Anvitha chowdary

Modelling: It creates a simplified depiction of a system or process using logical operations, mathematical equations and conceptual frameworks.Models can be determined and it involves diagrams,algorithms,formulas and other representations. Modelling aims to get essential information and elements and behaviour of the system to gain insights, decision making and make predictions. Simulation: Simulation involves running a model in time to check how it behaves in different conditions and different inputs. It goes for dynamic exploration of a modelling behaviour and provides insights into optimisation, system performance and getting into the complex phenomena. Simulation can be executed through software into real life scenarios. Similarities between Modelling and simulation: 1.Both of them are used to study processes and systems,understanding the behaviour of systems and processes and finally makes informed decisions. 2. Both of them are the mostly essential tools in different fields such as biology, economics, engineering and social sciences. 3. Both of them can be used to understand and enhance system performance. Difference between Modelling and simulation: 1.Modelling is a process of creating representations where as simulation involves in running that representation to observe its behaviour. 2.Modelling signifies on constructing and conceptualising a simple version of system whereas simulation targets on dynamic experimentation and analysis. Examples are: 1.Modelling can be significantly used in predicting financial markets, designing bridges and also used for understanding population trends. 2.Simulation can be used in simulating traffic flow in the cities, to optimise manufacturing processes.

BLUE OCEAN STRATEGY: This strategy is inclined with the three strategic propositions-Value, profit and people. As an integrated approach this strategy shows how to align these three propositions. It shows us how to create a win-win outcome.It focuses on innovation and value creation to attract customers and to achieve sustainable outcomes. Both Blue ocean strategy and Lean six sigma focuses on value creation but either ways their approach is different. Blue ocean strategy highlights on creating value by adding innovative thoughts and finding uncontested markets where competition is not relevant.This strategy encourages companies to show a difference between them and competitors by offering unique proposals to customer.Whereas Lean six sigma focuses on value creation by minimising waste,improving efficiency and reducing defects. Both Blue Ocean strategy and Lean six sigma are centred around creating value to the customer and both prioritise understanding customer needs and preferences.With the both strategies the end goal is to enhance customer satisfaction. Differences in two approaches are for value creation BOS focuses on creating uncontested market spaces by offering innovative products or services where as lean six sigma focuses on reducing defects,eliminating waste in the process. Examples: 1.Netflix is the best example for Blue ocean strategy.Netflix adopted from traditional video rental to subscription based streaming services. 2.Toyota is the example for Lean six sigma. Toyota adopted lean principles to strengthen and streamline its production processes resulting in reduced lead times and improved product quality.

CMMI is a process level enhancement training and appraisal program.It was developed to improve the usage of maturity models of capability by integrating and bringing unique models into one framework.CMMI is a process, behaviour maturity model that helps an organisation to streamline and structure process improvement and encourage the efficient and productive behaviours which focuses on decreasing the risks in process development Below are the five vital characteristics of maturity levels of CMMI: 1.Initial:In the initial stage the process is unpredictable,poorly controlled and reactive. 2.Managed: In this stage processes are planned, documented , performed, monitored and controlled at the project level. And it will be often reactive. 3.Defined: In this stage the processes are characterised for the organisation and its nature will change to proactive. 4.Quantitatively Managed:Here the processes are controlled and can be measured as well. 5.Optimizing:In this final stage it focuses on process improvement. These levels are interlinked with risk and quality. These five maturity levels each depict a progressively more capable and mature organisation. Basically lean six sigma is a methodology that combines the principles of lean like focusing on eliminating waste and increasing efficiency and Six sigma which focuses on reducing defects and variations to improve processes and eliminate defects. CMMI and Lean Six Sigma both complement each other by giving different ideologies on process improvement in the organisation. Lean Six Sigma provides specific tools and techniques for identifying, evaluating and eliminating wastes and defects whereas CMMI offers a standard and structured approach for process maturity and improvement. Integration of both CMMI and Lean Six Sigma helps an organisation to go for comprehensive approach for process improvement. CMMI provides broad framework for the maturity of process while lean six sigma sets up particular tools and methodologies to drive improvement and reduce defects within the process.By integrating these two approaches organisations can achieve both efficiency and process maturity eventually resulting in higher quality products and services.

