MGT 2

• it refers to a business activity of acquiring goods or services to accomplish its goals.

  PURCHASING
• PROCCES OF PURCHASING


  Need Identification

  
  

  Specify the requirement

  Find and choose a supplier Get order approval Place the order Receive

  approve the order Review supplier performance
• It involves the shippingofgoodstowarehouses, retai l outletsorfinalcustomers. (Direct or Indirect Channel)

  B. DISTRIBUTION
• 3 level of Distribution Intensity

  Intensive Distribution Selective Distribution Exclusive Distribution
• It is responsible for general upkeep and repair of equipment, building and grounds, heating andair-conditioning, removingtoxic wastes, parking and security to ensure optimal performance and minimize downtime

  Maintenance
• is concerned with scheduling, performancestandards, work methods, quality control and material handling.

  • Industrial engineering
• An abstraction of reality; it provide a simplified representation of complex real-world scenarios, allowing decision-makers to grasp the essence of a problem without getting bogged down in unnecessary details.

  model
• – the real-life counterparts

  Physical Models
• – more abstract representations

  Schematic Models
• – most abstract representations

  Mathematical Models
• These approaches to problem solving attempt to obtain mathematically optimal solutions to managerial problems.

  QUANTITATIVE APPROACH
• - is used for optimum allocation o f SCARE RESOUCES

  Linear Programming
• - are used for analyzing situations in which waiting lines form. Focus on arrivals, service facilities and actual waiting line.

  Queuing Techniques
• • are used to control inventories.

  Inventory Models
• - PERT (Program Evaluation and Review Techniques) and CPM (Critical Path Method) are used for planning, coordinating and controlling large-scale projects


  Project Models such as PERT and CPM
• are widely used for planning and scheduling.

  Forecasting Techniques
• • are currently used in many areas of decision making

  Statistical models
• measures an organization ' s behavior, activities, and performance.

  C. PERFORMANCE METRICS
• is a situational decision that involves diminishing or losing one quality, quantity or property of aset ordesign in return for gains in other aspects.

  A trade-off (or tradeoff)
• COST–BENEFIT ANALYSIS (CBA)


  sometimes called benefit costsanalysis (BCA), is a systematic approach to estimate the strengths andweaknesses of alternatives
• can be defined as a set of interrelated parts that mustwork together

  system
• the whole is greater than thesumofitsindividual parts.


  main theme
• is essential whenever something is being designed, redesigned, implemented, improved, or otherwise changed.

  system approach
• It suggests that roughly 80% of the results come from 20% of the causes. It means that a small portion of efforts or inputs often leads to a large portion of the outcomes or outputs.

  PARETO PHENOMENON – THE 80/20 RULE -
• Scrutinize the items on your____t, focus on the few, larger items that will generate the most significant results. The list might not grow much shorter, but you will be practicing effective prioritization.

  to do list
• Employees Want to Be Empowered Flexible, Blended Workplace Environments Scaling Production According to Demand Role of Automation Will Continue to Expand Customers Expect Speed Above All ELSE

  TRENDS IN BUSINESS TODAY(PRODUCTION AND OPERATIONS)