Mod. 6

• The 4 M's of Production

  • Manpower
  • Method
  • Machine
  • Materials
• Manpower


  Human labor force involved in the manufacture of products. Criteria include educational qualifications, experience, employment status, numbers, skills and expertise required.
• Materials


  Raw materials necessary in the production of a product. Criteria include cost, quality, availability, credibility of suppliers, and waste.
• Machine


  Manufacturing equipment used in the production of goods or delivery of services. Criteria include types of products, production system, cost, capacity, availability of spare parts, efficiency, and required skills.
• Method


  Production process of transforming raw materials to finished products. Criteria include product to produce, mode of production, manufacturing equipment, and required skills.
• The most serious issues in the whole production system are the inputs and the transformation process. Their quality determines the quality of the output.
• A business plan is a document that details a company's goals and how it intends to achieve them.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.
• Major parts of a business plan

  • Introduction
  • Executive Summary
  • Environmental Description
  • Business Description
  • Organizational Plan
  • Production Plan
  • Operational Plan
  • Marketing Plan
  • Financial Plan
  • Appendix
• Introduction


  Discusses what the business plan is all about
• Executive Summary


  The first part to be presented but the last to be made
• Management Section


  Shows how the business will be managed and the people needed to help in operations
• Marketing Section


  Shows the design of the product/service, pricing, where it will be sold, and how it will be introduced to the market
• Financial Section


  Shows the money needed for the business, how much will be taken in and how much will be paid out
• Production Section


  Shows the area, equipment and materials needed for the business
• Competitive Analysis


  The strategy where major competitors are identified and their products, sales and marketing strategies are researched
• Market


  The persons who will buy the product or services
• Organizational chart


  A diagram showing the relation of one official to another, or others of a company
• A business model describes the reasons of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts.
• The development of business model construction and variation is also called business model innovation and forms a part of business plan.
• Business model


  A company's plan for how it will make revenues and make a profit. It describes what products or services the business plans to manufacture and market, and how it plans to do so, as well as what expenses it will incur.
• Important phases in developing a business model

  • Identifying the specific audience
  • Establishing business process
  • Recording business resources
  • Developing strong value proposition
  • Determining key business partners
  • Creating a demand for today's generation strategy and be open for innovations
• After developing a business model, the next step is to proceed in developing a business plan.
• A business plan is an important tool to have an idea about the future of the business. It will be a guide when implementing and operating the business proposal.
• A business plan can be used to secure investment capital, influence people to work for the enterprise, secure credit from suppliers, and fascinate potential customers.
• Product Description


  The promotion that explains what a product is and why it's worth buying. The purpose is to provide customers with details around the features and benefits of the product.
• Prototyping


  A duplication of a product as it will be produced, which may contain details like color, graphics, packaging and directions. An important early step in the inventing process.
• Benefits


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


  Descriptive facts about the product or service.
• Pretesting


  Similar to a sample of the product or service given to the consumer free of cost in order that they may try the product before committing to a purchase.
• Supplier


  An entity that offers goods and services to another business. They are part of the supply chain and may even involve in drop shipping.
• 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. The main goal is to make or support a competitive benefit.
• Supply chain


  A structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer. The main objective is to manage components and procedures like storing raw materials, handling inventory, warehousing, and movement of finished product.