P2 p direct materials strategy
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P2 p direct materials strategy
- 2. Direct materials is the materials which describe in BOM (Bill of materials) For example RM, transportation cost & salary Indirect materials is the materials which we consume and take help of them but not describe in BOM For example tools,machinary & equipment Meaning 2
- 3. Classification Procurement Fixed Expenses Salary Depreciation Variable Expenses Direct Materials Direct Labour (Pay as per hours) Transportation Materials 3
- 4. Y=mx+c Where, Y=output mx=variable expenses c=fixed expenses Equation 4
- 5. In short period(time zone) , fixed expenses are fixed & variable expenses are variable. But in long period (time zone), all (Fixed +Variable) expenses are variable . So you can control your expense in long run process 5
- 6. Vision (long term goal) Mission (short term goal) Code of conduct Core value- it include transparancy policy,gift policy Every company have 6
- 7. Employees Suppliers Customers Shareholders Society Stackholder 7
- 8. Every good company focus or attack on triple bottom profit line Economic profit Societal profit Environment profit In short, we can say that People(Society), Planet (Environment) & Profit(Economic) Bottom line if all profits are in green,then we consider as good business 8
- 9. Vision Quality & reliabilty Product appeal & styling Customers satisfaction Lowest ownership cost Relevant cost with effective technology More content at a price point Mission Love the product Strategy 9
- 10. All strategic model must meet the vision & mission Covering all touch points of customers expectation Network Sales Products 10 Strategic objective & goal
- 11. Ability to innovate Contemporary styling Technology 11 Core competencies(Value)
- 12. Market share Top players Competitors Product & their price Brand image/Customer satifaction/Service Also focus on current market position, Young players Sales % of other including domestic also 12 Know about the market
- 13. Segment gap Expand production Improve penetration through network Satisfaction score New market which increase your market share Employee engagement (Belongingness) NOTE: Organic growth: By build new plant or new warehouse Inorganic growth: By merging or acquire 13 Focus on
- 14. Financial prospective Customers/ Market prospective HR prospective Business prospective -Quality -Vendor rating -Capacity -Product introduction 14 Also focus on All are internally connected
- 15. Acquisition of cutting edge technology through JV, technology agreement, merger acquisition Vendor selection based on strong technology & management Limited vendor is good for the company Vendor practice & their benchmark Develop healthy vendor base to support 15 Sourcing strategy
- 16. Purchase in bucket manner Complexity is high ,suppliers are more Important terms: CKD - Completely Knock Down SKD – Semi-complete Knock Down SKU – Stock Keeping Unit 16 Global purchasing strategy
- 17. Purchasing from the productcomponent with best quantity Develop advance technology is competative advantage Low cost of production Economic scale and update technology 17 Technology
- 18. For any query , parishpathrabe14@gmail.com 18 Thank You