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A STUDY ON

Business Development in Production Management

An Internship Report
Submitted in partial fulfillment of the requirement for the Award of the Degree of

Bachelor’s degree of Commerce

(Krishna University, Machilipatnam)

Submitted by

DERANGULA CHITTI RAJA

Reg. No: 2029141066004

Under the guidance of

………………………………….. Assistant professor

DEPARTMENT OF COMMERCE

M.V.R. DEGREE COLLEGE, NUZVIDU

AFFLIATED TO KRISHNA UNIVERSITY, MACHILIPATNAM

2022 – 2023
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DECLARATION

I DERANGULA CHITTI RAJA hereby declare that the project titled BUSINESS
DEVELOPMENT IN PRODUCTION MANAGEMENT submitted by me as partial fulfillment for the
award of the bachelor degree of commerce at M.V.R DEGREE COLLEGE, NUZVIDU, ELURU
(District), KRISHNA UNIVERISTY MACHLIPAATNAM, is a record of bonafide work done by me.

I hereby declare that the work in this report of my knowledge is my own and is neither
submitted to any other university nor published any time before.

Date:

place:

(DERANGULA CHITTI RAJA)

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M.V.R DEGREE COLLEGE

NUZVIDU

CERTIFICATION

This is to certify that the project report on “BUSINESS DEVELOPMENT IN PRODUCTION

MANAGEMENT” submitted by Mr. DERANGULA CHITTI RAJA is a bona fide work carried out by
her / him in partial fulfillment of the award of Bachelor Degree of Commerce by M.V.R. Degree
College Affiliated to Krishna University, Machilipatnam. The project work is original and never has
been a part of any other publication or award of any degree.

External Guide Asst. Professor Head of the Department

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ACKNOWLEDGEMENT

I express my sincere thanks to P. SAMBASIVARAO Principal, M.V.R. Degree College, NUZVIDU,

ELURU (District), for helping me in many ways throughout the period of my project with his timely
suggestions I sincerely owe my respect and gratitude to P. Rama Krishna, HOD, M.V.R DEGREE
COLLEGE, for his continuous and patient encouragement during all times of my project and helped
me in completing this study successfully. I express my sincere and heart full thanks to my internal
guide P. Purnamani Sai Assistant professor, M.V.R Degree College for his encouragement and
valuable support in bringing the present shape of my work. I express my Special thanks to my
organization guide Mr. JONNADA ESWARA KUMAR Head of operations of COSKILLS.in,
ELURU, who extended their kind support to completing my project. I also greatly thank all the
customers (The GODS of my Project) without whose feedback this project would stand nothing. I am
deeply indebted to my parents and family members for their warm love and support throughout my life.
In addition, I am grateful to all those who helped directly or indirectly for completing this project work
successfully.
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ABSTRACT

The Coskills.in engaged in the business of developing, marketing, and operating an IT-based platform

for educational institutions including all types of Colleges/Institutions. Coskills.in provides that to

Colleges/Institutions with software, Training, Internships, and Marketing solutions including the Product

and Services with the collaboration of Innoschool and Atomicity. The Product and Services of the

Coskills.in is available for use through www.coskills.in To accord copious opportunities to individuals

who wish to advance professionally and bring their true passion to light. Production Development and

Management is the leading management approach that companies employ to improve their product and

service quality with the aim of improving typical measures of business performance (e.g. increased

profits, increased market share, reduced costs and best quality). Customer requirement management

entails various issues related to requirement elicitation, analysis, and specification, as well as the

requirement management process.

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CONTENTS

PAGE
CHAPTERS TOPIC
NO

Background of the study, objective of the study,

statement of the problem, scope of the study,
CHAPTER - 1
limitations of the study, keyword, introduction of
Supply chain management SCM, demand management, materials
requirements planning, execution and control,
physical distribution, operations strategy

The development, scope, and objectives of

CHAPTER - 2
Production control management
production control, scheduling, releasing and
tracking of production orders and associated
schedule, and the reporting of materials and
resources used in the production process.

Execution of operation, scheduling and

CHAPTER - 3 authorization, quality, communication and
continuous improvement, design concepts and
Execution and control of operation
trade-offs.
(ECO)

Summarize the content, offer brief action plan,

CHAPTER - 4 make a subjective statement, show a benefit,
include supporting data.
Findings and conclusion
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CHAPTER 1
 Background of the study
 objective of the study
 statement of the problem
 scope of the study
 limitations of the study
 keyword
 introduction of SCM
 Demand management
 Materials requirements planning
 Execution and control
 Physical distribution
 Operations strategy
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INTRODUCTION
Background of the study
Business development or BD is the backbone of any successful business because
it generates the coveted “revenue”. It is sometimes about cracking sales deals, or during other occasions
about building partnerships. However, at the core, it's all about creating long-term value for your
organization.
It’s also about acquiring important skill sets that help you throughout your career. So, if you are
ambitious, target driven, and love to connect with people, here are some great reasons to take the plunge
into the world of business development.

Objective of the study

 In essence, business development involves high-level decision-making based on a realistic
assessment of all potential changes and their impact.
 Through new ideas and initiatives, it aims to improve the overall business prospects
 which drive the functioning of the different business units.

Scope of the study

The scope of production management is indeed vast. Commencing with the selection of location,
production management covers such activities as the acquisition of land, constructing the building,
procuring, and installing machinery, purchasing and storing raw materials and converting them into
saleable products.

Limitation of the study

It is not possible to maintain standards where piece rate system of wage payment exists. Labor unions
may oppose the application of time study where they are strong.Time study is applicable only where the
work is visible. So it can be applied only in manual job and for thinking portions of the job.
Only specific type of jobs which have identifiable starting and ending points can be timed accurately.
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Statement of the problem

At times, you may be too tightly wound up in your business to notice a problem, especially at the early
stages. Even when you start to think something’s wrong, you still might not know what the real problem
is. Some problems are symptoms of other more complex problems.
For example: Entrepreneur: “I have a big problem. I don’t have enough staff to do all the work my
company has committed to.” Mentor: “Why don’t you have enough staff? You hired three new
employee’s last quarter.” Entrepreneur: “They all quit. That’s my problem!”
It’s important to understand the causes of the problem, rather than simply looking at its effects. Here is a
process for problem identification:

Key words

Business development, Supply chain management, Production Management, profit, performance,

demand management, operational strategy, material requirement and planning, physical distribution.

METHODOLOGY OF STUDY

 Duration the of study 6 weeks

 Sampling tools used: Questionnaire
 The survey method was adopted for data collection

SAMPLING TECHNIQUE ADOPTED

In this research the sample has been selected by random sampling method from ‘Company Name’.
Simple random sampling is also known as probability sampling. Under this type of sampling design,
every item of the universe has an equal chance of inclusion in the sample. Here it is blind chance alone
that determines whether one item or the other is selected. The results obtained from the probability or
random sampling can be assured in terms of probability i.e., we can measure the errors of estimation or
the significance of results obtained from a random sample, and this fact brings out the superiority of
simple random sampling design over deliberate sampling design. Random sampling ensures the law of
Statistical Regularity which states that if on an average the sample chosen is random one, the sample
will have the same composition and characteristics of the universe. This is the reason why random
sampling is considered the best technique of selecting a representative sample.

SAMPLING SIZE

When a survey is undertaken and when it is not possible to cover the entire population the marketing
research has to answer a basic question of how large the sample should be (i.e.) how many people
should be surveyed.
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Sample size is the number of units of people surveyed .Large samples give more reliable results than
small samples but because of unavailability of finance, personnel and finance it is impractical to collect
data from all members. In the present project the sampling size is 50.

SAMPLING PROCEDURE

This answers: How should be respondents be chosen? The object of sampling to choose a sample which
will faithfully reproduce the characteristics of the population present, project probability sampling is
used which includes stratified random sampling.
A random sample is one where the population is divided into mutually exclusive and mutually
exhaustive strata or sub-groups. Thus human population may be divided into different strata on the basis
of sex, age group, occupation, education regions. It may be noted that satisfaction does not mean
absence of randomness. All that it means is that population and first divided into certain strata and then a
sample random sample is chosen within each stratum of the population. The present project consists of 4
strata i.e. working men, existed customers, older and general people public.

SOURCES OF DATA

Collection of facts and figures about a phenomenon is one of the most important steps for any study
whether it is related to business, management economics or natural sciences. Collection of data refers to
systematic recording of results either by counting or by enumeration. The entire structure of statistical
analysis for any enquiry is based on systematic collection of data. Broadly speaking there are two types
of data.

 Secondary data
 Primary data

SECONDARY DATA

Secondary data consists of information that already consists, somewhere having been collected for
another product.

PRIMARY DATA

It is the data, which is collected for the first time by investigation to serve a particular purpose. Such a
data if of original nature. The sources from where these data can be collected are known as primary
sources. Primary data can be collected by anyone of the following methods.

o Direct Personal Interview

o Indirect Oral Interview
o Mailed Questionnaire Method
o Schedule sent through Enumeration

A proper choice of type of Data needed for any investigation basically depends on consideration of
various factors such as nature, objective etc. Primary data for this study has been collected from the
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customers with the help of questionnaire. Any interview can be improved and its results made in
comparably more valuable for the final report if the questionnaire fulfils certain psychological
requirements. It is with these psychological features that questionnaire for this project has been drafted.
These features can be grouped roughly according to following specifications.

A good questionnaire should make it easy to obtain the necessary information from the respondents. It
should take into account the influence, which is own wording might have upon the replies of the
respondent.

HISTORY AND BACKGROUND:

Coskills.in is a company incorporated under section 58(1) of the Indian Partnership Act, 1932, having its
principal office at 23A-3-32, 2nd Floor, Lalitha & Co Building, R R Pet, Eluru-534002, Eluru Dist.,
Andhra Pradesh, India (“Provider” or “Coskills.in“). The Coskills.in engaged in the business of
developing, marketing, and operating an IT-based platform for educational institutions including all
types of Colleges/Institutions. Coskills.in provides that to Colleges/Institutions with software, Training,
Internships, and Marketing solutions including the Product and Services with the collaboration of
Innoschool and Atomicity. The Product and Services of the Coskills.in is available for use through
www.coskills.in.

ABOUT COMPANY:

We are an Ed-Tech company steadfast in furnishing professionals with the finest skillset by refining
existing caliber and cultivating new skillsets. Our adept professionals are here to correct, guide, and
refine aspirants’ skills by facilitating 360° learning experience in our programs, offering them empirical
proficiency which is paramount in the corporate world. We aspire to produce professionals with a fully-
equipped skillset, clarity on career, ready to confront the real world and flourish!

VISION:

To accord copious opportunities to individuals who wish to advance professionally and bring their true
passion to light.

MISSION:

To invigorate an unfaltering zeal in a career aspirant and transform them into an elite professional who
reaches the professional pinnacle.
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VALUES:

We believe in instituting a solid foundation by imparting self-reliance, virtuous tenacity, and an

abundance of knowledge to pursue career endeavours.

COMPANY STRUCTURE:

CEO

Head of
Administratio
n

HR R&D Marketing Technical Designing Finance

Department Department Department Department Department Department

SERVICES FACILITATE FROM COMPANY:

A top-grade Ed-Tech platform equipped with the most adept professionals, are here to correct, guide,
and refine your skills by providing-

 Training
 Workshops
 Internships
 Placement Programs
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Training

We offer a wide range of ingenious training programs that imparts significant real-time experience and
maximizes learning potency while allowing trainees to explore and invigorate their interests. Training
Sessions are available in:

Technical-

 Python
 Front End
 Back End
 MERN Full-Stack
Design-

 Graphic Design
 UI UX Design with Graphic Designing
Management-

 Human Resources (HR)

 Finance
Communication-

 IELTS
 Spoken English
 Soft Skills

Workshops

Our Workshops are interactive, practical, and strategically designed to impart hands-on experience to
the students, trained by expert facilitators that include collaborative activities, primarily focusing on
skill-building and immersive experience.

Internship Program

We provide Internship Programs to students that render exposure and real-time work experience where
they are guided by a professional supervisor to impart 360° work-place cognizance, refine & develop
new skillsets, networking opportunities, and the possibility of transitioning into a job.
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Departments-

 Technical
 Designing
 Management

Duration-

 45 Days
 60 Days
 90 Days
Time-

 Full-time
 Part-time

Placement Program

We grant students an exceptional gateway to land their dream job through our Placement Program which
provides Full-time/ Part-time Job Opportunities. After intensive scrutiny of an individual’s capabilities,
we assess their potential field of expertise in-

 Web Applications
 Mobile Applications
 UI UX Design
 HR & Marketing Analytics

Projects

We are providing a live project to students, they get an opportunity to work with the company in
real-time for a particular period during their studies. Live projects help students to enhance their
employability while studying. Further, this will add value to their CV and provide industry
experience and insights.

Duration: 30 Days or 45 Days or 60 Days

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List of Departments:

Management:

 Corporate Finance
 Company Setup and Operations
 HR Analytics
 Social Media Marketing or Digital Marketing
 Banking
 Investment and Financial Decisions
 Business Analytics

Technical

 Front end Development

 Back end Development
 Python Program
 UI Designing
 UX Designing
 Graphic Designing

Electronics

 Digital Electronics with STLD

 ICs, Micro Processor and Micro Controllers
 Arduino
 Raspberry pi with Python Programming (180 Days)
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Organizational Behavior
Plenty of rewards

 Soft skills are the skills you possess that go beyond your technical, measurable abilities. Soft
skills focus more on your social, leadership, communication and problem-solving skills, among
others. While hard skills are composed of the training and knowledge you've grown during the
course of your career, soft skills are how you work with others and on your own. Although soft
skills are more personality-based, you can still improve them.
 A large part of improving your soft skills is being open to feedback you may receive from
supervisors, managers and even coworkers. When you're open to feedback, you can be better
able to receive constructive criticism and use that information to improve in your workplace role,
including your soft skills. Maintain healthy relationship with employees
 From the moment a person signs his or her employment contract, a relationship starts to develop
between that employee and their employer. The nature of that relationship depends on many
factors, which vary from organization to organization, including the work environment and the
nature of the industry. Given the fact that employees spend so many of their waking hours at
work, often in close proximity with each other and with their employer, relationships of one kind
or another are bound to form.

Resist urge of micromanage

 If you are the kind of leader who does not like to delegate work, wants to be copied on emails,
frequently asks for extremely detailed reports and feels that in order to get something right, you
need to do it yourself, then you are a micromanager. And let’s be honest; no one likes to be
micromanaged. It’s de motivating, demoralizing and frustrating.
 Micromanagement erodes your team’s morale and limits their growth potential by creating an
atmosphere of mistrust. In addition, it interferes with your ability to concentrate on the most
important things. If you are caught up in the little details of a number of tasks, you are not able
to think of the big picture.
 According to research, costs of long-term micromanagement include:
 Poor staff morale.
 Higher turnover – micromanagement is one of the top 3 reasons employees resign.
 Lower productivity.
 “Ultimately, micromanagement leads to decreased growth potential in a department,” the
researchers write. “Managers who put too much emphasis on daily operational details can
miss the broader picture and fail to plan for departmental expansion.”
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Organization models

Autocratic model
 Autocratic leadership is a form of management style in which one leader or member of
the takes organization decisions on behalf of the company. This type of leadership style
is seen mostly in businesses which are relatively small with fewer employees.
Custodial model
 The custodial model is based around the concept of providing economic security for
employees – through wages and other benefits – that will create employee loyalty and
motivation. The custodial model mainly focuses on the financial reward aspects of
being employed by the organization.
Supportive model
 The supportive model seeks to understand what motivates employees and focuses on
those things to motivate and inspire. When employees are given opportunities to
improve themselves, they often take personal initiative to perform better at their job.
Collegial model
 The collegial model is based around teamwork – everybody working as colleagues
(hence the name of the model). Collegial refers to a highly co-operative set of people
working together by dividing the labour among themselves for the sake of efficient
working and to achieve organisational goals.
System model
 At the fundamental (level 1) a business model is about how you plan to make money.
This post isn’t going to be a long overview of what a business model is, but instead want
to focus on two levels of thinking about business models:

 But what, specifically, is the value in company history? And what does it look like when a
company does embrace its heritage and harnesses its value effectively?

