CHAPTER 1

INTRODUCTION
1.1. Introduction
Management’s primary function is to get people to work together for the attainment of
an organization’s goals and objectives. Management is the act of getting people together to
accomplish desired goals and objectives using available resources efficiently and effectively.
Since organization can be viewed as systems, management can also be defined as human
action, including design, to facilitate the production of useful outcomes from a system. This
view opens the opportunity to manage oneself, a pre-requisite to attempting to manage
others. Management function include: Planning, organization, staffing, leading or directing,
and controlling an organization (a group of one or more people or entities) or effort for the
purpose of accomplishing a goal. All managers are involved in planning but the nature of
policies and plans set out by superiors will vary with each manager’s authority. While senior
executives plan the direction of the organization mangers at various levels prepare plans for
their own section which ate part of the overall aims of the organization.
Planning is one of the four managerial function; the others are organizing, directing
and controlling. Planning is the most basic of managerial functions. It determines
organization objectives and purposes, so that everyone understands what they have to
accomplish. Planning involves selecting enterprise goals and department objectives, then
finding ways of achieving them. Plans depend upon the existence of alternatives and then
decisions have to be made regarding what to do, how to do it, when to do it and by whom
it is to be done. A plan is a pre-determined course of action which helps to provide
purpose and direction for member of an enterprise. The planning process can be aided by
working in an environment which is conducive to it. This is important as plans develop
from the lower levels of administration whose reaction and responses may change and
help to form plans.
The most important way management can contribute to growth is by systematic
planning. Probabilities are forecast and programmers developed to take advantage of them.
Constant attention must be given to changing circumstances and may revisions of plans may
be needed. Economists use the terms ex ante and ex post for this approach that is revision is
continually made of the basic assumption on which the plans were based as circumstances
change and thus new plans have to be developed.
 A process is defined as any group of actions instrumental to the achievement of the
output of an operation system. Process planning is defined as systematic determination of
methods by which a product is to be manufactured economically and competitively. Process
planning is defined as the sub-system responsible for the conversion of design data to work
instruction. A more specific definition of process planning is that function within a
manufacturing facility which establishes the processes and process parameter to be used in
order to convert a price-part form its initial form to a final form that is predetermine on a
detailed engineering drawing.
A process planning is performed in virtually all industries: it significance is
greatest in small-batch, discrete parts metal fabrication manufacturing industries. Recently,
however, process planning also has been recognized as playing an important role in other
manufacturing and process industry, such as electronics manufacturing companies, furniture
manufacturing companies, and even chemical process plants. A complete manufacturing
process includes the whole transformation from a raw material into a desired product.
Process is basic unit of construction process plans. A process can be defined as a procedure
is continually machined on one machine or workstation by one operator or group of
operators.
Manufacturing process planning can be define as the systematic determination of the
detailed methods can be manufactured economically and competitively from initial stages
(raw material form) to finished stages (desired form). A process plan is an important
document for production management. The process plan can be used for the management of
production, the assurance of products quality, and the optimization of production
sequencing. The process plan can even be used to determine equipment layout on the shop
floor. Recently, research results have demonstrated that process planning plays an important
role in a flexible manufacturing system (FMS).
Economic forecasting is basic to planning. Forecasting precedes the preparation of a
budget and it concerned with probable events. Probability theory is one statistical method
used widely. A newer development is econometric forecasting. This is done through the
construction of mathematical models in which various factors of the economy are given
mathematical values and their effect upon each other ascertained through the solution of
equations. The level of a country’s economy is of course a vital factor upon which a
company’s sales and revenue plans are based.
Bakery industry needs a variety of raw materials. The raw material requirement
differs with the different item. Even within the same product, the input composition varies
considerably, and depends on the nutritional requirements of the end product, the consumers
taste, and the pricing of the product. The raw materials requirement for the conventional
bread and biscuits produce in mechanized unit are well defined. A variety of raw materials in
different mixes are used for a number of traditional bakery items and also item such as cake,
pastries, depending upon the quality the taste requirements and local practices. Business
income is the amount left over after subtracting deductible expenses from sales revenue. To
achieve the objective of maximizing income, your bakery must minimize waste without
running out of popular items. Because customer demand is rarely consistent, it is nearly
impossible to avoid waste altogether. However, keeping careful records of which items sell
fastest enables you to predict some sales patterns. You can achieve additional accuracy by
paying attention to variables that affect sales patterns, such as holidays and weather.
Discounting leftover baked goods the next day will also decrease waste. Consider donating
leftover baked goods to homeless shelters and community programs. Contributing to the
community in this manner has a net positive impact on your reputation and community as a
whole.

1.2. Aim and Objectives

The aim of this thesis is to design and establish a successful bread manufacturing
industry.
The objectives of this thesis are;
i. To make a profit by selling or providing products to people who will pay for them.
ii. To sell as many good as possible
iii. To sell as cheap as possible
iv. To concentrate on selling to the local community.

1.3. Scope of the Thesis

Scopes of this thesis are as follows;

i. Organize the organization for bread manufacturing factory
ii. Determine the objectives of the organization
iii. Design and calculation of bread making process
iv. Estimate the investment cost and customer demand
v. Calculate the total annual income, labor cost, total profit, break-even point
1.4. Implementation Program

The procedures of process planning for bread manufacturing factory are described by
the following steps;
i. Collecting all data from various sources such as libraries, internet and relevant
fields
ii. Studying the related theoretical knowledge for process planning
iii. Studying the bread manufacturing process
iv. Collecting the required data to calculate factory investment cost, total annual
inventory cost, total annual income, labor cost, total profit, break-even point.

1.5. Outline of the Thesis

This thesis is consists of five chapters. Chapter 1 presents introduction. Chapter 2

described the literature review of the basic information. Chapter 3 presents design theory and
process of bread manufacturing factory is mentioned. Chapter 4 described calculation of total
investment cost, total annual income, labor cost, total profit and break-even point. Chapters 5
provide discussions, conclusion and recommendations of the thesis.