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Inputs Outputs
(materials, (Products
Transformation Process
employees and
and/or services)
customers)
Operation/Production as a system
Demanding environment
Technology
Boundary management
Boundary management
Energy
Transformation
Materials Goods &
(Conversion) Services
Labour Process
Capital
Information
Volume
Mass Continuous
Customization Production
Mass
Production
Batch
Production/
Job Shop
Project/
Unit
Production
Degree of Standardization
PLC -
Product
Life Cycle
Diagram
Introduction
• Seller have to stimulate demand
• Promotion/campaign for public awareness
• Explain how to use the product,
• Features : Advantage : Benefit
• More expense, but there are prospect for making profit in the future
• Low selling, low profit, cause of expense bigger than revenue
• Profit is “negative”
• Need more money for promotion
Introduction Growth Maturity Decline
Growth
• Many sold – Selling more as he can
• Competitor’s watching, and decide to joint with same product
• “Imitate success”
• Growth still going until too many competitor on market – market be
saturated
• At the end of growth phase, profit start declining. It means that you have
to expense more for promoting, to keep selling.
• Promotion cost will cut the profit.
Introduction Growth Maturity Decline
Maturity
• Many competitor joined – market saturated
• Only one way to sell, lower cost – and profit declined
• Difficult to tell consumer about differences among products. Its more
similar Features, Advantages & Benefits
• Wild competition, and intensive advertisement
• “Persuasive Promotion” more important during this stage
• It means, your advertisement will be pleading to consumer for buying the
product
Introduction Growth Maturity Decline
Decline
• New product is more attractive,
• Although the price is more cheap but still not make consumen buy
• Profit margin decline – and can only make profit with selling in bulk
• For increasing the number of product:
1. Increase the customer – get the new customer
2. Increase the number of product that customer use
Examples Product Lifecycle
Essential of Production management
Quality inspection
Checking
Assembling Packaging Storage before shipping out
Plant
Praying
Toilet
Area
Lay-out
Store
Cutting Machine for
Raw
Materials
Welding Area
Forming Machine
Office
Display of
Inspection
Finished Goods
Painting and
Spraying
Business Information Flow
Entry-Level Jobs in Production Management
◦ Purchasing planner/buyer
◦ Production (or operations) supervisor
◦ Production (or operations) scheduler/controller
◦ Production (or operations) analyst
◦ Inventory analyst
◦ Quality specialist
-Questions?-