Introduction to raw materials in production

An easy introduction to production and the factors of production

1. RAW MATERIALS FOR PRODUCTION

2. Meaning of Raw Materials Raw materials are basic items or materials from which products are made through a transformation process.

3. The raw materials can be natural or artificial. Examples of natural raw materials include cotton, timber and clay . While Artificial raw materials include plastics , nylon and polyester .

4. Identifying raw materials used Products Raw materials Cloth Cotton Furniture Timber Bricks Clay Bread Wheat flour, Sugar and Yeast House Bricks, Sand, Water and Iron sheets

5. Factors considered when selecting raw materials The cost of raw materials. The quality of raw materials. The terms and conditions of payment for the raw materials. Rules and regulations. Nature of materials. Proximity to Markets. Availability of raw materials. Durability of raw materials. Quantity of raw materials.

6. The cost of raw materials. Initial Material Cost: This is a straightforward cost factor, but it's important to compare prices from different suppliers.   Transportation Costs: The cost of transporting the raw material to the manufacturing site can significantly impact the overall cost. 

7. Processing Costs: The ease of processing the material into the desired shape and form can also affect the overall cost.  Long-Term Costs: Consider the cost of maintenance, repair, or replacement of the material over its lifespan. 

8. The quality of raw materials Good quality raw materials guarantees good quality products as compared to poor quality raw materials which leads to poor quality products affecting sales negatively.

9. The terms and conditions of payment for the raw materials The terms of payment for the raw materials should be favourable. For instance, raw materials supplied on credit and discounts ensures that they are selected .( Consider the payment terms offered by the supplier)

10. Rules and regulations Some raw materials are subject to rules and regulations governing everything from place of origin to applicability for manufacturing of certain items (protected by law).

11. Nature of materials Strength and Durability : The material must be strong enough to withstand the intended use and last for a reasonable period . 

12. Quantity of raw materials The quantity of raw materials required in production is important to consider in order to identify the suppliers who are reliable to supply the required quantities of raw materials in the shortest time possible when needed.

13. Availability Local Availability : Sourcing materials locally can reduce transportation costs and lead times.  Consistent Supply : Ensuring a reliable and consistent supply of the raw material is crucial for maintaining production schedules. 

14. Location and Climate Geographic Location : Consider factors like climate and local resources when selecting materials.  Climate conditions : The climate can affect the performance and suitability of certain materials

15. Proximity to Markets Distribution costs : Being close to the market can reduce distribution costs. Reduced lead times : Shorter distances can lead to faster delivery times.

16. Supplier Reliability Financial stability : Ensure the supplier has a reliable financial standing. Reputation : Check the supplier's reputation for quality and service. Payment terms :. Consider the payment terms offered by the supplier

17. Using raw materials in production

18. How to use raw materials to make a cake Required ingredients/raw materials. One kilogram of sugar. Half a kilogram of blue band. Flavours (Lemon, Vanilla, Strawberry). 6 eggs. A litre of milk.

19. Production process Mix sugar and blue band well, then add in eggs, milk and desired flavours. When all are mixed well, put them in reasonable sized tins to bake in an oven.

20. Activity Select a product of your choice, list the raw materials required to produce the selected product, the factors you considered when selecting the raw materials for the selected product and in writing describe how to use the raw materials to produce the selected product. Collect all the necessary raw materials to produce that product and make it, when selecting raw materials, choose those ones which will help to protect the environment (products from recycled materials may be better). Bring your product to class.

21. Note: Each learner should present a unique product, learners with the same product will not be marked equally.

22. MACHINERY, EQUIPMENT AND TOOLS USED IN PRODUCTION

23. Introduction To attain and maintain the quality of products and control capacity of production, there is need for an entrepreneur to select machinery, equipment and tools which can operate efficiently and effectively.

24. Machinery Refers to a group of machines in general that gets work done.

25. Machine A machine is a device in which each part works together with another to perform some function. For example, a sewing machine.

26. Equipment When different machines are put together, they form what we refer to as equipment .

27. Tools Tools are simple instruments or apparatus which can be held in the hands for doing some work. For example, knives, axe, hoes, hammer or spade, pangas.

