Meaning , application , limitation and threats to marketing research

Meaning of marketing research - marketing research is the systematic and objective search for and analysis of information relating to the identification and solution of any problem in the field of marketing the keyword in this definition of a systematic objective and analysis ..

Application of marketing research

Defining market demand

Describing a market

Approaches to sales forecasting

Forecasting sales of established
products / services

Limitations of marketing research

Marketing research the costly affair

it is lengthy and time consuming
it has limited scope
limited practical value
it can't predict consumer behaviour Not 100% accurate results
it provide only suggestions
non availability of reliable data

Threats of marketing research ÷

Excessive interview
lack of consideration and abuse by the respondents
the use of marketing research is sales ploy.

Meaning, principles, benefits of ISO 9000

Meaning, principles, benefits of ISO 9000

ISO 9000 -  ISO 9000 standards represents an international consensus on good management practices with the aim of insuring organization and time and again deliver the product and services that meet the clients quality requirements these goods practices have this turned into a set of system regardless of what the organization does, its size, or weather it is private or public sector .

Principle concepts

1. Demonstrate ability to provide quality

2. enhance customer satisfaction

3. improve the quality of its own products

4. provide confidence on the firm

Benefits of ISO 9000 -

1. Minimum requirement for entering in global market

2. increase the quality of product

3. increase performance of process

watch this video  for video notes --

Capital investment decision , techniques of capital investment , purpose of capital equipment ,meaning of capital investment

Capital investment decision - the project selected to maximize shareholders wealth consider all cash flow, discounted cash flow at appropriate market determined opportunity cost of capital will allow managers to consider is project independently from all others .

Techniques of capital investment decision -

1. Payback method
2. accounting rate of return
3. internal rate of return
4. net present value

Purchase of capital equipment - equipment that is used to manufacture a product, provider service or used to sell store and deliver merchandise . this equipment has an extended life so that it is properly regarded as a fixed assets .

Meaning of capital investment - funds invested in a firm or enterprise for a purpose of furthering its business objectives  . capital investment me also refer to a farms acquisition of capital assets for fixed assets such as plants and machinery that is expected to be productive for many years .

watch the video ..

Cost reduction techniques

Cost reduction techniques

 

1. JIT (just in time) system
2. Target costing
3. activity based management
4. life cycle costing
5. kaizen costing
6. business process reengineering
7. total quality management
8. value chain
9. bench marketing
10. management audits

Value analysis - the systematic and critical assessment by an organisation of everyone future of a project to ensure that its cost is no greater than is necessary to carry out the function

Value engineering = the modification of design and system according to value analysis of the product ..

Simplification = the concept of simplification is closely related to standardization
 

Simplification is the process of producing the variety of products manufactured . simplification is concerned with the reduction of the product range, assemblies, parts, materials and design .

Standardization - formulation, publication and implementation guidelines, rules and simplification for common and repeated use at achieving optimus degree of order or uniformity in a given context, discipline or field ..

Application of linear programming - 

1. allocation of scarce resource
2. Scheduling production facilities and resources
3. optimizing capital investment decision
4. inventory control
5. allocation of maintenance

Transportation model - it deals with problems concerning as to what happens to the effectiveness of function when we associate each of the number of origins with each of the possibility of different numbers of destination ..

Application of transportation model ÷

1. Minimise shipping costs

2.  determine low cost location

3. find minimum cost production schedule

4.  military distribution system

Process of transportation model

1. Standardization of problem

2. Check nature of  problem

3. check balance problem

Quality control

System of maintaining standards in manufacture products by testing a sample of output against the specification ..

Quality control techniques

1. Just in time
2. quality at source
3. inspection
4. standard quality control
5. quality circle
6. total quality control

Types of inspection

1. Pre production inspection
2. during production inspection
3. final random inspection

Principles of inventory management

Principles of inventory management

1. Demand forecasting

2. warehouse flow

3. inventory turn / stock rotation

4. cycle counting

5. process auditing

Types of inventory

1. Raw material
2. work in progress
3. finished goods
4. transit inventory
5. buffer inventory
6. anticipation inventory
7. decoupling inventory
8. cycle inventory
9. MRO ( maintenance, repair and operations ) inventory
10. theoretical inventory

ABC analysis - ABC analysis in inventory categorization technique often used in material management. It is also known as selective inventory control . Policies based on ABC analysis A items are very tight control and accurate records , B items are little less and C has the least ..

10 to 20 % item A account for 70 to 80 % of the consumption ..

The next 15 to 25 % B account for 10 to 20 % of the consumption .

The balance of 65 to 75 % C account for 5 to 10 % of consumption .

Basic inventory models

1. Basic EOQ model
2. Dynamic economic lot size model
3. Periodic review stochastic model

EOQ meaning - the economic order quantity is the number of units that a company should add to inventory with order to minimize the total cost of inventory such as holding cost, order cost and storage cost .

Total inventory cost = ordering costs + holding costs

EOQ = √ 2x quantity per order ÷ carrying cost per order

Safety stock= safety stock is also called buffer stock is a term used by logistician to describe a level of extra stock that is maintained to migrate risk of stock outs ( shortfall in raw material or packaging ) due to uncertainties in supply and demand ..

