1 / 14

3.4 FINANCIAL MANAGEMENT pg 145

3.4 FINANCIAL MANAGEMENT pg 145. 1. Appropriate assets. 2.Assets = land, machinery, buildings; Management skills; electricity; communication facilities etc 3. Business needs funds to buy assets . These funds are known as CAPITAL. Functions of financial management.

kaden-gomez
Télécharger la présentation

3.4 FINANCIAL MANAGEMENT pg 145

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 3.4 FINANCIAL MANAGEMENT pg 145 • 1. Appropriate assets. • 2.Assets = land, machinery, buildings; • Management skills; electricity; communication facilities etc • 3. Business needs funds to buy assets . These funds are known as CAPITAL

  2. Functions of financial management. • 1. Financing = obtaining funds. • 2. Investment=applying these funds in assets. • 3. Accounting= administering and reporting

  3. Financial managers must :- • 1. Be familiar with financial institutions. 2. Consider tax implications. • 3. Incentives • 4. Government subsidies • 5. Legislation regarding above[ laws ] • 6. Personal finances [ small bsinesses] • 7. Risk management.

  4. Financial concepts- JOE • Some examples: • Return on capital • Debtors control • Overdraft • Interest rate • Personal assets • Cash flow • Budgets • Balance sheet etc.

  5. 3.5 PRODUCTION OR OPERATIONS MANAGEMENT- pg 147 • FUNCTIONS • 1. Layout=setting out the factory • 2. Processing= actually making the products • 3.Scheduling= timetabling services and production

  6. PRODUCTION PROCESS

  7. Questions that a producton manager must ask. • 1. How many to produce? • How many worker? • What raw materilas/ • What is the due date? • Which machines? • What is the most economical way to produce? • What changes are needed etc?

  8. Materials Management • Ordering; receiving; storing ;despatching;; flowing of material till efinal product is ready and stored= FLOW OF MATERIALS • Stock control-very important function. • Control – quality, quantity, cost and safety. • QUALITY CIRCLES= teams discuss quality

  9. 4.2 pg 142 PURCHASING MANAGEMENT • Acquisition[ buying] of all products and services[servicing of machines] required by a business. • FUNCTIONS • 1.Know the suppliers. • 2. Know the prices. • 3.Quantities and qualities of goods available. • 4. Stock levels[ inventory levels]

  10. RISK • Purchasing converts liquid asset[money] to goods which have a higher risk. • Certainity for uncertainity. • Manufacturing +- 60% on purchases • Retailers e.g pik n Pay +-80%

  11. COST IMPLICATIONS • Purchasing affect profitability because of costs incurred. • Purchase • Storage • insuranceInterest • Losses • Shrinkage [theft]

  12. RELATIONS • 1.Good with suppliers. • 2. Godd in calculating inventory levels and orders. • 3. Quality assessment; price analysis • scheduling

  13. KEY QUESTIONS • 1. What to buy? • 2. Where? • 3.When? • 4.How Much? • 5.What price?

  14. Production acronyms • JIT = just in time • PERT= programme evaluation and review technique • CAD Computer aided drawing

More Related