Management Principles Flashcards
FAQs
What is simplex method
The simplex method is an algorithm used to solve linear programming problems. It’s a systematic procedure for finding the optimal solution (maximum or minimum value) of a linear objective function, subject to linear constraints.
Constraints: The limitations or restrictions on your variables. For example, you might have limited production capacity or a minimum inventory requirement.
Simplex method: An iterative procedure that involves:
Converting the problem to a standard form: This involves expressing all constraints as equalities and introducing slack variables if needed.
Constructing a simplex tableau: A tabular representation of the problem that includes the objective function, variables, constraints, and their corresponding coefficients.
Performing pivot operations: Selecting a pivot element in the tableau and using it to iteratively improve the solution until an optimal solution is reached.
The simplex method is a powerful tool for solving various optimization problems across different fields, including economics, engineering, business management, and even logistics.
What is meant by organisation structure
An organization structure is the framework that defines how an organization operates and achieves its goals. It outlines how roles, responsibilities, and reporting lines are established within the organization. Here are some key aspects of an organization structure
What are functions of organisation
Clearly defines roles and responsibilities of each individual and department.
Establishes a chain of command, making it clear who reports to whom.
Facilitates communication and collaboration between different parts of the organization.
Helps the organization achieve its goals by ensuring everyone is working towards the same objectives.
What are components of organisation
Hierarchy: Refers to the levels of authority within the organization, typically shown in an organizational chart.
Departmentalization: Groups employees based on their functions, products, or projects.
Span of control: Number of employees supervised by a single manager.
Centralization vs. decentralization: Distribution of decision-making authority across different levels.
What are types of organisation structure
Hierarchical: Traditional pyramid structure with clear chain of command, often used in larger organizations.
Flat: Fewer levels of management, encourages collaboration and information sharing.
Functional: Groups employees based on their specialties (e.g., marketing, finance, engineering).
Divisional: Groups employees based on products, services, or geographic regions.
Matrix: Combines functional and divisional structures, creating cross-functional teams for specific projects.
What are repeated use of plans
Repeated-use plans, also known as standing plans, are blueprints designed to be used over and over again to address recurring situations within an organization. They provide a framework for decision-making and action, ensuring consistency and efficiency in handling routine tasks and challenges.
What is linear programming
Linear programming: A mathematical modeling technique used to optimize problems involving linear relationships between variables. Imagine you’re running a business and want to maximize your profit while considering factors like production costs, resource limitations, and market demands. Linear programming helps you find the best way to allocate resources to achieve your goal.
What is objective function
Objective function: The mathematical expression you want to optimize, either maximize (profit) or minimize (cost).
What are characteristics of linear programming
- Objective Function:
LP aims to maximize or minimize a linear function of decision variables.
This function represents the quantifiable goal you want to achieve, like maximizing profit or minimizing cost. - Decision Variables:
These are the unknowns you can control to influence the objective function.
They are typically represented by symbols like x, y, and z and take non-negative values (zero or positive). - Constraints:
These are linear inequalities that limit the possible values of decision variables.
They represent real-world restrictions like resource availability, production capacity, or market demand. - Linearity:
The relationships between decision variables and both the objective function and constraints are all linear.
This means they involve only variables raised to the power of 1, without multiplication or division between them. - Finiteness:
Both the number of decision variables and the number of constraints are finite.
This allows for efficient solution algorithms based on iteratively improving an initial guess to reach the optimal solution. - Deterministic:
LP assumes all parameters (like costs, resource amounts) are fixed and known with certainty.
This simplifies the problem and allows for exact solutions.
Difference between gantt chart and pert chart
Gantt charts and PERT charts are both project management tools used to visualize tasks, timelines, and dependencies. However, they have some key differences:
Purpose:
Gantt Chart: Mainly used for tracking progress and scheduling tasks during a project. Helps monitor milestones, resource allocation, and potential bottlenecks.
PERT Chart: Primarily used for planning and estimating project timelines before the project starts. Focuses on identifying critical paths and potential risks.
Format:
Gantt Chart: Bar chart where tasks are displayed horizontally and time runs along the vertical axis. Bars represent the duration of each task, indicating progress and overlaps.
PERT Chart: Network diagram where tasks are displayed as boxes and connected by arrows to show dependencies. Arrows indicate the order in which tasks can be completed.
Time Estimates:
Gantt Chart: Uses single, deterministic time estimates for tasks.
PERT Chart: Uses three time estimates (optimistic, pessimistic, and most likely) to account for uncertainty and calculate a statistically based expected duration for each task.
Flexibility:
Gantt Chart: More flexible and easier to adjust as the project progresses.
PERT Chart: Less flexible and can be complex to update if the project plan changes significantly.
Other Differences:
Level of detail: Gantt charts typically show more detailed task breakdowns, while PERT charts focus on the bigger picture.
Resource allocation: Gantt charts can visually represent resource allocation, while PERT charts typically don’t.
Cost: Gantt charts are simpler and generally require less effort to create.
Define probability
Chances favourable outcome of occurrence of desirable event against all possible set of events
Wha do you meant by replacement theory
.1.Replacement of physical assets:
This applies to the principles and techniques used to decide when to replace physical assets like equipment, machinery, or infrastructure.
Cost of ownership, Performance, Technological Advancements, Strategic considerations
- Replacement of organizational practices:
In a broader sense, “replacement theory” could refer to the process of evaluating and potentially replacing outdated or ineffective management practices with newer, more effective ones.
What is replacement theory in OR (Operation Research)?
The Replacement Theory in Operations Research is used in the decision making
process of replacing a used equipment with a substitute; mostly a new equipment of
better usage. The replacement might be necessary due to the deteriorating property
or failure or breakdown of particular equipment.
Write note on replacement policy
Cost of ownership: This includes purchase price, maintenance costs, operating costs, and potential downtime due to breakdowns.
Performance: As assets age, their performance might deteriorate, impacting efficiency and quality.
Technological advancements: Newer technologies might offer significant benefits in terms of efficiency, sustainability, or safety.
Strategic considerations: Future plans and growth might require different capabilities from the existing assets.
What do you understand by age replacement?
Age replacement is one of the most used maintenance policies based on preventive action in order to prevent the failure of a system. Age replacement means that a system is replaced at failure or at a specified replacement age, whichever occurs first.
