STEP 9: PLANNING A

BUSINESS PRODUCTION
SYSTEM PART 1
ALONSAGAY, ANDREA MAY
DONCERAS, TRICIA
LEGASPI, SHULAMITE
PAZ, JOYCE ANN
RIVERA, NERILYN
PRODUCTION
 PRODUCTION
Production is an integral part of a business, specially
for retail ventures. Even if you have a great product, if you
cannot meet the demands of your market, then your
business will not enjoy optimal profits.
This is why having an efficient business production
system is important. It ensures that you’re producing
quality goods that can serve your customers’ needs.
 THINGS TO CONSIDER
IN PLANNING A
BUSINESS PRODUCTION
SYSTEM
 HUMAN
RESOURCE
It may be ideal to just do
everything yourself but it’s
never good to always do so.
Plan the manpower you’ll
need. Determine the tasks
needed to produce your
goods and learn to
delegate them into specific
roles.
 RAW MATERIALS
Since you’re now producing your own goods, there is
now a need to find suppliers for your raw materials.
 STEP 9: PLANNING A
BUSINESS PRODUCTION
SYSTEM PART 2
In this second part, we’ll talk about the integration of
these “basic ingredients” and learn what makes up an
efficient production system.
 CASH FLOW
Cash is king. Every decision you make for your
business must consider how it will affect cash flow. Setting
up a production system requires financial investment not
only on equipment and machinery but also in space and
manpower. Larger ventures should also consider the cost
of permits for setting up a production plant. Make sure you
can cover everything.
 TIME
Time means doing a
balancing act between supply
and demand. Study the
production volume capacity of
your setup and determine if it
will meet your requirements.
Also be careful not to
overproduce, specially if your
goods are perishable. