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Producing

Goods and
Services
What are your
needs and wants as
a person?
Production
•It is the process of
creating the
products and
service that a firm
sells to its market
Production
•It can also be defined
as the efficient
utilization of inputs
(materials, labor,
equipment, methods,
management and
money) to produce
output (goods and
services)
The raw material inputs are converted
into finished products ready for market
distribution through successive stages
of:
•Operation
•Assembly
•Finishing
•Inspection
Before Now and Future
Local or national Focus Global Focus
Batch (Large Shipments) Just-in-time Shipments

Trends In Production
Low-bid Purchasing Supply chain partners,
enterprise resource planning, e-
commerce

Management
Lengthy Product Development Rapid Product Development
Alliances

Standardized Products Mass Customization


Job Specialization Empowered employees, teams
and lean production
Production Output
• Production requires
a set of inputs to
yield a set of outputs.
Outputs can be
classified as tangible
or intangible
products.
Productivity Challenge
• The creation of goods and services requires transforming raw
inputs into useful goods and services
Productivity Variables
• Labor
• Basic Education
• Good Diet
• Social Factors
• Better Transportation
• Sanitation Services
• Capital
• Management
Productivity Measurement
The measurement of productivity can be direct, such
as when productivity is measured in terms of labor-
hours per kilogram. This relationship is best
illustrated by the following equation:

Productivity = Units produced


Inputs used
• Single-factor Productivity – the use of one
resource input to measure productivity
• Multifactor Productivity – the total factor
productivity and is calculated by combining the
units

Productivity = Output
Labor + Material + Energy + Capital + Miscellaneous
Product Design
The product decision is to come up
with products that meet the
demands of your customers with a
competitive advantage – be it
through;
• Differentiation
• Low cost
• Quick response
Or any combination of any three of
these three factors.
Product Life Cycles
Products are born, live and then die. Product life cycles can be a
matter of a few hors, months, years, or decades.
Regardless of the length of the product cycle, the task of an
entrepreneur is the same: to design a system that introduce new
products successfully.
Product By- Value Analysis
Product By- Value
Analysis is a listing of
products in descending
order according to
individual peso
contribution to the
company or total annual
peso contribution of the
product.
Production Factors
The owner-production manager has the sole responsibility
of ensuring efficient utilization of all available resources to
produce good output.
A. Choice of Production Strategy
B. Choice of Production Technology Level
C. Choice of Process Operations
D. Choice of Raw Material Inputs
E. Choice of Labor Requirement
F. Choice of Location Strategies
G. Choice of Layout Plans
H. Choice of Producing Quality Products
Implications of Quality
A. Cost of Quality
B. Total Quality Management
C. Storing and Warehousing
Production Planning
Production planning
or scheduling is an
approach to determine
the quantity and timing
of production in the
future- whether short-
term, medium-term or
long term.
Maintaining Equipment and Machineries
To ensure trouble-free
manufacturing operation, it is
important that you keep
machineries and equipment in good
running condition
A. Types of Maintenance
1. Preventive Maintenance
2. Breakdown Maintenance
3. Total Productive Maintenance
Product Costing
The cost of a product
is made-up of three
parts;
• Direct materials
• Direct labor
• Manufacturing
Overhead
That’s all, thank you!
Prepared By: Shembot Girls

◇Annegret Kiel Espinosa


◇Shane Estrada
◇Eunice Escala
◇Mary Grace Endaya
◇Jomarie De Ramos