5. PRINCIPLES OF PURCHASE
SEVEN R’s
RIGHT PRICE
RIGHT QUALITY
RIGHT QUANTITY
RIGHT TIME
RIGHT SOURCE
RIGHT PLACE
RIGHT MODE OF TRANSPORT
6. OBJECTIVES OF PURCHASE DEPARTMENT
LOWEST POSSIBLE COST
HIGH QUALITY
POLICIES & PROCEDURE
VENDOR RELATIONSHIP
PRODUCTION LINE
CONNECT WITH OUTER WORLD
7. ORGANISATION OF PURCHASE
ORGANISATION BY FUNCTION
ORGANISATION BY PRODUCT
ORGANISATION BY LOCATION
ORGANISATION BY PROCESS
8. Requirement from user department
Send ENQUIRY to the vendors
Get QUOTATION from vendors
PROCEDURE Study & compare the quotations with our estimated cost
IN Negotiate the quotation to fix the price
PURCHASE
Place the ORDER to the vendor
FUNCTION
Follow up with vendor
Get the material
Inspect the material
Stores credit the material
9. TYPES OF PURCHASE
TENDER SYSTEM
SUBCONTRACTING
CAPITAL EQUIPMENT
METHODOLOGY
PETTY CASH SYSTEM
10. RATE CONTRACT METHOD
BLANKET ORDER
STOCKLESS PURCHASES
ORDER ON TELEPHONE
ORDERING METHOD ELECTRONICALLY
IMPORTS
11. PRODUCTION & OPERATION MANAGEMENT
INTRODUCTION
PRODUCTION PROCESS
OPERATION PROCESS
OBJECTIVES
12. WHAT IS PRODUCTION MANAGEMENT?
Production Management is the process of
planning , organising , directing and
controlling the activities of the production
function .
Production function are the conversion of raw
materials into finished products.
13. PRODUCTION PROCESS
INPUT
OUTPUT
MATERIAL
PRODUCTION PRODUCTS
LABOUR
FUNCTION SERVICES
CAPITAL EQUIPMENT
ENERGY INFORMATION
INFORMATION
14. OBJECTIVES OF PRODUCTION MANAGEMENT
RIGHT QUALITY
RIGHT QUANTITY
RIGHT TIME
RIGHT MANUFACTURING COST
15. WHAT IS OPERATION MANAGEMENT?
Operation Management is the set of activities
that creates goods and services through the
transformation of inputs into outputs.
Operation Management is concerned with
planning , organizing , & controlling the
activities.
17. OPERATION PROCESS
Providing Raw Materials
Inspecting Raw Materials
Production Process
Finished Goods
Reinspecting Product
Warehouse
Delivery
Customer