ESP E-LEARNING ENGISH FOR FINANCE 2 (EEF 2)

TABLE OF CONTENTS
Unit 1: Marketing
1.1. What is marketing?
1.2. Market segmentation
1.3. Marketing mix
1.4. Marketing strategy
Unit 2: Quality Management

2.1. What is Quality Management?

2.2. Principles of Quality Management
2.3. Quality improvement methods
2.4. Benefits of Quality Management

Unit 3: Corporate Finance

3.1. What is Corporate Finance?
3.2. Capital Investments
3.3. Capital Financing
3.4. Dividends & Return of Capital
Unit 4 Production and Operations Management

4.1. Understanding Production and Operations Management

4.2. Operations: Policy and Strategy
4.3. International Production and Operations Management (IPOM)
4.4. Value Analysis: An Applied Concept for Manufacturing and Service Industry
Unit 5: Accounting
5.1. Accounting Basics
5.2. Accounting Principles
5.3. Responsibilities of Accountants
5.4. Debits & Credits

Unit 6: Types of accounting information

6.1. Purposes of Accounting
6.2. Financial Accounting
6.3. Management Accounting
6.4. Tax accounting
Unit 7: Financial statements

7.1. Financial statements

7.2. Balance sheets
7.3. Income statements
7.4. Cash Flow statements

1
Unit 8: Financial statement analysis
8.1. What is Financial Analysis?
8.2. Sources of information for Analysis
8.3. Leverage Analysis
8.4. Profitability Analysis

2
UNIT 4 PRODUCTION & OPERATIONS MANAGEMENT

PREVIEW
Match the following words or phrases in column A with their definitions column B

Column A Column B
1. cater a. to put people or things into groups with the same features
2. raw material b. money that is used for investment or for starting a business
3. separation c. to change completely the appearance or character of something or
4. capital someone, especially so that that thing or person is improved:
5. line functions d. a substance in its natural state that will be used to make something
6. transform else in an industrial process
7. staff functions e. the process of putting together the parts of a machine or structure
8. assembly f. to provide, for example, the food and drinks at an event, for an
9. categorize organization, etc.
10. parameters g. a situation in which two or more people or things are separated
h. a set of facts which describes and puts limits on how something
should happen or be done
i. the activities subsequently added to assist Line managers in
accomplishing their goals
j. the activities that give definition to the organization structure and
which ensure that the product or service is produced and reaches the
customer at a profit

1–f 2-d 3-g 4-b 5-j 6-c 7-i 8-e 9-a 10 - h

READING

Understanding Production and Operations Management

Written By “Prachi Juneja”
Introduction

The very essence of any business is to cater needs of customer by providing services and goods,
and in process create value for customers and solve their problems. Production and operations
management talks about applying business organization and management concepts in creation of
goods and services.

Production
Production is a scientific process which involves transformation of raw material (input) into
desired product or service (output) by adding economic value. Production can broadly categorize
into following based on technique:

3
Production through separation: It involves desired output is achieved through separation or
extraction from raw materials. A classic example of separation or extraction is Oil into various
fuel products.
Production by modification or improvement: It involves change in chemical and mechanical
parameters of the raw material without altering physical attributes of the raw material. Annealing
process (heating at high temperatures and then cooling), is example of production by modification
or improvement.
Production by assembly: Car production and computer are example of production by assembly.

Importance of Production Function and Production Management

Successful organizations have well defined and efficient line function and support function.
Production comes under the category of line function which directly affects customer experience
and there by future of organization itself.
Aim of production function is to add value to product or service which will create a strong and
long lasting customer relationship or association. And this can be achieved by healthy and
productive association between Marketing and Production people. Marketing function people are
frontline representative of the company and provide insights to real product needs of customers.
An effective planning and control on production parameters to achieve or create value for
customers is called production management.
Operations Management

As to deliver value for customers in products and services, it is essential for the company to do
the following:

• Identify the customer needs and convert that into a specific product or service (numbers
of products required for specific period of time)
• Based on product requirement do back-ward working to identify raw material
requirements
• Engage internal and external vendors to create supply chain for raw material and finished
goods between vendor → production facility → customers.
Operations management captures above identified 3 points.
Production Management v/s Operations Management
A high level comparison which distinct production and operations management can be done on
following characteristics:

4
 Output: Production management deals with manufacturing of products like (computer,
car, etc) while operations management cover both products and services.

