2. GROUP MEMBERS
• Ahsan Iqbal (Agen19112001)
• M. Ammar Amjad (Agen19112007)
• Bilal Haneef (Agen19112010)
3. OUTLINE OF PRESENTATION
• Introduction
• Planning production
• Managing Finance
• Inventory Management
• Managing People
• Managing Equipment
• Managing Quality
4. HORTICULTURAL ENTERPRISE
• Enterprise is a firm, a business or company.
Horticultural Enterprise includes the
• Production
• processing
• shipping
• Marketing
of horticultural(fruits, Vegetables and ornamental) commodities.
5. INTRODUCTION
• Many people start agribusiness at a small scale as there is no sufficient
money to invest and is labor-intensive.
• Some of these small scale businesses can develop into large scale but
can face a series of issues as it will be in direct competition with large
scale businesses.
• Moving a small scale business involves following things that are needed
to done carefully
Staff Management skills
Control over business finance (in terms of production and distribution
cost)
Business management and financial planning skills
Production-planning skills
6. PLANNING
It involves 2 stages
• Pre-project Planning
• Day-to-Day planning
Both are very important because
• Poor planning leads to production stoppages.
• Production planning is thinking ahead to make sure that everything is in
place to produce the required amount of product in the time available.
7. PRE-PROJECT PLANNING
• Before starting a new business it is very important to conduct Feasibility
study.
• Feasibility study sets down all the stages that are needed to get
production started, and also helps to convince potential investors that
the business is feasible.
• Information has be to gathered about production cost and marketing
cost keeping in-view the competition with similar products in market.
8. CONT………
When entrepreneurs have decided which products to produce and have
completed their market research, pre-project planning is used to decide
on:
• equipment needed to achieve the planned production level
• number of staff required and their different jobs
• level of stock to be held such as raw materials, ingredients, work-in-
progress, equipment spares, packaging and finished products.
9. MANAGING FINANCE
It has 2 types: Investment finance and routine financial management.
Investment Finance- The costs incurred before production begins.
It includes
• preparation of a business plan.
• travel to obtain licenses from authorities and the cost of licenses.
• fees to architects, accountants, solicitors etc.
• building work, supply of equipment and initial packaging and raw materials.
• testing of products.
• recruitment and training of staff.
10. CONT…….
• Routine financial management- to meet the costs that arise during operation
of the processing unit, and this is met by income from sales of products.
It includes
• salaries
• rent
• utilities (service charges for telephone, water and electricity)
• interest paid on loans
• some types of taxes
• depreciation of equipment
11. CONT……..
Financial management causes some of the most common and serious
problems for many small-scale processors. Causes of failure include:
• over-spending;
• treating profits as personal income;
• incorrect costing of inputs and/or pricing of products;
• poor record keeping;
• too many debts or creditors
12. INVENTORY MANAGEMENT
• It refers to process of ordering, storing, using and selling company’s
inventory.
It includes
• Management of raw materials
• Components and finished products
• ingredients
• packaging materials
• Spare parts for machinery
13. MANAGING PEOPLE
• Of all the different resources needed to operate a small processing
enterprise, the staff are the most important because they have unlimited
potential if they are properly trained, managed and motivated.
It involves
• Recruitment
• Training and staff motivation
• Staff management
• Health and Safety
• Staff Record
14. MANAGING EQUIPMENT
• Poorly maintained machines are a potential hazard to operators,
produce substandard products and can contaminate products with
metal fragments. Proper maintenance ensures that machinery operates
correctly and safely and prolongs its life, thus reducing capital and
operating expenditure. A common reason for lost production is delays
caused by equipment breakdowns and waiting for spare parts. This
causes a processing unit to operate at below planned capacity and
reduces its profitability.
• Maintenance and repair records should be kept with strict observation
on daily, weekly or monthly basis.
15. MANAGING QUALITY
• Quality Assurance (QA) is an essential component of production
planning, and is used to predict and control the quality of a product
before, during and after processing. It is necessary for processors to
standardize the quality of their products and also ensure that they are
safe to eat. This is because consumers expect foods to be nutritious and
produced hygienically.
• The requirements for different types of food processing vary according
to the nature of the product and the process.
16. CONT……
Other components of a QA plan include:
• cleaning schedules for buildings and equipment to prevent
contamination
• cleaning procedures to remove wastes from processing rooms as they
arise
• planned maintenance of equipment to prevent parts falling off into
foods
• training operators in correct personal hygiene and food handling
techniques
