MODULE VI

APPLICATIONS IN MANUFACTURING
SECTOR
CHAPTER 12
Reference
W.S.Jawadekar
 Introduction to Manufacturing Sector
 The approach considers transaction processing as a basis
 Considering OLTP system, RDBMS, Database,
accounting applications, query applications, analysis
applications, print reports, statutory compliance, operation
update etc.,
 The objective is to provide control information to ensure
that the business runs as per plan
 The query system is used for the assessment of the status
on record, result or document
 The main objective is to provide a system of analysis of
processed data revealing certain business trends
 Personnel Management (PM)
 The primary objective of PM is providing suitable
manpower in number and with certain ability, skills, and
knowledge. Its goal is to increase productivity using
following techniques
1.HRD through training and upgrading skills
2. Motivation through leadership and job enrichment
3. Promotion and reward through performance appraisal
4. Grievance handling
5. Structuring the organization
 Personnel Management
 Input Transaction Documents
1. Personnel application form …. Refer pp 195
 Applications:
 Accounting: entities accounted for PM system
 Query: pp 196
 Analysis:
 Control and Reports: pp 196-197
 Financial Management (FM)
 The primary objective of FM is meeting the financial needs of the
business, from time to time, by way of providing working capital and
long term loans to run the business.
 The Second objective is statutory compliance such as audits, tax etc.,
 Following are the tools used in FM
1. Break Even Analysis 2. Cost Analysis
3. Cash flow projections 4. Ratio Analysis
5. Capital Budgeting and ROI Analysis
6.Financial Modelling
7. Management Accounting
8. Auditing and Control
 Financial Management
 Input Transaction Documents
Payments, Receipts, data from stock exchange etc.,
 Applications: pp 198
 Accounting: sales, purchase, salary, inventory etc
 Query: pp 199
 Analysis:
 Control and Reports: pp 200-201
 Production Management (PM)
 The primary objective of PM is to provide manufacturing services to
the organization
 It involves manufacturing of products with certain quality, within
certain cost, and at stipulated time
 PM is supported by following functions
1. Production Planning and Control
2. Industrial Engineering
3. Maintenance and Quality Control
 Strong interface with Materials Management
 Utilization of manufacturing capacity, minimum rejections, maximum
uptime of plant and equipment
 Meeting delivery promises
 Production Management
 Input Transaction Documents
Production programme, production schedule,
process planning sheet etc., pp 202
 Applications: pp 203
 Accounting: quality, MRP, rejection, maintenance

 Query: pp 203
 Analysis:
 Control and Reports: pp 204-206
 Materials Management (MM)
 The primary objective of MM is to provide material for
production, maintenance and services at economical
prices with right quality, quantity, no extra inventory
ordering or carrying costs
 It takes away large capital as working capital
 Searching for new substitutes to reduce cost of material
etc.,
 Disposal of non moving and slow moving items
 To reduce paper work
 Materials Management
 Input Transaction Documents
Purchasing requisitions, purchase order, receipt of
goods, return of goods, certification for payment
 Applications: pp 207
 Accounting: quantity, inspection, bill passing
 Query: pp 208
 Analysis:
 Control and Reports: pp 209-210
 Marketing Management (MM)
 The primary objective of MM is satisfying the customer
 Identifying the needs of the customer
 Designing the product
 Positioning the product in the market
 Selling at appropriate price
 Market survey, market research, advertising
 Channels of distribution, promotion
 Forecasting of sales, pricing and launching
 Marketing Management
 Input Transaction Documents
Customer order, order acceptance, delivery note,
invoice, credit note, debit note
 Applications: pp 213
 Accounting: sales, excise duty, tax, area, zone
 Query: pp 213
 Analysis:
 Control and Reports: pp 214-216
 Marketing Management
3. List and explain input transaction documents and
query of Financial management with reference to
its applications in manufacturing sector
4. List and explain input transaction documents and
query of Personnel management with reference to
its applications in manufacturing sector
5. What is knowledge and knowledge management?
List some benefits of KM