 With those questions in mind, let’s dive in together and explore what company history
truly is, its value, and how a company’s historical roots and living legacy impact every
level of an organization.
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Purpose of the company

 The main purpose of a company is to take money from investors (their creditors and
shareholders) and generate profits on their investments. Creditors and shareholders carry
different risks with their investments, and thus they have different return opportunities.
 When I entered the business world in the early 1990’s, my first job was with the global
management consulting firm Booz-Allen & Hamilton. I accepted that role coming from a
teaching position at Harvard University, where I had completed my PhD in English
Literature. I had a great deal of catching up to do on the way companies and corporate life
work, and I was a careful study. Early on in my new career I attended a forum whose
participants were senior executives from major companies, and my notebook was ready.
At one point, one of the participants, a CFO, vociferously exclaimed “the only purpose of
a company is to create shareholder value!” Heads nodded around the table, and I
diligently copied that phrase down, certain that I’d captured a truth as essential as Sir Isaac
Newton’s three Laws of Motion.

 Types of organizational structures include functional, divisional, flatarchy, and matrix

structures. Senior leaders should consider a variety of factors before deciding which type of
organization is best for their business, including the business goals, industry, and culture of
the company.

 Types of organizational structures include functional, divisional, flatarchy, and matrix

structures. Senior leaders should consider a variety of factors before deciding which type of
organization is best for their business, including the business goals, industry, and culture of
the company.

 Businesses of all shapes and sizes use organizational structures heavily. They define a
specific hierarchy within an organization. A successful organizational structure defines each
employee's job and how it fits within the overall system. Put simply, the organizational
structure lays out who does what so the company can meet its objectives.

 This structuring provides a company with a visual representation of how it is shaped and
how it can best move forward in achieving its goals. Organizational structures are normally
illustrated in some sort of chart or diagram like a pyramid, where the most powerful
members of the organization sit at the top, while those with the least amount of power are at
the bottom.
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 Not having a formal structure in place may prove difficult for certain organizations. For
instance, employees may have difficulty knowing to whom they should report. That can
lead to uncertainty as to who is responsible for what in the organization.
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Conclusion of a company

 A business plan conclusion is a summary of a

business plan's strengths designed to convince
the reader of the company's success. Because
companies typically create business plans to get
funding or investors, the conclusion should
focus on how the organization makes money and
why it is a good investment.
 To be successful in sustainable business
practices often requires entrepreneurship and
innovation
 . This chapter provides an overview of entrepreneurship and innovation as it relates to
sustainable business.

Supply in chain management (SCM)

Introduction to SCM

Supply Chain Management:

At the most fundamental level, supply chain management (SCM) is management of the flow of goods,
data, and finances related to a product or service, from the procurement of raw materials to the delivery
of the product at its destination.
Although many people equate the supply chain with logistics, logistics is actually just one component of
the supply chain. Today’s digitally based SCM systems include material handling and software for all
parties involved in product or service creation, order fulfillment, and information tracking―such as
suppliers, manufacturers, wholesalers, transportation and logistics providers, and retailers.
History of SCM
Supply chains have existed since ancient times, beginning with the very first product or service created
and sold. With the advent of industrialization, SCM became more sophisticated, allowing companies to
do a more efficient job of producing and delivering goods and services. For example, Henry Ford’s
standardization of automobile parts was a game-changer that allowed for the mass production of goods
to meet the demands of a growing customer base. Over time, incremental changes (such as the invention
of computers) have brought additional levels of sophistication to SCM systems. However, for
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generations, SCM essentially remained a linear, siloed function that was managed by supply chain
specialists.

How Supply Chain Management (SCM) Works

Supply chain management (SCM) represents an effort by suppliers to develop and implement supply
chains that are as efficient and economical as possible. Supply chains cover everything from
production to product development to the information systems needed to direct these undertakings.
Typically, SCM attempts to centrally control or link the production, shipment, and distribution of a
product. By managing the supply chain, companies can cut excess costs and deliver products to the
consumer faster. This is done by keeping tighter control of internal inventories, internal
production, distribution, sales, and the inventories of company vendors.
Parts of SCM
The supply chain manager tries to minimize shortages and keep costs down. The job is not only about
logistics and purchasing inventory. According to Salary.com, supply chain managers “oversee and
manage overall supply chain and logistic operations to maximize efficiency and minimize the cost of
organization's supply chain."
Planning
To get the best results from SCM, the process usually begins with planning to match supply with
customer and manufacturing demands. Firms must predict what their future needs will be and act
accordingly. This relates to raw materials needed during each stage of manufacturing, equipment
capacity and limitations, and staffing needs along the SCM process. Large entities often rely
on ERP system modules to aggregate information and compile plans.
Sourcing
Efficient SCM processes rely very heavily on strong relationships with suppliers. Sourcing entails
working with vendors to supply the raw materials needed throughout the manufacturing process. A
company may be able to plan and work with a supplier to source goods in advance. However, different
industries will have different sourcing requirements. In general, SCM sourcing includes ensuring:

 the raw materials meet the manufacturing specification needed for the production of goods.
 the prices paid for the goods are in line with market expectations.
 the vendor has the flexibility to deliver emergency materials due to unforeseen events.
Manufacturing
At the heart of the supply chain management process, the company transforms raw materials by using
machinery, labour, or other external forces to make something new. This final product is the ultimate
goal of the manufacturing process, though it is not the final stage of supply chain management.
The manufacturing process may be further divided into sub-tasks such as assembly, testing, inspection,
or packaging. During the manufacturing process, a firm must be mindful of waste or other controllable
factors that may cause deviations from original plans.
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Delivering
Once products are made and sales are finalized, a company must get the products into the hands of its
customers. The distribution process is often seen as a brand image contributor, as up until this point, the
customer has not yet interacted with the product. In strong SCM processes, a company has robust
logistic capabilities and delivery channels to ensure timely, safe, and inexpensive delivery of products.
Returning
The supply chain management process concludes with support for the product and customer returns.
It’s bad enough that a customer needs to return a product, and it’s even worse if its due to an error on
the company's part. This return process is often called reverse logistics, and the company must ensure it
has the capabilities to receive returned products and correctly assign refunds for returns received.
Whether a company is performing a product recall or a customer is simply not satisfied with the
product, the transaction with the customer must be remedied.

What Is a Supply Chain Management Example?

Supply chain management is the practice of coordinating the various activities necessary to produce and
deliver goods and services to a business's customers. Examples of supply chain activities can include
designing, farming, manufacturing, packaging, or transporting.

Demand management
Demand management is a planning methodology. Companies use it to forecast and plan how to meet
demand for services and products. Demand management improves connections between operations and
marketing. The result is tighter coordination of strategy, capacity, and customer needs.
Those conclusions remain valid today. Modern demand management identifies and captures all potential
demands, interprets them, and communicates them to relevant departments within the organization.
Role of demand management in the organization
Demand management covers multiple areas, including strengthening inventory levels and planning,
trade and promotion planning and customer service.
Demand management is a process that supports supply chain management (SCM). Supply chain
management applies to managing all an organization’s sourcing, developing, manufacturing and
delivery activities, including moving materials, services, and goods from suppliers. The supply chain is a
complex, interconnected system that enables companies to build products and bring them to market. A
company may be a critical link in other businesses’ supply chains.

 Demand is now driving supply. Demand management helps smooth out the volatility created by
higher consumer expectations and shorter fulfillment cycles.
 Successfully anticipating and planning demand is a competitive advantage. The process
eliminates waste and increases value in every area of the supply chain.
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Specific objectives of customer-centric demand management include:

 Improved customer service: Understanding client needs and behaviors increases customer
satisfaction and improves service.
 Forecasting with greater accuracy: Predictive analytics efforts optimize decisions by business
leaders and improve supply chain management.
 Reduced costs: Improved forecasting optimizes inventory investments and can minimize safety
stock levels.
 Enhance existing products and excel at new product introductions: Create a line of customer-
appropriate new products and refine them based on feedback.
 More efficient planning: Strike the right balance of demand to supply and minimize surpluses
with reliable data.
Goals of Demand Management
The end goals of demand management are to boost sales growth and deliver strong profit margins.
Business leaders use the process as a central decision support tool, contributing to strategic initiatives
and tactical execution

What Is the Purpose of Demand Management?