28. Factors considered when selecting machinery, equipment and tools. The machinery, equipment and tools to be used in production is mainly determined by the nature of the product to be produced. However, there are other factors that are considered in selecting them.

29. Activity Choose a product that you intend to produce. Identify and list down all the machinery, tools and equipment you can use to produce the selected product. Explain the factors you would consider when selecting machinery, equipment and tools to use in production. Describe how you would use the identified machines, equipment and tools during the production process.

30. Expected responses The product to be produced. The cost of machinery and equipment should be low and affordable. Ease in maintenance and repair. The skilled labour to operate the machine should be available, ease of use. The Warranties and guarantee period should be long. Flexibility for adjustment in its mode and size. The terms and conditions of payments offered by the supplier. Should comply with the government’s policy and regulations.

31. Quality : The quality of the equipment is crucial. High-quality equipment may cost more upfront, but it can be more reliable and last longer. Durability . When investing in hand tools, the quality and durability of the tool are the key priorities. A machine is used by different people under varying conditions. Unless, it is strong and durable, it would be a poor investment.

32. Size is another incredibly important factor to consider, especially if you're working in a tight space and can't manoeuvre around freely. As you know proper fit and size when selecting hand tools, is crucial to ensure optimal performance and user comfort. Size/ Portability . If the equipment selected is of larger size, that will remain idle for most of the time or shall work on part loads, which means production cost will be more.

33. Space . One of the most important things to consider when purchasing office equipment is how much space you have. Make sure to pick appliances that fit your workplace. Consider the size of the equipment and the space available in the office. Large equipment might not be feasible in a small office. How much room do you have to house the equipment?

34. Availability & Accessibility . Tradespeople need to be able to easily access the tools they need, whether that's through online ordering, local hardware. Availability of available spare parts and expert repairmen is effective. One of the most important factors in choosing equipment is its supply and maintenance.

35. Budget Considerations : While quality and reliability are essential, it's also important to consider your budget. Here are some points to keep in mind .. Think about your budget. When it comes to budget, you need to set realistic expectations. You can't expect to buy the cheapest tool and have it last as long ... The lab equipment you choose will be heavily influenced by your budget. Before you begin looking for the equipment, be explicit about the price range you want.

36. Understand the Functionality . When looking for office equipment, it is important to first understand the functionality of each appliance. Exactly what do you need the equipment to do, and what might you want it to do in the future?

37. Integration Integration with Other Tools You Use. Your business tools need to be connected in some way. That allows you to minimize the repetition of certain tasks.

38. Reputation of the Supplier : Few people have the expertise to judge the mechanical qualities of a machine so one must depend upon the integrity of the supplier. Reviews and recommendations . Safety Features : Safety should always be a top priority when choosing hand tools. Safety is another crucial concern as it provides you security against injury or harm.

39. Speed The cutting speed is influenced by several factors, including the type of material being machined, the desired surface finish, and the machining process.

40. Technology Compatibility Tradespeople are often looking for tools that incorporate the latest technology and innovations to help them work more efficiently and effectively. The equipment should be compatible with the existing technology in the office. For example, a printer should be compatible with the computers.

41. Suitability for Job Conditions : The Equipment must meet the requirement of the work, climate and working conditions.

42. 10 Factors To Consider When Selecting Kitchen Equipment Selecting equipment for a commercial kitchen isn't an easy task. Although it's super fun and exciting, as you watch your business come to life through the different appliances and utensils you choose, it also requires a fair bit of planning and preparation.

43. Kitchen space One of the biggest factors is kitchen space. You can lease or buy the biggest, best equipment, but there'll be little point if your staff have no room to move in. Choose wisely when it comes to space!

44. Buying or leasing? Buying and leasing kitchen equipment both come with their own perks. Buying saves you more money in the long run, while leasing comes with a lower upfront cost and other benefits too.

45. Appliance selection Select only what you truly need when you first establish your kitchen. From there, you can expand and adjust as you see fit and as your business grows.

46. Brand and quality Some brands of appliances and utensils are known for being better quality than others. Though cheap brands may cost less, they may be less reliable, which brings us to maintenance!

