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Vinod P Patel
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It is attainment of an organization's sales goals in aneffective & efficient manner through planning,staffing, training, leading & controlling
organizational resources. Revenue, sales, andsources of funds fuel organizations and themanagement of that process is the most importantfunction.
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The four phase-model ofManagement process is oneof many useful frameworks for planning the sales
process. It includes: Conception What will be offered? Planning How? Execution When and at what pace and scale? Control How will feedback and contingencies be
acted upon? Feedback How we have to integrate and reply
back activity to activity?
http://en.wikipedia.org/wiki/Management_processhttp://en.wikipedia.org/wiki/Management_process -
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Make-to-stock: Items produced inanticipation of orders
Make-to-order: Items produced to meet
specific customer orders Assemble to order: Final product
assembled from make-to-stock items
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RawM
aterial
Warehouse
Mixer
Mixer
Mixer
Mixer
Form Bake Pack
Finishe
dGoodsWa re
hous
e
Snack Bar Line
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Communications Marketing does not share data with production
(sales promotions and large, unexpected orders)
InventoryTrue inventory status not known No real-time data on actual sales
Accounting and Purchasing Difficulty forecasting raw material and labor costs
Adjusting accounts for actual vs. standard coststime consuming and done infrequently
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Work from sales forecast to createaggregate production plan
Break down aggregate plan into more
specific plans Use production plan to determine raw
material requirements
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SALESFORCASTING
SALES AND OPERATIONPLANNING
DEMAND MANAGEMENT
DETAILEDSDHEDULING MRP
PRODUCTION PURCHASING
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Production data does not get entered intoan ERP system directly Many methods of gathering shop floor data
are available ERP allows shop floor data to be collected
once for production and accounting purposes,and data is consistent in both areas
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The sales and operations plan is usefulbecause it focuses on a general course ofaction, consistent with the companysstrategic goals and objectives, without gettingbogged down in details.
Product family: A group of customers,services, or products that have similar demandrequirements and common process, labor, andmaterials requirements.
A company can aggregate its workforce in
various ways as well, depending on itsflexibility.
The company looks at time in the aggregate months, quarters, or seasonsrather than indays or hours.
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Six objectives usually are considered duringdevelopment of a plan:
1. Minimize Costs/Maximize Profits
2. Maximize Customer Service
3. Minimize Inventory Investment
4. Minimize Changes in Production Rates
5. Minimize Changes in Workforce Levels
6. Maximize Utilization of Plant and Equipment
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