Professional Documents
Culture Documents
12/10/2023
Prepared By:Megabe S 3
Thus production is a value addition process.
Edwood Buffa defines production as ‘a
process by which goods and services are
created’.
Production facilities are arranged as per the
sequence of production operations from the first
operations to the finished product.
The items are made to flow through the
sequence of operations through material
handling devices such as conveyors/transporting
, transfer, devices, etc.
12/10/2023 Prepared By:Megabe S 4
1.1.Understanding vision, mission, goals, and
objectives of the organization
Vision
Vision statement describes future direction of an
institution.
It is a bright description of the desired future, and it
creates a mental picture of what your institution to
become.
A powerful vision statement can energizers and inspire,
and is often built upon vast, imaginative targets.
A vision statement focuses on what you want to do in
the future.
12/10/2023
Prepared By:Megabe S 8
When selecting goals, we have to consider whether each
goal meets the following: Is it attainable and is it
adoptable? Is it clear and inviting to achieve?
Example:
Assume that goal of Rayawakena Farmer’s Cooperative
union is: - Increase agricultural inputs for farmers by the
year 2020 E.C
Objectives
For each goal of the organization, there must be
development of objectives that will support the attainment
of institutions’ goals.
Objectives indicate how much the mission can be
achieved.
12/10/2023 Prepared By:Megabe S 9
Objectives represent specific, planned levels of achievement.
They are quantified allowing reviewing and appraisal of
achievements
Objectives state what is to be accomplished, by when and by
whom to accomplish.
They can be long term or short term, cover operations.
Objectives are SMART: S = Specific, M = Measurable A =
Attainable, R = Relevant, T = Time bounded.
Example:
1) To increase fertilizer from 800 quintals to 1000 quintals in
2020
2) To increase improved seed (wheat) from 12,000,000quintals
to 14,000,000 quintals in 2020
12/10/2023
Prepared By:Megabe S 10
Understanding Production goals
Definition
The processes and methods employed to transform
tangible inputs (raw materials, semi-finished goods, or
subassemblies) and intangible inputs (ideas, information,
knowledge) into goods or services.
Production - the act or process of producing
something.
Production goals are consistent with vision and
mission statements of the organization.
Production goals will be broad statements that focus
on end results rather than specific activities.
12/10/2023
Prepared By:Megabe S 11
A relatively small job of short duration does not
require a complicated production schedule.
The goals help to create personal ownership for
each crew member’s contribution to the success of
the job
Once the goals are set, the manager/group leader
must follow up and check on how the crew(team) is
progressing.
If he/she is not making progress toward the goal,
then he/she must intervene and find out why.
12/10/2023
Prepared By:Megabe S 12
Preparing the aggregate production plan
Planning is deciding in advance what to do, how to
do it, when to do it and who is to do it.
Planning bridges the gap from where we are to
where we want to go.
It makes it possible for things to occur which would
not otherwise happen.
Production planning: the process of planning the
production in advance, setting the exact route of each
item, fixing the starting and finishing dates for each
item, to give production orders to shops and to follow
up the progress of products according to orders.
12/10/2023 Prepared By:Megabe S 13
The principle of production planning lies in the
statement ‘First Plan Your Work and then Work on Your
Plan
Main functions of production planning and control
includes planning, routing, scheduling, dispatching
/shipping/ and follow-up.
12/10/2023
Prepared By:Megabe S 14
The aggregate production approach is predicated on the
existence of an aggregate unit of production, such as the
average item, or in terms of weight, volume, production
time, or dollar value.
Once the aggregate production plan is generated,
constraints are imposed on the detailed production
scheduling process which decides the specific quantities
to be produced of each individual item.
Aggregate production planning is the production portion
of the business plan and address the demand side of the
firm’s activities by showing the outputs it will produce,
expressed in numbers of units its product groups or
familities.
12/10/2023
Prepared By:Megabe S 15
Costs relevant to aggregate production planning:
•Basic production costs: material costs, direct labor
costs, and overhead costs.
• It is customary to divide these costs into variable
and fixed costs.
•Costs associated with changes in the production
rate.
• costs involved in hiring, training, and well as
overtime compensations.
•Inventory related costs.
12/10/2023
Prepared By:Megabe S 19
Risk management ensures that an organization identifies and
understands the risks to which it is exposed.
Risk management also guarantees that the organization
creates and implements an effective plan to prevent losses or
reduce the impact if a loss occurs.
A risk management plan includes strategies and techniques for
recognizing and confronting these threats.
Good risk management doesn’t have to be expensive or
time consuming; it may be as uncomplicated as answering
these three questions:
•What can go wrong?
•What will we do, both to prevent the harm from occurring
and in response to the harm or loss?
•If something happens, how will we pay for it?
12/10/2023
Prepared By:Megabe S 20
Why we manage risk?
An organization should have a risk management strategy because:
People are now more likely to sue. Taking the steps to reduce
injuries could help in defending against a claim.
Courts are often sympathetic to injured claimants and give them
the benefit of the doubt.
Organizations and individuals are held to very high standards of
care.
People are more aware of the level of service to expect, and the
recourse they can take if they have been wronged.
Organizations are being held liable for the actions of their
employees/volunteers.
Organizations are perceived as having a lot of assets and/or high
insurance policy limits.
12/10/2023
Prepared By:Megabe S 21
Techniques of Risk Management
Risk management techniques focuses on reducing the
level of risky activity to that which is economically
justified.
Firms can control risk by adopting internal techniques
such as asset diversification and information dissemination
Risk handling encompasses all organizational activities
those seek to minimize losses by reducing loss frequency,
loss severity or both
They include the following three measures:
•Avoidance- is not the best way of handling risk. It may
create another risk.
