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Questions and Answers
What are the Four M's of production?
Which element in the production system is responsible for transforming materials into the final product?
What determines the quality of the output in a production system?
What criteria must an entrepreneur highly consider when dealing with the 'Manpower' aspect of production?
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Which element in the input category refers to the raw materials needed for production?
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What stage of production is also known as the transformation or conversion process?
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What does the entrepreneur consider when selecting raw materials for production?
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What is the function of machine machine in the production process?
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What factors does an entrepreneur consider when selecting the type of manufacturing equipment to purchase?
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What does 'method' or production method refer to?
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What does the selection of the method of production depend on?
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Why is it important for an entrepreneur to consider the credibility of suppliers?
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Study Notes
The Production System
- The production system consists of three essential elements: input, transformation process, and output.
- Input includes manpower, materials, machine, design, and instructions.
- The transformation process, also known as the production process, is where materials are transformed into the final product with the aid of manpower and machine.
- Output represents the final product distributed to customers.
The 4 M's of Production
- The 4 M's of production are the most critical factors in the production system.
- They are: Manpower, Method, Machine, and Materials.
- The quality of these factors determines the quality of the output.
Manpower
- Manpower refers to the human labor force involved in manufacturing products.
- It is considered the most important and primary factor of production.
- Entrepreneurial considerations for manpower include:
- Educational qualifications and experience
- Status of employment
- Number of workers required
- Skills and expertise required for the job
Materials
- Materials refer to the raw materials necessary for production.
- They form part of the finished product.
- Entrepreneurial considerations for materials include:
- Cost
- Quality
- Availability
- Credibility of suppliers
- Waste production
Machine
- Machine refers to manufacturing equipment used in production.
- Entrepreneurial considerations for machine selection include:
- Type 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 equipment
- Skills required to run the equipment
Method
- Method refers to the production process or way of transforming raw materials into finished products.
- Entrepreneurial considerations for method selection include:
- Product to be produced
- Mode of production
- Manufacturing equipment to use
- Required skills to do the work
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Description
Explore the key elements of the production system including input, production process, and output. Learn about the significance of manpower, materials, machines, design, and instructions in the production process.
