Production As A Business Strategy
March 30th 2007 09:26
Are you looking for a competitive edge in your business? Start with production. As a start-up entrepreneur, you need the basics on how to produce. This article aims to give you a brief guidelines on how to start your production set-up.
Production means goods manufacturing or service providing while products are the goods and services coming out of operations. The most basic production inputs are raw materials; production methods; machine and equiptment ; and manpower.
Raw materials
Know what raw materials and components you need to produce before you start manufacturing.
You may either produce your own raw materials or buy them. For example, if you are producing wooden trays, you may either buy wood and cut the parts or buy pre-cut pieces. Be sure that you can get supplies of your raw materials and components in the quality and quantity you need.
Production method
The first step in determining the methods you will use is to decide on the level of technology. Are you going to use manual technology? Semi mechanized? The first generally involves the use of simple, manually operated machines. Full mechanization is where production is geared to make production fully automatic.
Once you have decided what technology to use, you can start determining the activities required to convert the inputs into outputs. These are called operations. The conversion usually requires a series of operations. For example, garment manufacturing would involve cutting, trimming, sewing, finishing, ironing and packing. You must put these activities in sequence. The sequence may be fixed (for example, cutting must always precede sewing) or flexible, in cases where the sequence is not of particular importance.
The next thing to do is to decide how each of these operations may best be done. For instance, cutting may be done with a pair of scissors or a cutting machine.
Equiptment
Equiptment and machines are dependent on the level of technology you have decided to use in your operations. Your choice of machines ranges from the semi-manual or pedal-type gadgets to the semi-automatic machines to the most high -tech, computerized equiptment. Small businessmen may also consider having their machines fabricated by local machine shops. Another option is to buy used equiptment. Of course, there are advantages and disadvantages to each option and you would do well to make a careful study before making a firm decision.
Manpower or Labor
Knowing the operations required to produce a product or service as well as knowing the equiptment needed to perform these operations would enable you to determine the number and level of skills of manpower you need to keep your factory going. remember that you have a choice between getting experienced workers and inexperienced ones whom you can train on the job.
Production means goods manufacturing or service providing while products are the goods and services coming out of operations. The most basic production inputs are raw materials; production methods; machine and equiptment ; and manpower.
Raw materials
Know what raw materials and components you need to produce before you start manufacturing.
You may either produce your own raw materials or buy them. For example, if you are producing wooden trays, you may either buy wood and cut the parts or buy pre-cut pieces. Be sure that you can get supplies of your raw materials and components in the quality and quantity you need.
Production method
The first step in determining the methods you will use is to decide on the level of technology. Are you going to use manual technology? Semi mechanized? The first generally involves the use of simple, manually operated machines. Full mechanization is where production is geared to make production fully automatic.
Once you have decided what technology to use, you can start determining the activities required to convert the inputs into outputs. These are called operations. The conversion usually requires a series of operations. For example, garment manufacturing would involve cutting, trimming, sewing, finishing, ironing and packing. You must put these activities in sequence. The sequence may be fixed (for example, cutting must always precede sewing) or flexible, in cases where the sequence is not of particular importance.
The next thing to do is to decide how each of these operations may best be done. For instance, cutting may be done with a pair of scissors or a cutting machine.
Equiptment
Equiptment and machines are dependent on the level of technology you have decided to use in your operations. Your choice of machines ranges from the semi-manual or pedal-type gadgets to the semi-automatic machines to the most high -tech, computerized equiptment. Small businessmen may also consider having their machines fabricated by local machine shops. Another option is to buy used equiptment. Of course, there are advantages and disadvantages to each option and you would do well to make a careful study before making a firm decision.
Manpower or Labor
Knowing the operations required to produce a product or service as well as knowing the equiptment needed to perform these operations would enable you to determine the number and level of skills of manpower you need to keep your factory going. remember that you have a choice between getting experienced workers and inexperienced ones whom you can train on the job.
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Comment by MaaUpma
Indus Guru
Vastu - The Indian Science of Dwelling
EGurumantra - Demystifying India
Look forward to a similarly detailed one on starting a service business
Maa Upma