Analyzing Production Department and Budgeting for Business Project

This business project solution focuses on the critical role of the production department in a competitive business environment, particularly its function in manufacturing goods and services while considering environmental impact and community needs. It highlights the importance of using eco-friendly resources like natural rubber and synthetic materials for shoe production to minimize carbon footprints. The project includes a detailed sales and administrative expense budget for the year ending December 31, 2019, breaking down variable and fixed expenses across four quarters. Variable expenses include sales commissions and transportation costs, while fixed expenses cover sales, administrative, marketing, insurance, and depreciation. The budget provides a comprehensive overview of the financial planning involved in managing a production department, supplemented by references to studies on quality control techniques and Six Sigma applications in shoe manufacturing.

Business Project

Production department
 It is one of the most important as well as crucial division of all
the firms that are operating in the market and also the
companies that are willing to operate in the industry which is
highly competitive and dynamic in nature.
 It is a sector which is related to the manufacturing of the goods
and services that a firm offers to the society. The first and the
foremost function as well as role of this department is to give
company the right things and that too in the right time so that
it can help the firm and can prove beneficial for it in the long
run.

Continue…
 Thus the resources that have to be taken in consideration would
be the one that are environment friendly and can help in reducing
the carbon footprints of the industry and also it should be in
context with the demand and desire of the people living in the
community.
 Moreover, the shoes will be made of natural rubber and synthetic
so that it could least harm the environment as their impact to the
climate is least as compared to other alternatives that are
prevailing in the market.

Production Budget
Sales and Administrative Expense Budget Amount Amount Amount Amount Amount
For the Year Ended December 31,2019
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Budgeted Sales in Units 1,000 1,000 1,500 2,500 6,000
Variable Expenses
Sales Commissions 2,000 2,000 3,000 5,000 12,000
Transportation 500 500 750 1,250 3,000
Total Variable Expenses $ 2,500 $ 2,500 $ 3,750 $ 6,250 $15,000
Fixed Expenses
Sales Salaries $ 5,000 $ 5,000 $ 5,000 $ 5,000 $20,000
Administrative Salaries 5,000 5,000 5,000 5,000 20,000
Marketing Expenses 5,000 5,000 5,000 5,000 20,000
Insurance Expenses 1,000 1,000 1,000 1,000 4,000
Depreciation Expenses 2,000 2,000 2,000 2,000 8,000
Total Fixed Expenses $18,000 $18,000 $18,000 $18,000 $72,000
Total Selling and Administrative expenses $20,500 $20,500 $21,750 $24,250 $87,000

References
 Addis, S., 2019. Study on the application of statistical quality control techniques
in shoe manufacturing for quality improvements. European Journal of
Engineering and Technology Vol, 7(6).
 Abu Jor, M., Alam, S. and Alam, M.J., 2018. Application of Six Sigma Concept
in Shoe Manufacturing for Quality Improvements: A Case Study. European
Journal of Advances in Engineering and Technology, 5(7), pp.450-458.