Question

Sanket, after completing his entrepreneurship course from U.S.A. returned to India and started a coffee shop 'Fioma Coffee' in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well.

Riya, took a feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could, be eliminated. She fixed a standard time for processing the order. She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, within a short period Riya was able to attract the customers. ldentify and explain any two techniques of scientific management used by Riya to solve the problem.

Answer 1

The techniques of scientific management used by Riya:

(i) Motion study: Motion means close observation of the movements of a worker's body involved in performing a job and of a machine. Its objective is to eliminate the unproductive motions of both man and machine.

(ii) Time Study: Time study is the art of observing and recording the time required to perform each detailed task of an industrial operation.

(iii) Standardisation and simplification of work: Standardisation of work refers to the process of setting standards of every industrial activity to maximise output. Scientific management calls for standardisation of methods, processes, product, machinery, raw materials etc. Simplification involves elimination of unnecessary diversification of products related to size and varieties, as more varieties mean high inventory and higher labour cost etc. By simplifying the task, there will be economy in use of machines, labour, inventory maintenance etc. It will also help in improving the product quality and reduction of cost.