Business and Its Pre-requisites

????????????????????? As we all know that today’s world is of continuous growth in terms of technology and innovation. This growth in turn has given speed to the increase of industries in various sectors of engineering. It may be heavy machinery industry, civil engineering industry, instrumentation industry, electronic industry or an industry based on Information technology. Every sector is growing day by day as per the new revolutionary changes taking place in them. But as the technological growth is of an alarming rate, there exists a need of managing the infrastructure and all other aspects that are responsible for the smooth running of an industry. This is nothing but Management of Business.

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??????????????????????? Today Management of Business is a subject of education in various institutes and universities. This ought to be acceptable because of the technological invasion, as discussed earlier. As the industries will grow, they will also need officials and managers to manage all the functioning of an industry. Decades before, Business Management was not a matter of so much importance as it is today. It may be due to the extent up to which there was an industrial expansion that time. Industries at that time meant only the Heavy Machinery Industries, Cement Industries, Sugar Industries and Textile Industries. But today, you name a field of work and you will have an industry related to it.

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??????????????????????? Industry and Business is correlated. Moreover, an industry is built to make business. When there is a need of certain product or service by the population of a particular area, there originates an industry of that scale. As it has been said that, “Necessity is the mother of Invention”, same is with industries. A need amongst people gives rise to the production of the specific product and its sale to the target people procures returns in the form of money. This money procured from the people, is again recycled to purchase or production of raw material required for industry. It is not necessary that an industry may do business by producing a finished product by some processes on raw goods. Some industries may include direct sales of finished product or service to the customers and use the monetary returns for the re-purchase of the products again for the sale to the customer. The difference in the purchase value and the sale value of the product or service basically includes the profitable returns. This may be more or less as per the scale of the industry. Scale of industries is the classification done on the grounds of the returns achieved from the sale of product or service or on the basis of the extent of production done. According to this, industries are classified as Large Scale industries and Small Scale industries. Of any type the industry may be, its works need to be managed day to day for its smooth functioning.

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Now, let us on what are the stepping stones, which look to be exceeded for the proper management of incoming industry.

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1. Target Customer: - Finding target customer is the first most basic point of Business setup. This involves a lot of study. When one has an idea of an industrial setup in his mind, he should think upon will the product or service that he is going to offer will be acceptable to the people? And it is also necessary to know that is the product or service to be provided to the customer, really essential to the customer? Is the customer in an utmost need of any product or a service? If the answer is yes, then you have won half the battle. This is because, once you know that there are people available to whom you are going to sell your product or services, you will have a focused view and your production will not go in vain. Yes, but profit matter, which is to be considered further, may vary more or less.

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1. Capital Requirements: - After the target customer is selected then one has to think upon the arithmetic of the funds needed to be raised for the erection of an industry. Capital is a second important aspect after the customer. Fund raising is essential for purchase of raw material, initial manpower setup, and industrial building setup, machinery purchase and also for other general requirements related to the former.

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1. Location of the industry: - Location of an industry plays a significant role in earning profit. If the location of an industry is in the vicinity of the target customer or far more in reach of the customer, then minimum transportation will be required for the sales of the product to the customer. If not, it will result in more expenditure in transportation itself and the owner may not earn a satisfactory profit. This will result in exhaustion of funds in mere transportation and other aspects of the industry may be foreseen.?Heavy transportation costs may also hamper the purchase of raw material. It is always advisable that an industry should be within easy reach of the vendor or supplier who provides raw goods to the industry. This will definitely save transportation costs and in turn show good calculations in the accounts. Location of an industry is also important when considering Power requirements. Electricity is the basic and crucial requirement of any industry. A lots of CNC’s, VMC’s, SPM’s, Lathes, Computers and computer related appliances run on electricity. If the supplier of the electricity or the main power distribution Unit is in the vicinity of the industry, then it may prove to be very helpful and easy to get power. This may speed up the procedures needed to set up a power regulating transformer as per the power requirements of the industry from an Electricity Board or other Electricity Supplying Agency if any and electricity will be available quite sooner.

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1. Forecasting: - Forecasting means the estimation of the future position, both financially and physically, of the industry, based on present status and calculations. It is true that “future can never be known”. This can be said rigidly because who knows what may happen accidentally in the future and in the period of crisis. But yes, building a view of future position is surely within our capacity. When the above points are considered, forecasting may help to know whether the industry can sustain in the market for a longer period. Industry set up without future forecasting is like a building without foundation. If forecasting is done then, we are quite sure about the sustainability of the business and we can walk safely on further path.

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1. Machinery: - Machinery in an industry is responsible for the production of the product which it is going to offer to the target customer. Unlike heavy Machinery industry, IT sector industries have Computers as their machines. The only difference is that the Computers, used as machinery, manipulate programs and gives rise to a software which is sold to the right customer to earn returns. A good example is the software developed through programming done with the help of various programming languages like C, C++, and Visual Basic etc. In today’s IT world, development of various web designing languages like Java, HTML, DHTML etc are also looked upon as good sellable software worldwide. Thus for development of all these software through programming, computers and various types of microprocessors and microcontrollers are required, which act as the ‘Machinery’ of an IT industry. In Heavy or Light Machinery Industry, CNC’s, VMC’s, HMC’s, SPM’s, Lathes and other machines are the basic machinery required for production. They are responsible for processing of raw material, procured from a vendor, through number of processes and give rise to the final product of concern.

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1. Labor: - Obviously, for running a number of machines in an industry, there will be need of manpower i.e. the labor. Labor are the supporting pillars of an industry. It is acceptable that Automation in today’s world has given the ease with which things can be handled in an industry. Robotic mechanisms developed now-a-days perform many tasks in an industry that were done by human labor a few decades ago. But these mechanisms have their own limitations and drawbacks. For example, the use of robotics may be used to transport a pump housing from one place to another within a factory, but the nuts and bolts that are required to fit the upper and lower housing together has to be done by human hands. There, use of more precise and smaller size robotics may prove to be mere a loss of money and time. Even if we have the robotics with us, we shouldn’t forget that the button that starts the robotic mechanism is to be pressed by a human being itself. The button cannot be automatically pressed. Thus, we may have lots of automation and robotic mechanisms in our industry, but for running them we have to use manpower. This manpower used, again may be of smaller or greater extent. But the organization of the manpower used in work, should be wisely done. Organization of manpower generally deals with putting a person into a right place of work as per his skills and knowledge. This will take out the maximum of the labor which will in turn result in good profitable accounts.?Most of the times, we may be helpless to appoint an unskilled labor in our industry due to certain circumstances. But this labor can be trained under the influence of presently working labor and then further they can be absorbed as skilled labors therein. This will decrease the risk of heavy loss due accidents caused by malfunctioning of the unskilled labor. As on the shop floor level, proper selection of manpower on management or official level is also of utmost importance. Workers or labor working on shop floor work under supervision of supervisors. Supervisors work on the orders of departmental managers and lastly all the departmental managers work on the orders of the general Manager. Thus this forms a chain of people in an organized form to run an industry at its best. All the constituents of this chain are of utmost concern. Even if the functioning of one of these constituents gets weakened, it shows its results in the accounts and profit of the industry.

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Forms of the prerequisites of the apartment, and you need to consider growth and progress in the field of management, there are other important aspects of any industry considering expansion.

The next article is based on human resource management. This allows employers and employees successful in their respective roles in any industry, and industry to address and understand well the organization is ......