Production and pricing aspects (report ko)
-
Upload
rexie-frias -
Category
Education
-
view
36 -
download
0
Transcript of Production and pricing aspects (report ko)
PRODUCTION and Pricing AspectsReported by:
REXIE FRIAS
THE CONCEPT OF
PRODUCTIONProduction in contemporary
times really refers to creation of products or services and conversion of transformation of resources into a finished physical product (goods) or services needed by the market or consumers.
For entrepreneur, mind-setting is important in going into a self-owned business. This mind-setting stage means that, among others, one has to realize weather the entrepreneur has to take the route via hardware production as in the context of what technical production/manufacturing where output is physical products or goods.
The entrepreneur may have to take the route via creation services.
Production or creating services is a
very challenging option for
entrepreneur as this is where an innovative
and creative mind is really tested to be
limits.
WHAT PRODUCT TO PRODUCE
For market-oriented entrepreneur, the question of what to
produce or manufacture boils
down to the question of what to sell.
What product to produce of what service to render to meet the needs of the market is by itself the bias of the entrepreneur? Even before ascertaining in writing or doing the business plan (if needed this has to be done)
A prospective entrepreneur really has in
mind the kind of product or
service to be handled.
IN-House Production
This option is a bit expensive route for the
entrepreneur simply because the need to budget funds for the procurement of capital items and other infrastructure need for a
production or manufacturing-based
business concern.
Each production processes demands a
detailed study both from technical, economic and financial aspects as well.
In the business plan, specific study and analysis of every minor detailed of the production processes
have to be carefully made as this is where cost
minimization aspects can be addressed.
By using the appropriate production technology, the
entrepreneur should be able to hire the appropriate
personnel well qualified and motivated to operate the machines and deliver the right quality of product.
Source of skill Production
0Books0Literatures0Documents of producing or manufacture
Equipment’s and machinery suppliers
for any production generally provide
manuals.
`
NEW PRODUCT
COMPANY
EQUIPMENTSMACHINERY
MONEYRAW MATERIALSMANPOWER
WORKING IN PROGRESS …
LAND
Full-sub Contracting
The entrepreneur avoids the cost of burden of
buying machineries and equipment as this is the
concern of sub-contractor.
All materials and supplies are provided
for by the main producer/exporter to
ensure product quality.
Sub-contractors are subject to strict quality control
measures with subcontractors threatened
with penalties and sanctions when turning in
underquality finished products.
DELIVERY
COMPANY
NEW PRODUCT
CONTRACTOR
RAW MATERIALS