Basic Concepts

Difference between process management and traditional management

• Traditional management is vertical and process management is horizontal

• Both have different objectives

• Traditional management is not used anymore

• Both are equal

What is a process?

• It refers to what we do

• it refers to how we do something

• its a diagram

• its related to the business management

What is a procedure?

• It refers to what we do

• it refers to how we do something

• its a diagram

• its related to the business management

What is a productivity?

• Do a lot of work

• Get a lot of money

• Make more in the same amount of time and with less resources

• work more for less payment

It is the logistics function through which a company is provided with all the necessary material for its operation.

• Warehouse

• Sales

• Purchase

• Distribution

RESPONSIBILITIES OF THE PURCHASING MANAGEMENT

• Prevent price variations in the market

• Receive the purchased materials

• Must be in charge of planning and distributing the different tasks

• Maintain up-to-date merchandise receipt controls

What does production department do?

• It should guarantee the quality of the product

• It should forecast the levels of demand

• It ensures that the company has the best suppliers

• It is responsible for maintaining good relations between the company and its customers

It is related to distribution

• Warehouse

• Sales

• Purchase

• Logistics

It is a distribution function

• Set goals

• Take orders and supervise the purchasing process with various clients

• Improve customer service

• Logistics

What are INCOTERMS?

• Distances and fees for importing and exporting

• Manuals to do logistic related activities

• International Laws to clarify the export - import process

• Distribution rules