“Develop success from failures. Discouragement and failure are two of the surest stepping stones to success.”
Business Management
INTRODUCTION TO ECONOMIC
Economics is the study of those activities which involves money and exchange transactions among people.
Economics is the study of how mankind goes about the business organizing its consumption and production activities.
Economic: economic is the study of those activities involves mainly and change transactions among people.
Aim of economic:
1. Full employment: to provide the suitable employment of everybody.
2. Improving standard of living of means:-
a. Better housing.
b. Better and varied diet’s health.
3. Better working conditions
a. No. of hours of actual work should be small.
b. Clean health and cheerful working condition.
c. Insurance against unemployment and sickness etc.
d. Compensation for accidents during employment.
e. Pension to widows, old people blind and physically handicapped persons social security.
Production: production is the process by which goods and services are created. In other word, it deals with conversion of raw material into semi-finished and finished products with the help of certain production process.
Production does not mean creation of matter. It only mean creation of utility as addition to the value. Thus production is the procedure used to transform a set of input element, like man, material, money and information into specified set of output element like finished product of appropriate quantity and in required no. of fulfill the objective of the organization.
Input:
a. What input we are getting?
b. What process we are going to adapt?
Production is the basic of the management point of view.
Whatever things which can obstruct the production are working condition regular quality check at various stages, technique, materials.
Whatever the client pays you, he will demand the same product.
Production is a long process wheareas newspapers needs to be produced daily in a particular span of time.
If the production is being delayed, it will reflect a bed image of the press.
We should have sufficient fund to pay the labour to handle the process in such a way that we get the sufficient return.
If we have get sufficient fund, we will not obstruct the production process.
Creation of ability as addition to the value. Thus, production is the procedure used to transform a set of input element like men material money information into specified set of output element like-finished product of approciated quality and in required no to fulfill the objective of the organization.
Aim of production; the main aim of any production system is to production system is to produce economically the goods and services required by the customer. In order to achieve this aim, it is essential to plan, organize, direct and control and production system.
Factors of production:
1. Land: the natural resources that are available without alteration on effort on the part of humans. Land as a resources included only original fertility and mineral deposits, to prography, climate, water.
Signifies all object provided by nature for man said e.g. Actual – water, air, light, climate condition.
All object provided by nature for man’s aid ex: actual land, water, air, climate conditions etc.
2. Labour: production contributions of humans who works, which involve both thinking and doing.
By labour is meant the human effort required/utilized of in production.
Skilled & unskilled labour: skilled labour required some special skills or training.
Unskilled labour: doesn’t require skills training at all.
Mental and manual labour: through purely mental or purely manual labour is seldom there, labour of a philosopher/writer/ researcher is mostly mental where as that of a helper in workshop is mostly manual.
3. Capital: all manufactured resources, including building, equipment, machine and improvement to land.
The total investment to start the business organization that’s know as the capital.
4. “Wealth” which is used for the purpose of generating/producing more wealth.
Finance is a very important part & we required finance at every stage of the business.
Financial matter of the organization.
How much finance we are going to involve in the business and accordingly we manage the capital.
Capital may be defined as the wealth used in production. Capital is one of the four factors of production order to constitute capital two things are essential.
a. It should be article of wealth.
b. It should be used for production.
Functions of capital:
1. Paid to workers as wages and thus provided for this food clothing and housing etc.
2. Provided for infrastructure facilities like tools and machine etc.
3. Provided for input material like raw material, semi-finished in production.
4. Provided for purchase of land and building needed for the production unit.
Capital: financial matter of the organization. Financial is a very important part & we required finance at every stage of the business.
How much finance we are going to involve in the business and accordingly.
Classification of capital: capital is usually classification in according with the use for which capital is invest.
There are two types of capital:
1. Fixed capital: the value of fixed asset is called fixed capital.
Fixed amount needed to run a business is called fixed capital.
Our basic investment would not change. Ex: machine buying, tools & equipment, Land & building
Whatever investment and which is our asset at one time is called fixed capital.
It is permanent nature and is used in production such as machinery tools, application and buildings.
2. Working capital: the capital required for the working of the organization.
Ex- purchase of raw material, to make plate, inks, chemicals, wages of the workers, electricity bills.
We have to include all our expenses which required to run over organization. Ex- LIC, banks.
It provide service to production only such as raw material fuel finished products used as part of production used as part, and wages paid to direct labour used for production.
How to know fixed or working capital:-
What kind of job we are going to do? And according to that, we calculate our rates.
Making the estimate, we must know our expenditure.
A. Recurring expenses: 1 month expenses, working capital.
B. Non-recurring expenses: fixed capital or one time investment.
Working capital: recurring expenditure of 1 month X3
Factors affecting production: input, input material, availability or raw material, process, adopted, various process, persons, packing, transportation, requirement per day, what quantity to be sell, output.
3. Sunk or specialized capital: it’s the capital which can be used only for a particulars or specialized job and cannot be withdraws for alternative investment without loss.
4. Floating & unspecialized capital: it’s the capital which has greater mobility i.e. which can be transferred from one productive used of another with incurring loss.
5. Enterprise and its organization: organization brings varies factor of production into the most effective co-ordination in order to achieve the desired objective the goals and of the enterprise.
Forms of capital:
1. Social capital
2. Conversions
3. Cultural capital
5. Enterpreneurship: the fourth factor of production, involving human resources that perform the function of raising capital, organizing, managing, assemblies, other factor of production and making basic business policy decisions. It is risk taker.
Trade cycle: the terms trade cycle donates the periodic or cyclic variation of trade activities. It has been observed in the part that the business activities do not remain constant but fluctuate.
It denotes the periodic or cyclic variation of trade activities. It has been observed in the past that the business activities do not remain constant but fluctuate.
1. Secular fluctuations/trends: the sell income per head has been upward for the lost several generation and trade still continue to be upward.
The salary income per head has been upward for last several generation and trade also.
2. Seasonal fluctuations: it represents the fluctuation in business activity with a calendar year and one caused by certain accidental factors.
The business fluctuates in a calendar year and one caused mostly by the season of the year.
3. Random fluctuations: it are erratic and sudden variation in business activities caused by certain accidental factors.
Sudden variation in business activities caused by certain accidental factors.
4. Cyclic fluctuation: cyclic variation of business activities are periodic variation.
Cause of trade cycle:
1. Real cause: real cause resulting in trade cycle are changes in industrial scanario such as investment of new machine discovery of new techniques, charges in the customer taste etc.
2. Pshychological cause: change in the mental, attitude of people may also affect trade cycle.
3. Monetary cause: certain charge in the supply of money, charges in the rate of interest, prevailing in the market.
4. Under consumption
5. Saving and investment
The circulation of the money from the production till it is sold, is called trade cycle.
Various kinds of channels are there to sell the product. Ex: whole-seller, agent, retailer.
Demand should be our priority.
Characteristic of trade cycle:
1. Period: some authors have tried to assign a period for the trade cycle usually 10 to 11 but such is not true. The only certainly about the trade cycle us the cyclic variation of trend activity. The period may change considerable.
2. Economic activity: the trade cycle cause cyclic variation in the economic activity, in all industries. The during prosperity period as boom, all industries expand, productivity is large, while during depression as slump for all industries productivity is low.
3. Unemployment: the during depression trade activity; minimum an unemployment is wide spread, volume of output and volume of consumption are low, during prosperity on the other hand there is large output and unemployment is almost nil and vice-versa.
4. Prices: during depression, prices are low, margin of profit is low and hence business activity is low.
5. Volume of transaction: during depression the volume of transaction is low and during boom, the transaction is large and the circulation of money is fast. It is vice-versa.
