AISECT UNIVERSITY

Matwari Chowk ,Infront of Gandhi Maidan,

Hazaribag, Jharkhand - 825303

DEPARTMENT OF MANAGEMENT STUDIES

FUNDAMENTAL OF ENTREPRENEURSHIP

(3MBFE101)
SINCE 2016

Prof. (Dr.) BINAY KUMAR PANJIYAR

MCA, MBA (Fin), MCOM, MA (Eco), LLB, Ph.D. D.Litt. (P)
Professor & Head
DEPARTMENT OF MANAGEMENT STUDIES
AISECT University, Hazaribag (Jharkhand)

Copyright© 2024 by Dr. Binay Kumar Panjiyar, All rights reserved. [email protected]
 UNIT- IV: Production Management
1. Methods of Purchase:
The methods of purchasing goods or raw materials are critical for ensuring that production runs
smoothly and efficiently. Key purchasing methods include:
 Centralized Purchasing: The procurement of all goods and services is done by a central
purchasing department. This method ensures better control over purchases, economies of
scale, and standardization.
 Decentralized Purchasing: Each department or unit within an organization handles its
own procurement. This method allows for greater flexibility and responsiveness but may
lead to inefficiencies or lack of consistency.
 Just-in-Time (JIT) Purchasing: Goods are purchased only when needed in the production
process, minimizing inventory costs and reducing storage requirements. JIT requires close
relationships with suppliers and accurate demand forecasting.
 Bulk Purchasing: Large quantities of goods or raw materials are bought at once, often at
a discounted price. This method reduces per-unit costs but requires proper storage and
handling to prevent wastage.
 Electronic Purchasing: The use of digital platforms or software for placing orders,
tracking inventories, and handling procurement processes. This method improves
efficiency, reduces manual errors, and speeds up purchasing cycles.

2. Management of Movable Assets/Goods:

Managing movable assets or goods involves efficiently handling items that are not fixed in place,
such as machinery, tools, inventory, and finished products. Key strategies include:
 Inventory Management: Maintaining optimal stock levels to prevent shortages or
overstocking. This can be done using systems like Economic Order Quantity (EOQ),
ABC Analysis, and FIFO (First In, First Out) for inventory control.
 Asset Tracking: Using technologies such as barcode scanning, RFID (Radio Frequency
Identification), or GPS tracking to monitor the location, usage, and maintenance of
movable assets in real time.

Copyright© 2024 by Dr. Binay Kumar Panjiyar, All rights reserved. [email protected]
  Maintenance Management: Ensuring that movable assets, such as machinery, are
regularly maintained and serviced to prolong their life and ensure they remain in good
working condition.

3. Quality Management:
Quality management is the practice of overseeing all activities and tasks needed to maintain a
desired level of excellence in products or services. It encompasses:
 Quality Assurance (QA): The process of ensuring that products are made according to
defined quality standards, including the implementation of quality control procedures and
audits.
 Quality Control (QC): The monitoring and testing of product quality during and after
production, using methods such as sampling, inspection, and defect tracking.
 Six Sigma: A methodology used to improve the quality of processes by identifying and
removing causes of defects and minimizing variability in manufacturing and business
processes.
 Total Quality Management (TQM): A company-wide approach to improving product
quality, involving all employees in decision-making and problem-solving to continuously
improve processes.
 ISO Certifications: International standards (e.g., ISO 9001) that set out the criteria for
quality management systems to ensure that products and services meet customer
expectations.

4. Employee Management:
Employee management is crucial for ensuring that the workforce is productive, engaged, and
aligned with the company’s goals. This includes:
 Workforce Planning: Determining the right number of employees with the right skills to
meet production targets. It involves recruitment, training, and succession planning.
 Performance Management: Setting clear expectations, providing feedback, and
evaluating employee performance to ensure alignment with company goals. This is often
done through regular performance reviews and assessments.

Copyright© 2024 by Dr. Binay Kumar Panjiyar, All rights reserved. [email protected]
  Employee Motivation: Implementing strategies to keep employees motivated, such as
offering competitive salaries, incentives, professional development opportunities, and
fostering a positive work culture.
 Health and Safety: Ensuring that employees work in a safe environment through training,
safety protocols, and regular assessments of workplace hazards.

