4.

2 Procurement Management

Procurement is the act of  sourcing and obtaining goods and services for a business. The
procurement process is most commonly associated with business because a company needs to
purchase goods and solicit services to grow.

Identify a
Need

Select a
Understand
Supplier and
Receipt and
Set Price
Payment
and Terms
Procurement
Management

Define Order
Set
and Delivery
Expectations
Specifics

Fig 4.1 Procurment Management

1) Identify a Need
First and foremost need to identify a need and develop a procurement strategy around

that need, whether it be a product or a service.

2) Select a Supplier and Set Price and Terms

Their is need to ascertain where to purchase the goods that need. The success of your

business depends in part upon the reliability of the supplier you choose. Whenever possible,

check references and speak with other customers to gauge their satisfaction.

3) Define Order and Delivery Specifics

Submit your purchase order, which is essentially a contract between the buyer and

seller for the number of goods ordered and the terms of price and delivery.
4) Set Expectations

It’s important for the buyer to set expectations surrounding delivery, payment and

communication throughout the entire process. If a timeframe for delivery needs to be

expedited this should be put into writing so that the seller is held to the timeframe. In cases

where a change in supplier occurs, a transition plan should exist to prevent any delays in

delivery.

5) Understand Receipt and Payment

Once the goods are delivered the buyer should inspect them and either reject or accept
them. After acceptance, the seller will send an invoice for payment. Three documents are part
of this process: the original invoice, the signed document of receipt and the purchase order,
according to Business Dictionary. Payment should be made in a timely manner to maintain
good business principles and a respectable relationship between the buyer and seller. It’s
important for both the buyer and seller to maintain good records for tax purposes, audits and
reference of future orders. This is the procurement process cycle.

4.3. Resource Use Management:

Resource management is the process of planning, scheduling and allocating resources to

complete a project. Project managers are in charge of overseeing the resource management
process from start to finish. To do so, they need to use resource management tools and
techniques.

4.3.1. Resource use management of Shriram oil company:

1) Shop:

2) Manpower:

3) Water:

4) Capital:

5) Electricity:

6) Raw material:
7) Machinery and equipments:

1) Shop:

Shop located at MIDC Baramati

2) Manpower:

There are 4 labors are working in AT Sons and banana chips and amla candy

a) Worker: 4 worker are there for machine cleaning, packing of oil, labeling, weighing

bottles, etc.

b) Operator: 2 Operator for operating machines, selling of products.

3) Water:

Water connection

4) Capital:

Capital includes machineries, water supply system, etc.

5) Variable cost includes labor charge, maintenance of shop and water, electricity,

transportation, raw material, etc.

6) Electricity:

Electricity charges for their unit for 1 month is Rs 600.

7) Raw material:

They are received raw material from

8) Machinery and Equipments.

a) Machinery:
i- Chips Cutting Machine

The chips cutting machine is fully automatic has capacity of 300 to 450 kg per hour.
The blade size available is 1.2 to 10 mm. The machine is made up of stainless steel.

ii- Packing Machine

 The packing machine is automatic need a power consumption of 1 kilowatt and
voltage 220 volt. It is a single phase machine.

iii- Weighning Balance

Weighing balance neet to weight a chips.

4.4. Processing Management:

Production is the functional area responsible for turning inputs into finished outputs through a
series of production processes.

4.4.1 Products

Banana Chips

4.4.2 Nutritional Facts

Nutrition Facts 100 g

Serving Size

Per serve 2171 kj

Energy 519 kcal

Fat 33.6g

Saturated Fat 28.97g

Monounsaturated Fat 1.95g

Polyunsaturated Fat 0.63g

 Carbohydrates 58.4g

Sugar 35.34g

Fibre 7.7g

Protein 2.3g

Sodium 6mg

Cholesterol 0mg

Potassium 536mg

Nutritional Summary:

Cals Fat Carbs Prot

519 33.6g 58.4g 2.3g
There are 519 calories in 100 grams of Banana Chips. Calorie breakdown: 55% fat, 43%
carbs, 2% prot.
Process of Banana Chips Making
4.5 Process of Banana Chips

Heat oil for frying.

