RELATIONSHIP WITH OTHER

FUNCTIONAL AREAS

L 1.Production and Marketing

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2. Production and Finance
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R 3.Production and Human
E Resource
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 1.Production and Marketing

1. DEMAND FORECASTING
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C 2. DELIVERY REQUIREMENTS
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3. MODIFICATIONS
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R 4. NEW PRODUCT IDEA
 1.Production and Marketing Cont..
As production function has the most direct and
intimate relationship with the marketing function,
several decisions in production and marketing are
L based on common premises and inputs. Product
design, size, quality, have to be determined
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keeping in the view the needs of customers.
C Marketing department should also consult with
T the production department while eliminating slow
U moving products. Despite close interrelationship
and interdependence, there is lack of coordination.
R Marketing personnel prefer a wide variety
E products, introduction of new products are the
R main area of conflict.
 2. Production and Finance
Capital Budget : There is a limited amount
of capital available.
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E Marginal Analysis : This often applies to the
screening of new product.
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Standard Cost : There are predetermined
U costs which are calculated in advance of
R production but which are expected to be
compared with actual cost incurred during
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production.
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 2. PRODUCTION AND FINANCE CONT..

Production budget : Labour, material ,

overhead are compared with monetary
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targets. The comparison of the actual cost
E against the budget cost leads to performance
C appraisal.
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U Production costing : Production cost can be
calculated for job, batch ,mass production.
R These include machine setting, transportation
E inspection.
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 3.Production and Human Resource

1. Analysis of labour supply.

2. Procedure for man power requirements.
L 3. Formation of industrial relation policy is necessary
for effective work, disciplinary methods and
E dismissal procedure.
C 4. Analyzing effective use of H.R.
T 5. Necessary to maintain adequate level of motivation.

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 Problems of Production Management

1. Problems of plant location.

2. Problems of plant layout. (heating, lighting)
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3. Problems of product design. (economic
E order quantity)
C 4. Problems of quality control. (product
T inspection, statistical quality)
U 5. Problems of labour control. (wages)

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6. Problems of cost control. (maximum
production at minimum cost)
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7. Problems regarding socio-economic
R environment. 
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Thank
You
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 PJ’s Next Class

Youtube Link
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C Unit – 2
T PPC – Production Planning and Control
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