LESSON 1 entrepreneurship

• 4M's of Production and Business Model

  • Manpower
  • Machines
  • Materials
  • Methods
• innovation or creativity


  Distinction between an entrepreneur and an ordinary business person
• Innovation or creativity


  Can be easily practiced and highly noticeable in a manufacturing operation
• Innovation


  Can be introduced from the production phase up to packaging and delivery
• 3 Important Elements in Production System

  • Input
  • Transformation
  • Output
• Input4M's

  Manpower, Machines, Materials, Methods
• Manpower


  Human labor force involved in the manufacture of products,
• 4 Manpower criteria to be considered by the entrepreneur

  • Educational qualifications and experience
  • Status of employment
  • Number of workers required
  • Skills and expertise for the job
• 5 MUST CONSIDER for Materials

  • Cost
  • Availability
  • Waste
  • Quality
  • Credibility of Suppliers
• 7 HOW TO SELECT Equipment

  • Types of products to be used
  • 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
  • Skills required in running the equipment
• Method


  Way of transforming raw materials to finished product
• METHOD (IPEA)

  • Improve
  • Process
  • Equipment
  • Attribute
• STORC for MAN

  • Skill
  • Technology
  • Organization
  • Resources
  • Communications
• DIS for MACHINE

  • Design
  • Installation
  • Supplies
• SP for METHOD

  • Schedule
  • Procedure
• DQ for MATERIAL

  • Design
  • Quality
• BD for OTHER

  • Budget
  • Demands
• Production Process


  Transformation or conversion process, stage of production where the materials are transformed into the final product
• Output


  Represents final product
• Products


  Can be heterogeneous or homogeneous
• 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
• 6 GUIDELINES for Product Description

  • Know who your target market is
  • Focus on the product benefits
  • Tell the full story
  • Use natural language and tone
  • Use power words that sell
  • Use good images
• Prototype


  Duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions
• Customer


  Life blood of the business, without them all efforts will be wasted
• Supplier


  Business partners, without them your business will not live
• Supply Chain


  Network between a company and its suppliers to produce and distribute specific product, represents the steps it takes to get the product or service to the customer
• 5 Phases of Supply Chain Management

  • Planning
  • Sourcing
  • Manufacturing
  • Delivery
  • Return
• Value Chain


  Describes the full range of activities needed to create a product/service, process in which businesses receive raw materials, add value to them through production, manufacturing, and other processes to create a finished product, and then sell the finished product to consumers
• 5 Phases of Value Chain

  • Inbound Logistics
  • Operations
  • Outbound Logistics
  • Marketing and Sales
  • Sales
• 3 important elements in production system – IPO

  Input → production process → output
• Manpower


  most serious and main factor of production
• Machine


  manufacturing equipment used in production
• products


  physical output of the whole production process
• product description


  → promotes and explains what a product is and why it's worth buying.
• SUPPLY CHAIN MANAGEMENT (SCM)


  → Flow of goods and services and includes all processes