Forms of business organization:
1. Proprietory: (owner) self-owner capital (in term of money/ who output their money by own-self and able to bear all the profit ad also losses, to run the business.
The organization which run by a single person. The person who is running the organization had to manage all the fund. It is also called single ownership organization.
Advantage:
a. Take decision own self freely.
b. Total earn profit.
c. Do hard work.
d. No more than troubles.
e. Active.
f. Take serious.
Disadvantage:
a. He wears also for any losses.
b. Lack of decision/ option.
c. All the expenses or over expenses also paid to proprietor.
Single ownership: one person contributes the organization assets start the business, maintains and control business operations, full benefits of terms of profit and is fully liable for all department associated with the business.
a. The owner is liable for all obligations and department of the business.
b. The business may not be successful, if the owner has limited money, lack ability and necessary experience to run the business.
c. Generally single ownership has limited life applications.
2. Partnership: the persons who have agreed to share the profit of the business carried on by all as any of them acting for all. Individual with common purpose joint as partner and but they together their properly, ability, skill, knowledge etc. for the purpose of making profits.(partnership is an associated of two or more (upto) persons in carry an as co-ordinate where of a business
Less than 2 owner and more than 1 owner.
Partnership may be defined as the relation between person who have agreed to share the profit of a business carried a by all as any of them acting for all. Individual with common purpose joint as partner and they put together their properly ability, skills, knowledge etc. for the purpose of making profits.
Kinds of partner:
a. Active partner: who have active part in the management of the business enterprises.
b. Sleep partner: who don’t take any active part in the conduct of the business.
Types of partnership:
a. General partnership: each partner has full (agency) powers and may blind the partnership by any act.).
b. Limited partnership: limited partnership is an association of one or more general partners who manager the nosiness and one or more limited partners whose liability is limited to the capital they have invested in the business. Limited partner share the profit but they don’t participate interfere with the control or management.
a. Large capital is available to the firm.
b. The firm possess must better talents, judgement and skills.
c. Single person can’t take decision.
d. Arrangement of funds.
a. All partner suffers because of the wrong steps taken by one partner.
b. Authority being divided amount of the partners.
c. Danger of dis-agreement and distrust among the partners.
d. Disputes can happen misunderstanding can happen. If we don’t trust others, we should not go for the partnership types of organization.
3. Joint stock company: a joint stock company is an association of individuals, called shareholders, who joint together for profit and agree to supply capital divided into share that are transferable for carrying on a specific business.
A joint stock company consists of more than twenty persons for carrying any business other than the banking business.
Where more than 20 peoples are involved for setting up an organization.
Types of joint stock organization:
a. Private organization: public fund is less. The company is collected from the private partners some of them may be active while other being sleeping. (2 to 50 including employees).
Private organization must have 51% share.
b. Limited organization: public fund is more. The capital is collected from the public by is going share having small face value (@. 50, 2010).
The no. of share-holders should not be less than seven but there no limited to their maximum numbers.
It can start only often receiving the certificate to commercial business. It has to all share which in 180 days from the date of prospectus. It has to hold a general meeting every year.
a. Share are transferable.
b. Company’s like is not affected by the life (death) of shareholders.
c. Risk of loss is divided among many shareholders.
a. Company is managed by bid shareholder only.
b. People can commit frauds with company.
c. It is difficult to maintain secrecy as in partnership.
d. Divided responsibility.
e. In the partners work with team spirit is lack in joint-stock company.
Application of joint stock company:
a. Steel mills.
b. Fertilizer factories.
c. Engineering concerns.
4. Co-operative societies: it works on the no profit, no loss.
The group of people come together, they don’t invest. The elections are conducts for these societies for management. Ex: president, vice-president etc.
All the people are selected by the shareholders. They are not paid but on the no profit, no loss theory, they have to work.
Its form of private ownership which contains features of large partnership as well as soon features of the corporation.
It works on the no profit, no loss.
Forms of co-operative enterprises:
a. Consumer co-operative
b. Producer co-operative
c. Co-operative farming
d. Co-operative housing
e. Co-operative credit society.
a. Daily necessaries of life can be made available at lower rates.
b. It’s the democratic form of ownership.
c. No one person can make huge profits.
a. Since the members of co-operative manage the whole show.
b. Finance bring limited, specialists, service cannot be taken.
5. Semi-government/government undertaking: certain organization are run by the start & central govt.
The organization which is funded by the government and run by other people are called semi-government organization.
State enterprises in India:
Public sector: a public enterprise is one that is owned by the state, managed by the state, or owned and managed by the state.
a. The sector of public enterprises is popularly known as public sector.
b. Public enterprises are controlled and operated by the government either solely or in association with private enterprises.
c. Public sector prevent concentration and unbalanced growth of industries.
d. Public sectors are accountable in terms of their result to parliament and state legislature.
Object public sector:
a. To provide basic infrastructure facilities for the growth of economy.
b. To promote rapid economic development.
c. To avoid concentration of economic power in a few hands.
d. To create employment opportunities on an increasing scale.
Merits:
a. Public sector helps in growth industries.
b. Which cannot flourish under the private sector.
c. Public sector helps in the implementation of the economic plans.
d. The consumers are benefitted by greater, better and cheaper product.
e. Capital, raw material fuel, power and transport are easily made available to them.
Demerits:
a. Delay in decision is a very common phenomena in public enterprises.
b. Incompetent persons may occupy high levels.
c. Workers (unlike in private concerns) shirk work.
d. Due to heavy administrative expenses.
e. Public sector can be rarely attain the efficiency of a private enterprise.
Delegation of authority: The process by which a manager shares some of his work and authority with his sub-ordinate is called delegation of authority.
It involves the assignment of tasks or functions, entrustment of authority.
GM (general manager)
Production manager
finance manager
sales marketing manager
Asst-1,
asst-2,
asst-3
Foreman
Supervisor
Worker
Any sub-ordinate should be done in a perfect manner a proper communication should be made to distribute responsibility among sub-ordinate.
Process of delication: Who can delicate, whom can be delicated.
1. It is a communication between the boss and the immediate sub-sub-ordinate.
2. Main things for delication.
3. Trust
4. Communication
5. Willingness.
MANAGEMENT
Definition: management is the effective utilization of all resources through the process of planning, organizing, directing, and controlling in order to obtain stated objective.
Implement the policies made by administration is management.
The procedure of implementing the policies which is suggested by administration.
Administration: administration is top level function which includes determination of objectives and policies and overall controlled of business operations.
To from, to make the policies of the company.
Administration is concerned with laying down objectives of the enterprises, formulating its policies, determining the broad organization structure and overall control of the undertaking. Administration is a top level function which includes determination of objectives and policies and overall control of business operation.
Scientific management: the science which we apply in management is called scientific management. Input material, data, right man at right job.
The early decades of this century witnessed the emergency of scientific management. This school of through attempted to introduce a rational, systematic approach to work and to the management of work.
In his early writings F.W taylor referred to is idea of task management. In 1910 lowis brandeis coined the word scientific management.
F.W taylor got recognition as the father of scientific management. He wrote a book on the principles of management in the year 1911.
The primary emphasis of scientific management was on planning, standardizing, improve human effort and the operative level in order to maximum output and minimum input.
Taylor believed that management based on objective assessment of facts, on measurement and not on guest work.
Scientific management is applying scientific knowledge scientific method to the various aspect of management and the problems that arise from them.
Taylor through that by maximum the productive efficiency of each worker scientific management would also maximize the earning of the employees and employers.
Scientific management removed the workman discretion in planning, organizing and controlling of his own task performance.
