Engineering Economics And Management subject topic covered are; Financial Management Human Resources Management Plant Layout

1. Engineering Economics And
Management
TOPICS COVERED :
 Financial Management
 Human Resources Management
 Plant Layout
Prepared By:
Siddhi R. Vakharia

2. Contents
• Introduction
• What Finance is…
• What Finance management is …
• Definitions of Financial Management by Experts
• Scope of Financial Management
• Functions of Finance management
• Source of Finance
• Human Resources Management
• Objectives of manpower planning
• Sources of Recruitment
• Process of selection of Manpower
• Plant Layout
• Need of Plant Layout
• Factors affecting on Plant Layout
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3. Introduction
What Finance is,
• Finance may be defined as the art and science of
managing money.
• Finance is also referred as the provision of
money at the time when it is needed.
• The concept of finance includes capital, funds,
money, and amount.
• But each word is having unique meaning. For
every business managing the finance is very
essential and crucial.
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4. Introduction
What Finance Management is,
• Financial Management is the process of planning,
organizing, directing and controlling the financial
activities such as procurement and utilization of
funds of the enterprise.
• It applies general management principles to
financial resources of the enterprise.
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5. Many financial experts have defined
'FinancialManagement’follows:
Many financial experts have defined 'Financial Management follows:
• "It is concerned with the efficient use of an important economic
resource namely, capital funds“
~ Solomon
• “Financial Management deals with procurement of funds and their
effective utilization in the business.”
~Kuchal
• "Financial management "as an application of general managerial
principles to the area of financial decision-making.“
~Howard and Upton
• "Financial management is the operational activity of a business that is
responsible for obtaining and effectively utilizing the funds necessary
for efficient operations“
~Joshep and Massie
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6. Scope of FinancialManagement
• Financial management is very important aspect
for overall management of the organization. It
has direct imnpact on every business aspect and
hence it has found wide scope in the business.
• It effects functional-departments such as human
resources, marketing, procurement, design,
research, production and many more.
• Financial management covers wide area with
multidimensional approaches.
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7. The following are the importantscope of
financial management.
1. Financial Management and Accounting
2. Financial Management and Economics
3. Financial Management and Mathematics
4. Financial Management and Human Resource
5. Financial Management and Marketing
6. Financial Management and Production
Management
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8. Functions of Finance management
1. Estimation of Capital requirements
2. Determination of Capital composition
3. Selection of sources of funds
4. Investment of Funds
5. Management of Cash
6. Disposal of Surplus
7. Financial Countrols
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9. Source of Finance
1. Based on the Time Period of Repayment
• Long-term sources
• Equity Shares
• Preference Shares
• Debenture
• Long-term Loans
• Fixed Deposits
• Short-term sources
• Bank Credit
• Customer Advances
• Trade Credit
• Public Deposits
• Money Market Instruments
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10. Source of Finance
2. Based on Ownership
An ownership source of finance includes
• Retained earnings
• Surplus and Profits
• Earnings
• Different types of Share capital
Borrowed capital inc1ud,
• Public deposits,
• Bank loans
• Debenture
• Bonds .
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11. Source of Finance
3. Based on Sources of Generation
• Internal Source of Finance includes;
• Surplus
• Retained earnings
• Depreciation funds
• External sources of Finance may be include
• Public deposits
• Different types of Share capital
• Bank Loans
• Debenture
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12. HumanResourcesManagement
• One of the key factor for production of 4M’s is
Men.
• Men power is very vital even in the today’s world
of automation.
• Human resource management (HRM or HR) is
the strategic approach to the effective
management of people in an organization, so that
they help the business to gain a competitive
advantage. ... Human resources' overall purpose
is to ensure that the organization is able to
achieve success through people.
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13. Objectivesof manpowerplanning
1. Ensure optimum utilization of human resources currently
available in the Organization
2. Forecasting the future skills requirement of the Organization
3. Promoting employs
4. Retaining Employs
5. Effective managemnet of situation
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14. Processof Manpowerplanning
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15. Sourcesof Recruitment
Types :
1. Internal Sources
2.External Sources
Such as,
• Employment at Factory Level
• Labour Contractors
• Advertisement
• Employment Exchanges
• Educational Institutions
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16. Processof selectionof Manpower
1. Notification
2. Preliminary Interviews
3. Written Tests
4. Employment Interviews
5. Selection
6. Medical Examination
7. Appointment Letter
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17. Plant Layout
Defination
• Plant layout is the most effective physical arrangement, either
existing or in plans of industrial facilities i.e. arrangement of
machines, processing equipment and service departments to
achieve greatest co-ordination and efficiency of 4 M’s (Men,
Materials, Machines and Methods) in a plant.
• “Layout identically involves the allocation of space and the
arrangement of equipment in such a manner that overall operating
costs are minimized”
~James Lundy
• It is planning the right equipment, coupled with right place, to
permit the processing of a product unit in the most effective
manner, through the shortest possible distance and in the shortest
possible time.” The last definition seems to be most appropriate.
~Sansonneti and Malilick
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18. Need of Plant Layout
Many situations give rise to the problem of plant layout. Two
plants having similar operations may not have identical layout.
This may be due to size of the plant, nature of the process and
management’s calibre. The necessity of plant layout may be feel
and the problem may arise when, There are design changes in the
product.
• There is an expansion of the enterprise.
• There is proposed variation in the size of the departments.
• Some new product is to be added to the existing line.
• Some new department is to be added to enterprise and there is
reallocation of the existing department.
• A new plant is to be set up.
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19. Typesof layouts
• The types are:
1. Plant Layout
2. Process Layout
3. Product Layout
4. Combination Layout
5. Fixed Position Layout.
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20. Factors Affecting Plant Layout
Some of the major factors which affect plant layout
are:
1. Policies of management
2. Plant location
3. Nature of the product
4. Volume of production
5. Availability of floor space
6. Nature of manufacturing process and
7. Repairs and maintenance of equipment and
machines.
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21. Thank you…
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