5. Packing:
Packing is an essential part of production and distribution, ensuring that products are safe for transit
and are presented in an appealing manner. Key aspects include:
 Protective Packaging: Ensuring products are protected during transportation and storage
to prevent damage, using materials like bubble wrap, foam, or corrugated boxes.
 Sustainable Packaging: Using eco-friendly and biodegradable materials to minimize
environmental impact. Many companies are focusing on reducing plastic use and
promoting recyclable packaging.
 Branding: Packaging serves as a marketing tool to communicate brand identity and
product quality. Attractive and functional packaging can influence consumer purchase
decisions.
 Regulatory Compliance: Ensuring packaging complies with industry regulations, such as
labeling, safety warnings, and environmental standards.

6. Marketing Management:
Marketing management involves planning and executing marketing strategies to promote products
or services. Key components include:
 Market Research: Gathering and analyzing data on consumer behavior, competitor
performance, market trends, and customer needs to develop effective marketing strategies.
 Product Positioning: Defining how a product is perceived in the market relative to
competitors, based on features, quality, price, and other factors.
 Pricing Strategies: Setting a price that reflects the value of the product while being
competitive in the market. Strategies could include cost-based pricing, penetration pricing,
or value-based pricing.

Copyright© 2024 by Dr. Binay Kumar Panjiyar, All rights reserved. [email protected]
  Advertising and Promotion: Creating awareness and generating demand through
advertisements, promotions, public relations, and digital marketing.
 Distribution Channels: Deciding the methods of delivering the product to customers,
including direct sales, retailers, wholesalers, or e-commerce platforms.

7. Sales and the Art of Selling:

Sales management focuses on the process of selling products and services to customers. Key
aspects include:
 Sales Techniques: Techniques like consultative selling, where the salesperson focuses on
understanding the customer’s needs and offering solutions, rather than just pushing a
product.
 Sales Strategy: Developing strategies to achieve sales goals, including identifying target
markets, setting quotas, and creating a sales pipeline.
 Relationship Building: Building long-term relationships with customers by offering
excellent service, addressing customer concerns, and maintaining open communication.
 Closing the Sale: Using techniques like urgency (limited-time offers) or trial closing to
push prospects towards making a final purchase decision.

8. Understanding the Market and Market Policy:

A comprehensive understanding of the market is essential for making informed business decisions:
 Market Analysis: Analyzing factors like customer preferences, buying behavior, and
economic trends to understand market demands.
 Market Policy: Formulating policies related to pricing, promotion, distribution, and
product offerings that align with company objectives and customer expectations.
 Competition: Identifying and analyzing competitors, understanding their strengths and
weaknesses, and developing strategies to gain a competitive edge.

9. Consumer Management:
Consumer management focuses on maintaining a strong relationship with customers while
addressing their needs and concerns:

Copyright© 2024 by Dr. Binay Kumar Panjiyar, All rights reserved. [email protected]
  Customer Relationship Management (CRM): Using software systems to track customer
interactions, preferences, and purchase history to offer personalized services and
promotions.
 Customer Service: Providing excellent service through support channels like helplines,
live chats, or social media to resolve issues and enhance customer satisfaction.
 Feedback Systems: Collecting and analyzing customer feedback through surveys,
reviews, and direct communication to continuously improve products and services.

10. Time Management:

Effective time management is critical for both individual and organizational productivity. Key
strategies include:
 Prioritization: Identifying high-impact tasks and focusing on completing them first while
delegating or postponing less important tasks.
 Goal Setting: Setting clear, achievable goals for the short and long term, with defined
deadlines and milestones.
 Scheduling: Organizing daily, weekly, or monthly tasks using calendars, to-do lists, and
time-blocking methods to maximize productivity.
 Avoiding Procrastination: Tackling tasks promptly to prevent delays and ensure timely
completion of projects.
By effectively managing these aspects, companies can streamline operations, increase
productivity, and enhance profitability, ultimately achieving long-term success in a competitive
marketplace.

The contents in the E-Material have been prepared from the Text books and
Reference books given in the Syllabus.

“If any Doubt & Question Contact During Class Time”

8210586206

Copyright© 2024 by Dr. Binay Kumar Panjiyar, All rights reserved. [email protected]