INDUSTRIAL MANAGEMENT AND COSTING

(IMC)
(7ME03)
OBJECTIVES INDUSTRIAL MANAGEMENT

 Basics Of Management And Interdisciplinary Team

 professional and ethical responsibilities

 communication skill

 finance and environmental management

 Manage job and business

 knowledge of management of different industries

ROLE OF INDUSTRIAL MANAGER
Designer

 Motivator

 Innovator

 Activist

 Analyst

 Negotiator

 Communicator

 trainer

 data collector

 Decision maker

 mediator
CONTENTS
UNIT I
 : Concept, Principles and Techniques of Management; Evolution

of management thoughts, functions of management, organization

 structure & relationship.

UNIT II

 : Marketing and Management : Marketing strategy, market

 research, buying, motives, types of market, new product

 development, Product life cycle, Sales Organization, advertising,

 methods of selling, consumer behavior.

 UNIT- III

 : a) Functions of personnel management

 Human resource
 planning, Recruitment, training and development
 Workers participation in management
 joint consultation, collective bargaining.

 b) Materials management

 classes of materials,
 scope of material control,
 scope and function of purchasing department,
 purchasing procedure, inventory control,
 ordering procedure, material identification, store function
SECTION B
UNIT IV
 Estimating

 Objectives, functions, principle factors of estimating and

estimating procedure,

 Estimation of weights & materials,

 Estimation of machining time,

 Estimation of fabrication cost, forging cost, foundry cost.

UNIT V

 a) Introduction to costing and costing Techniques

 Definitions, objectives, elements of costs, components of

 cost, job costing, simple process costing, normal and

 subnormal losses in process, waste, scrap. (8 Hours)

UNIT VI
 : a) Financing of business :- Basis of business finance, need of finance,
Kinds of capital, sources of fixed & working capital.

 b) Financial statements :-

 Profit and loss statement, balance sheet

 c) Depreciation Analysis :- Causes and significance, methods

of calculation of depreciation.
 TEXT BOOKS

1. Management-principles, processes and practical-

- Anil Bhat,Aryakumar; Oxford University .. (Unit 1)

2. Management Text and Cases – V S P Rao,,V Hari Krishna (Unit 1)

3. Management Accounting - Paresh Shah; Oxford University Press

4. Marketing Management – by Philips Kotler (Unit 2)

5. Essentials of Management ; H. Koontz, Harold; McGraw-Hill --- (Unit 1)

6. Purchasing and Materials Management ---P .Gopal Krishnan (Unit 3)

7. Materials management by----- Rajendra Mishra

8. Estimating and costing; TTTI Madras. ----- (Unit -4)

9. Estimating and costing By T R Banga

10. Cost Accounting; Jawahar Lal; Tata Mcgraw Hill Publishing ---( Unit -5 and 6)

11. Cost Accounting by B.K. Bhar ---( Unit -5 and 6)

INDUSTRY+MANAGEMENT+COSTING
Industry:
An economic activity concerned with the processing of raw materials and
manufacture of goods in factories.
TYPES OF INDUSTRIES

 Primary sector of industry (the raw materials industry)

 Secondary sector of industry

(manufacturing and construction)

 Tertiary sector of industry (the "service industry")

 Quaternary sector of industry

(intellectual services industry)

Industry 4.0??????????
Stages of Industrial Revolution
SERVICE INDUSTRY
ON THE BASIS OF RESOURSES
MANAGEMENT:
“The process of dealing with or controlling things or people”

“An Art of getting things done though the people”-----Mary Parker

Follett

This definition lacks

1. functions of manager

2.Ignores the scientific aspects

3.Ignore Human aspect and treatment like machine at shopfloor.

4.Internal and external environment

DEFINITION OF MANAGEMENT
 “Management is the art of getting things done through and
with people to achieve an organizational objectives”
,..Koonz H.

 “Management as a process consisting of planning,

organizing, staffing,directing and controlling, performed to
determine and accomplish the objective by the use of
people and resources.”
……George R. Terry
• Peter F. Drucker – “ Management is work and as
such it has its own skills, its own tools and its
own techniques”

• “Management is the art of “knowing what you want to

do” and then seeing that it is done in the best and
cheapest way.
……F.W.Taylor
MANAGEMENT ?????
 It is the administration of an organization.

 the activities of setting the strategy of an organization

 coordinating the efforts of its employees to accomplish its

objectives.

 effective use of resources,(Man ,Machine ,Material ,Money, Method (5M))

 Financial (Money)

 Natural (Material)

 Technological (Method)

 Human Resources. (Man)

 Machinery
Industrial Management

“The branch of engineering that deals with the creation and management of

systems that integrate people and materials and energy in productive ways”
GENERAL TYPES OF MANAGEMENT

