Entrep

• 4M's of Production

  Manpower, Method, Machine, Materials
• Entrepreneurial venture

  May be a sole proprietorship, partnership, or corporation engaged in merchandising, manufacturing, or service
• Entrepreneur


  • Defines the distinction between an entrepreneur and an ordinary business person through innovation or creativity
• An entrepreneur finds way to introduce innovation from the production process to the marketing stage, while an ordinary businessperson simply imitates business practices and procedures
• Innovation or creativity


  • Can be easily practiced and highly noticeable in a manufacturing operation since raw materials are transformed to finished goods through the production process
• Elements in a Production System

  1. Input - manpower, machine, materials, design, instruction

  2. Production Process - (Conversion Process) materials are transformed into the final product with the aid of manpower and machine

  3. Output - final product from the production process and distributed to the customers
• Manpower


  Human labor force involved in the manufacture of products, measured as the most serious and main factor of production
• Manpower criteria

  • Educational qualifications and experience, status of employment, number of workers required, skills and expertise required for the job
• Materials


  Raw materials necessary in the production of a product, mainly form part of the finished product
• Considerations for materials

  • Cost, quality, availability, credibility of suppliers and waste that the raw materials may produce
• Machine


  Manufacturing equipment used in the production of goods or delivery of services
• Considerations for machines

  • Types of products to be produced, production system to be adopted, cost of the equipment, capacity of the equipment, availability of spare parts in the local market, efficiency of the equipment and the skills required in running the equipment
• Method or production method


  The process or way of transforming raw materials to finished products
• Factors affecting method selection

  • Product to produce, mode of production, manufacturing equipment to use and required skills to do the work
• Product


  The physical output of the whole production process, should be valuable and beneficial to the consumers and should satisfy their basic needs and wants
• Types of products

  • Heterogeneous - dissimilar characteristics, parts, and physical appearance
  • Homogeneous - physical appearance, taste, or chemical content that can hardly be distinguished from that of the other products
• Product description


  Promotes and explains what a product is and why it's worth buying, to provide customers with details around the features and benefits of the product
• Effective product description


  • Know your target market, focus on the product benefits, tell the full story, use natural language and tone, use power words that sell, and use good images
• Prototype


  A duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions
• Product benefits

  The reasons why customers will decide to buy the products such as affordability, efficiency or ease of use
• Product features


  Descriptive facts about the product or service
• Producing an egg sandwich at home

  1. Manpower - mother

  2. Materials - egg, bread, etc.

  3. Machines/tools - cooking equipment

  4. Methods - cooking procedure
• Supplier


  An entity that is part of a supply chain of a business, which may offer the main part of the value contained within its products
• Choosing a supplier

  • Loyalty, values partnership, helps fulfill business objectives, mission and vision
• Supply chain management


  Coordinates planning, production, and logistics with suppliers, automates the flow of information among members of the supply chain
• Supply chain


  A structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer
• Benefits of supply chain management

  • Decreases purchasing cost, minimizes delays, improves inventory management, increases visibility and traceability of products
• Value chain


  A method or activities by which a company adds value to an item, with production, marketing, and the provision of after-sales service
• Benefits of value chain

  • Improves flow of products and materials, increases efficiency to deliver the most value for the least possible cost, creates a competitive advantage
• drop shipping


  suppliers ship goods directly to the customers of the buyer.
• Supply chain vs. value chain

  SC: extracts value, predatory, win-lose, transactional, often features monopolies, sometimes secretive

  VC: creates value, values-based, win-win, engaging, helps to rebalance power, transparent