Production System Fundamentals

Study Notes

Manufacturing Equipment (Machine): Used in creating goods/services. Factors to consider when selecting: type of product, production system, equipment cost, capacity, spare parts availability, efficiency, and operator skills.
Production Method (Method): Process of transforming raw materials to finished products. Factors influencing method choice: product type, production mode, equipment, and necessary skills.
Four M's in Production: Machine, Method, Material, and Manpower (implied). Visualized in Figure 1.3 (content omitted).
Product: The final output of the process, valuable to consumers, and fulfilling needs/wants. Products can be heterogeneous (different characteristics) or homogeneous (similar characteristics).

Definition: Outlines how an organization generates, delivers, and captures value in various contexts (economic, social, etc.). It's a key component of a business plan for generating revenue and profits. Describes the products/services, how to market, and predicted expenses.
Business Model Development: Critical phases include: defining target audience, creating business processes, documenting resources, developing a strong value proposition, identifying key partners, and creating a demand-driven strategy that embraces innovation.
Business Plan: A plan essential for entrepreneurs, guiding throughout the process. It serves different purposes; an early stage business plan might resemble a pre-feasibility or feasibility study, used to obtain investor confidence.