Professional Documents
Culture Documents
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Shape Of The Beta Distribution
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Probabilistic Network Analysis
Determine probability that a path is
completed within specified time
where
= t
p
= expected path duration
o = standard deviation of path duration
x = proposed specified project duration
z = number of standard deviations x is from mean
z
x
=
o
Normal Distribution Of Project Duration
= t
p
Time x
Zo
Probability
Project Crashing
Crashing is reducing project time by
expending additional resources
Crash time is an amount of time an activity is
reduced
Crash cost is the cost of reducing the activity
time
Goal is to reduce project duration at minimum
cost
Normal And Crash Relationships
12 4 2 6 8 10 14 0
1,000
3,000
4,000
5,000
7,000
2,000
6,000
$
Weeks
Crashed activity
Normal activity
Crash cost
Normal cost
Crash time Normal time
Slope = crash cost per week
Time-Cost Relationship
Crashing costs increase as project duration
decreases
Indirect costs increase as project duration
increases
Reduce project length as long as crashing
costs are less than indirect costs
Crash only activities on the critical path
Time-Cost Tradeoff
C
o
s
t
(
$
)
Project Duration
Crashing
Total cost
Indirect cost
Direct cost
Time
Minimum cost = optimal project time
CPM/PERT
Over time, CPM and PERT merged into one
technique referred to as "CPM/PERT
Visually easier to see precedence relationships
Ideal for large projects with many activities
They consist of a network of branches and
nodes
Organization Development
Organisational re-engineering.
Organization restructuring strategies help you
get the most from people when your business
significantly changes by developing a plan for
corporate restructuring, layoffs and mergers.
For organizations to develop, they often must
undergo significant changes in their overall
strategies, practices and operational tactics.
Contd..
It often means making critical decisions about
how to deploy or redeploy talent.
Organizations need insight into where to best
utilize talent and find the best fit between
existing employees and the jobs that await
them.
Management Control System
In addition to managing talent, organisations
need to be able to handle conflict.
Organization restructuring brings about change
that brings about stress and conflict.
Its important for managers to be able to
effectively lead their team through challenging
and turbulent times.
Being able to predict how each employee will
respond to stress and conflict is the key to
managing change smoothly.
If you arent sure about what organisational
restructuring management and analysis can do
for our company, consider the following
questions:
Would you like to create a benchmark for measuring
progress in organizational development activities?
Do your managers and employees have a misaligned
interpretation of the vision, mission and values that
are important to the success of your organization?
Do you have a system to measure/quantify
management effectiveness?
Contd.
Are your internal management practices in
alignment with achievement of organizational
goals or is there a negative correlation?
Do the skills of your supervisors contribute to
a negative impact on performance for
yourcompany?
Does your organization continually settle for
low productivity from some managers that
creates a negative profit impact?
contd
If you've answered yes to any of these questions,
organizational restructuring solutions can help.
With an overview of your managers strengths and
areas for improvement, you can plan organizational
goals with clarity and certainty.
You can then take it a step further by verifying
managers alignment with the organizations vision,
mission, purpose, and strategic goals.
Measuring organization alignment is one of the most
powerful mechanisms for improving productivity,
communication and efficiency across your entire
business.
Organization Restructuring
Organization restructuring can help you gain
insight about job fit and how best to align
talent with business needs to deliver the
highest level of performance.
Knowing the goals and objectives of each
individual in your organization can be difficult.
Solutions can provide you with the means
to easily align the goals of your employees to
the overall mission of your company.
Strategy Formulation
Strategy Formulation:
Strategy formulation refers to the process of choosing the most appropriate
course of action for the realization of organizational goals and objectives
and thereby achieving the organizational vision
Process of strategy formulation basically involves six main steps:
Setting Organizations objectives
Evaluating the Organizational Environment
Setting Quantitative Targets
Aiming in context with the divisional plans
Performance Analysis
Choice of Strategy
Strategic planning is essential for firms operating in a complex, turbulent
environment
Long-range planning is necessary to drive managerial decision making when
the speed of change exceeds the firm's ability to respond
An optimum match between available resources and relevant , known
market opportunities and threats is needed which can be achieved with the
help of Product Market Matrix, a concept propagated by Prof. Igor Ansoff
Product Market Mix:
Market Penetration:
When marketers try to sell the existing product to the existing
customers, they engage in penetration strategy
It can be achieved in multiple ways. For example, by changing pricing,
by adding minor features (new and improved!), changing the
packaging (shampoo sachets), or highlighting alternative uses
In this commercial, we get to how Cadbury India is pushing for
chocolates to be used as small gifts instead of more traditional
sweets used during Diwali festival.
http://www.youtube.com/watch?feature=player_embedded&v=LLh7MO8M4GA
Product Development:
McDonald's introduced salads in their outlets in order to retain its
existing customers, many of whom were becoming more health
conscious.
Salads are exactly opposite of what McDonald's is known for!
However, regulatory pressures, changing consumer behaviour, and
negative media coverage forced them to introduce more healthy
choices on the menu
http://www.youtube.com/watch?feature=player_embedded&v=d7Uhce2m21E
Market Development:
Introducing an existing product in different markets is perhaps one of
the most used strategies to extract full benefit of a successful
product. A very common example is entering different geographical
areas nationally and internationally
We think that Apple's introduction of iPod Touch falls into the same
category. iPod Touch was a replica of iPhone except that it couldn't
make calls. It just opened up a tremendous market for Apple. In the
following ad you will see that it could have been an iPhone ad as well
http://www.youtube.com/watch?feature=player_embedded&v=-QQmU7amhlo
Diversification:
When marketers introduce a totally new product to a completely new
market, they engage in diversification.
We think that iPod was perhaps one of the most successful diversification
ever.
With its launch Apple targeted a very large customer group, very different
from its traditional smaller cult-like following.
Apple also entered into the music business that was completely new for the
company.
Steve Jobs and his team put a tremendous effort in creating contracts with
music labels and artists.
Just to give you an idea, the Beatles came to iTunes only in November 2010!
http://www.youtube.com/watch?feature=player_embedded&v=7ZzmZiYB948
http://www.youtube.com/watch?feature=player_embedded&v=xXELvRMaIwg
Pros/ Benefits:
The matrix provides an explicit framework to deal with changing
industries where an 'ad hoc' management style no longer
suffices and coordination is required
It provides an excellent platform for communicating a growth
strategy to stakeholders
Ansoff emphasised that customers often have a range of
unrelated needs that must be taken into account by a strategy
The matrix stressed that as competition changes over time, so
must strategy. Ansoff measured progress by the rate of turnover
Cons/ Disadvantages:
The matrix can be used to guide business unit
strategies. The model does not help plan for the
implementation phase of a chosen strategy. For a
conglomerate, other tools such as the BCG portfolio
matrix are required to allocate and optimise resources
across business units
The matrix stressed that a firm's product and market
portfolio must be coordinated, but provided no insight
on trimming products and markets
Initially, Ansoff's matrix did not include vertical
integration as a diversification strategy. Vertical
integration focused on 'value added' - the difference
between a firm's total sales and its purchases to
produce its products - as a metric to measure progress,
rather than simply on turnover.
E.g. for BCG Matrix- A view of Nestles Products:
E.g. for BCG Matrix- A view of Coca-Cola Products:
E.g. for BCG Matrix- A view of Coca-Cola Products: