MODULE 1

6 scarce resources:
 People
 Money
 Water
 Food
 Raw Materials
 Time
All production requires the use of resources such as raw materials and labor, and we can
regard production as a process by which these resources are transformed into goods. These
scarce resources are badly needed by every business to run their own because of unlimited
human wants. They needed to produce more and more products for their consumers to be
able to satisfy their needs and wants. Also, they intend to increase the cost for their return in
capital.
But with this resources, as economic growth in developing nations accelerates, competition
for natural resources increases. As a result, businesses in many sectors face the challenge of
resource scarcity: supplies are under threat and costs are increasing. Yet, despite the urgency
of the challenge, many businesses are failing to acknowledge the growing impact that
resource scarcity will have on their industry and the way they run their operations. Because
they continue to use outmoded planning models that fail to reflect increased costs or to
mitigate the risk of interrupted supply.
There are not enough scarce resources to meet all the wants that people have, so we have to
choose which wants are met and which are not met. In this way we would know what to
prioritize in any categories and aspects of the economy.
Thus, Planning is important when it comes to being efficient. Time is money and it is best to
plan for effective resource management from the very beginning of projects. When starting a
project, planning should be first on your to-do list. It is planning that you will be able to fully
gauge the types and number of resources you will be requiring. Many projects fail because
businesses end up investing in too many or too few resources. Setting a baseline – Using
your previous performance as a base for improvement will help pave the path for
productivity. Benchmarking your performance – Comparing your own performance against
that of similar companies. Forming an action strategy – Once the prospective improvements
have been highlighted, it is time to form an action scheme about how to accomplish them.
Fixing targets and responsibilities – While setting targets ensure that they are achievable in
the allocated time by the employees. Observing and reporting – Set up reporting procedures
and measure your performance at regular intervals to ensure that you are on track. Reviewing
actions and performance – This step will ensure that you keep learning and improving.