Demand management formulates an action plan to meet current and anticipated conditions in target
markets. The process provides data and insights to marketing, demand planning. production and sales
forecasting teams to help them achieve company goals.
Objectives of Demand Management
Successful demand management teams today are customer-centric — it’s all about the ability to predict
and fulfill demand with the right products and services. Specific areas of focus include improved
customer service, more accurate forecasting and lower costs.
Specific objectives of customer-centric demand management include:

 Improved customer service: Understanding client needs and behaviors increases customer
satisfaction and improves service.
 Forecasting with greater accuracy: Predictive analytics efforts optimize decisions by business
leaders and improve supply chain management.
 Reduced costs: Improved forecasting optimizes inventory investments and can minimize safety
stock levels.
 Enhance existing products and excel at new product introductions: Create a line of customer-
appropriate new products and refine them based on feedback.
 More efficient planning: Strike the right balance of demand to supply and minimize surpluses
with reliable data.
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Components of demand management

Each demand management process features components to identify and focus on customer needs. Based
on the data derived from each element, managers arrive at the best plan to improve overall business
performance and optimize the supply chain from end-to-end.
Demand management process: Modeling
.
They can then enter these data sets into demand management and planning software or manually analyze
them for various exercises including:

 Model review: Checks to validate the current demand model.

 Reality assessment, test and simplification: Checks to validate demand indicators for validity
based on logic and statistics.
 Mathematical modeling: Uses equations based on historical data to check demand impact.
 Data collection and preparation: Data is used to devise a demand planning strategy.
Demand management process: Forecasting
Demand forecasting uses predictive analytics to forecast future demand for services or products.
Demand forecasting supports reliable supply decisions based on estimated future sales and revenue.
Here are six examples demand management:

 Demand management in cosmetics

 Demand management in automotive manufacturing
 Demand management in hospitality
 Demand management in theme parks
 Demand management in public utilities
 Demand management in air quality products
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Materials requirements planning SCM of execution and control

A. Material Requirements Planning (MRP) is a standard supply planning system to help businesses,
primarily product-based manufacturers, understand inventory requirements while balancing supply and
demand. Businesses use MRP systems, which are subsets of supply chain management systems, to
efficiently manage inventory, schedule production and deliver the right product—on time and at optimal
cost.

How MRP Works

A Material Requirements Planning (MRP) system accelerates the manufacturing production process by
determining what raw materials, components and subassemblies are needed, and when to assemble the
finished goods, based on demand and bill of materials (BOM). It does this by asking three main
questions:

 What is needed?

 How much is needed?

 When is it needed by?

Importance of MRP

MRP gives businesses visibility into the inventory requirements needed to meet demand, helping your
business optimize inventory levels and production schedules. Without this insight, companies have
limited visibility and responsiveness, which can lead to:

 Ordering too much inventory, which increases carrying costs and ties up more cash in
inventory overhead that could be used elsewhere.

 Inability to meet demand because of insufficient raw materials, resulting in lost sales,
canceled contracts and out-of-stocks.

 Disruptions in the production cycle, delaying sub-assembly builds that result in increased
production costs and decreased output.

MRP Steps and Processes

The MRP process can be broken down into four major steps:

 Identifying requirements to meet demand.

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The first step of the MRP process is identifying customer demand and the requirements needed to meet
it, which starts with inputting customer orders and sales forecasts.

Using the bill of materials required for production, MRP then disassembles demand into the individual
components and raw materials needed to
complete the build while accounting for any
required sub-assemblies.

 Checking inventory and allocating

resources.

Utilizing the MRP to check demand

against inventory and allocating
resources accordingly, you can see
both what items you have in stock
and where they are—this is especially important if you have inventory across several locations.
This also lets you see the status of items, which gives visibility into items that are already
allocated to another build, as well as items not yet physically in the warehouse that are in transit,
or on order. The MRP then moves inventory into the proper locations and prompts reorder
recommendations.

 Scheduling production.

Using the master production schedule, the system determines how much time and labor are required to
complete each step of each build and when they need to happen so that the production can occur without
delay.

The production schedule also identifies what machinery and workstations are needed for each step and
generates the appropriate work orders, purchase orders and transfer orders. If the build requires
subassemblies, the system takes into account how much time each subassembly takes and schedules
them accordingly.

 Identifying issues and making recommendations.

Finally, because the MRP links raw materials to work orders and customer orders, it can automatically
alert your team when items are delayed and make recommendations for existing orders: automatically
moving production in or out, performing what-if analyses, and generating exception plans to complete
the required builds.

MRP steps include identifying requirements, checking inventory, scheduling production, and identifying
issues.
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MRP Inputs

How well your MRP system works depends on the quality of the data you provide it. For an MRP
system to work efficiently, each input must be accurate and updated. Here are some of the inputs an
MRP depends on:

 Demand

Including sales forecasts and customer orders. When working with predicted demand, a system
that is integrated with an enterprise-wide ERP system allows forecasting using historical sales vs.
just sales forecasts.

 Bill of materials (BOM)

Keeping a single updated version of the bill of materials is essential for accurate supply
forecasting and planning. A system that’s integrated into the enterprise-wide inventory
management system avoids version control issues and building against outdated bills, which
results in reworks and increased waste.

 Inventory

It’s essential to have a real-time view of inventory across the organization to understand what
items you have on hand and which are en route or have purchase orders issued, where that
inventory is and what the inventory’s status is.

 Master production schedule

The master production schedule takes all build requirements and plans machinery usage, labor
and workstations to account for all outstanding work orders to be completed.

Benefits of MRP

MRP systems allow you to plan and schedule production efficiently, making sure materials move
through the work order quickly and helping businesses full-fill customer orders on time.

An MRP system that is integrated across an organization eliminates manual processes, such as pulling
historical sales and existing inventory. You spend less time building Gantt charts and production flows
to understand when and where you need product available, which frees up time and removes a layer of
complexity.
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MRP Challenges

Although using an MRP solution is a far better than using spreadsheets for supply planning, it’s only as
good as the data you put into it. The better a business understands and documents its processes, the
better an MRP system can serve them.

You need to make sure you input correct inventory availability, time to complete a subassembly, waste
calculations and lead-times from vendors. Otherwise, your production schedule will be inaccurate—an
MRP can’t define the production build timeline and materials required if the data isn’t accounted for in
the inventory record, bill of materials and master production schedule

4. Supply Chain Execution and Control

Supply Chain Execution

Supply chain execution aims to optimize the use of all available supply chain assets, control costs at
each step and deliver items to customers on time and to specifications.

To gain the visibility that allows for better decision-making, companies use applications that direct and
track the progress of specific supply chain execution tasks. For example, a procurement system can
automatically place purchase orders with suppliers when inventory is low; an order management system
can identify the cost-effective fulfillment option for a particular order; and a warehouse management
system can help an employee pick, pack and prepare an order for shipment in the most efficient manner.

What is supply chain execution?

Supply chain execution refers to the process of driving the flow of goods within the supply chain –
starting from procurement all the way through final-mile delivery. Supply chain execution the second
part of the supply management process, which falls after supply chain planning. Activities included in
supply chain execution are manufacturing, distribution, warehousing, fulfillment, and transportation.

Supply chain planning

While supply chain planning comes before the execution, it is critical to ensure that supply chain tasks
are carried out smoothly and in a way that fuels business growth. Planning sets the stage for proper
supply chain execution.

The planning stage is where you establish processes for different aspects of your supply chain
operations. This may include production planning to decide on manufacturers and suppliers, as well as
developing procurement strategies based on forecasted demand and production lead times. It may also
include operation planning to decide on where to store inventory and how to fulfill orders.
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Procurement and manufacturing

Procurement and manufacturing are at the beginning of the end-to-end supply chain, with procurement
logistics paving the way. Using the data and strategies from your planning efforts, you can start to
source and receive inventory to sell on your ecommerce store. If you’re making the products yourself,
this is the stage where you procure raw materials and move them to production.

Distribution

Once the finished goods are ready, the next stage is moving them through the supply chain, usually from
the warehouses and suppliers to retailers and distribution centers and then to the end consumer. An
optimized distribution logistics that leverages the right technology can help you improve
your distribution management.