Wait till oil is medium hot.

Peel the banana.

Make a slices with help of machine.

Directly slice the banana chips into kadai.

Stir it

Fry till you can see the bubbles becoming in the oil will almost appear.

The banana chips would change the color

Remove the fried banana chips form kadai

Transfer banana chips on to paper towel

After few minutes transfer banana chips in to container. Sprinkle salt and red chili
powder

When they are completely cooled, store banana chips into air tight container.

 
Prep time 5 mins
Cook time 30 mins
Total time 35 mins
 
4.5.1 Ingredients
 4 fresh raw banana
 Salt
 Red chili powder
 Oil for frying
Instructions ( 1 cup = 250 ml, 1 tbsp = 15 ml, 1 tsp = 5 ml)
4.5.2 Steps for making Banana Chips
Step 1 : Heat oil for frying.

Step 2 : Wait till oil is medium hot.

Step 3 : Peel the banana.

Step 4 : Make a slices with help of machine.

Step 5 : Directly slice the banana chips into kadai. Do not over crowd chips in kadai.

Step 6 : Stir with a wired spoon so that the slices don’t stick to each other.

Step 7 : Fry till you can see the bubbles becoming in the oil will almost appear.

Step 8 : The banana chips would change the color and it will become crispy too.

Step 9 : Remove the fried banana chips form kadai using slotted spoon, so access oil will
drain off.

Step 10 : Transfer banana chips on to paper towel to soak excess oil.

Step 11 : After few minutes transfer banana chips in to container. Sprinkle salt and red chili
powder according to taste. Mix well.

Step 12 : When they are completely cooled, store banana chips into air tight container.

4.6 Marketing Management

4.6.1 Marketing Mix

1) Products

AT Sons and Banana Chips and amla candy has makes banana chips and amla
candy The company uses plastic bags for packing.

Packaging: 250gm, 50gm, 500gm, 1000gm

2) Price:

Banana Chips : 270/kg

3) Place:

They are selling their products in different regions like baramati, pune, etc

4) Promotion:

AT Sons and Banana Chips and amla candy prefers pamplets and internet for
promotion tool.
4.7 Supply Chain Management

Backward and Forward Linkages:

Backward linkages of AT Sons and Banana Chips and amla candy:

Table no. 4.16.Backward linkages of AT Sons and Banana Chips and amla candy

Sr. No. Name of Raw material Places of Procurement

1 Banana Chips Baramati

The raw material which is essential is procured from region Baramati.

Forward Linkages

Table no.4.17. Forward Linkages of AT Sons and Banana Chips and amla candy

Sr. No. Name of product Places to reach

4.8
1 Banana Chips Baramati, Pune

SWOT Analysis
A) Strength:

i. Near to rural and urban region:

Both regions of peoples easily buy their products.

ii. Good for health:

 Residue free product

 Naturally processed ( Lakadi ghana)
 Conscious about cleanliness
iii. High demand in market:

Because of hand made products, have more demand .

iv. Residue free:

Product is residue free means clean , there is no any particles, dirt. So this
is the one of the strength of company.

B) WEAKNESS
 i. Less area
The shop is in 1700 sq. it is conjusted for the customer at time of buying this
is weakness of store
ii. Price high
As the products are made by hand there so the prices are high
C) OPPORTUNITY
i. Increasing storage area
Storage area is less to store products and raw material

ii. Deal with other state:

AT Sons deal with state like karanataka, gujarat etc. because craze of
banana chips are increasing day by day

D) Threats

i. Availability of substitute products:

In market there is number of brands available like this products and number of
type chips are available.

ii. Heavy competitors

There are heavy competitors to the amanora store such as .amanora mall, shop
etc. This is an threats to the store.
4.9 Problems and suggestion
4.9.1 Problems
1. Insufficient space
2. Price high
3. Lack in promotion
4. Trained labours are not their for marketing
5. Not good organizational structure
6. Shortage of raw material:
4.9.2 Suggestion
1. Increase the space of the store and renovate
2. Maintain the price
3. Make well qualified organizational structure
4. Training to labors.
5. Before 2 or 3 days remind to the raw material supplier to send raw material at that day or
before that day.