6. In process of selecting the type of equipment to purchase,
the entrepreneur may consider the following important
elements:
● Types of products to be produced
● Production system to be adopted
● Cost of equipment
● Capacity of equipment
● Availability of spare parts in the local market
● Efficiency of the equipment
● The skills required in running the equipment
7. Are our machines capable of
safe and reliable output at the
desired quality and rate? Do
breakdowns, defects or
unplanned stoppages inhibit
their ability to meet that goal?
8.
9. The selection of the method of production is
dependent on some factors, namely:
1. product to produce,
2. mode of production,
3. manufacturing equipment to use,and
4. required skills to do the work.
10. ● Product to Produce
The product is the physical output of the
whole production process. It should be
valuable and beneficial to the consumers
and should satisfy their basic needs and
wants.
- A product can be heterogeneous or
homogeneous.
11. ● Product to Produce
A heterogeneous product has dissimilar
characteristics, parts, and physical appearance.
It can be easily identified from other products.
Entrepreneurial ventures that produce
heterogeneous products include makers of
furniture, bags, and home decors.
12. ● Product to Produce
A homogeneous product has a physical
appearance, taste, or chemical content that can
hardly be distinguished from that of the other
products. Businesses that produce homogenous
products include makers of soft drinks and
medicines. It is hard to distinguish the difference
between a soft drink in a 12-ounce bottle and in an
8-ounce can.
13. ● Mode of Production
The mode of production refers to how the
product will be produced. The following
production system may be used in
manufacturing the desired product:
1. Intermittent production system
2. Continuous production system
3. Just-in-time production system
14. ● Mode of Production
1. Intermittent production system is
adopted when the process is basically
short and the machines are frequently
changed.
(Project method, job order method and
batch method)
15. ● Mode of Production
2. Continuous production system is
adopted when the demand for the product is
considered constant. The production is not
based on the order of customers but for the
stocking the inventories
16. ● Mode of Production
3. Just-in-time production system goods
are produced just in time when the market
needs or demands for them.
22. Identifying the 4 Ms operations in the business
MANPOWER MACHINE METHOD MATERIAL
Example: Tailor Sewing Machine Tailors can create
personalized items.
Recycled plastics,
papers, cloth and leather.