Usage of Output: Products like computer/car are utilized over a period of time whereas
services need to be consumed immediately

Classification of work: To produce products like computer/car more of capital equipment

and less labour are required while services require more labour and lesser capital equipment.

Customer Contact: There is no participation of customer during production whereas for

services a constant contact with customer is required.

Production management and operations management both are very essential in meeting objective
of an organization.
COMPREHENSION QUESTIONS
1. What is production?
2. What does “production management” mean?
3. What are 3 types of production?
4. Explain the meanings of these types of production in Vietnamese.
5. What are different types of input?
6. What does production under the category of line function affect?
7. What is the aim of production function?
8. Who are Marketing function people?
9. What does the company necessarily identify in order to deliver value for customers in products
and services?
10. In terms of output, what is the difference between production management and operations
management?
ANSWERS
1. Production is a scientific process which involves transformation of raw material (input) into
desired product or service (output) by adding economic value.
2. It refers to an effective planning and control on production parameters to achieve or create value
for customers.
3. They are Production through separation; Production by modification or improvement;
Production by assembly.
4. - Production through separation – sản xuất thông qua phân tách.
- Production by modification or improvement – sản xuất thông qua sửa đổi hoặc cải tiến
- Production by assembly – sản xuất thông qua lắp ráp
5. They are labor, capital and raw material
6. It affects customer experience and there by future of organization itself.
7. The aim of production function is to add value to product or service which will create a strong
and long lasting customer relationship or association.
8. They are frontline representative of the company and provide insights to real product needs of
customers.

5
9. To identify the customer needs & numbers of products required for specific period of time
10. Production management deals with manufacturing of products like (computer, car, etc) while
operations management cover both products and services.

KEY TAKEAWAYS

Production is the method of turning raw materials or inputs into finished

goods or products in a manufacturing process. In other words, it means
the creation of something from basic inputs.

Production can broadly categorize into Production through separation;

Production by modification or improvement and Production by
assembly.

Operations Managers oversee operational activities at every level of an

organization. Their duties include hiring and training employees and
managing quality assurance programs. An operations manager also
strategizes process improvements to ensure everyone completes their
tasks on schedule.

Read the text and choose the best answer A, B, C or D to complete each gap in the text.
What Does Production Mean?

What is the definition of production? Production may also refer to the goods being produced. For
instance, some business call a set of products being (1) …………… at the same time a production
run. Both of these definitions are interchangeable. Basically, it just means a manufacturing process
or the end result of a manufacturing process.

Economists call businesses that produce goods producers. These companies create (2)
………………. to sell to their customers. For example, a clothing company produces clothing for
consumers. Today, however, companies are leaning toward the trend of (3) ……………… their
production capacities, so that they do not need to perform it themselves.

For example, a clothing company may distribute clothing as their product, but the clothing itself
is manufactured by an entirely different organization (4) …………... Sometimes the intangible
process of (5) ……………… ideas for the products’ formation is also considered to be a part of
the production process. An example of this is Apple. They design all of their electronics in
California, but have them produced overseas.

6
Example
Edgar Allen Poe is running a poetry business (6) ……………… Poets R Us. The purpose of his
business is to use a host of employed writers to deliver poetry content to other poetry firms and
individuals that need poetry on an on-demand basis. When Edgar Allen Poe receives a request to
provide poetry for a client, he refers them (7) ……….. his employees who provide the poetry for
him.

These poems are considered to be in production because they are …………. being produced. The
process of brainstorming, formulating the stanzas, literary techniques, and unique ways to
incorporate the theme into the overall poem is included under the umbrella of production.
Summary Definition

Define Production: Producing means to manufacturing or creating a product or good from raw
materials.