Rather scientific man required that, management should plan, organize and control task performance.
Management should standardize methods.
1. The right person should be available at right position.
2. Training and update research of staff (proper training and development of the staff).
3. To calculate the worker’s performance should be evaluated time to time, & find out why this person not fit in your organization and how can we improve it.
4. What the wrong things are going in organization and how we can justify it.
5. We have to put responsibilities on each and every people give them a target in time.
6. Targets should not be given randomly.
7. The workers are recruited at parameters or not.
Function of element of management:
1. Planning: planning is one of the most important function in the management, without planning we can’t even take a step own-self.
Everyone do own plan, when, what, why, where to do what to do, where to do-why to do in future.
Market survey:
Short run job
Long run job
In view of printing industries----various material likes ink, substrate, machine, from where, these are to but, like these, various thing is done. All datas are collected from different-different market for the particular things.
It is the first basic function of management. It determines the objectives to be achieved and the course of action to be followed to achieve them. It involves deciding in advance what to do, when to do it, where to do it, who is to do it and result are be evaluated.
Certain inputs are required are be to make a plan.
Who will be our client?
Supply?
Demand?
First step of planning?
Market survey?
a. Fore-casting: forecasting is a necessary preliminary to planning.
Forecasting estimates the future work or what should be done in future. On the basis of market survey available, we fore-caste it. Ex-location.
On the basis of market survey available, we forecast it ex-location.
2. Organizing: organization involves identification and grouping the activities to be performed and diving them among the individuals and creating authority and responsibility relationship among them for the accomplishment of organizational objectives.
We have “to organize” for starting any organization, we organize various things, money, man-power, machine sequence & raw materials.
If we have to organize money, we can organize it from ourselves, banks & we can borrow money.
Organizing various things to run an organization is the second step in the management through which we can proceed further in other business activities.
a. Identification of activities required for the achievement objectives and implementation of plan.
b. Assignment of jobs to employees.
3. Directing: directing involves communicating and providing leadership to the subordinates and motivation them for the achievement of organizational objectives.
How the things can be reached. Both the parties and agreed i.e., they understand each other.
You will be performing your duty unless you are directed in a right way in which a manager influences the actions of sub-ordinates.
We must aware to do your work in a systematic manner.
Whatever you are given instruction he must catch your instructions.
Directions are only successful only, when If other person is ready it hear it, must be followed.
a. Supervision: it means overseeing the functioning of the sub-ordinates.
b. Communication: it is the process of sharing informations and understanding with other.
c. Leadership
d. Motivation.
4. Motivation: it means inspiring the sub-ordinates with real to work for the accomplishment of organizational objectives successful manager to make use of different motivations techniques to another the workers. Financial incentives are a good tool of motivation. Non-financial incentives such a precise, recognitions freedom to week etc.
It is a tool of management, we can increase capability of workers, output but we require to motivate the work force to do our work.
a. We can give them incentives.
b. We can sharing our bones with them.
c. We can give them promotion
They give target & they will get some amount of commission.
5. Co-ordination: Without co-ordination, we can’t move a single step.
Inter-department co-ordination: all printing department should have a smooth co-ordination among themselves.
Co-ordination is necessary among managers & workers, machine & labour etc.
6. Controlling: controlling means checking the performance of sub-ordinates. A superior must see how far his sub-ordinates have performed their duties. It the performance is unsatisfactory, reason have to found out for remedial measures. It is an integral part of the process of management.
How to maintain a discipling. All the work should be in a controlled manner, their can be disturbances in the production.
It is very important for maintain the quality it is a monitoring process.
Organization: Structure of organization: once plans are formulates the next step is that of organization is the process of establishing harmous authority & responsibility relationship among the member of the enterprises.
It is the function of creating & structure of duties and responsibility relationship is known is organization structure.
According to fayol “to organize a business is to provide it with everything useful to its functioning raw material, tools, capital and personnel.
These are three main parts of organization are:
1. Sales and marketing: total production depends upon sales department. It is the main part of any production department.
To get the production work from market so that production work takes place. It deals with all kinds of work which relates to the starting of any production and benefits the owner.
There is a higher risk factor in sales & marketing, it is a mind-full department.
Responsibilities of sales and marketing: it is responsible for all orders, sales, communicating to consumers. To tell the consumers, to educate the consumers, to compel the consumer.
2. Production: it is the heart of any organization.
It must run as per the requirement of client, quality, getting and instant.
It is also the change or covert the raw material into finished product.
Responsibilities of production: as the name indicates, “To product” depending upon the demand demanding upon sales and marketing department. It is actually executing of the job.
Every product have to be delivered at certain period or interval. We can’t compromise with the time.
Quality must be maintained. There should be any compromise with the quality.
To give maximum output with minimum input.
3. Administration: to make policies of the organization.
Sales and administration, production both reports to administration.
It has got the control, charge of human resources (H.R) & finance department.
Administrative approvals are required to run the organization.
By combining sales & marketing, production & administration, the organization is made.
Responsibilities of administration: it gives the target, give instruction to the sales and marketing what must be the target such that the organization is benefitted, is must maintain a target which is limited so that they could be able to achieve it.
Target should be according to target infrastructure available etc.
Finance department is directly under the control of administration.
It is the duty of administration that the workers are getting a good & healthy environment to work.
HR department looks after the workers comfort their salaries, their working environment etc.
Departmental management: Management is characterized by the presence of a chain of command, the chain of supervisors and sub-ordinate from the highest level of organization of the lowest. It is level of management.
They transmit orders, suggestions and decisions downwards and carry the problems and suggesting upwards.
Leadership: It is the ability to shape the attitude and behaviors of others whether in formal or informal way”.
It is a process of influencing the people and leadership transforms potential into reality.
Important of leadership:
1. It helps in persuading employees to work with determination towards common goals.
2. Leaders develop and maintain an environment which leads to maximum work efforts.
3. He fills confidence in his sub-ordinates.
4. He identifies the group goals and helps the group to obtain them.
5. He administrates the company by arranging, planning, organizing, directing, co-ordinating, and controlling the company is activities.
6. He takes a decision and finds out alternative methods of actions.
7. He initiates all the measures that are necessary for the health and progress of the company.
Qualities of a good leaders:
1. Intelligence: it should be intelligent enough to examine problems in the rigid perspective.
2. Communicative skills: he must be able to communicate clearly, precisely and effectively.
3. Objectively: he should be objective in his outlook.
4. Knowledge of work: he should have full knowledge of the tasks handled by him.
5. Self-confidence and will power: he must have confidence on his ability to meet the expectations of sub-ordinates as well as demands of day to day situations.
6. Human relation: he must be able to get along with people in a smooth and friendly manner.
7. Empathy: he should have the ability to look at things from others point of view.
a. A sense of mission.
b. Education.
c. Acceptability
d. Vision
e. Verbal ability and communication
f. Approachability
g. Maturity
h. Dependability
i. Administration
j. Cheerfulness and socialness
k. Group spirit.
l. Flexibility
m. Energy
n. Constructive, creative and independent thinking.
Productivity: Productivity management is considered to be one of the important and difficult tasks of management. It is also one of the more frequently discussed topics is seminars and management circles.
Significance of productivity: whether it is a free enterprise economy, a socialistic economy or a mixed economy the stress is being given on higher productivity, according to price Philip “no amount of economic juggling to can alter the fact that in the long run, our solvency depends on the efficiency of our industries and upon the national productivity.
When the productivity in an industry is increased, the rate of economic growth increased automatically.
Increase in productivity in an industry leads to higher production with the most economical use of available resources. In other words, the cost of production by decreased.