Some of the major supply chain execution tasks related to distribution are:

 In the case of businesses that oversee multiple warehouses, distributing inventory strategically
across different storage locations
 Receiving inventory at the warehouse or fulfillment center, where it is processed and stored
 Monitoring inventory levels and optimizing them to ensure that each fulfillment center has
enough stock on hand
 Packing orders and getting them ready for shipment
 Sending out packed orders to reach their final destinations

Shipping and fulfillment

Toward the end of the supply chain, ecommerce businesses fulfill orders and ship them out to their final
destinations. These processes need to be strategically and efficiently executed to ensure that the supply
chain functions smoothly and that customers receive their orders on time.

The main supply chain execution tasks related to order fulfillment and ecommerce shipping are:

 Picking items from their appropriate storage locations

 Packing the orders securely and getting them ready to ship out
 Shipping out the orders to the final delivery destinations

Tips for improving your supply chain execution

When you optimize your retail supply chain, your ecommerce business can begin to enjoy a series of
benefits that relate to one another – faster deliveries, fewer stockouts, more satisfied customers, higher
 Page no: 30

order turnover rates, and so on. One of the key necessities to optimize your supply chain is by improving
the execution. Here are a few tips to get started:

Evaluate your communication

One of the biggest challenges with supply chain execution is coordinating with different players within
the supply chain. This may include multiple vendors in addition to your teams and your customers.
While effective communication is important to improve that coordination, that itself can be a challenge.

Focus on the most important tasks

An effective supply chain execution process is one that’s efficient, which means you need to prioritize
executing the most important tasks. This involves constantly optimizing your processes to achieve a lean
supply chain, where you eliminate inefficiencies and unnecessary steps.

For example, picking items separately for each individual order is inefficient and can slow down other
supply chain execution processes. Instead, using batch picking or zone picking strategies can
significantly enhance your supply chain efficiency. Other important tasks may include demand
forecasting, coordinating with third-party vendors, and strategically distributing inventory.

A control management system is working if it:

 Assists in achieving organizational goals.
 Minimizes errors.
 Utilizes and distributes resources effectively.
 Evaluates the accuracy of standards.
 Instils discipline and order.
 Motivates employees and boosts morale.
 Ensures future planning by revising standards.
 Improves overall organizational performance.
The process of control management.
Here is a summary of the five steps of control management:
1. Performance standards are established.
2. Actual performance is compared with planned performance.
3. The difference between the two is measured.
4. Causes contributing to the difference are identified.
5. Corrective action is taken to eliminate or minimize the difference.
Planned performance may already have been set out by senior management, but this process, shared
throughout all levels of the company, can set appropriate goals and expectations for everyone.
 Page no: 31

What is the importance of controlling in management?

If all your employees always did what was best for the organization, control—and possibly even
management altogether—would not be needed. But the reality is, your people are sometimes unable or
unwilling to act in your organization's best interests. So you need to implement a set of controls to help
steer your people away from undesirable actions and toward the desirable.

Types of control management.

 Feedback control – also known as post-action control, this is the most reactive type of control
management. Managers gather information about an activity or task and calculate how it fell
short or met expected standards. They can then work to enhance future performance through
lessons learned.
 Concurrent control – real-time, dynamic engagement in a task while it is occurring. Managers
can prevent things getting worse before the activity is completed.
 Feed forward control – future-directed controls that are very proactive and anticipate problems
by taking corrective action well in advance.
 Behavioral control – evaluating employees’ output and decision-making and using a reward
system to encourage performance. Works best across multiple business departments.
 Financial control – forecasting future performance by comparing profitability, sales, or assets
with real budgets.
Nonfinancial control – using factors other than financial performance to measure success: for example,
customer satisfaction or employee loyalty. Control management is not a new phenomenon. In the 1920s,
Henri Fayol developed a general theory of business administration often called Fayolism. He’s widely
acknowledged as a founder of the modern management method, and his principles are still popular
today. The military adopted his practices and stand by them even now. Fayol proposed that there were
five primary functions of management:
 Planning
 Organizing
 Staffing
 Directing
 Controlling

Of this last point, he wrote: ‘Control of an undertaking consists of seeing that everything is being carried
out in accordance with the plan which has been adopted, the orders which have been given, and the
principles which have been laid down. Its objective is to point out mistakes in order that they may be
rectified and prevented from recurring.’
And these control management, or change management, principles are available for your company’s
benefit too.
Fayol’s control function is still relevant in the sense that a manager like yourself must receive feedback
about a process to make necessary adjustments and analyze the deviations. These days, aspects of
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management may be carried out using online platforms, but the principles and objectives remain the
same. As Fayol identified, the key elements of a control process are as follows:
 A characteristic to be tested (such as products sold, or standards reached).
 Sensors (a way of measuring or testing the characteristic, such as software or visual checking).
 Comparative standards (deviations are expected, but how much should be tolerated?).
 Activator (a response to the comparative information – corrective action is undertaken to regain
control).
It’s never too late to enact change.
If you want to introduce control management to your company but feel daunted at the prospect, you’re
not alone. Some organizational systems are huge and complex, so how can you be expected to monitor
all of them? In short, it’s impossible. But don’t despair. It is sufficient and commonplace for a business
to identify and monitor only the key conditions or characteristics of output.
Once you identify a condition or a manageable number of conditions you want to control, you must
integrate the communications and data-collecting sensors that gather and pass information from the
system to management. This information should be collected and interpreted promptly and accurately,
then be benchmarked against predetermined organizational or competitive standards.

What investment does control management require?

What do you need to be aware of when implementing control management? It takes a commitment of
time and investment on the part of management.
1. A lack of resources can inhibit a company’s ability to manage control. You need to factor in staff
training, statistical software, and measurement systems to prevent inaccuracies.
2. The time lag in information flow can misdirect management to problems at the wrong time in the
sequence. Timely discovery and reporting are paramount.
3. There is always the risk of human error, so it is important to have reliable software in place that
can make errors obvious. Execution and promotion of control management must come from the
top, because despite their best intentions, people do not always understand what is expected of
them, nor how they can best perform their jobs — they may lack some requisite ability, training,
or information.

Physical distribution of business development

A. Physical distribution in supply chain management deals with the series of actions that moves final
products from production to the consumer. The channels involved include warehousing, inventory
control, order processing, materials handling, transportation, and customer service. Physical distribution
and the ability to get a product to a consumer quickly and economically has a direct impact on customer
satisfaction. By storing goods in convenient locations, and by creating fast, reliable means of moving
those goods, small business owners can help assure continued success in a rapidly changing, competitive
global market.
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Customer Service
Customer service in supply chain management refers to the precisely defined standard of customer
satisfaction that a small business provides to its customers. Once a standard is set (ex: 60% of all
shipments delivered to customers within 48 hours of ordering) a physical distribution system is then set
up to reach that goal at the lowest possible cost.

Transportation
Transportation is an indispensable component of distribution management. Different transportation
modes (LTL, Parcel, Air Freight) enable retailers to make their goods and services available in a store,
wholesaler, or at the customer’s doorstep.

From a cost perspective, U.S. companies spend trillions on shipping costs, amounting to nearly 25-40%
of your average retailer’s total distribution costs. Fortunately, a retail organization can use anyone, or a
combination of the following transport modes to offset some of the overall shipment cost:
 Truckload – The favored shipping method for most enterprises in North American is trucking.
Carrying primarily manufactured products (as opposed to bulk materials), trucks offer fast,
frequent, and economic delivery to more destinations in the country than any other logistics
option. Trucks are particularly useful for short-distance shipments, and they offer relatively fast,
consistent service for both large and small shipments.

 Parcel – Package delivery or parcel delivery is the delivery of shipping containers, parcels, or
high value mail as single shipments. The service is provided by most postal systems, express
mail, private courier companies, and less than truckload shipping carriers.

Physical Distribution – Advantages

 Provide Better Customer Services

 Increase Sales by –
 Making goods always available
 Contingency plans for quick order processing of item
 Reduce Costs through –
 Proper location of warehouses
 Improve materials handling
 Correcting inefficient procedures
 Gain Advantage over Rivals through –
 Effective customer services e.g., Rapid deliveries, avoiding delivery of damaged goods
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Operational strategy
Operations and Supply Chain Management
(OSCM) is the design, operation, and
improvement of the systems that create and
deliver the firm’s primary products and
services. OCSM is concerned with the
management of the entire system that produces
a product or delivers a service.