•Loss prevention/anticipation/forecasting
12/10/2023
Prepared By:Megabe S 22
•Loss reduction activities.
Risk financing techniques: - some potential risks /looses
cannot or should not be avoided or prevented completely.
Organizations can finance their losses using internal or
external resources.
Internal loss financing or retention: - for example through
self insurance (acceptance).
External loss financing: - for example through insurance
and contractual transfer.
The generally accepted risk management model sub-
divides the risk management process into the following
headings:
12/10/2023
Prepared By:Megabe S 23
Define Objectives: define the context of your work and
your plan for success
This defines what you have to achieve to be successful
and establishes a basis for dealing with risk and future
decisions.
Identify Risk: identify areas of risk and uncertainty
which may limit or prevent you achieving your objectives.
Here both internal and external sources of risk are
analyzed / identified.
Quantify Risk: evaluate and prioritize the level of risk
and uncertainty and quantify frequency of occurrence and
their potential impact.
12/10/2023
Prepared By:Megabe S 24
Risk quantification is primarily concerned with
determining what areas of risk warrant a response and
where resources are limited, a risk priority will identify the
areas of risk that should be addressed first.
Develop risk response: Having identified, quantified
and prioritized the risks, we need to develop a risk response
plan which defines ways to address adverse risk and
enhance opportunities before they occur.
Benefits of managing risk
Risk management provides a clear and structured approach
to identifying risks.
12/10/2023
Prepared By:Megabe S 25
Risk management has other benefits for an
organization, including:
Saving resources: Time, assets, income, property and
people are all valuable resources that can be saved if fewer
claims occur.
Protecting the reputation and public image of the
organization.
Increasing the stability of operations.
Protecting people from harm.
Protecting the environment.
Enhancing the ability to prepare for various
circumstances.
12/10/2023
Prepared By:Megabe S 26
Reducing liabilities.
Assisting in clearly defining insurance needs.
Setting Preventive Measures
It's when there is something you are trying to stop (prevent)
from happening, so you take a preventive measure (do
something) to stop the thing you think might happen.
Developing a prevention strategy
States are encouraged to formulate a co-ordinate
prevention strategy to improve preventive measures
which are already in operation, to implement new
measures where appropriate, and to encourage co-
operation and training between the various
professionals in the field.
12/10/2023
Prepared By:Megabe S 27
Why we develop a prevention strategy?
A prevention strategy will help to ensure that a
comprehensive system is in place to seek to prevent danger.
A prevention strategy will recognize where the gaps are
and what needs to be done to close the gaps.
A continuing strategy on preventive measures helps to
ensure that expertise and momentum will not be lost where
there is high staff turnover.
A prevention strategy will highlight what training is
needed and help to build communication between agencies
and authorities both domestically and at the international
level.
12/10/2023
Prepared By:Megabe S 28
Adequacy of preventive measures
Assess what preventive measures are currently in
operation in the State and whether there are any
noticeable gaps.
Assess which, if any, additional measures might
be usefully implemented in the State and whether
these require legislation, regulations, co-operative
arrangements etc.
Assess which agency or authority is best suited to
operate these measures and ensure they are
sufficiently trained and resourced.
12/10/2023
Prepared By:Megabe S 29
When and how?
A prevention strategy should be ongoing. Assess what
changes and improvements can be made immediately, which
will require short term planning and which might require
longer term planning.
Prioritize implementation of new measures which are
considered the most essential.
Preparing and maintaining a prevention strategy should
involve continuing consultation with relevant professionals.
A prevention strategy should include provision for training
for those operating preventive measures.
A prevention strategy should also include provision of
information to the owners of the organization.
12/10/2023
Prepared By:Megabe S 30
LO2:Input Procurement planning
2. Introduction to Input Procurement plan
Procurement: obtaining goods, works,
consultancy or other services through
purchasing, hiring or by any other contractual
means.
Public procurement: procurement by a
public body by public fund .
What is to be procured?
Goods, Services (consultancy and non consultancy) , Works
12/10/2023
Prepared By:Megabe S 31
Goods: raw materials, products and equipment
and commodities in solid, liquid or gaseous form,
marketable software and live animals .
which are normally delivered in finished conditions to
specified standards are called Goods.
Works:
construction, reconstruction, demolition, repair or
renovation of a building, road, or structure, water projects
and related infrastructures,
which normally require construction at a specified site
over a period of time, with a targeted budget , involving
integrated management with technical skills, labor, and
materials, tools, and equipment are called as Works.
12/10/2023
Prepared By:Megabe S 32
Consultancy service:
Professional skills required to carry out projects
including individuals, consulting firms, construction
managers and other specialists are services
a service of an intellectual and advisory nature
provided by consultants using their professional skills to
study and organize specific projects, advise client, conduct
training and transfer knowledge
Non consultancy /Other services:
Services that are not related to professional skills like:
Transportation , assembling, installing , commissioning,
maintenance, security, janitorial, electricity,
telecommunication and water supply services etc.
12/10/2023
Prepared By:Megabe S 33
Procurement Planning
Procurement Planning is determining what to
procure and when to procure.
Procurement planning is the process of
identifying which project needs can be best met by
procuring products or services outside the project
organization.
A detailed procurement plan is a prerequisite for
effective project implementation and should be
prepared at different levels and will include:
A work plan;
12/10/2023
Prepared By:Megabe S 34
A timetable, key dates;
Cost;
Procurement method;
Contract award dates;
Inputs to Procurement Planning
Scope statements: The scope statement describes
the current project boundaries.
It provides important information about project
needs and strategies that must be considered during
procurement planning.
THE END
THANK YOU
12/10/2023 Prepared By:Megabe S 75