This benefits the customer by reducing the prices, the workers by increasing their wages and the entrepreneurs by increasing profits.
The productivity drive has higher significance in case of developing countries which are facing the problems of inadequacy of capital, raw materials, management personnel etc.
Advantage of higher productivity:
1. Increase in the efficiency of various factors of production.
2. Economical use of various factors of production. This decreases the total cost of production per unit.
3. Decrease in overhead cost.
4. Better quality of goods at lower price.
5. Overall growth of the economy.
6. Profit are increased.
7. Increase in wages and salaries to the workers.
Meaning of productivity: it represents goods and services produced in relation to the resources utilized in their production.
Measures of productivity:
Productivity (in general terms)
output (input man).
Productivity of labour
output/no. of man hours.
Productivity of machine
output/no. of machine hours works.
Productivity of capital
output/net capital employed.
Productivity of material
output/weight, volume, no. of length or raw material used.
Productivity of land
total production of land/area of land used.
Production V/S Productivity:
There is a different between the two terms, namely production and productivity.
Production: if inputs are increased and a large production is obtained, it does not necessarily result in increased productivity.
Productivity: but if production is increased with the use of same inputs or the same output or production is obtained with smaller inputs, productivity is sold to have increased.
Factors influencing industrial productivity:
1. Technological advancement.
2. Quality of workforce.
3. Available of finance.
4. Managerial talent.
5. Government policy.
6. Natural factors.
Difficulties in managing labour productivity: the difficulties in managing productivity of labour are due to the following factors:
1. Lack of commitment of management to productivity enforcement.
2. Lack of system to measure productivity.
3. Poor industrial relations climate.
4. Bad method and bad management contributing to low productivity.
Some other lack productivity:
1. High overtime.
2. High idle time.
3. High absenteeism.
4. Low output.
5. More rejections.
6. Rework and rectification.
7. More waiting times.
8. Inadequate utilization of machinery.
9. Surplus manpower.
10. Frequent work stoppage.
Step of increase productivity:
1. Improved raw materials.
2. Better machines.
3. Good working conditions.
4. Scientific selection of workers.
5. Industrial research.
6. Provisions of incentives.
7. Quality and cost consciousness.
Scientific management: F.W taylor was the first person who instead on the introduction of scientific method in management.
Meaning of scientific management: scientific management is the substitution of exact scientific investigations and knowledge for the old individual judgement or opinion in all matters relating to the work done in the shop.
The thread of scientific management turns through operational study of work, the analysis of work into simplest elements and the systematic improvement of workers performance of each elements.
1. Scientific study and analysis of work.
2. Scientific selection and training of employees.
3. Standardization of raw materials, working conditions and equipment.
Aim of scientific management:
1. Increased production.
2. Quality control.
3. Cost reduction.
4. Elimination of wastes.
5. Right man for right work.
6. Incentive wages.
Techniques or element of scientific management:
1. Scientific task setting:
2. Work study (work study implies an organized objectives, systematic, analytical and critical assessment term for those techniques which are used in examination of human work in all its content and which leads systematically to the investigation of all factors that affect the efficiency and economy of operation.
a. Method study: it conducted to know the best method of doing a particular job.
b. Motion study: it is a study of the movement of an operator or a machine.
c. Time study or work measurement: time study is an art of observing and recording the time required to do each detailed element of an industrial operation.
d. Fatigue study: fatigue, physical or mental, has an adverse effect on worker’s healths and his efficiency.
3. Planning the task:
4. Rate setting: wages rates should be fixed in such a way that the average worker is induced to attain the standard.
5. Standardization: the standardization of material, tools and equipment, cost system and several items. Efforts should also be made to provide standardized working conditions and methods of production to the workers.
6. Scientific selection and training of workers: it is very important and it required right worker on the right jobs.
7. Specialization: he advocated functional foremanship for this purpose. In his scheme planning was separated from executing. He recommended eight foreman in all to control the various aspect of production. He advocated four foreman in the planning department namely, route clerk instruction card clerk, time and cost clerk and shop disciplinarian.
The four foreman recommended for getting the required performance from the workers include gang boss, speed boss, repair boss and inspector.
Principles of scientific management:
1. To point out, through simple examples, the great loss and country is suffering through inefficiency in almost all of its daily operations.
2. To try to convience to readers that the cure lies in systematic management rather than searching for unusal man.
3. To prove that the best management is a true science based on clearly defined, laws, rules and principles and to show that the principles of scientific management are applicable to all forms of human activities.
It based of five principles:
1. Replacement of old rule of thumb method: it should be used for taking managerial decision instead of basing decision on openion, institution or rule of thumb.
2. Scientific selection and training of workers.
3. Co-operation between labour and management.
4. Maximum output.
5. Equal division of responsibility.
Mental revolution: the basic idea behind the principles of scientific management is to change the mental attitude of the workers and the management toward each other taylor called it “mental revolution”.
a. All out efforts for increasing production.
b. Creating of the spirit of mutual trust and confidence.
c. In-calculating and developing the scientific attitude towards problems.
Benefits of scientific management:
To employers: the main benefit of scientific management is “conservation and saving, making an adequate use of every ounce of energy of any type that is expended.
a. Replacement of traditional rule of thumb method by scientific investigation.
b. Proper selection and training of the workers leading to better workforce.
c. Achievement of equal division of responsibilities between the workers and the management.
d. Standardization of tools, equipment, materials and work method s for increasing efficiency.
e. Better utilization of various resources.
f. Better relation between workers and management.
g. Scientific determination of fair day’s work.
h. Worker can do.
To workers:
a. Detailed instructions and constant guidance for the workers.
b. Opportunity for training and development to increasing skills.
c. Incentive wages to the workers for higher production.
d. Better working conditions and tools for work for good health of the workers.
e. Less fatigue in work because of application of scientific method.
To society:
a. Better quality product as lower costs to the people.
b. Higher standard of living of people though better products.
c. Increased productivity in the country.
d. Industrial peace in the country.
e. Technological development due to scientific investigation.
Personnel management: It is planning organizing, directing and controlling of the procurement development compensation integration maintenance and separation of human resources to the end that individual organizational and social objectives are accomplished.
“It is requirement selection development and utilization of and accumdation to human resources by organization”.
“It is that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up an enterprise and having regard for the well-bring of the individual and of working group, to enable them to make their best contributions to its success”.
Definition by national institute of personnel management:
“Personnel management labour management or staff management means quite simply the task of dealing with human relationship within an organization. Academically the three aspects of personnel management are-
a. The welfare aspect concerned with working condition and amenities such as canteens, oreches, housing, personal problems or workers, school and recreation.
b. The labour or personnel aspect concerned with recruitment placement of employees remuneration, promotion, incentives, productivity etc.
c. The industrial relations aspect concerned with trade union negatiations settlement of industrial disputes, joint consultation and collective bargaining.
Duties and responsibilities of personnel department:
a. To attract human resources into the organization.
b. To develop and motivate them for better performas.
c. To integrate and maintain them in the organization.
Concept of selection: “it is the process of differentiating between applicants in order to identify and hire them with a greater likelihood of success in a job”.
Selection process: it involves a no. of steps --- screening of application forms, selection tests, interview, checking of reference, physical examination, final selection, employment contract, evaluation.
Selection tests: many organization hold different kinds of selection tests to know more about the candidates or to reject the candidates who can’t be called for interview etc. this tests normally supplement the information provided in the application forms, selection tests may give information about, their aptitude, interest, personality etc. which can’t be known by application forms.
Interview: selection tests are normally followed by person interview of the candidates. The basic idea is to find out overall suitability of candidates for the job.