47. Maintenance and repairs Maintenance and repairs are an expected part of running a commercial kitchen. Take these into account when planning your budget.

48. Layout The layout of your kitchen is one of the most important factors. Make sure you've planned your kitchen ergonomically before you go and select your appliances.

49. Energy efficiency Energy costs are a big part of running a kitchen. Select energy-efficient appliances where appropriate.

50. Style Kitchen style is super important, especially if it's visible for patrons. You want your kitchen style to match the atmosphere of the rest of the business, completing its look and feel .

51. Confirm the measurements Check the measurements of the layout and the equipment you're selecting three times before pulling the trigger, so that you're totally sure that you won't run into any spacing problems.

52. Choose the best financier And what's the missing piece of the puzzle? Where you choose to select your equipment! Flexikitch are Australia's most dedicated bunch of kitchen equipment financiers , helping you lease or buy equipment to start your business.

53. MARKETING IN SMALL & MEDIUM BUSINESS ENTERPRISES (SMEs). The learner is able to market and sell products

54. Key words Marketing. Selling. Market research. Market survey. Market report. Questionnaire. Advertising. Promotion. Sales. Persuade. Protection. Agency

55. Introduction. Marketing. Selling. Activities involved in marketing. Differences between marketing and selling. Marketing in SMEs.

56. Introduction For goods to satisfy the customers’ needs and wants, they must leave the producers’ premises to the final consumer. Therefore, the producer must find out who his or her customers are and what they want.

57. What is marketing? It is the process of interesting people with your products or services. “ process ” is the key word. Marketing

58. It is a process because it involves researching, promoting, selling and distribution of goods and services.

59. Marketing refers to any actions a company takes to attract an audience to the company's product or services through high-quality messaging.

60. Therefore, is the action or process of promoting products or services which an entrepreneur produces to ensure that his or her customers get what they need.

61. Selling What is selling? Is any transaction in which money is exchanged for goods or services. Selling transforms the goods into money (cash)

62. Finding out the business customers. Finding out what customers want. Setting prices that are affordable. Availing products at the right places. Promotion of products by informing and attracting customers. Activities involved in marketing

63. Differences between marketing and selling Marketing Selling Focuses on customer needs and how they can be satisfied. Focuses on seller’s needs to make sales and profits. Customer enjoys supreme importance. Products enjoy supreme importance. Integrated approach used to achieve long term goals. Fragmented approach used to achieve immediate goal sales. Customer needs are converted into products through design and development. Selling converts products into cash (money) Customer’s satisfaction rewards. Profits realised through selling volumes. Explain any two differences between marketing and selling.

64. A simple marketing plan What is a marketing plan? It is part of the business plan that describes how the proposed goods and services shall be priced, promoted and distributed to the target customers. It can be looked at as a roadmap for introducing & delivering a product or service to the final customers.

65. It is an analysis of the marketing objectives, strategies and activities to be followed to have improved marketing of the proposed product to fight competition in the market.

66. Characteristics Age Income levels Elements of a marketing plan Location Distribution channel Advertising Public Relations Discount Credit Brand Name Quality Design Product Price Place Promotion 5P- Marketing Mix People

67. Elements of a marketing plan Position of the competitors: This looks at the major competitors of that product or service. Find out their strength and weaknesses to position your product or service better on market.

68. Elements of a marketing plan The Sales target: This shows the total projected sales per a given period. Expected marketing expenses: The expected expenses/budget likely to be incurred on marketing the product.

69. While thinking about creating a marketing plan, one needs to consider the 5Ps : People , Place , Price , Product and Promotion . This normally referred to as the Marketing Mix.

70. Activity In groups , select a product and create a simple marketing plan on a manilla chart for it. Present your marketing plan to the rest of the class.

71. Groups Group A Namubiru Moreen Wakunyaga Mark Kagolo Ian Nakazibwe Shifrah Nakayiwa Maria Nanyange Marjorine Group C Ostaru Mackline Kasozi Andrew Yiga Lawrence Mikisa Justine Maria Nalweyiso Victoria Musanyusa Jovia Group B Sanyu Joweria Senyange Lucky Kabali Rahim Ndagire Sarah Patience Nakawungu Lillian Masika Ritah Blessed Nanyonjo Sumaiyyah

72. Activity Do research about the meaning of the 5Ps (People, Place, Price, Product and Promotion). Choose a product that you will need to market and sell in your local area to raise money for school fees.

