The document discusses various topics related to business management including Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), call centers, BPO, KPO, international business management, Total Quality Management (TQM), and Six Sigma. It provides overview and definitions of these topics as well as their principles, advantages, and approaches.

1. Sushil S Mundada

2. Agenda
Enterprises Resource Planning (ERP)
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Call Centre, BPO, KPO
International Business Management
TQM – Total Quality Management
Six Sigma
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3. Enterprise resource planning (ERP)
ERP integrates internal and external management
functions like finance/accounting, manufacturing,
sales and service, etc.
Single software solution integrating the different
functions and activities
Action taken by one department results in the
appropriate follow-up action up and down the line
Customer ordering and delivery where a customer's
order moves smoothly from Sales, to Inventory and
Warehousing, to Finance, and on to Manufacturing
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4. Scope of ERP
Production Department: Bills of Material, Scheduling,
Capacity, Workflow Management, Quality Control,
Manufacturing Process
Supply Chain Management: Inventory, Order Entry,
Purchasing,
Financials: General Ledger, Cash Management, Accounts
Payable, Accounts Receivable, Fixed Assets
Projects: Costing, Billing, Time and Expense
Human Resources: Human Resources, Payroll Training,
Time & Attendance
Customer Relationship Management: Sales and
Marketing, Commissions 4

5. Package ERP Solution Vs Custom Development ERP
Custom Development Packaged ERP
Definition: Developed either for a specific Definition: Consolidate all of company's departments
organization or function & functions in single computer system
Scope: Usually created for companies, business Scope: ERP packages are made for mass market
Budget: Companies pay for customized software for Budget: These are planned for long term and are
budget or project managing budgeted as a part of company maintenance.
Cost: Is one time or as per contract. Generally low. Cost: Cost is one time for installation and
implementation. High
Maintenance: Have to be frequently updated Maintenance: Any change in industry by the ERP
company
Up gradation: In case of up gradation, its very Up gradation: Is easy and cost effective
difficult
Custom Reports: Custom development is a part of the Custom Reports: These are generally open source
contract codes
Technical: They are designed as per specified Technical: These are generally designed to run on
hardware or Operating Systems multi-OS, hardware and system
Examples of bespoke software Examples: SAP, Oracle, Peoplesoft, JD Edwards,
Websites, Inventory Management, Customer BAAN etc.
Management, Employee Management
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6. SUPPLY CHAIN MANAGEMENT
(SCM)
Example - For a large retailer like Supermarkets, it
has many regional distribution centers, a supply chain
management system will effective coordinate between
suppliers of clothes, paper products and
Supermarket's retail stores to reduce the inventory
cost
Supply chain execution means managing and
coordinating the movement of materials, information
and funds across the supply chain.
The flow is bi-directional.
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7. SCM must address following problems
Distribution Network Configuration: number, location
and network missions of suppliers, production facilities,
distribution centers
Distribution Strategy: Operating control (centralized,
decentralized or shared)
Trade-Offs in Logistical Activities: Achieve the lowest
total logistics cost
Information: Integration of processes through the supply
chain to share valuable information
Inventory Management
Cash-Flow
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8. Customer Relationship
Management (CRM)
Process used to learn more about customers' needs and
behaviors in order to develop stronger relationships with
them
Information about customers, sales, marketing
effectiveness, responsiveness and market trends
The overall goals are to find, attract, and win new clients,
nurture and retain existing
Tracking and measuring multichannel campaigns - email,
search, social media, telephone and direct mail
Metrics monitored include clicks, responses, leads, deals,
and revenue
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9. CRM Benefits
Retaining customers - by excellent customer service
Enables easier growth, indirectly and directly, for
example by sustaining healthier volumes and
margins,
High levels of customer retention via effective
customer service also improves staff morale
Focus more on proactive opportunities (growth,
innovation, development, etc)
Having a culture of delighting and retaining
customers fuels positive publicity and reputation in
the media, and increasingly on the web in blogs and 9

