Small and Medium Enterprises Development Agency of Nigeria

PRESENTATION OUTLINE
Introduction The Business System Location of the Firm Product Development and Process Planning Production Control Quality Control Stock Control Conclusion
SMEDAN 2

INTRODUCTION

PRODUCTION: Manufacture of goods and provision of services SCARCE RESOURCES:

What to produce How to produce For Whom to produce

ENTREPRENEUR: Aims to maximize production of goods and provision of services at minimum cost.
SMEDAN 3

THE BUSINESS SYSTEM

INPUT Materials Technology Finance Labour FEEDBACK CONVERSION OUTPUT Goods Service Compan y Image

Profits

SMEDAN

LOCATION OF THE FIRM

Physical and Operational Factors
The Suitability of the Site The Provision of Services The Product and Production Volume Machinery for Production and Material Handling Labour Required Raw Materials Distribution of Products

SMEDAN

PRODUCT DEVELOPMENT AND PROCESS PLANNING

Make or Buy Decisions The virtues of cooperation (i) Equipment Leasing (ii) Use of Common Support Facilities (iii) Joint Ownership and Effective Linkages Product Technical Specifications Process Planning Feasibility Study Production Methods
SMEDAN 6

PRODUCTION CONTROL
Production Control entails:
Planning Communication of Plans Measurement Comparison to determine Variance (if any) Communication of Variance Corrective Action

SMEDAN

PRODUCTION CONTROL contd

Inefficiencies in production control may arise from:
Excessive stock levels Excessive work in progress Failure to meet delivery dates

SMEDAN

QUALITY CONTROL
Quality and Reliability The Quality Aspect of Manufacture
Supplier Quality Assurance Post-Mortem Inspection In-Line Process Control

Three Aspects of Quality

Prevention Appraisal Failure
SMEDAN 9

STOCK CONTROL
Stock
Raw Materials Work in Progress Finished Goods

Stock Holding Uncouples Supply from Demand Effective stock control ensures:
Minimum Interruptions in the Production Sequence Overstocking does not occur Prompt Delivery of Finished Goods
SMEDAN 10

CONCLUSION
Production involves the creation of utility It is a waste of time, effort and resources to produce things which people do not require To achieve the purpose of production, an enterprise should:
Be appropriately Located Embrace the virtues of Enterprise Cooperation and networking Ensure proper Product development Ensure proper Planning of Production Process Adopt Appropriate Production Process Ensure Effective Coordination with other Functions i.e. Purchasing, Sales and Marketing

SMEDAN

11