The document discusses systems management theory and different types of systems. It explains that systems management offers an alternative approach to planning and managing organizations by viewing businesses as systems made up of interrelated components working together towards common goals. The types of systems discussed include physical/abstract systems and open/closed systems. The document also summarizes just-in-time inventory management, supply chain management, organizational structure, and factors that affect organizational structure such as strategy, technology, people, and tasks.

1. INDUSTRIAL
MANAGEMENT

2. What is System?
A System is a interrelated components working together towards a
common goal by accepting inputs and producing outputs in an
organized transformation process.
Components and their attribution
System Structures: relation between components
Subsystems
 Environment and Boundary
Input and Output

3.  The evolution of management thought is a process that started in the early days of man. It began since
the period man saw the need to live in groups. The sharing was done accord to the masses’ strength,
mental capacities, and intelligence. Systems management offers an alternative approach to the planning
and management of organizations. The systems management theory proposes that businesses, like the
human body, consists of multiple components that work harmoniously so that the larger system can
function optimally.
 Types of Systems :
1. Physical or Abstract System .
2. Open or Closed System.
3. Deterministic or Probabilistic Systems.
4. Man-made Information Systems.
Evolution of Systems Management Theory

4. Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as
they are needed. The main objective of this method is to reduce inventory holding costs and
increase inventory turnover. Just in time requires carefully planning the entire supply chain and usage of
superior software in order to carry out the entire process till delivery, which increases efficiency and
eliminates the scope for error as each process is monitored.
 Benefits :
• Reduces inventory waste
• Decreases warehouse holding cost
• Gives the manufacturer more control
• Local sourcing
• Smaller investments
Just In Time(JIT) Management

5. Supply chain management is the management of the flow of goods and services and includes all processes that
transform raw materials into final products. It involves the active streamlining of a business's supply-side
activities to maximize customer value and gain a competitive advantage in the marketplace.
 Benefits :
• Supply chain management (SCM) is the centralized management of the flow of goods and services and includes
all processes that transform raw materials into final products.
• By managing the supply chain, companies can cut excess costs and deliver products to the consumer faster and
more efficiently.
• Good supply chain management keeps companies out of the headlines and away from expensive recalls and
lawsuits.
• The five most critical elements of SCM are developing a strategy, sourcing raw materials, production, distribution,
and returns.
Supply Chain Management

6. An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.The organizational structure also determines how information flows between
levels within the company.
 Types of Organization Structure:
• Functional Structure
• Divisional or Multidivisional Structure
• Flatarchy Structure
• Matrix Structure
Organization Structure

7. Factors affecting Organisation Structure
1. Strategy: Strategy determines a course of action to direct various organizational activities. It makes plans to co-ordinate
human and physical resources to work towards a common objective. Strategy is pre-requisite to organization structure
and also follows it
2. Technology : The technology for manufacturing goods and services also affects the organization structure.In case of
mass production technology, mechanistic organization structure is more appropriate, while in case of continuous
production or small scale production technology, the appropriate from is organic structure. This is because mass
production technologies involve standardization and specialization of work activities and continuous or unit production
technologies require low levels of standardization and specialization.
3. People: Organization structure defines work, groups it into departments and appoints people to run those departments.
People at different jobs must possess the skill, knowledge and efficiency to accomplish the related tasks.
4. Tasks : Activities performed by people who transform organizational plans into reality are known as tasks. Various task
characteristics are:
a) Skill variety c) Task significance
b) Task identity d) Autonomy

8. Thank You