Professional Documents
Culture Documents
Class:3
School: GTHS
Enrollment: 20
Duration: 45 minutes
Basic professional competence: Teach effectively and evaluate the students on production
concept
Objective: At the end of the lesson students should be able to define production concept,
give its advantages and disadvantages.
Rational: It will help the student understand the importance of mass production.
Method of Teaching:
Production concept.
The product concept was the widespread concept at the turn of the 20 th century and at the
time of the industrial revolution. Business believed that by improving their production
efficiency, they could offer their products in a more affordable way to the market and by
doing so they will increase the overall demand for their product . CONCEPT BELIEVES
CONSUMERS WILL ACQUIRE GOODS THAT ARE CHEAPER AND AVAILABLES. THE MORE THE
PEODUCTION THE MORE THE SALES.IN COUNTRIES WHERE LABOUR IS CHEAP AND
AVAILABLE PRODUCTION CAN BE MAXIMISE AND COST MINIMISED HENCE INCREASING
PRODUCTION EFFICIENCY.
STEPS IN THE PRODUCTION PLANNING
Production planning is “the administrative process that takes place within a manufacturing business
and that involves making sure that sufficient raw materials, staff and other necessary items are
procured and ready to create finished products according to the schedule specified”, as defined by
the Business Dictionary.
Estimate your demand, so that you know how many products you need to produce during a
specific time period. You may have already some confirmed orders for the next couple of
month, but on top of that, you need to predict how many more may come.
Different methods exist to forecast your product demand. A traditional technique to estimate
product demand is based on historical information (e.g. orders placed by your customers in
the past). While this is a very common method, you need to consider external and internal
events in your business environment that could alter past patterns. For example, new market
trends, a slowdown in the economy, or a new marketing campaign that could increase or
decrease your product demand compared to what happened in the past.
Determine the different production options available to meet the forecasted demand of your
product. For example, if you want to produce 100 shirts, you need to use a certain number of
machines, human resources, materials, and time. Different combinations of these inputs can
lead to different production times and costs.
STEP 3. Choose the option for production that uses the combination of resources more
effectively
Compare the cost and time of each potential production option and choose the option that
uses the most efficient combination of resources and that allows you to meet product demand.
The chosen option should maximize the operational capacity of your firm.9THE COST AND
RESOURCES
Always make sure you can cover the costs involved in the production process (purchase of
materials, office rent, payment of staff salary, leasing, etc.)
You want to ensure that your plan is working in the way it is intended. Monitoring and
controlling is about comparing what is happening with what should be happening. Having a
control system in place helps you detect problems as soon as they occur, allowing you more
time to correct before it is too late
STEP 5. Adjust
Be prepared to adjust the plan if needed. The production plan needs to be flexible to
accommodate changes in customers’ demand (e.g. an important order that gets cancelled).
Also, you need to take into account possible risks that may arise during the production
process (e.g. a machine breaks, a worker gets sick or a supplier does not deliver on time) and
have a risk mitigation plan
- The production concept forces your company to find ways to produce more for
lesser price
- The advantage to your customer is that they can find your product anywhere and in
an affordable way.
- The production concept helps you in achieving economies of scale.
DISADVANTAGES
- Companies that focus too much on the production concept may lose focus on what
their customers need or wants
- There is a point in time where the lower prices will no longer drive customers to buy
more but actually drive customers to buy less.
- If a company cuts quality to lower prices down, eventually their customers will no
longer see value in paying for a cheap low quality product.
- The more your customers perceive your product as lacking quality, the less they will
have the interest and motivation to buy your products.