New scientific techniques of management are: (i) Just in Time Manufacturing (ii) Lean Manufacturing (iii) Kaizen (iv) Six Sigma (v) Operations Research!
(i) Just in Time Manufacturing:
It is a strategy of inventory management which is concerned with reducing the stock of work in progress and its associated costs and thus improving return on investment.
KANBAN or visual signals are used to implement this strategy. KANBAN provides the information regarding replenishment requirement of production level.
(ii) Lean Manufacturing:
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It is a philosophy of management which is concerned with reducing the seven wastes viz. (a) wastes of overproduction (b) waiting time (c) transportation (d) processing (e) motion (f) inventory and (g) scrap of any type. This results in improvement of quality and reduction in production costs and time.
(iii) Kaizen:
Kaizen is a Japanese word which means ‘improvement’ or ‘change for better’. Thus it is concerned with improvement in productivity. The main objective of Kaizen is to eliminate waste, standardize work, just in time delivery, right size equipment, fast moving lines etc.
It is a routine activity which eliminates both mental and physical hard work & humanizes work place. It teaches people how to perform rapid experiments using scientific methods and eliminate waste in different business activities.
(iv) Six Sigma:
Six Sigma is a data driven approach which helps an organisation in reducing inefficiencies and in saving time and money by reducing ‘quality variations’.
(v) Operations Research:
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This technique was developed during Second World War to optimize the deployment of war material. Using different tools viz PERT (Programme Evaluation and Review Techniques), CPM (Critical Path Method), L.P. (Linear Programming) etc., cost over-run and/or time over-run can be avoided during execution of any project.