Management by objectives: Its a name given to a process in which a top level manager and a bottom level employee agree on particular performance goals and then decide to develop a plan to reach those goals. Its a strategic management approach or model that focuses to improve the performance of a company by clearly defining objectives that are agreed by top brass and employees of an organisation.Management of objectives has become a vital component of performance management. The four major elements of MBO process which are believed to contribute the best management performances are: 1.Setting specific goals 2. Standardising acceptable and appropriate realistic goals 3. Collective participation in goal setting, planning and controlling 4. Final feedback of the project performance To achieve the goals and objectives effectively Lean Six sigma can comply with MBO framework by providing ideologies, tools and techniques.In lean Six sigma lean mainly focuses on eliminating waste whereas six sigma focuses primarily on reducing defects.Here’s how Management by objectives can integrate with the tools of lean six sigma: 1.MBO setting objectives with LSS tools: Methodologies of Lean Six Sigma like DMAIC can be used to define objectives,measure the present performance, analyzing the root causes of the issues,implementing improvements try establishing controls to sustain the improvements made. 2.MBO’s continual improvement with lean principles: MBO highlights on continual improvement by focusing on lean principles and techniques such as KAIZEN,5S,Value stream mapping. Example for MBO integration with lean six sigma principle: Lets say a pharmaceutical company which manufactures Active Pharmaceutical Ingredients sets an objective to reduce production cycle duration by 30% within a year.Below is how they can achieve their goal by using Lean Six sigma DMAIC principle: DEFINE: The objective of the project should be clearly defined and stated. MEASURE: The current cycle time of the production has to be measured and wastes should be identified by using lean techniques like Value stream mapping. ANALYZE:In analyze phase identify the root cause of the problem by using tools like Fish bone diagram or Pareto analysis. IMPROVE:Enhance the performance of the process by updating operational procedures, layout optimisation. CONTROL: Establish certain controls and parameters to monitor the cycle time of the production continuously and sustain enhancements by using the tools of LSS. With all these certain examples we can say that by integrating Lean Six Sigma principles into Management by Objective framework, the company can improve their ability to achieve tactical and strategic objectives efficiently and effectively.

Predictive Modelling: It is the most prevalent statistical technique used to predict future behaviour.Predictive Modelling also contemplated as a mathematical process used to forecast future outcomes and events by analysing the pattern in a data set.It works by analysing past data,current data and projecting the leanings on the result which has been generated to forecast the outcomes. Predictive Modelling can be taken as assumptions which relies on what is happening currently and what has happened in the past. Here are the 5 models of Predictive Modelling: Forecast model: Its a very common model and it works on the values which based on numbers got from the learning of historical data. Time series model: This works on sequence of points in the data given based on time. Classification Model: This model merely works on classification of data into different types of categories from the past and current data and analyses the future outcome from it.It is the most simplest model of predictive Modelling. Clustering Model: This model works on common attributes on the same data.Like grouping the smaller things,people with same behaviour will be considered as a sub group from a large scale data. Outliers model: This works on outlying data or analysing abnormal data points.This technique can be used to predict the process behaviour as short term predictions, medium term predictions and long term predictions. Example for short term prediction: prediction of traffic on websites for the next hours so that it helps in utilisation of server resources. Medium term prediction: Predicting monthly power consumption on a building to optimize HVAC systems. Long term prediction: Predicting occurrence of natural disasters like earthquakes, hurricanes floods and droughts. Example for predicting models: Fraud detection in banks, insurance companies: Predictive Modelling helps to detect fraudulent activities,transactions like insurance or credit card fraud

It’s a process in which machines or structures are deconstructed or dismantled to extract design information from them.The reverse engineering process enables us to determine how a part was designed so that we can recreate it. Many things can be reverse engineered like software machines, aircrafts, any architectural structures, measuring an object and then reconstructing it as a 3D model. The reverse engineering is named as such because it involves working backward through the original design process. Reverse engineering supports business excellence in various ways. Some of them are: 1.Enhancement of the product: by deconstructing the products the organisation can easily evaluate the positive and negative aspects leading to the development of the product in their own perspective. 2.Market Analysis: By reverse engineering competitor’s product, organisations can acquire insights into customer preferences, emerging technologies and market trends.By reverse engineering organisations can develop product using strategic positioning systems. 3.Parts improvement: Reverse engineering is also used for parts improvement.You may need to alter a component after conducting a failure analysis.If no replacement or alternative part is available you can have the part reverse engineered to create a copy of the original design. Example: A small company that has been in business for over 30 years might have manufactured no of products before the days of computer aided design and digital file storage. As a result these older products may be based on paper blue prints.By reverse engineering this company can regain their lost design and create archieves of the product.They can create a digital version of the paper blue prints.

