Prosuction of goods and services

the entrepreneurial mind section citrine group 2

1. PRODUCTION OF GOODS & SERVICES

2. OBJECTIVES: DEFINE MARKETING AND MARKETING MANAGEMENT EXPLAIN THE RESPONSIBILITIES OF THE MARKETING MANAGER THAT IS INCLUDED IN PRODUCTION AND PRICING DISCUSS THE IMPORTANCE OF MARKETING IN A ENTERPRISE

3. WHAT IS PRODUCTION? It is the processing and/or assembling of raw materials by workers using machinery and equipment to produce a product or provide services. It is also the creation of goods and sevices. It is the creation of utility.

4. UTILITY means satisfaction. Goods and services are produced to satisfy human wants or needs. These inputs may include: Materials Manpower Machinery Methods Management Money and Time

5. OPERATION - step in a process, method, or procedure where raw material is changed into something else. ASSEMBLY - putting parts together to form a final product. FINISHING INSPECTION - make sure that the operation has been carried out correctly as to quality and quantity.

6. FACTORS OF PRODUCTION LAND -natural resources such as forest, mountains, and bodies of water like rivers, lakes, and seas. LABOR - both physical and mental efforts like the works of farmers, fishermen, worker, clerks , lawyer, teacher, etc.

7. CAPITAL -refers to the seed money which is utilized for starting a business. ENTREPRENEURIAL ACTIVITY- the spirit of enterprise. Without such activity, the other productive resources tend to be efficient.

8. COST OF PRODUCTION Represents the payments for the factors of production. These affect the ability and willingness of entreprenuers to produce. When production cost are high, prices go up. This decreases the purchasing power of the consumers. This results to lower quantity demand for goods and supplies. In other words, there is a decrease in sales

9. The cost production is made up of three parts: Direct materials- inputs that become part of the product. Direct labor- includes the workers whose outputs are closely related to or associated with the making of the product. Manufacturing overhead- incurred in making of the production but do not become part of the product.

10. MAKING PRODUCTION EFFIENCY YOUR GOAL As a production manager, you should be concerned with the economical and efficient utilization of inputs to produce output. Always aim at improving productivity, which is simply defined as the arithmetical ration between the amount produced and the amount of all resources used in production.

11. Concept of productivity, consider materials and labor as input PRODUCTIVITY OF MATERIALS- an increase of 10% in utilization of materials. PRODUCTIVITY OF LABOR- due to the improved work methods the worker was able to raise his production outputs.

12. PRODUCTIVITY OF MACHINES- an average machine produce 1000 pieces of particular components per hour. Adjustments of the speed of the machine increased its production volume to 1300 pieces per hour.

13. Plan your work If you don’t plan and schedule your production properly you’ll waste a lot of time and money without adequate plan.

14. Running out of raw materials stocks, when you need them. Interruption of operation because the next machine or worker doesn’t continuously supply of in-process material from preceding one. Work delay due to machine breakdown. Failure to deliver products on time to consumers.

15. The following are the vital points so that you can cut down on wasted time. Plan the delivery and supply level of materials and purchased parts. Plan the jobs to be done Plan your machine maintenance

16. PRODUCE QUALITY PRODUCT Business is not all about earning money but also to serve the needs of your target market. Always bear in mind that if the buyer is satisfied with the quality of your product, you can expect repeat orders or continuous patronage from him. Aside from keeping satisfaction to the customers, maintaining product quality is one of the factor that the customer wants.

17. HOW TO DEVELOP AND IMPROVE PRODUCT QUALITY Control manufacturing information Control purchases and storage of raw materials Control manufacturing process Control finished products Control measuring instruments and test equipment Control corrective action

18. CONTROL MANUFACTURING INFORMATION You should see to it that your production workers are given complete, easy to understand, clear and simple instructions on the process of production. You should provide them clear drawings and diagrams.

