One technique for obtaining information from a VCU is personal informal with the entrepreneur. Though the information, thus, collected does not have any provides the most comprehensive and effective insight into the working of the structure. This technique is especially useful when the venture is facing operational problems.
These refer to the collection of information from on the spot visit of the plant sue. In ventures at the implementation stage, the purpose of plant visit is to review the the project, to see that adequate and well qualified personnel have been appointed for implementation, to ensure that the requisite sanctions are obtained for funds from other necessary and to check if the venture has initiated action for obtaining working capital from banks. For projects which are complete and on which production has started, the plant visit technique examines, inter alia, the following aspects.
– The starting pattern of the production, marketing, finance and personnel departments;
– Operational performance of the project;
– Management of accounts with special reference to overdue of receivables;
– Proper costing of products and efficient control of inventory;
– Position regarding statutory liabilities: and
– Labour relations.