Vertical Integration: Its a business strategy in which a company takes ownership of two or more stages in the production or distribution of its products.It is where two businesses at different stages of the supply chain join together.For instance, a business that depends on another for its supplies sometimes that supplies may find unreliable which effects business.In turn it may vertically integrate with its suppliers.There are stages in vertical integration-materials,vendors,manufacturing and distribution.If at all a manufacturing company finds anything unreliable in the above four stages it can take the control of the companies related to any of the stage. EXAMPLES OF VERTICAL INTEGRATION: 1.AMAZON: Amazon acts as both sellers and buyers.It has vertically integrated much of its business.It offers its own products and services and its own distribution channel as well.So in effect it has 3 stages of supply chain.It sources the products, markets and sells them on its website and then delivers them. 2.NETFLIX: A popular OTT platform Netflix decided to vertically integrate and enter the production business in 2013.It provides platform for producing films,T.V,documentaries and other content.It acquired the production houses to produce own content and release in the platform. Vertical integration impact on acquiring company: 1.No reliance on suppliers 2.lowers the price 3.Potential access to monopolize suppliers Vertical integration impact on acquired company: 1.acquired company can gain access to additional resources such as capital,technology,enhancement of facilities which helps to fuel its growth and development.

Shared services are intended to improve efficiency and lower the cost.It is a strategic framework of an organisation in which common support functions and services combined into a centralised unit.It is similar to collaboration that may take place in different areas or departments of an organisation or outside the organisation.The scope of doing revenue generating projects in shared services is very significant because it reduces cost,improves efficiency in work,enhances focus on core competencies,helps in resource optimisation. examples are: 1.Co Working space:By providing a shared office environment with amenities like desks,meeting rooms,high speed internet we can charge the individual or a company intends to revenue generation. 2.Resource Optimisation:An organisation can better allocate resources where they are needed within the organisation.For instance,instead of each department maintaining its own administrative staff, a shared administrative can centralise the functions and work accordingly. 3.Efficiency Improvements:Shared IT desk can provide faster response times and resolution of issues,minimizing downtime and improving efficiency Overall implementation of shared service can help Organisations streamline operations, improve service quality and savings of cost.

Value chain analysis: It is a business management strategy involves the activities of the business from primary level to the final level along with supporting activities. Value chain analysis helps organisations to understand and evaluate the positive and negative aspects of cost efficiency.Primary activities include creating, producing a product, delivering a product or service.Supporting activities helps to enhance the efficiency of primary activities.By analysing each and every step in the value added chain an organisation can find out the differentiation in the profits earned, can identify areas of cost reduction, process enhancement. Example for Value Chain Analysis: 1.Considering a pharmaceutical industry manufacturing Active Pharmaceutical Ingredients. 2.Lets differentiate primary and support activities here. 3.Primary activities would include product technology, manufacturing,Packing, marketing,distribution of product. 4.Where as support activities include researching and developing the technology,procurement of raw materials,providing storage facilities,Human Resources,Maintaining safe working environment. Process Mapping: It is a visual representation of the process.It includes the steps and activities involved in a business process of organisation.It helps an organisation to understand,analyse and improve the process if required. Example for Process Mapping:Taking same example from Value chain analysis of manufacturing an API. 1.Starting with marketing of the product. 2.Audit by the customer in the manufacturing sites. 3.Order from the customer. 4.Procurement of raw materials. 5.Storing the raw materials in warehouses as per the required storage conditions. 6.Issuing the materials to production for producing API. 7.Packing of the final product with shipping information. 8.Delivering the final product to the customer. 9.Getting feedback from the customer on the overall experience. By mapping out each and every step in the process we can identify bottlenecks,area of improvements,drawbacks.

TOC in the management perspective it mainly focuses on making money whereas Lean focuses on customer value stream.TOC identifies and addresses the bottlenecks of the process while lean eliminates waste which doesn’t add value to the customer. Example for TOC would be if a manufacturing plant is manufacturing Active Pharmaceutical Ingredients if the reactor which produces API is not producing in the expected way because of less speed(lesser than the machine limits) production may get delay as the machine limits the production speed.The production wouldn’t stop but the process could be late ultimately leading to customer disappointment.Applying the TOC strategies the bottleneck could be identified as MACHINE SPEED.So optimisation of machine can be done. With the same example for lean implementation of lean principles we can eliminate the waste process,optimizing the flow of raw material to produce API into the reactors and improve overall production efficiency.