10. Call Centre
A call center is an office where a company's inbound
calls are received or outbound calls are made
Customer service, sales, and support functions
Call centers have been increasingly popular as
outsourcing increases
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11. BPO
Contracting of the operations and responsibilities of
specific business functions (or processes) to a third-
party service provider
Back office outsourcing - which includes internal
business functions such as human resources or
finance
Front office outsourcing - which includes customer-
related services such as contact center services
BPO Advantages - Cost reductions, Concentration on
core business, Outside expertise, Cater to changing
customer demands
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12. KPO
Knowledge-related and information-related work is
shared
High-value work carried out by highly skilled staff
Focused on knowledge-intensive business processes
that require significant domain expertise
People with MBAs, and medical, engineering, design
or other specialist business skills
Create value for the client by providing business
expertise rather than process expertise
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13. Significance of KPO
Investment research services (equity, fixed income
and credit, and quantitative research)
Business research services
Data Analytics
Market research services
Valuation and Fairness Opinions
Legal research services (Legal Process Outsourcing)
Patent research services
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14. International Business
Management
Process of focusing on the resources of the globe and
objectives if the organizations on global business
opportunities and threats
Nature of International Business - Variations in
political, social, cultural and economic factors
Impact of Culture/Language - Language is an
important factor in international business.
Nationalism and Business Policy – Example 'Be Indian
and Buy Indian'
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15. Total Quality Management
Quality is defined as “the totality of features and
characteristics of a product or service that bears its
ability to satisfy stated or implied needs.”
TQM looks at the overall quality measures used by a
company including managing quality design and
development, quality control and maintenance,
quality improvement and quality assurance.
TQM takes into account all quality measures taken at
all levels and involving all company employees.
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16. Advantages
Long-term benefits - higher productivity, higher
moral of personnel, decreasing of costs and increasing
of consumers' trust
Avoidance of mistakes allows company to save money
and time
Creates atmosphere of enthusiasm and satisfaction
with performed job
Uses team style of work
More flexibility in work and collaboration
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17. Principles of TQM
Executive Management –Should act as the main driver
Training – Employees should receive regular training
Customer Focus – Improve customer satisfaction
Decision Making – Made based on measurements
Methodology and Tools – Non-conformances are
identified, measured and corrected
Continuous Improvement in quality procedures
Company Culture –Developing employees ability to work
together to improve quality
Employee Involvement –Pro-active in identifying and
addressing quality related problems
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18. Six Sigma
Quality management initiative that takes a very data-
driven, methodological approach to eliminating
defects
Aim to reach six standard deviations from the desired
target of quality. Six standard deviations means 3.4
defects per million (99.99966%)
Improve the quality of process outputs by identifying
and removing the causes of defects (errors)
Defined sequence of steps and has quantified
financial targets (cost reduction or profit increase)
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19. Approach to Six Sigma - DMAIC
The DMAIC project methodology (used for existing
products and processes) has five phases:
Define the problem
Measure key aspects of the current process
Analyze the data to investigate
Improve the current process
Control the future state process
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20. DMADV or DFSS
The DMADV project methodology, (used for creating
new products and processes):
Define design goals
Measure and identify CTQs (characteristics Critical
To Quality), product capabilities, etc.
Analyze to develop and design alternatives
Design details, optimize the design, and plan for
design verification
Verify the design, set up pilot runs, implement the
production process
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21. Roles in implementation
Executive Leadership - top management
Champions - Responsibility for Six Sigma
implementation across the organization in an
integrated manner
Master Black Belts, identified by champions
Black Belts operate under Master Black Belts to apply
Six Sigma methodology to specific projects
Green Belts are the employees
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22. Advantages
Based on Data: In Six Sigma, decisions are made
based on empirical evidence
Proven Success: Beginning with Motorola, large
companies have successfully rolled out initiatives
Sustainable Solutions: The DMAIC and DMADV
processes are specifically designed for sustainable
solutions
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