A process is made up of one or multiple activities that

transform inputs into outputs. Operations and Supply Chain processes can be categorized as follows:

 Plan: Involves the processes that are needed to operate an existing supply chain strategically.
 Source: The selection of suppliers that will deliver the goods and services needed to create the
firm’s product.
 Make: Where the product is produced, or the service is provided.
 Deliver: Also, logistics processes. Delivering products to warehouses and customers, contact
with customers and information systems need to be managed.
 Return: Involves the processes for receiving worn-out, defective, and excess products back from
customers and processes for supporting customers who have problems with the delivered
product.

Operations Strategy- Competitive Priorities or Competitive Weapon

The main objective of any business is to secure a position through which it can attract more customers as
compared to its competitors. To achieve this, Operations managers are supposed to work in close
conjunction with marketing to understand the market’s competitive situation in which an organization is
operating and identify the unique competencies in order to determine the important competitive
priorities. For this, organizations depend upon their operational strengths and use them along with
opportunities as their competitive weapons or Competitive priorities.

Global Strategies and Role of Operations Strategy

Organizations may adopt a global strategy of importing parts or services from abroad and counter
domestic competitions at the corporate level. A global perspective is required to identify external
environment threats and opportunities and evolve operations strategy.
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CHAPTER - 2

 The development
 Scope and objectives of production control
 scheduling, releasing and tracking of production orders and
associated schedule
 and the reporting of materials and resources used in the production
process.
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Production Control Management

The development scope and objectives of production management?

The production planning portion handles the activities necessary before production actually begins, such
as materials planning, capacity planning, and operations scheduling. The production control portion
oversees the actual production process by ensuring that the production team is able to meet its
production targets and is operating according to schedule.

Planning and control are interdependent components that are interrelated to each other. This means that
one needs the other in order to work. Planning is a useless tool without having a production control
process to take action and ensure that the plan is executed successfully. Production control provides
feedback on the accuracy of the production plan, which helps in the modification of existing plans and
the creation of future plans. On its end, control is dependent on planning as the standards of performance
are laid out during the planning process.

Production and control

The production planning portion handles the activities necessary before production actually begins, such
as materials planning, capacity planning, and operations scheduling. The production control portion
oversees the actual production process by ensuring that the production team is able to meet its
production targets and is operating according to schedule.

Planning and control are interdependent components that are interrelated to each other. This means that
one needs the other in order to work. Planning is a useless tool without having a production control
process to take action and ensure that the plan is executed successfully. Production control provides
feedback on the accuracy of the production plan, which helps in the modification of existing plans and
the creation of future plans. On its end, control is dependent on planning as the standards of performance
are laid out during the planning process.

Objectives of Production Planning and Control

The overall objectives of production planning and control include the following:

 Continuous Flow of Production - One of the primary objectives of production planning and
control is the continuous flow of production through the production facility. Continuous flow and
process improvement is one of the integral concepts of lean manufacturing, six sigma, and
overall production enhancement. Production planning and control will attempt to achieve a
smooth and continuous production process by eliminating bottlenecks and waste from your
facility, which allows you to take your production to the next level in terms of productivity.
 Page no: 37

 Planned Requirements - The production planning component of production planning and control
is essential to ensure that your production facility has what it needs, in the right amount, at the
right time. Having a production plan ensures that you have enough material, machines, tools,
equipment, and manpower to perform the work.

 Optimal Inventory Levels - Inventory is often considered to be wasteful within manufacturing

operations. This is because inventory-related costs are some of the largest incurred for many
operations. This is why you should aim to reduce inventory levels as much as you can to
adequately cut costs within your operations. Production planning and control plans and executes
the processes that allows a consistent flow of production to ultimately come closer to JIT (just-
in-time) manufacturing and reducing inventory levels within manufacturing operations.

 Increased Productivity - Increased productivity is another substantial objective within production

planning and control. Production planning and control ultimately aims to increase productivity
through efficiency enhancement while also being economical. Increased productivity is
successfully achieved through optimizing the use of existing production resources and labor
resources while eliminating wastage/spoilage of materials.

Functions of Production Planning

The functions of production planning enables the manufacturing operation to boost efficiency and have
clear insight within the operation. This visibility within the operation allows operations managers to
make strategic decisions to aid production. Therefore, the functions of production planning include the
following:

 Materials Function - In order to adequately eliminate waste, high inventory cost, and other
inefficiencies within production, production planning measures the amount of materials that are
needed within a certain time period, which then enables raw materials and other components to
be delivered to the facility within a timely manner, ultimately saving the production facility
money.

 Equipment - Production planning analyzes equipment downtime or maintenance schedules and

enables production to keep flowing efficiently. This further enables the production facility to stay
efficient and on-time with future orders from customers.

 Methods - This function of production planning analyzes possible alternatives and schedules that
production is able to follow. The software generates various schedules and then chooses the most
advantageous one that is suited for the operation and locates any constraints that are hindering
production.
 Page no: 38

 Routing - Routing is a feature of production planning that oversees how raw materials are
transformed throughout the production process and turned into a finished product. The software
is also able to locate the most advantageous path for raw materials to follow.

 Estimating - After a process sheet is available, you can then estimate total operation time. This
feature of the software is carried out utilizing analysis on areas of operations such as routing, raw
materials, and various other areas of production.

 Dispatching - Dispatching includes execution, in which this process pertains mainly to setting
production activities in motion through instructions. This function will then take control of
production through material releasing, component, and tools to the operator.

 Expediting/Evaluation - Expediting pertains to overseeing the progress of production, which then

coordinates the execution of the production plan. This is then transferred over to evaluation, in
which this state includes evaluating the production process as a whole. This aids in identifying
areas where productivity is lacking and implements a strategy to improve a particular area.

With these functions being incorporated into your production process, you may be wondering what the
main scope of production planning is.

Main Scope of Production Planning

The main scope of production planning includes the following:

 Identifying and stating the purpose of production, in which this will include the item name, code
of the product, quantity, volume, any raw material requirements, and various others.

 Production planning will list any technical specifications for the various manufacturing states as
well as for quality control

 Listing operations sequentially, in which this will include cycle time for production completion.

 It will also list equipment, machines, tools, gauges, jobs, fixtures, and anything else required for
various stages of production.

 Finally, production planning will also list any specifications to be followed in order to achieve
results and reach a higher performance standard pertaining to cycle time, output level, etc.

Production Management is a vast concept it involves a huge chain. Production starts with input and ends
with output i.e finished product. Following are the scope of production management

1. Location of Facilities

The selection of location is a key decision as large investment is made in building, land, and machinery.
 Page no: 39

2.Plant Layout & material handling

Plant layout refers to the physical arrangement of facilities. Material handling refers to the moving of
material from the storeroom to the machine & from machine to the next during the process of
manufacturing.

3.Product Design

Product design deals with the conversion of the ideas about the product into the reality

4.Process Design

It is the decision making on overall process route for converting the raw material into the finished goods

5.Production Planning & Controlling ( P.P.C)

P.P .C can be defined as the process of planning the production in advance, setting the exact route of
each item, fixing the starting & finishing dates for each item to give production orders to shops & to
follow up the progress of products according to the orders.

6.Quality Control

Quality control may be defined as a system that is used to maintain a desired level of quality in a product
& service.

7.Material Handling

Material management is that aspect of management function which is primarily concern with the
acquisition control & use of the needed material.

8.Maintenance Management

Maintenance deal with taking care of factory layout, types of machinery. This is essential for equipment
& machinery which are a very important part of the total production process.
 Page no: 40

Scheduling and releasing and tracking of productions

A. There are absolutely no way manufacturers could’ve predicted this once-in-a-lifetime combination of
events, and the result was… we ran out.

We’re so used to going to the store and seeing the stuff we need in abundance because, over time,
manufacturers have gotten very good at getting the right materials in, manufacturing on time,
anticipating demand, and shipping it off to the store. When you do see empty shelves, it’s usually
because someone has struggled with procuring materials, work orders — or there’s been a natural
disaster or pandemic.

It’s nearly impossible to predict an event like COVID-19, but for everything else, there’s production
scheduling. It’s a handy process that helps your business meet customer demand more efficiently. Read
on to find out more!