Industrial relations: it is concerned with the system and procedures used by unions and employers to determine the reward for efforts and other condition of employment to protect and interest of the employed and their employers, and to regulate and ways in which employers, treat their employees.
a. The relationship between employers and employees as groups.
b. The role of various parties-employers employees and their unions and state in maintaining this relationship through different ways.
c. The mechanism of handling conflicts between employers and employees in case, such conflicts arise.
Cause of poor industrial relations:
a. Nature of work.
b. Poor wages and working conditions.
c. Defective trade union system.
d. Poor behavior climate.
Steps for good industrial relations:
a. Creating trust between employees and management.
b. Top management support.
c. Sound human resources management policies.
d. Continuous feedback and corrective actions.
e. Professional approach.
Discipline: it is essential maintain discipline among the employees for better job performance. The literal meaning of discipline is the mode of life in accordance with rules in the organizational content, discipline denotes mod of behavior in accordance with organizationally prescribed rules, regulations, procedures or other expected modes of behavior.
Types of discipline:
1. Positive discipline: also known as preventive, deteminative or self-discipline, involves actions taken to encourage employees to follow rules and standards so that infractions don’t occur.
2. Negative discipline: also known as enforced, punitive or autocratic discipline, involves the use of external force or the threat of its use to restrain employees from engaging in behaviors which are contraty to rules and standards.
Maintaining discipline:
1. To bring unpredictable behavior of people in conformity to expected ones so that their behavior become more predictable.
2. To develop tendency of greater tolerance and adjustment among the employees.
3. To create a respect for human beings.
4. To obtain a willing acceptance for organizational rules, regulations and procedure for performing the jobs effectively.
5. To create a conductive work environment.
Industrial fatigue: industrial disputes arising out of industrial fatigue like problems of indiscipline manifestation of industrial disputes in the form of strikes, lackouts, bandhs, gheraos etc.
IMPORTANT INDUSTRIAL ACTS (LABOUR LAWS)
The factories act, 1948: this acts regulates conditions of work in factories. The working condition should ensure the health and safety of workers. The act extends to the whole of India including state of Jammu &b Kashmir. It came into force on 1st April 1949. The act was further amended in 1950, 51, 54 and 1976.
Salient provisions of the act:
1. Licensing and registration: the occupier should at least 15 days before he occupies a place as a factory, will send to the chief inspector a notice containing.
a. Name and address of occupier.
b. Name and address of factory.
c. Nature of manufacturing process.
d. Power to be used.
e. No. of workers likely to be employed.
f. Any other relation information.
2. Health: section 11 to 23 contained in chapter 3 of the factory act, 1948 deals with the health of workers in a factory.
a. Cleanliness: every factory must be kept clean by following methods.
- Removal and disposal of dirt and refuse.
- Washing the floors of work room.
- Painting to be done atleast once in 5 years.
b. Disposal of waste and effluents
c. Ventilation and temperature:
- Adequate ventilation by fresh air circulation.
- Suitable temperature to provide conditions of comfort and prevent injury.
- Dust and fumes.
- Artificial humidification
- Over-crowding
- Lighting
- Drinking water
- Latrines and urinals
- Spittoons
3. Safety: sections 21 to41 of the act contain the provisions relating to the safety of the worker.
a. Fencing of machinery: the following parts shall be securely fenced.
- Moving parts of prime movers.
- The head race and tail race of water wheel and water turbine.
The following rotating parts should be fenced by safe guards:
- Parts of electric generator motor etc.
- Parts of transmission of machinery
- Every dangerous part of any other machines.
b. Work on or near machinery in motion
1. Any part of machinery requiring the examination while it is in motion shall be examined only by a specially trained adult make worker wearing tight fitting clotting.
2. No women or young worker shall be permitted to clean, lubricate or adjust any part of a moving machinery.
c. Employment of young persons on dangerous machines: no young person shall work at any dangerous machine unless:
1. He has been fully instructed as to the dangers arising in machines and the precaution to be taken.
2. He has received training in work at the machine.
d. Hoists and lifts: these should be of good construction, sufficient strength and well protected.
e. Lifting machines, chains, ropes and lifting tackles: these should be of good construction sound material, adequate strength and free form defects.
f. Pressure plants: pressure should not exceed the safe working pressure.
g. Floors, stairs and means of access.
h. Pits, sumps, opening in floor etc.
i. Excessive weights.
j. Precautions in case of fire.
k. Protection to eyes.
4. Welfare: welfare measures are adopted to increase the productive efficiency of workers.
a. Facilities for sitting
b. First aid appliances
c. Canteens
d. Shelters, rest room, lunch room
e. Crenhes
f. Welfare officers.
5. Working hours:
a. Daily hours: adult workers – not more than 9 hours. Women workers – 6am to 7pm except between. No worker will work for more than 5 hours continuously.
b. Weekly hours: not more than 48 hours a week.
c. Weekly holidays: these must be one holiday in every week.
d. Extra wages for overtime
e. Register of adult workers.
6. Employment of young person:
a. No child shall be permitted to work
- For more than four and a half hours a day.
- During the night (I,e 10 pm to 6 am).
b. Child who has not completed his 14, must not be given job.
c. Child who has completed his 14 years shall not be required or allowed to working any factory unless he is given a certificate of fitness by a surgeon.
7. Leave:
a. One day in every 15 days of week performed by a child worker.
b. One day for every 20 days of work performed by an adult worker.
Worker & compensation act, 1923: This act seeks to compensate the workers injured. This act came into existence in1923. The act was amended in 1933, 38, 39, 46, 58, 62 and 1976.
This act is applied to all workers in the factories, mines, docks and railways. It is also applicable to transport workers telegraph and telephone linesman and workers in building profession.
Necessity: this law who necessary due to the possibility of more accidents in the every growing complexity of industry. The act provides for cheaper and quicker disposal of disputes relating to compensation. The workers are protected against the financial hardships arising of accidents.
1. For improving industrial relations and maintaining industrial peace.
2. To save the worker from the exploitation of the employer.
3. To fix hours of week, rest pause etc.
4. To provide good working conditions for the workers.
5. To help in payment of fair wages to the workers.
6. To give compensation to those workers who are victims of accidents.
7. To provide good working conditions for the workers.
8. To reduce the conflicts, strikes etc
9. To save the workers from exploitation of the employers.
10. To provide job security for the workers and compensation during layoff period.
Indian copyright act 1957: The act may be called as the “copyright act 1957”. It extends to the whole of India. It came into force on 21 January.
Copyright office: it is established for the purpose of this act and this office is called the copyright office. This office functions under the control of the resigtrar of copyright & who acts under the direction of the central government. There shall be a seal for the copyright office.
The central government shall appoint a registrar of copyright and any appoint one deputy registrar for copyright.
Deputy registrar of copyright shall work under the direction of the registrar.
Copyright board: after the commencement of act the central government shall consist a board called copyright board. This board consists of a chairman and members less than eight in numbers.
The chairman of the copyright board shall be a person who is a judge of supreme-court or high court or is qualified for appointment as a judge of high court.
Board: the registrar of the copyright shall be the secretary of the copyright boards.
1. The board shall subject to any rules that may be under this act, have power to regulate it is own procedure including the fixing of places and times of its settings.
2. The board may exercise its powers though benches constituted by the chairman of the copyright board. Each bench consist of not less 3 members.
SALESMANSHIP AND ADVERTISING
Marketing helps in developing economic resources, since a business firm generates revenue and earns. Profit by carrying out marketing function, it will engage in exploiting more and more economic resources of the country to earn more profits. Therefore, marketing should be given the greatest important if the national resources are to be exploited fully. Marketing determines the needs of the customers and sets out of the pattern of production of goods and services necessary to satisfy the needs of the customers. Marketing also helps to explore the export market.
