Engineering Economics And Management

Engineering Economics And Management subject
topic covered are;
Financial Management
Human Resources Management
Plant Layout

1. Engineering Economics And Management TOPICS COVERED : Financial Management Human Resources Management Plant Layout Prepared By: Siddhi R. Vakharia

2. Contents Introduction What Finance is… What Finance management is … Definitions of Financial Management by Experts Scope of Financial Management Functions of Finance management Source of Finance Human Resources Management Objectives of manpower planning Sources of Recruitment Process of selection of Manpower Plant Layout Need of Plant Layout Factors affecting on Plant Layout Engineering Economics And Management 2

3. Introduction What Finance is, Finance may be defined as the art and science of managing money. Finance is also referred as the provision of money at the time when it is needed. The concept of finance includes capital, funds, money, and amount. But each word is having unique meaning. For every business managing the finance is very essential and crucial. Engineering Economics And Management 3

4. Introduction What Finance Management is, Financial Management is the process of planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It applies general management principles to financial resources of the enterprise. Engineering Economics And Management 4

5. Many financial experts have defined 'Financial Management’ follows : Many financial experts have defined 'Financial Management follows : "It is concerned with the efficient use of an important economic resource namely, capital funds“ ~ Solomon “Financial Management deals with procurement of funds and their effective utilization in the business.” ~ Kuchal "Financial management "as an application of general managerial principles to the area of financial decision-making .“ ~ Howard and Upton "Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations“ ~ Joshep and Massie Engineering Economics And Management 5

6. Scope of Financial Management Financial management is very important aspect for overall management of the organization. It has direct imnpact on every business aspect and hence it has found wide scope in the business. It effects functional-departments such as human resources, marketing, procurement, design , research, production and many more. Financial management covers wide area with multidimensional approaches. Engineering Economics And Management 6

7. The following are the important scope o f financial management . Financial Management and Accounting Financial Management and Economics Financial Management and Mathematics Financial Management and Human Resource Financial Management and Marketing Financial Management and Production Management Engineering Economics And Management 7

8. Functions of Finance management Estimation of Capital requirements Determination of Capital composition Selection of sources of funds Investment of Funds Management of Cash Disposal of Surplus Financial Countrols Engineering Economics And Management 8

9. Source of Finance Based on the Time Period of Repayment Long-term sources Equity Shares Preference Shares Debenture Long-term Loans Fixed Deposits Short-term sources B ank Credit Customer Advances Trade Credit Public Deposits Money Market Instruments Engineering Economics And Management 9

10. Source of Finance 2. Based on Ownership An ownership source of finance includes • Retained earnings • Surplus and Profits • Earnings • Different types of Share capital Borrowed capital inc1ud, • Public deposits, • B ank loans • Debenture • Bonds . Engineering Economics And Management 10

11. Source of Finance 3. Based on Sources of Generation Internal Source of Finance includes; Surplus Retained earnings Depreciation funds External sources of Finance may be include Public deposits Different types of Share capital Bank Loans Debenture Engineering Economics And Management 11

12. Human Resources Management One of the key factor for production of 4M’s is Men. Men power is very vital even in the today’s world of automation. Human resource management (HRM or HR) is the strategic approach to the effective management of people in an organization, so that they help the business to gain a competitive advantage. ... Human resources' overall purpose is to ensure that the organization is able to achieve success through people. Engineering Economics And Management 12

13. Objectives of manpower planning Ensure optimum utilization of human resources currently available in the Organization Forecasting the future skills requirement of the Organization Promoting employs Retaining Employs Effective managemnet of situation Engineering Economics And Management 13

14. Process of Manpower planning Engineering Economics And Management 14

15. Sources of Recruitment Types : 1. Internal Sources 2.External Sources Such as, Employment at Factory Level Labour Contractors Advertisement Employment Exchanges Educational Institutions Engineering Economics And Management 15

16. P rocess of selection of Manpower Notification Preliminary Interviews Written Tests Employment Interviews Selection Medical Examination Appointment Letter Engineering Economics And Management 16

17. Plant Layout Defination P lant layout is the most effective physical arrangement, either existing or in plans of industrial facilities i.e. arrangement of machines, processing equipment and service departments to achieve greatest co-ordination and efficiency of 4 M’s (Men, Materials, Machines and Methods) in a plant . “Layout identically involves the allocation of space and the arrangement of equipment in such a manner that overall operating costs are minimized ” ~James Lundy It is planning the right equipment, coupled with right place, to permit the processing of a product unit in the most effective manner, through the shortest possible distance and in the shortest possible time.” The last definition seems to be most appropriate. ~ Sansonneti and Malilick Engineering Economics And Management 17

18. Need of Plant Layout Many situations give rise to the problem of plant layout. Two plants having similar operations may not have identical layout. This may be due to size of the plant, nature of the process and management’s calibre. The necessity of plant layout may be feel and the problem may arise when, There are design changes in the product. There is an expansion of the enterprise. There is proposed variation in the size of the departments. Some new product is to be added to the existing line. Some new department is to be added to enterprise and there is reallocation of the existing department. A new plant is to be set up. Engineering Economics And Management 18

19. Types of layouts The types are: Plant Layout Process Layout Product Layout Combination Layout Fixed Position Layout. Engineering Economics And Management 19

20. Factors Affecting Plant Layout Some of the major factors which affect plant layout are: Policies of management Plant location Nature of the product Volume of production Availability of floor space Nature of manufacturing process and Repairs and maintenance of equipment and machines. Engineering Economics And Management 20

21. Thank you… Engineering Economics And Management 21