Direct materials are items listed in a bill of materials, like raw materials and transportation costs. Indirect materials are consumed but not listed in the bill of materials, like tools, machinery, and equipment. Fixed expenses like depreciation are constant in the short-term, while variable expenses like direct labor fluctuate. However, in the long-term all expenses can be varied as equipment is replaced. Every company has a vision, mission, code of conduct, and core values to guide employees and stakeholders like customers, suppliers, shareholders, and society. A good company focuses on achieving economic, societal, and environmental profits to create sustainable value for all.

1. BY
PARISH PATHRABE
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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
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3. 
Classification
Procurement
Fixed Expenses
Salary Depreciation
Variable
Expenses
Direct
Materials
Direct Labour
(Pay as per
hours)
Transportation
Materials
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4. 
Y=mx+c
Where,
 Y=output
 mx=variable expenses
 c=fixed expenses
Equation
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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
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6. 
 Vision (long term goal)
 Mission (short term goal)
 Code of conduct
 Core value- it include transparancy policy,gift policy
Every company have
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7. 
 Employees
 Suppliers
 Customers
 Shareholders
 Society
Stackholder
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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
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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
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10. 
 All strategic model must meet the vision & mission
 Covering all touch points of customers expectation
 Network
 Sales
 Products
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Strategic objective & goal

11. 
 Ability to innovate
 Contemporary styling
 Technology
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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
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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
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Focus on

14. 
 Financial prospective
 Customers/ Market prospective
 HR prospective
 Business prospective
-Quality
-Vendor rating
-Capacity
-Product introduction
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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
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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
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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
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Technology

18. 
For any query ,
parishpathrabe14@gmail.com
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Thank You