Module 5

Management for Engineers

Dr. BIJESH R
ASSISTANT PROFESSOR
GEC Thrissur
1. Operations Management
 A manufacturing organization essentially engages in converting a variety of inputs into
products that are useful for individuals and organizations.

 A service organization, on the other hand, responds to the requirements of customers and
satisfies their needs through a service delivery process.

 An operations system is defined as one in which several activities are performed to transform
a set of inputs into a useful output using a transformation process.

 Operations management refers to the activities, decisions and responsibilities of managing the
resources which are dedicated to the production and delivery of products and services.

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Elements of operating system
Environment
Inputs
Land Outputs
Transformation
Labour Products
process
Capital Services
Information
Feedback
Inventory levels
Sales volume
Labour efficiency

Elements of operations system

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Scope of operations
management
1.Plant location
2.Plant layouts
3.Material handling
4.Product design
5.Process design
6.Production and planning control
7.Quality control
8.Maintenance management
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2. Marketing Management
Marketing management is the process of analysis, planning, implementation and control of
programmes designed to bring about desired exchanges with target markets for the purpose of
achieving objectives of the organization.

1. Analysis – Detailed study of the gathered information regarding market, competitors product,
target market, political issues, etc.

2. Planning – Choosing the marketing plan, pricing, advertisement plans, etc.

3. Implementation – Putting the plan into action.

4. Controlling

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Functions of Marketing
Management
1. Market research,
2. Sales forecasting,
3. Pricing,
4. Choosing distribution channel,
5. Selling,
6. Advertising,
7. Sales promotion and
8. Servicing

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Market Research

It is the process of gathering, recording and analysing

information such as nature of demand, nature of competition,
methods of marketing, sales trend etc.

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Benefits of market research
To know who and where the customer is and what he
wants, sales trend and market potential
To know the defects in product
To study the distribution channel and its effectiveness
Tells the future of the exiting product
To get information on unforeseen changes

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Steps involved in market
research
Identification of market research problem
Determining the information needed and sources followed
by collection
Analysing and interpreting the information
Preparing and presenting the report followed by the follow
up and action

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Marketing Mix
 Marketing mix is a set of controllable variables that a firm can use to influence the buyer’s
response within a given marketing environment. The combination of these variables constitutes
the marketing mix.

Traditional marketing mix model

Product Price
1. Product
Target
2. Price market

3. Place Place Promotion

4. Promotion

Marketing mix
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Market Segmentation
It is the act of dividing the market into smaller groups of buyers with distinct
needs, characteristics or behaviours who might require separate products or
marketing mixes.
1. Geographic segmentation
2. Demographic segmentation: Age, education, family size, gender, occupation
3. Behavioural segmentation
4. Psychographic segmentation

Seasonal, Generational, Price segmentations

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Market targeting is the process of evaluating each market segments’
attractiveness and select one or more market segments to enter.
For example, target market for Nike which sells apparel, equipment,
shoes, and accessories is athletes and people who play sports.

Marketing positioning is the process of developing a marketing mix

that puts the product in a unique position to the targeted segments for
attracting potential buyers.
 For example, in the automobile market, Toyota, Suzuki are positioned
on the economy, Mercedes on luxury, and BMW on performance.
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Sales Forecasting
Qualitative Methods: Based on judgements, opinions,
intuition, emotions, or personal experiences.

Quantitative Methods: Based on mathematical models, and

are objective in nature(not influenced by emotions). They rely
on mathematical computations

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Sales forecasting Methods
Demand forecasting methods

Qualitative methods Quantitative methods

Jury of executive opinion

The Delphi technique Moving average method
Sales force opinion Regression analysis
Survey of customers buying

Demand forecasting methods

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 3.HR Management
Process of staffing
The staffing includes:
1. Man power planning
2. Recruitment
3. Selection
4. Orientation and placement
5. Training and development
6. Remuneration
7. Performance evaluation
8. Promotion and transfer
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Factors affecting staffing
1. Promotion policy
2. Future growth of plants
3. Technology used
4. Support from top management
5. Image of organisation
6. Labour laws
7. Pressure from socio-political groups
8. Competition

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Selection process
1. Obtaining job description and job specification
2. Application form
3. Employment tests
4. Interview
5. Physical examination
6. Induction and orientation

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Selection Tools

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Purpose of Training
1. To increase productivity
2. To improve quality
3. To help a company fulfils its personal needs
4. To improve organisational climate
5. To improve health and safety
6. Personal growth

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4. Financial Management
Objectives
Profit maximisation
Wealth/value maximisation
Proper estimation of total financial requirements
Proper utilisation of finance
Proper co-ordination
Reduce cost of capital
Reducing operating risks

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Functions of financial
management
1. Estimating capital requirements
2. Determining capital structure
3. Estimating cash flow
4. Investment decisions
5. Divided decisions
6. Checking the financial performance

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Capital
Capital refers to saved-up financial wealth, especially which used to start or maintain a business
It is necessary for an enterprise to keep dynamic and covers money, l and, building, machinery,
materials etc.
Every business needs capital for its establishment and to carry out its day to day operations
Capital can be classified into
◦ 1. Fixed Capital
 Long term funds required to create production facilities such as land, plant, machinery, building,
furniture etc.
 Investment in this is blocked or permanent or fixed
 The capital cannot be disposed off without breaking up the business
◦ Working capital
 Funds required for short term purposes of raw material, payment of wages and other day to day
activities
 This keeps the flow of smooth production
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Assets
Assets are resources acquired by business from the funds available
It includes all rights or properties which a business owns

1. Current assets: Includes assets in cash and other assets that, under normal
businesses conditions can be converted into cash within a short period of time. This
includes cash in hand, cash in bank, accounts receivable
2. Fixed assets: Have relatively permanent existence and are not readily converted
to cash. This includes land, building, equipment, machinery, furniture etc.
3. Other assets: The assets which do not fell into current and fixed assets. It include
patents, copyrights, franchises, goodwill etc.

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Liabilities
Liabilities denote claims against the assets of a firm whether those of owners of the business
or of the creditors that are to be satisfied by the disbursement or utilisation of corporate
resources.

1. Current liabilities: Debts which are expected to be settled within one year or less are
referred as current liabilities. This include bank overdraft, short term loans, trade credit,
wages
2. Fixed liabilities: Debts which are expected to be settled within one year or more are
referred as fixed liabilities. This include debentures, mortgage loan, bonds etc.
3. Contingent liabilities: Those obligations that might or might not arise in the future.
This include warranty liability, lawsuit payable etc.

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 Functional budgets
It is a budget which relates to any of the functions of an undertaking.
Eg: Sales, production, cash etc.

1. Sales budget: It is the estimate of the total sales expresses in terms of money and quantity during the budgeted
period.
2. Production budget: It is the estimate of quantity of products to be manufactured for the budgeted period
3. Capital expenditure budget: Represents the estimated expenditure on fixed assets during the budgeted period
4. Selling and distribution cost budget
5. Administration expenses budget
6. Cash budget: It represents the cash requirement for the business during the budget period

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Business Plan

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Needs of Business Plan

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Business Plan

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Components of Business Plan

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Corporate Social
Responsibility (CSR)

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