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.

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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