ENTREP

• Operations plan


  It covers the integrated flow of goods and services from production to the consumer
• Manufacturing

  The process of producing goods, typically in large quantities, by using machinery, tools, labor, and various raw materials or components; transforming raw materials or semi-finished goods into finished products
• Manufacturer

  A company or entity that engages in the production of goods, responsible for designing, producing, and delivering goods to the market, and oversee the entire manufacturing process
• Four Main Processes of Business Operations


  • Production
  • Procurement
  • Distribution
  • Operation
• Production


  The process of manufacturing a product or producing a service to be offered to target customers
• Product

  Something offered to a market for its acquisition, use, or consumption to satisfy a certain want or need of customers. It could also be services, ideas, events, places, data, financial stocks, and entertainment
• Services

  A form of product that consists of human-related activities, benefits, and satisfactions that are offered for sale and do not result in the buyer's ownership of the commodity
• Procurement

  Sourcing the supplies and materials required for production or service delivery, including the proper handling and storage of the inventory goods

  
• Distribution


  Pertains to the physical transport or flow of materials and communications involved in reaching the target customers; use marking channels or intermediaries in selling
• Methods


  Clear, detailed, and well-organized procedures or systems involved in production, procurement, and distribution
• Machines


  The required equipment and physical facilities that you need to make your product or create your service. You must know how to use them properly for safety reasons and also to avoid spillage and wastage
• Materials


  All supplies and materials necessary to produce your product or perform your service
• Manpower


  The workforce needed to perform the operations' functions. Identify the persons who will do the required tasks and ensure they must have the right skills and attitudes
• Production should start and be anchored on market needs and preferences
• Types of Consumer Products


  • Convenience products
  • Shopping products
  • Specialty products
  • Unsought products
• Types of Industrial Products


  • Materials and parts (raw materials, manufactured materials and parts)
  • Capital items (installations, accessory equipment)
  • Supplies and services (operating supplies, repair and maintenance supplies, business services)
• Product Development


  Creating and testing a product/service, initially selling it to a limited customer group, and then fully launching it to a wider customer base. At the maturity stage, the product/service is well-established in the market
• Core Customer Value


  The main benefit of the product to the customer
• Actual Product


  Turning the benefit into an actual product that involves developing the product and service features, design, quality level, packaging, and brand
• Augmented Product


  Enhanced versions of core products that include additional features, services, or warranties to improve customer value and satisfaction
• Dimensions of Product Quality

  • Quality level (also called performance level)
  • Quality consistency (also called conformance quality)
• Product Features


  Competitive tool for differentiating the entrepreneur's product from the competitor's product
• Product Style and Design


  The appearance of a product, including style and design that adds usefulness
• Classifications of Services


  • Degree of Tangibility or Intangibility of the Service Processes
  • Direct Recipient of the Service Process
  • Place and Time of Service Delivery
  • Customization versus Standardization
  • Nature of Relationship with Customers
• Four Categories of Service Processes


  • People Processing
  • Mental Stimulus Processing
  • Possession Processing
  • Information processing
• Customer Expectations Service


  Adequate service, desired service, and zone of tolerance
• Explicit and Implicit Service Promises


  Factors that influence customer expectations of service
• Degree of Standardization


  • Customers receive the same service features and its underlying processes
  • Depends on whether the service involves a formal relationship such that each customer is known to the organization and all transactions are individually recorded and attributed
• Customization versus Standardization


  Nature of Relationship with Customers
• Four Categories of Service Processes

  • People Processing - tangible actions to people's bodies
  • Mental Stimulus Processing - interaction with people's minds, which can shape their attitudes and influence behavior
  • Possession Processing - tangible actions to goods and other physical possessions of the customer
  • Information processing - high dependency on the effective collection and processing of information involves machines and human
• Customer Expectations Service


  ZONE OF TOLERANCE - ADEQUATE SERVICE - DESIRED SERVICE
• Factors influencing Customer Expectations Service


  • Explicit and Implicit Service Promises
  • Word-of-mouth
  • Past Experience
  • Personal Needs
  • Beliefs of What is Possible
  • Perceived Service Alterations
  • Situational Factors
  • Predicted Service
• Preparing the Procurement


  The supplies and materials that you procure make up the inventory, or the items needed for production
• Types of Suppliers


  • Size of suppliers - volume of goods that suppliers have on stock available for selling
  • Location - geographic area where the suppliers are found
  • Variety of products - assortment of products that suppliers can offer
  • Terms of purchase - agreements that you can enter into with the suppliers such as credit, cash on delivery, and consignment
  • Delivery method - method of delivery of the supplies may be either delivery to the production/ service site or pick up
• Value Chain


  The full range of primary activities-including design, production, marketing, and distribution-in order to identify specific activities that add value to the product or service
• Value Chain Activities


  • Inbound Logistics - pertaining to procurement activities
  • Operations - pertaining to creating the product
  • Outbound Logistics - pertaining to distribution activities
  • Marketing and Sales - pertaining to customer-related activities
  • Service - pertaining to add-on services that customers look for
• Learning Outcomes - Developing Organizational/Management Plan


  • Recruit qualified people for one's business enterprise
  • Develop the business model
• Sole Proprietorship


  Owned and operated by a single individual, simplest form of business ownership, the owner is personally liable for all debts and obligations of the business
• Partnership


  Formed by two or more individuals who agree to share profits, losses, and responsibilities
• Corporation


  Legally separate from its owners, known as shareholders, formed by individuals or groups who invest money in the company by purchasing shares of stock, have limited liability, managed by a board of directors