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Production sysem and interaction with other sub systems

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Production sysem and interaction with other sub systems

  1. 1. Production System Showing Interactions with other Sub systems
  2. 2. Production System: <ul><li>System can be defined as a purposeful means for accomplishing an objective. </li></ul><ul><li>A system is always interacted with other system and influenced by other system or environment. </li></ul><ul><li>Production system is a sub system of organizational system. </li></ul><ul><li>To reach the organizational goal all the organizational sub systems are interrelated and interdependent with other sub system </li></ul>
  3. 3. Production and Operation system and Environment: POM System Finance Accounting HRM Purchasing R & D Engineering Marketing Legal Technical Political Demographic Scio Economic Competition
  4. 4. Internal Components Interacting with POM <ul><li>Finance </li></ul><ul><ul><li>Finance is the primary function of organization. </li></ul></ul><ul><ul><li>It is closely connected with POM </li></ul></ul><ul><ul><li>It provide adequate financial support to the POM. </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>Marketing is the core functional area of organization. </li></ul></ul><ul><ul><li>It discover and develop new products or services as per the demand and desired of customers, potential customers. </li></ul></ul><ul><ul><li>And it has responsibility to retain the customer and make them brand loyal. </li></ul></ul><ul><ul><li>Finance and Marketing are very closely related to POM </li></ul></ul>
  5. 5. Cond…. <ul><li>Engineering: Technically support to the production process. </li></ul><ul><li>R & D : It discover or innovate the new product and process. </li></ul><ul><li>Purchasing: Provide the qualitative materials in reliable time and quantity. </li></ul><ul><li>HRM : HRM provide the skillful and motivated manpower. </li></ul><ul><li>Accounting: Look over the over all record of the accounting data and provide past data for production planning and scheduling. </li></ul><ul><li>All the production function are interacted to each other to meet the organizational goal. </li></ul>
  6. 6. External components interacting with POM <ul><li>External components are uncontrolled and unplanned. </li></ul><ul><li>It creates both Opportunities and Threats </li></ul><ul><li>External Components are: </li></ul><ul><ul><li>Socio Economical: </li></ul></ul><ul><ul><li>Political: </li></ul></ul><ul><ul><li>Legal: </li></ul></ul><ul><ul><li>Technical: </li></ul></ul><ul><ul><li>Demographic: </li></ul></ul><ul><ul><li>Competition: </li></ul></ul>
  7. 7. Socio Economical: <ul><li>Social dimensions: </li></ul><ul><li>Global economic conditions. </li></ul><ul><li>WTO and its effects. </li></ul><ul><li>Total size the national budget. </li></ul><ul><li>Inflation rate </li></ul><ul><li>Bank rate </li></ul>
  8. 8. Political: <ul><li>Economy system </li></ul><ul><li>Leading parties with in the country and their economic ethics. </li></ul><ul><li>Upcoming assembly and potential leaders: </li></ul>
  9. 9. Legal: <ul><li>Existing acts related to the concerned business. </li></ul><ul><li>Company acts, Tax acts, and other acts. </li></ul><ul><li>Potential changes in the exiting acts and restrictions. </li></ul><ul><li>Import and export policies of the government. </li></ul>
  10. 10. Demographic: <ul><li>Size of the demography as per the organization’s target market. </li></ul><ul><li>Dimension of the demography. </li></ul><ul><li>Social and cultural ethics of the demography. </li></ul>
  11. 11. Competitors: <ul><li>SWOT analysis of the competitors. </li></ul><ul><li>Competitive products in terms of quality, price and other natures. </li></ul>
  12. 12. Technical: <ul><li>Pace of the technology. </li></ul><ul><li>Existing technology </li></ul><ul><li>Dimension of technology in global marketplace </li></ul><ul><li>R & D cost for new invention </li></ul><ul><li>Technology transfer </li></ul>
  13. 13. Demographic: <ul><li>Size of the demography as per the organization’s target market. </li></ul><ul><li>Dimension of the demography. </li></ul><ul><li>Social and cultural ethics of the demography. </li></ul>
  14. 14. <ul><li>As a organizational system, POM is closely connected with the both internal and external environment. </li></ul><ul><li>Environmental components are interacted with each other to achieve the desired organizational goal </li></ul><ul><li>The POM manager should be serious for satisfy the customers and stakeholders. </li></ul><ul><li>For this s/he can grab the opportunities and avoid the threats from the external as well as internal environment. </li></ul>
  15. 15. <ul><li>Any Confusions ???? </li></ul>

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