19. CONTROL PURCHASES AND STORAGE OF RAW MATERIALS You should obtain the correct materials of defined quality from the suppliers, and see to it that these are appropriately stored to prevent spoiling or deterioration. Check and inspect raw materials delivered to you by your suppliers to verify whether these conform to your quality requirements. It is best to maintain good relationship and communication with suppliers.

20. CONTROL MANUFACTURING PROCESS Prevent the fabrication of defective products by instituting inspection points or simple routine checks on important processes or steps, through adequate planning, good machine maintenance, and proper motivation of production employees.

21. CONTROL FINISHED PRODUCTS Verify by means of adequate tests and criteria to check whether the finished product meets the quality standard or not. Use information feedback from the final inspection to maintain production process. Use simple sampling plans.

22. CONTROL MEASURING INSTRUMENTS AND TEST EQUIPMENT Schedule periodic calibrations and adjustments or maintenance of test and process equipment for adequate control.

23. CONTROL CORRECTIVE ACTION Use information from control areas 1-5 to ensure that deficiencies affecting quality are promptly and systematically detected and corrected.

24. MANAGE AND CONTROL YOUR INVENTORIES PROPERLY

25. INVENTORY Keep sufficient stocks of raw materials, in-process goods, and finished goods in order to meet your production and sales target.

26. Inventory management and control Means that you must take care not to have too much, nor too little of required stocks. Overstock nor under-stock.

27. Having so much extra materials, goods process, and finished products allows you to: Meet sudden increase in sales demand; and Make up rejected or damaged parts and products.

28. How to control inventory To able to do this, you should know: When to order How often to order How much to order

29. BASIC STOCK GOODS Are those , which are either sold at as much the same rate at all times or regularly used in production.

30. SEASONAL GOODS Are those that move quickly at some time and slowly than others.

31. THE IMPORTANCE OF MARKETING There is one thing that entrepreneurs must embrace on a lifetime when he/she engages in a business. This is the concept of marketing is an activity that the entrepreneur will be involve in for as long as the business exist. Some newcomers in the field of business brag about their new product or invention and end up nothing or not going to the business and for do it profitably.

32. MARKETING CONCEPT AND PHILOSOPHY Any form of business has to exist not because of the existence of a product or service that the entrepreneur has, but because are preconceived notion that there is a market or market potentials for the product or service. The marketing concept is a costumer- oriented philosophy that is implemented and integrated throughout the business to serve customers better than the competitors and achieve specific goals.

33. Marketing concept is made up of 3 components: Customer neeeds and wants The organizational integration The goal achievement

34. THE MARKET RESEARCH A market research helps the entrepreneurs discover who wantsto buy the product or services. In other words, entrepreneurs will be guided as to the particular market segment. Even before starting business, do a market research as this can be help in production planning, product development, packaging and pricing.

35. In specific term, market research will guide entrepreneurs as to the following: Define your product or services Define your market- who are your costumer? Identify what motivates those costumers to buy Price your market or services Reach your costumers through advertising, publicity, and sales calls Compete with other companies providing the same products or sevices. Position your product in the market place Cope with outside forces, such as age economy Understand your industry and how your company fits in Evaluate your community

36. WHERE TO GET INFORMATION LIBRARY RESEARCH QUESTIONAIRE SURVEY EXISTING RESEARCH REPORT PUBLISHED MARKET STATISTICS TRADE ASSOCIATION MEETINGS AND TRADE SHOW EXPERTS PHANTOM PRODUCTS PROFESSIONAL MARKET SURVEYS

37. Where to get information Library Research- the academic and library setting are valuable data providers, particularly those institutions where libraries facilities are updated and comprehenced. 2. Quetionaire Survey- a survey questionaire is a basic toll in market research, whether it is conducted by mail, telephone or person interview

38. 3. Existing research report- its the business proposition refers to an existing product or services and is deemed to be growing, and hence you are going into such field of business there must exist information or a subject in the recent years that could be of help to the entrepreneurs.. 4. Published Market Statistic- there are published market statistics for some product lines by trade association of private market organization which entrepreneurs can simply buy or subscribed to.