Definition of marketing:
1. Narrow definition: marketing may be an economic process by which goods and services are exchanged and the values determined in terms of monthly prices. The American marketing association has defined marketing as “the performance of business activities that direct the flow of goods and services through producer to consumers or users. That means marketing includes all those activities carried on to transfer the goods from the manufacturers or producers to the consumers. In involves the exchanges of goods and services for money.
But in the present day, business marketing begins long before the goods are produced. The demands of the customers must be forecast before the product development and production take place. Marketing decisions must also be made regarding the market, pricing and promotion of the product, marketing does not end with the final sale. It is main aim of customer satisfaction.
2. broad definition: marketing is the business process by which products are matched with the markets and though which transfer of ownership are effected if a business organization produces the products after assessing the requirements of prospective customers, it is more likely to be successful to achieve its objectives. The consumer-oriented marketing has given rise to a new phillosphy in business known as ‘marketing concept’. The marketing concept emphasis the determination of the requirement of potential customers and supplying products to satisfying their requirements.
“marketing is a total system of interacting business activities designed to plan, price, promote and distribute wants satisfying products and services to present and potential customers.
Marketing concepts: Modern authors view marketing more than a physical process of distribution goods and services. They feel that marketing represents a distinct phillosphy of business or a course of business thinking that has emerged over the recent years. The businessman following this philosphy recognise and accept ‘customer oriented’ way of doing the business. It needs of customers.
Under marketing concept the emphasis is a selling satisfaction and not merely on selling a product.
Marketing concept is based on three fundamental beliefs. First all company planning policies and operations should be oriented towards the customers.
Secondly, profitable sales volume should be the goal of a firm.
Third all marketing activities in a firm should be organizationally integrated and co-ordinated.
Distinction between marketing and selling: The marketing concept is a course of business thinking while marketing is a process or a course of business action. Naturally, marketing is influenced by the course of business thinking (i.e. customer-oriented). Marketing concept focuses on customers for earning profits through customers ‘satisfaction and follows integrated marketing but formely marketing focused on products to earn profit through sales volume and followed sales promotion techniques for this purpose.
Marketing is a total system of interacting business activities designed to plan, promote and distribute want satisfying goods and services to present and potential customers.
Selling is a sub-activity of marketing and is basically administrative in nature conditioned to physical transfer of ownership and possession of goods and services from the seller to the buyer. Selling concentration merely on increasing the volume of sales whereas marketing is concerned with satisfaction of wants, needs and preferences of the customer.
Focus
means
objectives
Selling concept
products
selling & promotion
profits through sale volume
Marketing concept
customer needs
integrated marketing
profit through customer satisfaction
Marketing management: Marketing management is an important operative function of management. It performs all management functions in the field of marketing. It is responsible for planning, organising, directing and controlling the marketing activities.
Marketing management is the analysis planning implementation and control of programmes designed to create, build, maintained mutually beneficial exchanges and relationships with target market for the purpose of achieving organization objectives.
Function of marketing: In most of the business enterprises, marketing department is set up under supervision of the marketing manager. The major purpose of this department is to generate revenue for the business by selling want satisfaction goods and services to the customers. In order to achieve this purpose. The marketing manager perform the following functions.
1. Marketing research.
2. Product planning and development.
3. Buying and assembling.
4. Selling.
5. Standardisation, garding and branding.
6. Packaging.
7. Storage.
8. Transportation.
9. Sale-man ship.
10. Advertising.
11. Pricing.
12. Insurance.
Marketing functions:
1. Function of research
(a) Marketing research.
(b) Product planning & development.
2. Function of exchange
(a) Buying and assembling
(b) Selling
3. Functions of physical treatment
(a) Standardization grading & branding.
(b) Packaging.
(c) Storage.
(d) Transportation.
4. Function which facilitate exchange
(a) Salesman ship.
(b) Advertising.
(c) Pricing.
(d) Insurance.
Entrepreneurship development
ENTREPRENEURSHIP
Definition: It can be described as a creative and innovative response to the environment.
“Doing new things or doing things that are already being done in a new way is therefore, called it.
It can involve innovativeness, an urge to take risk in the fear of uncertainties, and an institution of seeing things in a way which afterwards proves to be true.
Responsibilities of an entrepreneur:
1. He initiates and establishes an economic activity or enterprise for the development of wealth in the society.
2. Once he starts his enterprise, to be successful, he would have a high need for influencing others a low need to establish emotional relationship and a high capacity to discipline one’s own-self.
3. He studies the market situation, explores, profitability in alternative line of business, product, machinery, technology and processes, financiers and compares before making his final decision.
4. A successful entrepreneur continuously modifies his goals on the basis of the feedback he receives from his environment.
5. They are inclined to approach their tasks with a hope of success and tend to believe in their own capacity to influence the environment.
6. They set high goals for themselves as well as their workers and drive them hard to achieve the same.
Entrepreneur
entrepreneurship
Enterprises
Person
process of action
object
Characteristic of entrepreneur:
1. Self-confidence
a. Confidence
b. Independence, individuality
c. Optimism
2. Task-result oriented
a. Need for achievement
b. Profit-oriented
c. Persistence, preservation, determination
d. Hard-work, drive, energy
e. Initiative
3. Risk-taker
a. Risk-taking ability
b. Likes challenges
4. Leadership
a. Leadership
b. Gets along well with others.
c. Responsive to suggestive, criticism.
5. Originality
a. Innovative, creative
b. Flexible
c. Resourceful
d. Versatile, knowledgeable
6. Future-oriented
a. Foresight
b. Perceptive
Small scale industries: the industries which are run with the help of hired labor and which also use some simple machine and power.
1. Help to solve problem of unemployment as more jobs are created for the capital investment.
2. Gestation period is less and hence less problem of inflation.
3. Help In balanced growth of economy of different regions.
4. Less polluting
5. Industrial disputes are absent.
6. Use less capital and local resources.
7. Can bring large foreign exchange develop in modern technology and management.
Characteristic of small entrepreneurs:
1. Young
2. Energetic
3. Self-confident
4. Flexible
5. Turnover is small
6. Employ a few people
7. Planned approach
8. Systematic
9. Pleasant mannered
10. Minimum basic education
Factors influencing product:
1. Factory building
2. Nature of product
3. Production process
4. Type of machinery
5. Repair & maintenance
6. Human needs
7. Plant environment
Tiny unit: units having investment in plant and machinery upto @25 lakhs.
Small scale industrial undertaking; industrial undertakings in which the investment in fixed assets in plant and machinery weather he is owner, or by lease or by hire-purchase does not exceed @1 crore.
Ancillary industrial undertaking: industrial under an investment in fixed assets in plant an machinery does not exceed @1 crore and engaged or is proposed to be engaged in manufacture or production of parts, component, sub-assemblies, tooling or intermediates etc.
1. Quality of the product.
2. Availability of raw material and other inputs.
3. Pre-ownership experience.
4. Educational & technical specification, training.
5. Reasonable profit margin of 20 to 40%.
6. Sustainable market demand for the product.
Preparation of the project report:
1. Technical feasiblilty: description of the product, raw material availability, quality control measures, power supply, availability of water transport facilities and communication network.
2. Economic viability: it involve complaition of demand for domestic and export markets, capital assets, revenue expected, suitable price structure.
3. Financial implications: it includes non-recurring expenses such as land and building: plant and machinery, raw material needs, wages for personnel etc.