Functions of inventory control -

1. meet anticipated demand

2. smooth production requirements
decouple operations

3. protect against stock outs

4. take advantage of quantity discounts

5. permit operations

6. help hedge  price increases

7. take advantage of order cycles

Objectives of inventory control

1) level of consumer service

2) costs of ordering and carrying inventory .

Symptoms of poor inventory management

1. Increase back order status

2.  high customer turnover rate

3. increase dollar investment in inventory with back order remaining

4. periodic lack of sufficient space

5. increase number of order being cancelled

6. inventory rising faster than sales .

Meaning of Material planning factors affecting material planning , techniques of material planning ..

Meaning/ nature of material planning - in any integrated material management environment planning forgetting the material is the starting point for whole material management function . Material planning sets the procurement process process and subsequent material functions rolling .

Factors affecting material planning -

Macro factors - these factors condition the rapid changes in global environment, such as global price trends, business cycles, import / export policies of the government etc ... Which can influence the material planning . The governments credit policy plays a critical role in bank following the guidelines mentioned therein, during the course of extending financial support to the business enterprise .

Micro factors - these factors can sign changes that take place within organization, such a plant capacity utilization, production plan, acceptable inventory holding, early times, rejection rate, working capital, delegation of power,communication, sensitivity etc that can affect the material planning .

Techniques of material planning -

1. Direct materials

High value 

(a) BOM  ( bill of materials )/ explosion chart

(b) MRP
 

Low value

 (a)  inventory control

2. Indirect material

(a) past consumption analysis technique

(b) exponential smoothing

(c) inventory control

Capacity requirement planning - capacity requirement planning is an accurate method used to determine the available production capacity of the company . Requirement planning first assess schedule of production that has been planned upon by the company .

Strategy of capacity requirement planning
 

1. Lead strategy
2. Lag strategy
3. Match strategy
4. Adjustment strategy

Meaning of Manpower planning , definition ,importance ,scope, objective , process of man power planning ..

Human resource planning and manpower planning is considered as same term for these notes

Manpower planning is an ongoing process of systematic planning to achieve optimum use of organisations most valuable asset its human resources .

It can also be expressed as a process in which the management measures the right number of people and the right kind at the right place at the right time doing the right things they are recruited for and to achieve the organizational goals .

Definition of manpower planning

Manpower planning is the process of determining manpower requirements and the means of meeting the requirements in order to carry the integrated plan of organization. By - Colman 

Human resource planning is the process for determining and sharing that organization will have an adequate number of qualified persons, available at proper times, performing job which meet the needs of enterprise and which provides satisfaction for individuals involved . By- Dale S. Beach 

 Objectives of manpower planning 

1. Ensure optimum use of human resource currently employed

2. Avoid imbalances in the distribution and allocation of human resources

3. assess forecast future is skill requirements of organization overall objective

4.  provide measure control to ensure your availability of necessary resources when required

5. control the aspect of human resources

6. formulate transfer and promotion policies

Scope of human resource planning or manpower planning

1. Listing of current human resources

2. Accessing the contest to which the current manpower is utilized to the advantage of the organization

3. Planning out for surplus human resources

4. Analyzing the requirement of manpower in future in the light of the expansion plans, retirement of personnel etc.

5. Making human resource forecast

6. Designing training program for different categories of human resource

Importance / need for human resource planning

1. Manpower planning helps in proper recruitment and selection so that right type of people are available for various positions of organization

2. Manpower planning also facilitates designing of training programs for employees to develop the required skills for them .

3. Manpower planning provides lead time for preparing personnel as it is time consuming process .

Process of manpower planning

1. Determination of manpower planning objectives

2. Current status of human resource inventory

3. HR Demand forecasting

4. Job requirements

5. employment plan

6. training and development program

Meaning , importance , objectives and scope of material management

Meaning / nature of material management - material management is the combination of all organisational functions responsible for the planning , collecting, stocking , manufacturing, control and all distribution activities of materials used in fulfillment of demand. 

Importance / functions of material management -

1. For purchasing good quality material at min cost ..

2. Exercising control over materials .

3. For maintaining the continuity of production and sales by regular supply of material .

4. To maintain good standard of quality .

5. To establish good relationship with supplier ..

6 . maintaining the efficiency of material department ..

Scope of material management ..

A. Purchasing of material

1. Good quality of materials

2 . Purchasing at proper time

3. purchasing at right place .

4. purchasing from right source of supply

B. Storage

1. Weight and quality are inspected

2. Classification as raw material, semi finished goods, finished goods etc .

3. proper storage and quality is maintain , proper safeguard

C. Inventory control

1. For maintaining this cycle of production and sale

2. Controlling stock out cost

D. Clearing and forwarding

1. Import and export is a lengthy and complicated procedure must be done expert forwarding agents.

2. Transport facility .

Objectives of material management

1. Low prices

2. low inventory rate

3. reduction of real cost

4. regular supply

5. Procurement of good quality
material

6. efficient handling of material

7. enhancement of firm,s goodwill

8. locating and developing future executives