 1. Strategic Management 7. Procurement Management

 2. Sales Management  8. Financial & Accounting

 3. Marketing Management Management

 4. Public Relations  9. Human Resources

 5. Operations Management Management

 6. Supply Chain Management  10. Information Technology

Management
 11. R&D Management
 12. Engineering Management
 13. Project Management
 14. Risk Management
 15. Change Management
 16. Innovation Management
 17. Design Management
 18. Facility Management
 19. Quality Management
 20.prventive maintenance management
COSTING:
 The proposed or estimated cost of producing or undertaking something.
CHARACTERISTICS OF MANAGEMENT

 Management is intangible

 management is goal- oriented

 management is universal

 management is social

 management is group activity

 management is system of authority

CONTINUE…

 management is activity

 management is dynamic

 management is science as well as art

 management is multidisciplinary
WHAT MANGEMENT IS????????

 An ART-skill of how the knowledge can be

apply at right time and right way

or

 SCIENCE-a person requires knowledge of

management principles and techniques.
MANGEMENT IS AN ART AND SCIENCE
Art
 Practical know how

 Creativity

 Concrete results (Qualitative)

 Express

 Guesses

 Feels

 Technical skills

 opinions

 Personalized nature or advances by practices

MGMT IS SCIENCE
 Empirically Derived

 Critically tested

 Social science

 Cause and effect relationship

 General principles
 Universality

 Applicability

 Definition and Prediction

By using statistical Tools Advance equipments and Technology

Science
•Empirically Derived
•


Empirical research
 •Critically tested
 •Cause and effect relationship
1.FORECASTING
FORECASTING
“It is the systematic approach to probe the future”
“Forecasting is the process of making predictions of the future based on past
and present data and most commonly by analysis of trends”

 It is the essence of planning

 It recognize the problems and opportunities

 It makes management thing ahead

 It help to reduce the risk

 It assist to reveal the weak parts of an organization

TECHNIQUES OF FORECASTING
2. PLANNING
Planning means
“planning is deciding in present ,what is to do in the future”.
……Philips Kotler
Steps:
 Setting objectives

 Establishing planning premises

 searching an alternative

 Evaluating an alternative

 selecting most appropriate alternatives

 Implementing the plans

 follow up action
2. PLANNING

layout planning: Inventory planning:

• Site •BOM
• Budget • suppliers
•Erection & Commissioning •PURCHASE
•Govt permission • vendors
• Local recourses •Outsource
•Operation Routine
•Material handling
• Material flow
•Strategic ,
•Make or Buy Decision
• Workplace, Inventory
,Warehouses
•Finance ,
•capital ,Asset
•Human resource,
•Labour
ORGANIZING
refers to the systematic arrangement of different aspects of
the organisation to achieve the planned objectives.

Job ---- Duties of peer and subordinate

Delegate ----Representation in-house and out door
System ----Network of employee and materials
Span ----No. of workers
Authority ----Right to act
Policy ----Guide future steps
3. ORGANIZING
4. SCHEDULE

“It is the process of arranging ,controlling and optimizing the workloads”

 Work sequence ----- series of operations

 Priorities ----- come first for early orders

 Time -----calendar for delivery commitment

 Programme ----- Task to do

 Coordinate ----Blend of activities (purchasing,CPM,Material handling )

 Overview -----Total Periphery schedule report

 (Issue date,progress 1,2,3, delivery date ,due date )

SCHEDULING SOFTWARE- Visual Planning
5. STAFFING
“It is the process of recruitment ,selection ,development ,training
and compensation of a personnel”
 Recruit => enlist the candidates

 Select=>choose the best candidate for an organization

 Employ => Place of working for specific job

 Orient => Familiarize with rules and regulation, policies

 Train => Discipline about working in professional environment

 Develop => specialization ,Maturation and expertise in job

5.STAFFING
“Staffing is an operation of recruiting the employees by evaluating their skills,
knowledge and then offering them specific job”

Orientation
OFF JOB TRAINING

ON JOB TRAINING
OFF JOB TRAINING
 when employees are taken away from their place of work to be trained.
 it often utilizes lectures, case studies, role playing, simulation, etc.
ON-THE-JOB TRAINING METHODS
 The On-the-Job Training is a technique wherein the workers, i.e., operative staff, is
given the direct instructions to perform their jobs on the actual work floor.

 On-the-Job training is based on the principle of “learning by doing”

6. COMMUNICATING

 Write =>Composition on of order ,report ,conversion

 Speak => instructions ,guidance ,orders ,tricks

 Listen => Hear the problems

 Read => Interpret conditions

 confer => Consult

 Gesture => Demonstration

7. DIRECTING
In Directing,

managers determine direction, state a clear vision for employees to

follow, and help employees understand the role they play in attaining

goals.

