Management

1
Management Organization

• Session 18-19

2
Day-to-day Methods and Procedures
To succeed a business must occupy a field of
public usefulness by producing a good article at
the lowest price consistent with fair treatment
of all those concerned with its production,
distribution and consumption Walter C.Teagle
3
The Elements of Operations

• Operations Summary
• Operations Description
• Human Resources
• Facility
• Production
• Supply and Distribution
• Fulfillment
• Customer service policy

4
The Elements of Operations

• Inventory control
• Efficiency Control
• Cash Flow control

5
Operations Description

• Describe the business operation
• If the business has division, list them in their
  order of operations
• If the business is manufacturing, assembly or
  wholesale company, it is more important to convey
  the complete operational procedures
• Explain the competitive edge

6
Human Resources

• If the company is very small or is a homebased
  business, skip this segment
• If the company have or intend to have several
  employees, develop some basic human resources
  policies
• Develop procedure for
• recruiting,
• new employee orientation,
• training,
• reviewing,

7
Human Resources

• salaries and benefits,
• standardized holidays,
• incentives and rewards
• As the final element of this segment, describe
  any new positions to be created and eventually
  filled that are in addition to those listed in
  Management Organization section

8
Facility

• Describe your facility and location in term of
  operational effectiveness
• For home-based business, be candid and state that
  the operation run from the home because no need
  for the expense of an office.
• State the advantages of your facility for your
  specific business
• Describe the main office and branches (if any)

9
Facility

• Office layout
• Cover the essential site advantages
• Briefly explain the facilitys advantages over
  the competition within market, any cost savings
• If you have a lease, explain in term, advantages
  and restrictions

10
Production

• Examine all the company operations involved to
  create, produce, buy or handle the products or
  services to the specifications and quality
  standards.
• Explain average productivity the output of total
  unit per day, week or month
• The work force
• Shop method
• Production-line method

11
Production

• Supplementing the work force
• Equipment
• Improving production with technology
• Quality control

12
Supply Distribution

• Supply represents
• Incoming material raw for a manufacturer
• Incoming parts for an assembly
• Incoming wholesale products for wholesale and
  retail company
• Distribution is the operation for the outgoing
  finished products or services

13
Supply Distribution

• Describe the supply operations
• The sources
• Average cost per unit
• Credit term
• Describe the distribution operations

14
Fulfillment

• Describe your fulfillment operations, from sales
  through delivery to your customer
• If a start-up company will have an internal order
  fulfillment operation, its necessary to closely
  evaluate the process of preparing products for
  shipping and delivery to customer
• Cover the methods for rush order, breakage
  control, safeguard for freshness, ensuring
  accuracy, tracking, packaging and shipping

15
Customer service policy

• Describe overall customer service policy include
  the method used to train the employees to monitor
  consistency, and to survey customer opinion and
  attitudes
• Describe the after-sale policies on warranty,
  repair, returns and refunds

16
Inventory control

• There are several inventory management systems
  for the purchasing cycle
• Economic order quantities (EOQ)
• Activity-based costing (ABC)
• Method for accurate record keeping and assigning
  values
• Actual cost
• Standard cost
• Weighted average
• FIFO
• LIFO

17
Efficiency Control

• To avoid the pitfalls of crisis management and to
  develop operational procedures for handling
  processes not part of the daily routine, this is
  must be done regularly
• Annual business planning
• Pay attention to the larger issues
• The often unassigned operations

18
Cash flow control

• Describe the cash flow control policy and
• Explain the procedure for handling money