charter:-– What must be done?– Why do it?– When must it be done?– Where must it be done?– Who does what?

• Work Breakdown Structure (WBS):-– Identify the major task categories– Identify Sub-tasks, and Sub-sub-tasks

• Project Schedule• Project Budget

Project Schedule Tools• Many tools available– Microsoft Project– Many more specialized software– www.dotproject.net– Excel

• Most important– Monitor tasks– Gantt views of project• one page views for executives• rollout and more complex views for work teams

– Critical Paths– Inputs from multiple teams that roll up to project manager– Dependencies– Resources assigned to tasks

Project Schedule:-

Project Schedule:-

Finance And Accounting:-

• Most firms have accounting software packages to help produce statutory accounts and reports for bankers and management.

• As well as to help with the day-to-day control of its finances. One very popular package amongst small to medium UK businesses is Sage www.sage.co.uk, which also has modules to manage, for example, payroll and debt factoring facilities.

Components of Finance And Accounting:-

• The main components of an accounting system would include modules such as:

1. Invoicing 2. Bought ledger (trade creditors) 3. Sales ledger (trade debtors) 4. Bank reconciliation 5. Cash flow forecasts 6. Producing draft accounts and trial balances

How IT Helps in Finance & Accounting:-

• Spreadsheets :-Widely used by finance departments to help manage cash flow, for bank reconciliations and in credit control.

• Credit control:- In managing cash flow, Well, much of this work can be made much more efficient with computerized credit control. Which keep information accurate & up to date.

How IT Helps in Finance & Accounting:-

• Banking & payments:-Businesses are able to take advantage of Electronic Banking.

• EFTPOS:-Electronic Funds Transfer at Point Of Sale is familiar to most of us in the form of card readers that swipe credit and debit cards for payments.

Product Design & Development:-• Many firms that have made investments in IT

applications to support their development activities have realized limited value from such efforts.

• A Multilevel Complementarities based model of IT innovation & business value to explain factors that shape the success of IT enabled product development.

• IT application that support PLM decides efficiency & effectiveness of their innovative process.

Product Life Cycle Management(PLM):-

• PLM application provides backbone for all of the companies product development initiatives.

• It also offers connectivity with other business with enterprise IT application such as Enterprise Resource Management (ERP) & Customer Relationship Management (CRM).

Product Life Cycle Management(PLM):-

• The Promise and Potential of PLM application to reduce product development cost and time and Enhance product quality have forced companies to invest more in PLM.

• Market PLM was $27 billion in 2007 which may grow up to $40 billion in 2012.

What is Complementarities?

• “When doing of more of one thing increases, it returns of doing more of another.”

• These are used to join two important streams:1. Innovation Stream:- That has examined the

determinants of innovative initiatives to adopt & deploy.

2. Business Value Stream:- That has examined the contribution of IT investment to organizational performance.

Example of Complementarities:-

• These refer to linking between two variables as they impact a third variable.

• Best example is Computer Aided Design (CAD).• CAD automatic links to programmable

manufacturing equipment & hence increses the return to use of such equipment.

• Its with flexible manufacturing technologies, shorter production runs, lower investment, increased data communication & more frequent product redesign.

Quality Control:-

• Process or system for monitoring the quality of firm or organization, and the accuracy and precision of results

• Routinely collect and analyze data from every procedure

• Allows for immediate corrective action.

How to implement a QC program?

– Establish written policies and procedures– Assign responsibility for monitoring and reviewing – Train staff– Obtain control materials– Collect data– Set target values (mean, SD)– Establish Levey-Jennings charts– Routinely plot control data– Establish and implement troubleshooting and

corrective action protocols– Establish and maintain system for documentation

Tools for Quality Control:-

• Monitoring QC Data:--Use Levey-Jennings chart-Plot control values each run, make decision regarding acceptability of run-Monitor over time to evaluate the precision and accuracy of repeated measurements-Review charts at defined intervals, take necessary action, and document - Pareto Analysis.

Levey-Jennings Chart:-

• A graphical method for displaying control results and evaluating whether a procedure is in-control or out-of-control

• Control values are plotted versus time • Lines are drawn from point to point to accent

any trends, shifts, or random excursions

Levey-Jennings Chart -Plot Control Values for Each Run

Example:-• It can be best explained with example for

Laboratory Quality Testing:--Record amount prepared-Source-Lot number-Sterilization method-Preparation date-Preparer-Expiration date

• Pareto analysis :- Involves identifying the vital few contributors that account for the most quality problems in a system.

• Also called the 80-20 rule, meaning that 80 percent of problems are often due to 20 percent of the causes.

• Pareto diagrams:- Are histograms, or column charts representing a frequency distribution, that help identify and prioritize problem areas.

Pareto Analysis:-

Sample Pareto Diagram:-

Logistics:-

• Logistics is the “Process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.”

Logistics Functions:-

• Purchasing / Procurement• Inventory Control• Warehousing• Materials Handling• Facility Location / Network Design• Transportation• Customer Service• Order Processing

Logistics Experience will be different from one sector to another:-1. Textiles :-

– speed and variety due to seasonality concerns2. Retailing :-

– prevents stores from having empty shelves or shelves with overstocks

– Frozen storage and transportation3. Health:-

– hygienic, have limited shelf life, require special storage conditions and entertain high inventory risks

4. Automotive:- – just in time (JIT), delivering parts from thousands of

kilometers, special packaging5. Fuel and Petroleum Transportation:-

– very special tanker security systems

Vehicle Logistics:-During the placement

of vehicles ;-Minimum parking

distances,-Installation of the safety

equipment

should be realized.

Vehicle Logistics:-

Storage and Parking Lot Services:

- Transfer to addressed area,

- Transfer to the dispatch area,

- Transfer of the out of order vehicles to the service area,

- Transfer from the service area to the addressed area

Fuel and Petroleum Transportation:-

• These tankers there are three-level security systems, bottom loading equipments, anti-rolling system & a security system locking, emergency buttons at three sides and an EBS brake system.

• There are also:1. Emergency power switch2. Emergency valve locking switch3. 6 rear-view mirrors Along with this GPS enabled vehicles are provided which

can be monitored.

Marketing:-Focuses on six aspects:1. Media distribution:-

Refers to circulation of newspaper/magazine/periodicals or the number of TV/Radio ownership and Internet subscription.

2. Media audience:-Number of people exposed to the ad medium in question.

3. Exposure:-Number of people actually noting the advertisement; generally less than media audience.

Marketing:-

4. Perception:-Number of people having conscious awareness and perception of the advertisement in question. In print advertisements, perception is affected by factors such as size, color, position and language of the media. Typically, perception is less than exposure.

5. Communication:-Number of people who comprehend specific things about and aspects of the advertisement. Communication lags perception.

6. Purchase:-Number of people purchasing the product after seeing the advertisement.

Marketing Media:-

1. Newspaper.2. Radio3. Television4. Internet5. Cinema Halls

Stores:-

• Store-level execution is under the spotlight as retailers seek in a marketplace where price and product no longer differentiate.

• With the right software and hardware tools, stores can plan for, allocate labor accordingly, and work through these to-do lists quickly and more accurately than ever before, making the reality of daily store operations far closer to the idyllic vision.

How IT helps in store management:-

• By ensuring this connectivity, wireless mobile computers can make every store-level task faster, more accurate and visible to all stakeholders, from in-store inventory, pricing and promotions tasks, to customer service activities such as queue-busting, price look-ups, special orders and inventory locating.

• When a wireless device is lightweight, comfortable, easy to use and suited to the task, store associates will embrace the opportunity to make their jobs faster and more effective.