1. A. produce B. production C. produced D. producing

2. A. products B. production C. producer D. productivity

3. A. employing B. outsourcing C. investing D. renting

4. A. foreign B. outside C. overseas D. external

5. A. brainstorming B. consulting C. thinking D. inventing

6. A. call B. calling C. which call D. called

7. A. as B. to C. for D. with
8. A. recently B. lately C. currently D. immediately

1C 2A 3B 4C 5A 6D 7B 8C

READING 2

Read the passage and answer the questions

What is the supply chain process?

The supply chain process is the system that organizations use to manage the flow of goods and
materials from suppliers to customers. The supply chain process includes the steps of procuring,
manufacturing, and distributing goods and materials. The supply chain process is designed to meet
the needs of customers while maximizing efficiency and minimizing cost. The supply chain
process is constantly evolving as organizations strive to improve their competitiveness
The benefits of supply chain management
Supply chain management can help to improve the efficiency of a company's operations. It can
also help to improve communication and coordination between different parts of a company.

7
Additionally, supply chain management can help to improve the quality of a company's products
or services. Finally, supply chain management can help to reduce the cost of a company's
operations or increase the speed of its operations.
The challenges of supply chain management

The challenges of supply chain management include the need to coordinate and manage a large
number of suppliers, often located in different countries. The supply chain must be designed to
meet the specific needs of the company, which can vary depending on the products or services
being produced. The supply chain must be constantly monitored and managed to ensure that it is
efficient and effective. The challenges of supply chain management also include the need to
respond to unexpected events, such as natural disasters or sudden changes in customer demand.
To be successful, supply chain management requires a high level of coordination and
communication between all of the different parties involved

The future of supply chain management

The future of supply chain management will be more data-driven. With the advent of big data and
the Internet of Things, there will be more data available than ever before. Supply chain managers
will also need to be able to analyze this data and use it to make decisions about where to source
materials, how to manufacture products, and how to distribute them. supply chain management
will be more collaborative. In order to be successful, supply chain managers will need to be able
to work with other departments within their organizations, as well as with suppliers,
manufacturers, and distributors.

They will need to be able to share data and information seamlessly in order to make the best
decisions for the entire supply chain.

In addition, the future of supply chain management will be more customer-centric. With the rise
of e-commerce, customers are becoming more and more demanding. They expect to be able to
buy products when and where they want, and they expect to be able to track their orders throughout
the entire process. Supply chain managers will need to be able to meet these expectations in order
to be successful. Finally, the future of supply chain management will be more sustainable. With
the increasing focus on environmental issues, sustainability will become more and more
important.
Supply chain managers will need to find ways to reduce waste, minimize environmental impact,
and use resources efficiently.

1. Why is the supply chain process important?

2. What do you think are the most important benefits of supply chain management? Why?

3. What do you think is an important challenge of supply chain management right now? Why?
4. What is your opinion about the future of supply chain management?

5. What is the role of data in supply chain management?

8
6. How can supply chain management be more customer-centric?
7. What are some ways to make the supply chain management more sustainable?

Answers
1. The supply chain process is important because it helps to ensure that goods and services are
delivered efficiently and effectively to customers.
2. The most important benefit of supply chain management is the ability to track and manage
inventory levels in real-time. This allows businesses to avoid stock-outs and keep their production
lines running smoothly.

3. An important challenge of supply chain management right now is managing the increasing
complexity of supply chains.

4. The future of supply chain management is very promising. It will continue to become more
efficient and effective as technology advances.

5. Data plays a very important role in supply chain management. It helps to track inventory levels,
identify trends, and forecast demand.

6. Supply chain management can be more customer-centric by focusing on customer needs and
wants, and tailoring the supply chain to meet those needs.

7. Some ways to make supply chain management more sustainable are to use more
environmentally-friendly materials, to recycle and reuse materials, and to reduce waste.