BUSINESS SOLUTION

WHY BUSINESS SOLUTION  / BUSINESS MANAGEMENT

  • Profit Maximization
  • Cost Optimization
  • Optimum Uses of resources
  • Survival with in Competitive Scenario

5 Ms IN BUSINESS MANAGEMENT

  • MAN : HUMAN RESOURCE 
  • MATERIAL : NATURAL RESOURCES  
  • MACHINE : MACHINE / TOOLS & EQUIPMENTS
  • METHODS / MINUTE : PRODUCTION METHODS / TIME
  • MONEY : FINANCIAL RESOURCES

MAN (HUMAN RESOURCE) MANAGEMENT:

  • Right Personnel for the right position to get organizational  effectiveness and efficiency
  • People make sure the utilization of Materials , Machines , Methods and Money in a productive manner to achieve goals and objective of organization

MATERIAL  MANAGEMENT:

TYPE OF MATERIALS 

  • RAW MATERIAL
  • SEMI-FINISHED GOODS
  • FINISHED GOODS
  • SCRAP

MATERIAL  MANAGEMENT:  

OBJECTIVE OF MATERIAL MANAGEMENT 

  • Control Cost of Production
  • Maintain the profits & Survival in Competitive scenario
  • Optimization of working capital requirement
  • Reduction in loss of  inventory & time of direct labor
  • Control of manufacturing cycle
  • Improvement in the delivery of the product

STAGES OF MATERIAL MANAGEMENT 

RAW MATERIAL

A. Material Planning & Programming

B. Procurement (5 R’s)

  • To Procure right materials
  • In  Right Quantity
  • Of  Right Quality
  • At  Right Time
  • From  Right Sources
  • At  Right Prices

Procurement as per EOQ model to avoid stock out / excess stock situation

C. Handling / Storage / Issue of material:

  • Uses of proper handling equipment
  • Proper storage (Space & Environment) according to nature of material (e.g. Racks / Bins / Pallets / temperature etc.)
  • Issue of material at shop floor– FIFO method
  1. SEMI FINISHED GOODS
  2. Conversion Process (Work-in-process) :
  • Uses of material as per standard process
  • Minimize manual interventions & holding time during transfer of material from one stage to another stage of conversion process
  • Machines at shop floor must be as per conversion process order, so that time & material loss during transfer of semi-finished goods can be minimized
  • Minimize the breaks at any stage during the process to avoid any fix losses during start of process
  • Proper storage of Semi-finished goods at shop floor
  1. FINISHED GOODS
  2. Delivery Process:
  • Proper storage of FG at specific location at shop floor to minimize the damages and shortages of FG
  • Minimize the holding period of FG through fast delivery to fast conversion into receivables
  • Uses of proper packing for packing of FG
  • Uses of handling equipment for loading into vehicles, so that un-necessary damages can be avoided
  1. SCRAP

 

  • Proper storage of scrap category wise (RM / SFG / FG) to get proper realization accordingly
  • Ensure category wise sale to maximize the scrap sales revenue
  • Uses of handling equipment for loading into vehicles, so that un-necessary losses can be avoided

vMACHINE  / TOOLS & EQUIPMENTS:  

  1. 1. Machine are the basic tools to produce goods or to   generate services
  2. Selection of an appropriate machine not only enhances efficiency but also saves times and increases revenue.
  3. Machine set up should be as per product conversion process and installed capacity of the plant should be synchronized through complete machine set up, so that idle man / machine hours can be avoided.

  4 Periodical /routine machine maintenance to avoid any un-expected break down

METHOD  / MINUTE :  

  1. Production method and machine set up should be synchronized to avoid material / man hour losses .
  2.   Man hour should be synchronized as per production process to avoid any production losses .

MONEY (FINANCIAL RESOURCES) :  

Financial Management means planning, organizing,   directing and controlling the financial activities such as   procurement and utilization of funds of the enterprise.

Importance of Financial Management:

  1. Financial Planning : Capital Budgeting / WC Requirement
  2. Acquisition of Funds : Right source / Mode
  3. Proper use of Funds : Optimum utilization
  4. Financial Decision : Optimization of Cost

Impact of Better Financial Management

  i). Improve Profitability :

  ii). Increase the value of the Firm

  iii). Promoting Savings

DOCUMENTS & RECORDS:  

    Maintenance of proper documents and records of each   activity for statutory compliances better control of   organization.

  Types

A. FINANCIAL (FI)

  • Cash & Bank : Receipt & Payment
  • Expenses : All types of expenses 

B. INVENTORY (MM)

  • Procurement : RM / Consumables / Spares
  • Issue & Consumption : Order wise issue & consumption

C. SALES (SD)

  • Sales Order : Job wise order
  • Job dispatch : Order wise dispatch (Delivery Challan)
  • Sales invoice : Job wise sales invoice

To show the rationale picture of the business, so that management could take appropriate and necessary decisions

  Types:

A. FINANCIAL (FI)

  • Cash & Bank : Receipt & Payment (Movement of Funds in cash / through Bank)
  • Expenses       : All types of expenses                 (Tracking of expenses / variance analysis)
  • Financial Statements: PL / BS
  • Profitability Analysis: Job wise Profitability (Budget Vs Actual)

To show the rationale picture of the business, so that management could take appropriate and necessary decisions

  Types:

B. INVENTORY (MM)

Procurement                : RM / Consumables / Spares

Issue & Consumption : Order wise issue & consumption

C. SALES (SD)

  • Sales Order    : Job wise status

a) To be start

b) WIP

c) FG

d) Dispatched (Complete / Partial)

e) Dispatched but not billed

f) Billed

INTERNAL CONTROLS  &  STATUTORY COMPLIANCES:

  1. INTERNAL CONTROLS:
  2. STATUTORY COMPLIANCES:

MATERIAL  MANAGEMENT:

  • FUNCTIONS OF MATERIAL MANAGEMENT
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