The probable cost of production over a period a five years is to be assessed and expenses such as fixed and variable expenses and break-even analysis should be presented.
4. Managerial competence: the new entrepreneur the small scale sector should devote his full attention to the new venture and should consider the product line chosen as a “major economic activity”.
He should develop keen desire to adopt modern management practices for ensuring its successful growth.
He should maintain up to date records certaining to actual production, sales effected every months, new market segments changes in fashion, usage, design, style etc.
Financial support system: working capital is required for:
1. Purchase of raw materials.
2. Consumable stores/spares.
3. Stock-in-progress.
4. Payment of wages.
5. Other manufacturing /administrative expenses.
To obtain working capital, entrepreneurs should approach one of the commercial banks (SBI, other nationalized bank, private sector banks etc.)
Banks provide credit facilities to meet working capital requirements to facilitate production as per the manufacturing needs of the industrial unit.
LOCATION OF THE ENTERPRISE
Approachable, walking distance, more facilities to customer easily availability of labours transportation proper connectivity, availability of electricity, proper communication system, good roads and machine & machine parts, mechanics availability.
Plant layout: plant layout means the disposition of the various facilities (equipment, material, man-power etc.) and services of the plant within the area of the site selected previously.
Plant layout begins with the design of the factory building and goes up to the location and movement of a work table.
All the facilities like equipment, raw material, machinery, tools, fixtures, workers etc. are given a proper place.
1. Integration: integration of production centers in a logical and balanced manner.
2. Minimum movements and material handling.
3. Working conditions are sager, better.
4. Increased productivity and better product quality.
5. Plant maintenance is simplier.
6. Movements made by the workers are minimized.
7. Utilization of cubic space (length, width, height).
QUALITY CONTROL
Definition: ‘meeting the requirements of the customer.
According to ISO 9001:2008, “quality is the degree to which a set of inherent characteristic fulfills requirements”.
There are five aspect of quality:
1. Producing: providing something.
2. Checking: confirming that something has been done correctly.
3. Quality control: controlling a process to ensure that the outcomes are predictable.
4. Quality management: it optimizes its performance through analysis and improvement.
5. Quality assurance: obtaining confidence that a product or service will be satisfactory.
Quality control: the observation technique and activities used to fulfill requirement for quality.
Customer demand high-quality print jobs without variations or defects.
Control: an evaluation to indicate needed corrective response and change cause.
Quality assurance: describes any systematic process for ensuring quality during the successive steps in developing a product or service. ISO 9000 is a standard for ensuring that a company’s quality assurance system follow best industry practices.
Quality assurance: the planned and systematic activities implemented in a quality system so the so that quality requirement for a product.
Assurance: the act of giving confidence, the state of being certain or the act of making certain.
Quality control
Quality assurance
Product
process
Reactive
proactive
Line function
staff function
Find defects
prevent defects
Process control: Refers to the methods that are used to control variable such as proportion of one ingredient to another, the temperature of material, how well ingredient are mixed.
1. Reduce variable
2. Increase efficiency
3. Ensure safety.
Total quality management: It is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives so as to provide products and service with a level of quality that satisfies customers, at the appropriate time and price.
A. Systematic activities: planned, strong leadership, mid and long term version, strategies and policies.
B. Entire organization: everyone at all levels, across functions.
C. Effective and efficient: achieved planned result with least resourced.
D. Quality: usefulness, reliability, safety.
STORE
Ware house is a strong room. A warehouse in a printing press is a place where printed and unprinted stock of paper is stored till it is further required for processing but early days, warehouse has a dual purpose that is storage of paper and to perform preliminary bindery operations. The main task of the warehouse man is to receive stock check and a properly receipt. He keeps a complete record of the stock of all papers available in the warehouse.
Types of warehouse:
1. White paper ware house: a white paper warehouse is mainly used to store un-printed papers, cards board in different, sizes, qualities, grammage. It has a humidity of more than 7-8%.
2. Printed paper warehouse: it is used to stock printed sheets of paper in a printing press. It should always be piled on wooden or metal pallet to avoid spoilage of printed sheets during handling.
3. Practice warehouse: a practice warehouse is a storage-cum-work place along with the storage of printed and un-printed stock of paper. It is also equipped with basic binding machine to perform preliminary bindery operations e.g. jogging, knocking, counting, folding, gathering, and collating, numbering, perforating, stitching, cutting and trimming etc also called warehouse operations.
ACCOUNTANCY
Definition: it is the measurement, processing and communication of financial information about economic entities such as businesses and corporations.
Objectives of accountancy:
1. Permanent record: any business firm needs a permanent record of the transactions that it indulges in. these records could be required for internal purpose, for taxation purpose or for any other purpose.
The permanent records is held on for years and can be retrieved as and when needed.
2. Measurement of outcome: there must be daily weekly, and monthly reports which provides information to the organization about how sell it is performing its activities.
3. Credit worthiness: firm need resources for their functioning. They do not have any capital stock at hard and need to obtain them for investors.
Investors will give money to the firm only if they have reasonable assurance that the firm will be able to generate enough profit.
4. Efficient use of resources: firms can also conducts useful analysis with the help of accounting data. Accounting records tell the firm” what resources were committed to what activity and what time”.
5. Projections: analysis can make reasonable assumption about the future based on the past records.
Costs and revenue growth can be projected after sustainable data base be accumulated.
Entry system:
1. Single entry system: the system of accounting in which only one sided entry is required to record financial transaction is called single entry system.
The system has simple type of nature and it has incomplete type of recording. This system is preferable for small enterprises.
2. Double entry system: the system of accounting in which every transaction affects two account simultaneously is known as double entry system.
This system has complex type of nature and it has complete type of recording. This system is suitable for tax purposes.
In this system, errors are easy to locate. It is preferable for big enterprises.
Explanation of terms:
The terms during accountancy must be explained clearly for proper understanding to our clients.
Journal: a journal is a book or computer file in which monetory transactions are entered the first time they are processed.
Rules of journalizing: the debiting and crediting of the accounts are done on the basis of certain rules. These rules are called rules of journalizing i.e. debit and credit.
These are two alternative bases for the rules of debit and credit such as follows:
1. Rules of debit and credit based on the types of account:
a. Personal account: personal account is an account of a person. A person can be a natural person such as people like us, an artificial person such as firms, organization and institutions and a representative person such as debtors and creditors.
Debit the receiver of benefits.
Credit the giver of benefit.
This rule states that whatever a person receives benefits is debited by the amount of the benefit received.
b. Real account: real account is a record of an asset. An asset can be current asset such as cash, a fixed asset such as building and intangible asset as goodwill.
Debt what comes in.
Credit what goes in.
This rule states that whenever some benefit in the form of asset come into the business through its purchases, tis account is debited.
c. Nominal account: nominal account is a recorded of expenses or loss or income or gain. An expenses or loss in the sacrifice of benefits in exchange for service used and an income or gain it the benefit earned in exchange for service recorded.
Debit all expenses and losses.
Credit all incomes and gains.
This rule states that whenever some benefit is sacrificed in exchange for service used (expenses made or loss suffered), its (expenses account is debited).
2. Rules of debit and credit based on the accounting equation: accounting equation is a statement of equality between the three basic elements of accounting. They are assets, capital and liabilities.
Importance of ledger: a separate record of each similar transaction is called ledger.
Or
Ledger is a accounting book of final entry, where transactions are listed in separate accounts.
1. Transactions relating to a particular person, items or heading of expenditure or income are grouped in the concerned account at one place.
2. When each account is periodically balanced it reflects the net position of that account.
3. Since the entries recorded in the journal are referenced into ledger the possibility of errors of defalcations are reduced to the minimum.