39. 5. Trade association meeting and trade shows- in the long-term, it pays to be a member of trade associations. The meetings and trade exhibits or exposistion sponsored by this group can expose you to variuos parties and suppliers who can provide vital information. 6. Experts - it should be of help to touch base with real technical experts and parties who knows about the markets of the product or services.

40. 7. Phantom products- this is done by smart entrepreneurs in developed countries. It is one of the methods that are often used to obtain market data done by issuing press statement or announcement of non-existent or prototype, then sit back and see who reponds. 8. Professional market surveys- these are large and prestigious research organizations and consulting service companies who published documents like market indicators, regional and provincial profiles, investment guides, and other special series publication that can be of help to entrepreneurs and prospective business investors.

41. THE NEED FOR MARKETING PLAN Marketing plan- work as a survival, as well as a preventive tool.

42. COMPONENT OF MARKETING PLAN EXECUTIVE STRATEGIES- will spell out the difference between a well-written business plan and a poorly done one. OBJECTIVE - marketing objective must be specific as to what is there that needs to be accomplished. MARKETING MIX- if defines the production of the business of the production in a market place.

43. CHANNEL OF DISTRIBUTION This refers to the marketing institution and interrelationships responsible for the physical flow of goods and services from the producer or manufacturee to consumers or industrial users.

44. The entreprenuer can use any of the following modalities which ever is appropriate for this business: DIRECT MARKETING- this refersn to a system of marketing by which an organization communicates directly with consumers to generate a response and/or transaction.

45. WHOLESALERS - this is where the producers or manufactures generally dispose or sell their products AGENTS - the individual entrepreneur may find it impossible to contact and service the wholesalers without additional help.

46. PRICING Price is the value placed on goods and service offered to the public. A product or services may be paid in the form of money or it could be paid each other goods and/or services. For this transaction to take place, a value on the product or service.

47. THE CONCEPT OF FAIR PRICING Fair pricing is not all about what is good for the buyers or consumers; other does it mean making it cheaper. Take note that low price is an indication of low quality product or services. Fair pricing is one that is attractive to potential clienteles or market with reasonable returns for the entrepreneur. Fair pricing also means looking at the competitors’ prices. If your competitors charges less, making little or no profit at all, you may have to drop near his level for a while and outsell them later.

48. BASIC PRICING PRINCIPLES The price you charge to your customers or clients will have direct bearing on the success of the business; hence, this aspect must be given due diligence and care.

49. The following will serve as a fundamental guideline: All prices must cover costs: The best and most effective way of lower sales price is lowering the cost; Prices must be regularly upgraded to reflect market be established to ensure sales; Product utility, longevity, maintenance, and end use must be judged continually, the target prices should then bbe adjusted accordingly: Prices must be set to preserve order in the marketplace:I; and Prices must be fixed to support an overall corporate goal.

50. PRICING A SERVICE Unlike a product where can be quantified to arrive at a product costs, rendering services involves human efforts and other parameters or factors of production which are quite difficult to quantify. For instance, human creativity, innovativeness, and ingenuity involve expenses incurred in the pass, which shall be applied only now. Morever, there are other issues involving use of human resources, whose actual contribution to product development may be also difficult to quantify. Nevertheless, among services providers, pricing services rendered vary.

51. GROUP 2 CABALLERO ,STEPHEN ENTOMA, RAYMART ESPINA, CLIMPSON DE GUZMAN, SAMANTHA GRACE DITOMAL, MARY JOY ELLEMA, QUEEN ANN ESPINOSA, JHUSTINE FAJARDO,CLENCIE GABICA, KEA KIARA GODIN, JEAN GUMERA, ANNA LIZA