Entrep Q4

• 4 M's of Operations


  • Manpower
  • Machines
  • Materials
  • Methods
• Three important elements in the production system


  • Input
  • Production Process
  • Output
• Input

  • Manpower
  • Materials
  • Machine
  • Design
  • Instructions
• Production Process


  Transformation or conversion of materials into final product with aid of manpower and machine
• Output


  The final product from the production process distributed to customers
• 4 M's


  • Manpower
  • Machines
  • Materials
  • Methods
• Most serious issues in the whole production system


  • Inputs
  • Transformation process
• Manpower


  The human labor force involved in the manufacture of products
• Machine


  Manufacturing equipment used in the production of goods or delivery of services
• Materials


  The raw materials necessary in the production of a product
• Methods


  The process or way of transforming raw materials to finished products
• Heterogeneous product


  Has dissimilar characteristics, parts, and physical appearance
• Homogeneous product


  Has a physical appearance, taste, or chemical content that can hardly be distinguished from other products
• Product description


  Promotes and explains what a product is and why it's worth buying
• Prototype


  A duplication of a product as it will be produced, which may contain details like color, graphics, packaging and directions
• Benefits of Prototype


  • Change, update or refine the design
  • Describe & demonstrate your product accurately
  • Test the functionality of the idea
  • Influence the professionals to take your concept seriously
  • Discover what components of the prototype need attention
• How do supply chain management systems coordinate planning, production, and logistics with suppliers?


  1. Automate the flow of information among members of the supply chain so they can use it to make better decisions about when and how much to purchase, produce, or ship

  2. Includes management of storing raw materials, handling inventory, warehousing, and movement of finished product from processing to consumption
• 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
• Supply chain


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


  A result when sales exceed the cost to produce goods or render the services

  
• Various strategies entrepreneurs employ to increase revenue


  • Developing high-quality products or services that meet the needs of the target market
  • Implementing effective marketing and sales strategies to attract customers and drive sales
  • Diversifying product or service offerings to reach a broader customer base
  • Expanding into new markets or geographic regions
  • Building strong customer relationships to encourage repeat business and loyalty
  • Optimizing pricing strategies to maximize revenue while remaining competitive
  • Investing in innovation and research to stay ahead of competitors and adapt to changing market trends
• Cost


  Expenses or the amount of money used to produce or manufacture goods/merchandise as well as costs incurred in selling the goods/merchandise
• Types of costs exist in entrepreneurship


  • Fixed Costs
  • Variable Costs
  • Operating Costs
  • Startup Cost
  • Direct Costs
  • Indirect Costs
• Forecasting


  A tool used in planning that aims to support management or a business owner in its desire to adjust and cope with uncertainties of the future
• Forecasting depends on data from the past and present and to make meaningful estimates on revenues and costs

  
• Entrepreneurs use forecasting techniques to determine events that might affect the operation of the business such as sales expectations, costs incurred in the business as well as the profit that the business is earning
• Direct Costs


  Costs that are directly tied to the production process, such as raw materials, labor costs for production staff, and manufacturing overhead
• Indirect Costs


  Costs that are not directly tied to the production process but are necessary for business operations, such as administrative salaries, utilities, marketing expenses, and office supplies
• Forecasting


  • Depends on data from the past and present to make meaningful estimates on revenues and costs
  • Entrepreneurs use forecasting techniques to determine events that might affect the operation of the business such as sales expectations, costs incurred in the business as well as the profit that the business is earning

  
• Revenue


  A result when sales exceed the cost to produce goods or render the services, recognized when earned, whether paid in cash or charged to the account of the customer

  
• Sales


  Used especially when the nature of business is merchandising or retailing
• Service Income


  Used to record revenues earned by rendering services
• Factors to consider in forecasting revenues


  • The economic condition of the country
  • The competing businesses or competitors
  • Changes happening in the community
  • The internal aspect of the business

  
• Operating Expenses


  Costs incurred in the operation of the business, such as payment on Internet connection, Utilities expense (Electricity), Salaries and Wages, and Miscellaneous, that allow the business to continue to operate in a given period of time
• Cost of Goods Sold / Cost of Sales


  The amount of merchandise or goods sold by the business for a given period of time, computed by adding the beginning inventory to the Net Amount of Purchases to arrive with Cost of Goods available for sale from which the Merchandise Inventory, end is subtracted

  
• Merchandise Inventory, Beginning


  Goods and merchandise at the beginning of operation of business or accounting period
• Purchases


  The merchandise or goods purchased, such as the cost to buy each pair of Jeans or t-shirt from a supplier
• Merchandise Inventory, End


  Goods and merchandise left at the end of operation or accounting period
• Freight-in


  The amount paid to transport goods or merchandise purchased from the supplier to the buyer
• Ms. Nista pays at least 250.00 pesos for every 12 items delivered successfully by her supplier through a courier service, and her average order is 480 pieces every month