73. Activity 3. Answer the questions given below as a guide to developing your marketing plan successfully. People : What are the characteristics of the people you wish to sell the product to? ………………………………………………….

74. Product : why is the chosen product different from other similar product on the market? ………………………………………………………. Place : which locality will be the most suitable place for selling your product? Why dd you choose that locality? ……………………………………………………….

75. 4. Price: What would be the most suitable price? What is the price your competitors charge? Can the price be raised if the quality is improved? Can it be lowered to increase volume of sales? ………………………………………………….……………. 5. Promotion: what methods would you employ to sell the product? How will you attract and retain customers? How will you advertise your product? ……………………………………………………………..….

76. The importance of marketing in business When entrepreneurs produce goods and services, their main objective is to find customers for them and make profits. However, this is only possible if they creatively attract customers to buy the products. Hence marketing .

77. The importance of marketing in business It informs the public of the products and services that are being offered by the business. It helps the entrepreneur to understand his/her customers tastes and preferences. It boosts sales by using different ways to promote the product or service that is being offered.

78. It helps the entrepreneur to provide customers with relevant information about the products of the firm. It gives the entrepreneur a healthy competition based on the pricing of products and services amongst competitors (competitive advantage).

79. It builds the brand (brand identity). Helps the entrepreneur to provide good quality products. Helps to identify the potential customers for the products offered .

80. Despite the importances of marketing in business, it faces very many challenges as explained below Challenges faced during marketing

81. Many entrepreneurs are faced with limited funds for promotion, advertisement and doing the market research required by the business. Inadequate funds

82. Some entrepreneurs do not carry out enough market research to identify the right tastes and preferences of the customers. Inadequate market research

83. There are challenges in estimating the number of potential customers in the market, since their tastes and preferences keeps on changing with time. Challenge in identification of the potential customers

84. The competition in the market is very high thus, one needs to remain very aggressive in marketing which is costly. Stiff competition

85. Explain the following challenges faced during marketing. Apart from the challenges listed, identify any other three challenges faced during marketing. Activity

86. Problem in selection of a suitable marketing strategies. Limited marketing skills. Inadequate technology. Problem in identification of credit-worthy customers

87. 5. Unfavourable weather 6. Inadequate skills to handle data collection. 7. Language barrier. 8. Changing demographic factors 9. Inadequate marketing information.

88. 10. Underdeveloped infrastructure. 11. High costs involved in data collection. 12. Lack of brand image. 13. Invisibility of the business.

89. Brand awareness Brand awareness refers to how recognizable an organization or product or service is based on its logo, style and reputation. Brand awareness helps businesses retain customers and reach new ones.

90. Effective marketing can help generate brand awareness by placing a brand where consumers or other businesses might see it. For example, a brand whose target audience is kids might place their products in children's stores or place ads for their products during children's television programs to expand their reach.

91. Brand awareness is also important because consumers often want something they are familiar with, whether they are trying something new or performing a daily task. A consumer who is used to a specific toothpaste brand, for example, may purchase that brand over one they are unfamiliar with, even if the less familiar brand is cheaper and has the same ingredients.

92. If you are looking to grow your organization, consider using some of these brand awareness marketing strategies. Developing brand identity Strategizing ways to position your brand Using social media to expand brand recognition

93. Market Research Process of identifying consumer needs and wants (useful information)

94. Key terms Market Market research Market survey Research report questionnaire

95. Learning out-come Understand the importance of market research. Design a market survey tool for a selected product. Carry out market research. Write a market research report.

96. Introduction Before committing your money and time in a business, you need to be sure that you have sufficient market for the product or service. To be sure that the product or service meets the customers’ needs, you collect us much information as possible about the characteristics, tastes and preferences of the potential customers of the product.

97. When you want to start a salon at school targeting learners and teachers as your customers, you need to clearly know whether what you think is correct and that learners and teachers will come to your saloon.