Planning: Predicting demand and matching that to labor, materials, and equipment capacity

Scheduling: Assigning workers and detailing contingency plans for when unexpected delays happen

Stock out prevention: Planning to maintain output, even if materials are delayed, or a swell in orders
increases demand

Improved efficiency: Spotting bottlenecks and looking for areas of improvement. This results in
improved lead times and smoother demand flows

Improved communication: With one master document detailing every element of the production
workflow, communication is standard across the entire business

How to create a production scheduling process

Your production schedule is a big, evolving thing — and without a formalized process in place, it could
end up getting a bit unruly. Here are five key steps to follow.

1. Planning: Begin with your demand plan. How much raw material will you need, and when?
There are two types of planning you can do here: static and dynamic. Static assumes nothing will
change, whereas dynamic assumes everything could change. Both involve collecting information
about resources, timelines, and team availability.
2. Routing: Identify where your raw materials will come from and how they’ll be delivered to your
production or manufacturing team, with a focus on the most cost-effective route.
3. Scheduling: Develop a schedule that sets out how you’ll meet requirements including contingency
plans. Create a master schedule that encompasses the entire process, from start to finish
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– Set up a manufacturing schedule that covers raw material routing

– Plan a retail schedule that covers how products move from manufacturing to the shelf or
E-Commerce store
4. Communicating: Share the production schedule to everyone involved and make sure it’s
understood
5. Dispatching: Plot the process of items and people moving around — including when and where
throughout the entire process
6. Execution: This is the process of putting your plan into action
7. Maintenance: Keep your schedule updated regularly as demand changes

The benefits of using a production schedule

Your production scheduling will help with demand planning, supply, and the changing needs of your
customers. It should help you better anticipate the ebb and flow of work, not to mention give you a
framework to use when things don’t go quite as planned.

Here’s a summary of what your production schedule does:

 It gives you an inventory of your entire stock, so you always know what you have and where you
need to replenish items
 It helps HR know in advance how many staff you’ll need at any given time
 It’ll help you navigate risks and prevent issues from bringing production to a standstill
 It helps you avoid stock outs because you know how much raw material you have, how long
production will take, and how much you’ll need

3. Materials and resources are used in production process

A. For any manufacturing facility, a resource is any raw material, commodity, machine, or labor that is
utilized to manufacture a finished good or product. Manufacturing companies manage their
production output through proper resource management. The manufacturing resource productivity has a
direct impact on the overall production capacity and costs.
In this article, we will look at the various resources used in manufacturing and how companies manage
resources in manufacturing using SAP Business One

Be it human resources or items, resources of manufacturing are always used for production-related
activities. Manufacturing resources include:

 Manufacturing plants or facilities where the actual production takes place. This can include the
execution of a manufacturing process or operation.
 Manufacturing tools that represent physical devices that are used for production.
Manufacturing tools can differ based on what is being manufactured.
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 Materials that are required to perform any given manufacturing work such as glue, paints, or
grease.
 Human skills or the ability of a human worker to perform specialized tasks within a
manufacturing facility such as machine repairing skills, operational skills, or product packaging.

The SAP implementation in the manufacturing industry goes beyond a few business benefits and
functionalities. SAP Business One provides a complete out-of-the-box manufacturing solution at
a low price point and faster return-on-investment (ROI).

At a time when customers are demanding on-time delivery of quality products, SAP Business
One ensures that you have a minimum inventory holding that does not add up to your inventory
costs. Further, SAP Business One is a good fit for implementing a complete SAP manufacturing
process that can be integrated with other processes such as accounting and sales.

Setting resource capacity

For optimum production, manufacturers need to set their internal resource capacity so that they
can be used against the resource requirements during the production orders. On its part, SAP
Business One enables you to set or change the daily internal capacity for selected resources in a
specified period.
Defining the production data
With SAP Business One, you can use the Production Data feature to manage resources and
streamline the Bill of Materials (BOM). Production data can be configured with either the Back
flush method (where components are automatically assigned to the production order) or by the
Manual method (that are manually assigned).
Simplifying BOM
SAP Business One also simplifies the management of your BOM through its hierarchical
components of child items, raw materials, various resources, and assembling stages for
producing the finished product. Additionally, with its BOM functionality, you can utilize SAP
Business One to add, remove, or change all types of components in a BOM batch.
Working with production orders
SAP Business One also allows you to work with different types of production orders including
standard orders (for standard production items), special orders (for creating or repairing
production inventory items), and disassembly (to separate a parent item from its many
components).

Conclusion
Proper utilization of resources in manufacturing is not instrumental only in controlling production costs
but also adds to the overall efficiency. Through this article, we have only discussed a few ways in which
SAP Business One can help in managing resources for manufacturing firms.
 Page no: 43

Chapter 3
 Execution of operation
 Scheduling and authorization
 Quality, communication and continuous improvement
 Design concepts and trade-offs.
 Page no: 44

Execution and control of management (ECM)

Execution of operations:

Execution and Control of Operations encompasses the principles, practices, and techniques necessary to
schedule, control, measure and evaluate production and process operations. It also addresses the
execution of quality initiatives and continuous improvement plans, as well as the control and handling of
inventories. Finally, the course presents techniques for evaluating performance and collecting data for
effective feedback.

Scheduling and authorization:

This article provides information about operations scheduling. You can use operations scheduling to
provide a general estimate of the production process over time.

You can schedule production at the operation level and the job level. Unlike job scheduling, operations
scheduling doesn't explode the operations for the production route into jobs. If you want to include more
detail in the scheduling, such as information about current capacity, you can run job scheduling after you
run operations scheduling. You can also run job scheduling only. Job scheduling is typically used to
schedule individual jobs on the shop floor for an immediate or short-term time frame.

The main components of operations scheduling are the scheduling direction, the capacity of resources,
and materials optimization. By using operations scheduling, you can achieve the following goals:

Control the planning method by scheduling forward or backward from a given date.

You must estimate the cost of a production order before you can run operations scheduling. If you
haven't run an estimate, it's automatically run before operations scheduling is started. An operations
schedule specifies the following information:

The product that is planned for production

The configuration of the product

The quantities that are involved in the production

The dates when the production will start and end

The capacity reservations for the resources that perform the production activities
 Page no: 45

Quality of a product:

Product quality refers to how well a product satisfies customer needs, percentage
serves its purpose and meets industry standards. When evaluating
product quality, businesses consider several key factors, including
24
whether a product solves a problem, works efficiently or suits 52
customers' purposes. 14 10

Performance and intended function

A B C D
Reliability of the product within a specific time frame

Conformity to product specifications

Product durability and lifespan

Product serviceability

Physical features of the product

Product quality is important because it affects the success of the company and helps establish its
reputation in customer markets. When companies can create high-quality products that continue to meet
customer demands, it can lead to fewer production costs, higher investment returns and increases in
revenue.

Communication and continuous improvement:

At management level, where a wish to improve and optimize how the organization works is converted
into operational objectives; those objectives then determine the implementation of action plans.

At the operational level, because continuous improvement enables any failings to be corrected while
reducing risks. It is therefore in routine activities that remedial and preventive measures will be
implemented to improve processes and quality.

Design concepts and trade – offs:

Multidisciplinary optimization (MDO) methods have become mature as commercial and open-source
toolboxes and applications have been developed and distributed in Nordic countries and elsewhere. How
would you compare one product to another product before buying.
 Page no: 46

Chapter - 4

Findings and Conclusion

 Summarize of the content

 Brief action plan
 Subjective statement
 Supporting data.
 Page no: 47

Research Questionnaire

Name of the Respondent……………………………………. Age………….. Gender………...