It deals with,

 Leadership

 Motivation

 Communication

 Supervision
8.CONTROLLING

“Setting standards, measuring actual performance and taking corrective action”

Standard =>Model the process or operation

Correct =>Modify or improvement in case of ambiguous conditions

Report => Account progress of activities

Audit =>Assure the planned activities

Reward =>Satisfaction of individual / group in industry

8.CONTROLLING
Takes corrective action to improve performance for achieving organizational goals

 Methods of performance appraisal

9. DECISION MAKING
All managerial functions viz., planning, organizing, staffing,
directing, coordinating and controlling are carried through decisions.
 New Recruitment
 Promotions
 Transfer
 Make or Buy Decision
 Purchasing
 Vendor selection
 Maintenance
 Financial Audit
SOFTWARE FOR MANAGEMENT

 SAP
 360@ Factors
 INTAUIT
 INFOR
 NOLA
LEVELS OF MANAGEMENT

 Top Management

 Middle Management

 Lower Management
MANAGERIAL SKILLS
TOP MANAGEMENT
 Functions
•Hiring human resource
1.Determines objectives and policies
•Vendor selection policy

•Supply chain policy

• product sales policy

• transportation

• internal and external rules

and regulation
 2.Design the basic operations

Basic
Lathe operation
operations
3.DESIGN FINANCIAL STRUCTURES OF ORGANIZATION.
4.Provides guidance and direction

 Meeting and Written communication

5. Lays down standards of performance

6.Maintain good public relation

Representation:
CEO, President ,Chairman, MD, Director etc.

Nature of Work:
They generally spend most of their time with peers
,outsiders and lesser extent ,subordinates.
MIDDLE MANAGEMENT
 Functions :

 Interprets and Explains the policies framed by the top management.

 Issues detailed instructions

 Preparing Organizational Set-up

 Appointing Employees

 Trains other managers

 Creating Cooperation

 Motivating Employees
Action Focus :

Act as connecting link between top and lower level management and
manages the activity of other managers.

Representation:

Functional Heads ex.

Marketing manager, personnel manager,

HR mgmt, Procurement Mgmt etc. and immediate subordinates.

Nature of Work:

This level of managers are less Physically active than lower managers .

Mostly Paperwork, Meetings

LOWER MANAGEMENT
 Plans day to day operations

 Assign job to workers

 Daily reporting the status of production

 Provides supervision and control over the work

 Arranges materials tools and equipment

 Represent the problems of workers

 maintains discipline and safety

 Action Focus :
 These mangers are in direct contact with employees.

 Representation:
 Section head
 supervisor first line managers
 Gang Boss
 Foremen etc.

Nature of Work:
Generally physically active, experience frequent interruption, often
shift back and forth between task .
spend most of their time with subordinates and peers for monitory
problems.
 ADMINISTRATOR VS MANAGER

Administrator

Manager
 ROLE OF MANAGER ???
A person responsible for controlling or administering an
organization or group of staff.
ROLE OF MANAGER
 A .Interpersonal role

1. FIGUREHEAD ROLE OF
MANAGER

Welcoming official visitors

Ceremonial function

Signing legal documents

 1. Figurehead Role of Manager

 Managers perform the duties of a official and symbolic in nature .

 Welcoming official visitors

 Signing legal documents

 Ceremonial function etc as head of the organization

 Strategic business unit or department.

 Duties of interpersonal roles include routine, involving little serious

communication.

 They are important for the smooth functioning of an organization or

department.
 2. LEADERSHIP ROLE OF
MANAGER

Leadership role.

Coordinates the work of others

Hiring, training, motivating and disciplining

employees
3. Liaison Role of Manager

 As the leader of the organization or unit, the manager has to

perform the functions of

 Motivation to training inside or outside by frequent liasioning

 Communication,

 Encouraging team spirit.

 Coordinate the activities of all his subordinates (liaison)

 B. Informational Role
1. MONITOR ROLE OF MANAGER

 The manager gets the information

-------- from his subordinates, peers and superiors.

 Monitoring of ----------------internal and external events .

 Resources -----surveys , suppliers ,trainees ,employee ,vendors.

 Estimation and forecasting of market and competitors planning.

2. DISSEMINATOR ROLE OF MANAGER
 Manager has to circulate the information , which collects from different sources.

( subordinates, peers and superiors )

 Distribute of information to his subordinates, (when they don’t have contact

with one another.)
3. SPOKESMAN ROLE OF MANAGER

 spokesperson role

 He must represent the organization to outsiders.

 Transmit information on organization’s

 Plan
 Policies
 Actions.
 Financial performance
 New product developments, quality maintenance
 Implementation of government Laws
 Standardization of Environmental norms
 C. Decisional Roles
1. Entrepreneurial Role of Manager
 The manager is a creator and innovator. And development of new products .