98. To know this, you must ask them some questions. For example, How many times in a month do you cut your hair? How much money do you pay every time you cut your hair? What is your best hair style? How do you want your hair be cut? When you get answers to such questions, then that is called market research/survey.

99. Market research , therefore, is the process concerned with identifying consumer needs and wants. Or The process of identifying relevant information about what exactly your would-be customers want.

100. Market research is the process of investigating a potential or existing market to obtain useful information, analyse it and then formulate strategic policies or decisions for the business’ success. This is done either before the launch of a new business or every new business venture. All businesses, whether large or small should conduct a market research.

101. Market research is a process that gathers and analyses data for a company's product strategy. It may involve the use of surveys, product tests, and focus groups. Research may be conducted in-house or by a third party that specializes in market research.

102. Market research is the process of gathering information about your target market and customers. You can use this data to verify the success of a new product, help your team iterate (repeat, restate, recapitulate, retell, rehearse, rebuild or redo) on an existing product, or understand brand perception. The idea here is to make sure your team is effectively communicating your company’s value.

103. Activity Use the internet, textbooks and resource businesspeople to find out the following about market research. To find out when market research is done. Find out who does the market research. How market research is done. Identify the different methods used in market research. Find out the importance of market research in business.

104. How market research is done (iii) Define your market You need to define who your buyers are. Identify a personal group to engage Identify a group to engage as a representative sample of your target customers so that you can better understand their actual characteristics, challenges and buying habits.

105. Prepare a survey guide for your market research participants. A survey guide is developed to be administered to the selected representative sample of your target customers to make sure all the questions are covered. List your primary competitors. Identify competitors with similar products as yours on the market to find out their strength and weaknesses, so as you recognise your products’ strength and weaknesses for improvement.

106. Summarise your findings Use a favourable presentation software to make a report, so as it easy to add quotes, diagrams, or call clips to summarise your findings. The producer can use any of the following sources to get the necessary information: the competitors, consumer, internet, research departments, among others.

107. Benefits of Market Research Market research is essential for developing brand loyalty and customer satisfaction. Since it is unlikely for a product to appeal equally to every consumer, a strong market research program can help identify the key demographics and market segments that are most likely to use a given product. Market research is also important for developing a company’s advertising efforts. For example, if a company’s market research determines that its consumers are more likely to use Facebook than X (formerly Twitter), it can then target its advertisements to one platform instead of another. Or, if they determine that their target market is value-sensitive rather than price-sensitive, they can work on improving the product rather than reducing their prices.

108. Why do market research? I learned the hard way that best practice email copy doesn’t guarantee results. But when I switched to messaging built on real customer research, our conversion rates doubled. That’s the power of knowing what moves your buyers to action, instead of guessing. Here's what proper market research uncovers: The hidden corners of the internet where your buyers are already searching for solutions (often not where you'd expect). Which competitors are dominating the conversation — and more importantly, why your target audience trusts them. Real-time shifts in your industry that your buyers care about (not just what industry publications claim is trending). The true DNA of your market — who they are, what keeps them up at night, and what they're really willing to pay for. Purchase triggers that actually drive decisions. Unfiltered attitudes about products like yours, including objections your sales team never hears Validation (or warning signs) for your next big business initiative before you invest heavily. Gaps in the market your competitors have missed that are often hiding in plain sight. Price sensitivity insights that help you position your offering for maximum value.

109. When should you conduct market research? Knowing when to conduct market research is just as important as how you do it. The short answer? Do it before any major business decision. Here are some specific scenarios. Conversion rates drop: When campaigns perform below expectations (like my email campaign). New product launches: To identify customer needs and market gaps. Market expansion : When entering unfamiliar territory. Rising customer acquisition costs: To optimize your funnel. Competitive landscape shifts: To adapt to new players or trends. For example, when my client was launching a new feature, we decided to conduct interviews to gauge interest and understand potential concerns. Customers were excited but confused about how the feature worked. This insight allowed us to refine our messaging before the launch, saving us from what could have been a disappointing rollout. Even a two-week research sprint can prevent months of costly mistakes. I’ve personally seen this in action — those two weeks of focused effort often pay dividends for months or even years. Should you outsource market research?