4. Ledger is the “store-house” of all information which is used for preparing final accounts and financial statements.
Cash account: a cash account is a regular brokerage account in which the customer is required by regulation to for securities within two days of when a purchase is made.
Drawing account: it is an accounting record used in a business organized as a sole proprietor-ship or a partnership in which is recorded all distribution made to the owner of the business.
PLANNING PLANING CONTROL
The term ‘PPC’ is used in the area of industrial management. It signifies the need of planning and central of production system. Planning and control functions should be performed in an integrated manner. There is no use of planning if there is no system of control to see of the plans are being properly executed and result are being adequately evaluated. Control is dependent on planning as the standards of performance to be used in quality control and other hand provised information which is useful in modifying the existing plans and making the new plans. Thus there is a close link between planning and control. Production planning and control is an integrated system of planning and controlling the various phases of the production system.
‘production planning and control’ comprise the planning, routing, scheduling, dispatching and follow up functions in the production process so organized that movements of materials, performance of machines and operations of labour. However, sub divided are direct and co-ordinated as to quantity, quality, time and place.
Production Planning & Control
Planning (plan your work)
control (work your plan)
Routing
dispatching
Scheduling
expediting or follow up
Loading
correction action.
Objectives of production PPC
1. To determines the sequence of operations which will ensure continuous production with the least possible interrupt.
2. To issue coordination work schedules of production to the foreman of various workshops.
3. To plan plant capacity that will provide sufficient facilities for future production programmes.
4. To maintain sufficient inventories of material to support the continuous flow of production. 5. To maintain production and employment level that are relatively stable and consistent with the volume are sales.
6. To follow up production schedules to ensure that delivery promises are kept.
7. To evaluate the performance of various workshops and individuals.
Significance of production planning and control:
In big enterprise, it is essential that there is proper planning of production operations and their adequate follow up at the executive stage so that.
(a) Productivity and efficiency and maintained at high level.
(b) Production process produces right types of goods and services.
(c) Material and stores are purchased in required quantities at the right time.
(d) There is the least possible idle time of plan and workers.
(e) Wastage and scrap are minimum.
(f) Delivery schedules are met.
An efficient system of production planning and control helps the achievement of high quality at minimum cost through even distribution of work to available machines and equipment and workers. It also provides for flexibilily to meet unavoidable emergencies. PPC can also be used as in instrument of formalising co-ordination of purchasing, marketing, quality control, cost control, and other activities related to be production function of an industrial enterprise.
Advantage of PPC
1. Efficient use of resources.
2. Economy.
3. Co-ordination.
4. Avoid bottlenecks.
5. Inventory.
6. Public image.
Limitation of PPC
1. It is not a simple process.
2. Production planning is based on certain assumption about customers order, plant capacity, availability materials and power. If these assumptions go wrong, the process of PPC will go weak.
3. It is time-consumption process.
4. It is very costly device.
Steps/elements of PPC:
1. Routing: routing deals with laying down of path along which materials are to travel in the process of production. It determine the sequence in which various operations will be performed.
2. Loading: the work can be loaded against the concerned machines and equipment. Loading deals with the quantity of work assigned to a machine or a worker. Persons concerned with loading keep all the records of the workload and capacity of different shops. The total time required to perform the workload is computed by multiplying the unit operation time given on the standard process sheet by no. Of parts planned for the work station. This process result in a tabulated list or chart showing the planned utilisation of machine or work stations in the plant.
The load chart helps is assessing the spare capacity. If the load charts indicate sufficient spare capacity, efforts should be directed through the sales department to obtain more orders for the utilisation of the spare capacity.
(a) Arrangement of overtime work.
(b) Introduction of an additional shift.
(c) Transfer of operation to another shop.
(d) Sub-contracting of the excess work-load.
3. Scheduling: it is last of planning functions. It leads to fixing up to starting and completion times for the various operation to be performed.
(a) Date of delivery specified by the customer.
(b) Past production records.
(c) Production capacity.
(d) Availability of equipment, material and specialised skills.
4. Dispatching or issuing instructions.
5. Follow-up or expenditing.
6. Corrective measures.
PRODUCTION PLANNING AND CONTROL:
When the job adopted by press from time to time. It is essential in order to error-free, quick and most economical execution of the job. Each press must lay down a rigid and scientific press procedure according to it.
The procedure of this department:
1. Minimize any kind of disputes between customer and printer with regard to size, quantity and quality.
2. Timely completion.
3. Utilization form and performas.
4. Properly record of all jobs.
5. Each job have complete history.
6. Check on the inventory and ensure available of all raw material.
7. Know of all jobs work position.
8. Timely billing and speed recovery.
Other involve following set:
1. Preparation job estimate-each estimate should have a written approval by customer.
2. Registration of job - entry register serial no. job no. date receipt, name customer particular job, date of delivery.
3. Making a job docket: it also called work information ticket. In this form work information given, and detailed specification regarding, quality and kind of material to be used. For urgent job used red envelope on the right hand top corner.
4. Making a cost sheet:- cost sheet performas is filled general information job no., name of customer, full particular of the job, estimate no, and it is sent to the costing section through the dispatch.
5. Issue of material instruction: it is used for issue paper, board and it store-keeper to ensure that the desired material are available in the press when required.
6. Job distribution: it is show all printing process and it has empty column and that inform where the job docket.
7. Maintenance of job progress card: it is daily report and it has each and every job in the various stages record, name of department, customer’s name, name of the job, position of work.
8. Timely disposal of daily docket: same job distribution.
9. Intimation of stores issued: material issued from store only against proper indent signed and after issued raw material record, how much issued and which job, date of issue, which material issue and price according press and sent to costing department for costing sheet.
10. Intimation of dispatch: it is daily send a list of jobs dispatch to the costing section for the billing.
Forms and proformas:
The proformas by costing system have been divided into two group: forms and spicemens. This proformas revised and check of job.
1. Forms:
a. Statement of expenses: all expenditure detailed record in the business.
1. Summary of expensed: it is yearly based detailed of labour, outwork, and material expenditure record in the business.
b. Daily docket: daily production record used for known how many labour work in how many time and direct chargeable.
c. Statement of record cost of production: it is weekly record of value of work done in a press and record statement of budged and send by senior. It provide information, how much money spent on various production process.
d. Work instruction ticket: it is envelope and it has job information a manuscripts, designs, artworks, proofs.
1. Office work ticket:-
2. Progress slip
e. Cost sheet:
f. Paper issue daily return: issued slip (indirect charge but proof indirect chargeable)
g. Ink requisition: ink slip
h. Binding material issue slip:
1. Stock record; entry register date of receipt and issued.
Spicemen:
a. Invoice (bill form): invoice is either a claim for the product supplied or services rendered of is only an intimated regarding the dispatch of articles. It consists two performa.
1. Delivery challan:
2. ‘Bill’: good delivery and description of article / job, quantity, and rate and value charged.
b. Departmental plant record: record maintain for each and every machine and equipment separately and department wise. It record complete history of the machine form purchase to its disposal and date repair.
(c + d) calculation of hourly rates of machine room and binding: it shows direct and indirect expenses of a department and no. of direct job hours recorded for the department.
Formula: HR = DDE + IDDE / total DJH (direct job hour)
1. Estimate sheet: it shows hour of work of each & every operation and summary of total expenditure plus profit include according company.
2. Daily delivery sheet: dispatch proformaes.
3. Sales day analysis book: it maintained estimate department and send to management. The main purpose estimate and actual cost is compared to know the extended of profit or loss and this performas this bill are issued to the customer and sales record is complied.