 He has to improve their organization’s Market value

 To improve his department, adapt to the changing environmental factors.

 The manager would like to have new ideas, initiates new projects and initiates
the developmental projects.

Tesla Electric Car

Sachet
Mini Car (Tata Nano)
2. DISTURBANCE HANDLER ROLE OF MANAGER
 He could take corrective action to response to previously unexpected
problems.

 Worker strike

 Declining sales

 Late order Delivery

 The manager should have enough time in handling disturbance

carefully, skillfully and effectively.
3. RESOURCE ALLOCATOR ROLE OF MANAGER
 A managers are responsible for allocating human, physical and
financial resources.
 Setting time schedule for operation completion.

 Approval of expenditure on a particular project

 allow the subordinates to express their opinions.

 Empowering of subordinates by delegating his authority and

power.
4. NEGOTIATOR ROLE OF MANAGER
 Bargaining and negotiations----
 Material Purchase, vendor selection

 Deals with outsiders and insiders.

 for improved commitment by worker

 Schemes of Govt. For Business Development and expansion

 Negotiations with workers and their unions

1.SPECIAL LECTURES:
 This is also called as classroom training.

 Experts or specialists Guidance

 It is for making employees well informed about their job roles

 Discussing their ambiguity arising out of the lectures.

 Ex.
 Supply chain management---- (Tata Group of Ind. Under CSIR)

 Lean Manufacturing----------- (Govt of India)

 Programming Languages-------- (TCS ,pune)

 Assembly workshop (Mahindra and Mahindra ,Banglore)

2. SIMULATION:
 To learn the operations of machines and equipment,Market.

 To understand installations virtually at the actual work floor.

EX., VMC Simulation

 Circuit Design Simulation

 Operation Simulation
  Process Simulation
 Market Simulation
 Assembly simulation

 The worker learns to operate tools and machinery.

seimens Technomatics process simulator

Papperstone simulator software results

3. VESTIBULE TRAINING:
 It is only for technical staff, office staff.

 To learn operations of tools and equipment assembled

 It is conducted to give the real feel to the trainees.

 They would be experiencing at the actual plant.

4. CASE STUDIES:
 Under this method,

 The trainees are given the situation or a problem in the form of a case
study

 They are required to solve it as per their learning from the training program.
5. ROLE PLAYING:
 It apply in case of customer services.

 solve it spontaneously without any guidance.

 It is also called as socio-drama

 Under this, the trainees assume roles and enact as per the given situations.

 Division head

 Market inspector

 Sales Executive

 Auditor
6. MANAGEMENT GAMES:
 Under this method, the trainees are divided into groups

 They are presented with,

 The simulated marketplace

 Market the situations

 Market Trends

 decision Puzzles

 They are required to apply their learning and solve the

problems accordingly.
1. COACHING:
 Under this method,
 An experienced staff gives instructions to the workers to
perform a job.

 It is one-to-one training designed for the workers

 Workers find answers to their queries through the instructions

 Demonstrations given by the superior for better understanding

2.MENTORING:
 This training is given to the managerial level people,
 A senior or the manager gives instructions to the immediate
subordinate.

 It is ask to carry out the day to day functioning.

 Routine of operations
 Bottleneck, if any
 Daily production report
 Material assessment report
 Breakdown ,if any

 It is again a one-to-one training method

 Departmental Head Monitoring
 Section head monitoring
3. JOB ROTATION:
 Shifted to the other related jobs,

 Intention to make all-round job performer.

 To escape the boredom

 To developed a rapport with other people in the

organization.
4. JOB INSTRUCTIONAL TRAINING:
 Trainer designs a step by step training program

 To overview of the job is explained to the trainee,

 The skills required for the job is demonstrated by the trainer.

 To capable for better skills or expertise

 finally the workers are asked to give their feedback

5. UNDERSTUDY:
 superior gives training to the subordinate

 under guidance of superior to perform a role

 To perform a superior’s job in case of ,

 vacancy

 superior’s retirement,

 Transfer,

 Promotion

 Death.
6. APPRENTICESHIP:
 For crafts, trade and technical fields

 It is long-term learning

 Gain the proficiency

 It is blend of classroom and on-the-job training.

 It is conducted under the close supervision.

 This can be extended up to 3 to 4 years

 E.g. The craftsmen job, mechanic, electrician, plumber, tool maker, etc. have
to undergo this type of training.
MANAGERS ?????
 Have excellent Vision

 Long term Thinking

 Set direction

 Good communicator and listener

 Understand operations

 Do not resist change

 Delegate well
 Act confidently

 accept responsibility and admit mistakes

 Motivating

 Curious , Devoted

 Honest

 Believable

 Influential