1. How would you compare one product to another product before buying?
A. prize comparing B. quality
C. service D. all of the above
2. How can you decide a product price whether it was affordable or not?
A. Quality B. Quantity
C. Brand D. All of the above
3. What type of products you suggest more attractable?
A. Trending B. Antic pieces
C. Budget products D. High quality
4. Which type of quality products you have purchased more in life?
A. Good B. bad
C. intermediate D. excellent
5. Would you like the company after sales services on a particular product?
A. Yes B. No C. May be
6. According to your opinion, How to increase the demand upon a product?
A. Giving discount B. Advertising
C. lowest price D. Good ambience
7. What would you do if your company run out of stock?
A. Purchase new stock B. stock no needed
C. Increasing of stock price D. none
8. What would you do when your supply is running slow?
A. Encouraging employees B. Bonus
C. hiring staff D. remove employees
9. What are the biggest issues that you have faced from production
Management in your company?
A. Sealing your business B. globalization
C. both A&B D. Difficulties
10. What are the difficulties you are facing with control management?
A. Production delay B. consumer’s trends
C. Globalization D. Testing
 Page no: 48

1. How can you decide a product price whether it was affordable or not?
Particulars No. of Percentage
customers
A. Quality 6 12%
percentage
B. Quantity 6 12%
C. Brand 27 54% 22% 12%
12%
D. All of the 11 22%
above
54%

A B C D

Interpretation:

As per my study mostly chose option C-54%, rich people can chose option A-12%, senior citizens can
chose option B-12%, collage students can chose option D-22%

2. What type of products you suggest more attractable?

Particulars No. of Percentage
customers
A. Trending 19 38%
B. Antic pieces 6 12%
C. Budget products 8 16%
D. High quality 17 34%

Interpretation:
percentage
As per my study regular customers choose option
D-34%, middle class costumers can choose option
34% 38%
C-16%, professors can choose option B-12%,
adults chose option A-38

16% 12%

A B C D
 Page no: 49

3. Which type of quality products you have purchased more in life?

Particulars No. of Percentage
customers
A. Good 32 64% percentage
B. bad 0 0%
C. intermediate 7 14%
36%
D. excellent 18 36%
64%

A D

Interpretation:

As per my study mostly chose option A-64%, some one chose option D-36%

4. Would you like the company after sales services on a particular product?
Particulars No. of Percentage
customers
A. Yes 30 60%
B. No 8 16%
C. May be 16 32%

PERCENTAGE
Interpretation: 0

As per my study option A-60%, B-16%, C-32% has been 32

chosen
60
16

A B C
 Page no: 50

5. According to your opinion, how to increase the demand upon a product?

Particulars No. of Percentage
customers
percentage
A. Giving discount 12 24%
B. Advertising 10 20%
32% 24%
C. lowest price 12 24%
D. Good ambience 16 32% 20%
24%

Interpretation:
A B C D
As per my study most of the costumers chose option D-32%,
online ordering customers chose option A-24% college students chose C-24%, sales mans chose option
B-20%

6. What would you do if your company run out of stock?

Particulars No. of Percentage
customers PERCENTAGE
A. Purchase new stock 24 48%
A C B D
B. stock no needed 5 10%
C. Increasing of stock 18 26% 26%
39%
price
19%
D. none 3 6% 16%

Interpretation:

As per my study 48% of the people chose option A, some of the chose option B-26% and some
people chose option C-18, D-6%
 Page no: 51

7. What would you do when your supply is running slow?

Particulars No. of Percentage
customers
percentage
D
A. Encouraging 15 30% 6% A
30%
employees
C
B. Bonus 10 20% 44%
B
C. hiring staff 22 44% 20%

3 16% A B C D
D. remove employees

Interpretation:

As per my study most of the people chose option C-44%, some clients chose option A-30%, some of
them chose B-20%, and D-16%

8. What are the biggest issues that you have faced from production Management in your company?

Particulars No. of Percentage

percentage
customers
A. Sealing your 13 26% 2%
26%
business 2%

B. globalization 1 2% 70%

C. both A&B 35 70%

A B C D
D. Difficulties 1 2%

Interpretation:

As per my study most of the issues faced in A & B options almost 70% company management faced
those issues.
 Page no: 52

9. What are the difficulties you are facing with control management?
Particulars No. of Percentage
customers
A. Production 25 50%
delay
B. consumer’s 7 14%
trends
C. Globalization 2 4%
D. Testing 16 32%

Interpretation:

As per my study from following table option A &B mostly facing the problems in companies

10.What are the difficulties you are facing with control management?
Particulars No. of Percentage
percentage
customers
A. Production 25 50% 32
50
delay
14
B. consumer’s 7 14% 4
trends
C. Globalization 2 4% A B C D
D. Testing 16 32%

Interpretation:

As per my study from following table option A &D mostly facing the problems in companies
 Page no: 53

Summarize of the content (findings):

 An executive summary is a brief introduction and summary of your business plan. It should
describe your business, the problem that it solves, your target market, and financial highlights.
 A good executive summary grabs your reader’s attention and lets them know what it is you do
and why they should read the rest of your business plan or proposal. It’s not unusual for investors
to make an initial decision just based on reading an executive summary, so it’s important to get it
right. We’ll show you how to write an executive summary that sets your business plan apart from
the rest.
 The executive summary is essential in plans that are being written for outsiders.
 Now if you’re writing a business plan solely for internal use you may not need to write out an
executive summary. However, there are some internal plans ––such as an annual operations
plan or a strategic plan—that can use a summary to highlight necessary information and
showcase a digestible version of the overall plan.

Brief action plan (recommendations):

 The action plan is one name for the portion of the business plan in which you account for
business operations that weren't covered in the marketing and sales plans. The marketing and
sales plans spell out the steps your business will take to achieve its financial and sales goals. The
action plan explains how you will operate and manage your business. It also addresses the back
office activities that don't relate directly to providing goods or services to customers.

Subjective statements (conclusion):

From the above study I want to conclude that most of the organizations facing various troubles and
difficulties on business development in production management. The objectives of the business can be
achieved proper utilization of all the resources in the right direction under the professional guidance.

The implementation of every business activity is based on proper decision making and effective action
plans. From the study of the project report business development in production management. helpful in
business managers, owners and state holders to make effective decision making for running their
business successfully.

Supporting data (references):

https://books.google.co.in/books?id=_nx_DwAAQBAJ&printsec=frontcover&dq=business+developme
nt+in+production+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwiv7b6G4_
X6AhUIcWwGHeaHCZkQ6AF6BAgMEAI
 Page no: 54

https://books.google.co.in/books?id=goqADwAAQBAJ&pg=PA104&dq=business+development+in+pr
oduction+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwiv7b6G4_X6AhUI
cWwGHeaHCZkQ6AF6BAgOEAI

https://books.google.co.in/books?id=dcnNBE6uW-
UC&printsec=frontcover&dq=business+development+in+production+management&hl=en&newbks=1
&newbks_redir=1&sa=X&ved=2ahUKEwiv7b6G4_X6AhUIcWwGHeaHCZkQ6AF6BAgJEAI

https://books.google.co.in/books?id=qN2CDKEAuS8C&printsec=frontcover&dq=business+developme
nt+in+production+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwiv7b6G4_
X6AhUIcWwGHeaHCZkQ6AF6BAgEEAI

https://books.google.co.in/books?id=cV-
Qb_2wrUsC&pg=PA401&dq=business+development+in+production+management&hl=en&newbks=1
&newbks_redir=1&sa=X&ved=2ahUKEwiv7b6G4_X6AhUIcWwGHeaHCZkQ6AF6BAgGEAI

https://books.google.co.in/books?id=Dr0UY1JEImUC&pg=PA502&dq=business+development+in+pro
duction+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwiv7b6G4_X6AhUIc
WwGHeaHCZkQ6AF6BAgCEAI

https://books.google.co.in/books?id=P9iGDAAAQBAJ&pg=PA39&dq=business+development+in+pro
duction+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwil_JWp4_X6AhXt1j
gGHTX0BDA4ChDoAXoECAcQAg

https://books.google.com/books?id=9JoFCgAAQBAJ&printsec=frontcover&dq=business+development
+in+production+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwil_JWp4_X
6AhXt1jgGHTX0BDA4ChDoAXoECA0QAg

https://books.google.co.in/books?id=ZuuJEAAAQBAJ&pg=PA286&dq=business+development+in+pro
duction+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwil_JWp4_X6AhXt1j
gGHTX0BDA4ChDoAXoECAUQAg

https://books.google.co.in/books?id=H3e7BQAAQBAJ&pg=PA196&dq=business+development+in+pr
oduction+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwil_JWp4_X6AhXt
1jgGHTX0BDA4ChDoAXoECAkQAg

https://books.google.co.in/books?id=ZnE3DwAAQBAJ&pg=PT278&dq=business+development+in+pr
oduction+management&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ahUKEwil_JWp4_X6AhXt
1jgGHTX0BDA4ChDoAXoECAYQAg