Scope of MBA in Manufacturing industries

ByAariff

Ashokkumar

Rakendu

Manufacturing Industry

India’s manufacturing sector presently contributes about 16 per cent to its GDP.

India’s manufacturing sector could reach US$ 1 trillion by 2025.

Up to 90 million domestic jobs could be created by 2025.

Major investments

Tractors and Farm Equipment Ltd (TAFE) plans to invest Rs 250 crore.

Coca-cola plans to establish a facility in Nellore at 1200 crore.

Harley Davidson is expected to setup manufacturing plant in India.

Cadbury is expected to setup the largest plant in Asia to come up in Andhra.

Trend of Indian market

As China begins to lose its competitive advantage, manufacturing starts moving to India.

Havells, ITC, Godrej, Micromax, Bosch shifted their production from china to India.

Scope of HR management @ manufacturing

Compensation management:

-It’s typically the second largest business expense next to raw materials or purchased goods.

-To determine the right mix of base pay, variable pay and benefits.

Benefits evaluation and administration-

-Managing and controlling the increasing costs of employee benefits.

-How funding for the plans should be split between employer and employee contributions.

Scope of HR management @ manufacturing

Recruitment/talent acquisition:

Training and development: - mentoring, contracting for

off-the-shelf programs and study courses, hiring outside consultants, or leveraging train-the-trainer programs offered by suppliers.

Performance appraisal and management:

-To design and implement the formal employee appraisal programs.

Scope of HR management @ manufacturing

Employee and labor relations:

-HR leadership in employee and labor relations is especially important in manufacturing companies.

- To manage the union and its negotiations.

Scope of Finance management @ manufacturing

Capital budgeting:

-To decide which long term investments to make.

-To analyse the cash flow generated by the plant and its cost.

Financial decisions:

-How to pay for investments and expenses.

- How to spend money and how to borrow money.

Scope of Finance management @ manufacturing

Cash management:

- Collection, handling, and usage of cash.

- Assessing cash flow, and investments.

Financial control:

- Planning, performance, evaluation and

coordination of financial activities.

Scope of production management @ manufacturing

Process management:

-Measuring rate of output, Idle time, comparing

progress with the plan.

Inventory management:

-Recording stock levels, analysing demand, issuing production and procurement orders.

Scope of production management @ manufacturing

Inspection:

-Inspecting materials and parts, estimating

process capabilities, adjusting processes.

Cost management:

-Collecting cost data, computing costs in relation to estimates, adjusting selling price of product.

Scope of supply chain & logistics management @ manufacturing

Order taking and forecasting demand:

-Comprising the receipt of orders, ensuring the

manufacturing capability.

Purchasing management:

-Appointing suppliers, placing purchase orders, ensuring the quantity and quality of received materials.

Scope of supply chain & logistics management @ manufacturing

Despatch:

-Managing time and quantity of materials on delivery, continuous communication with distribution centres.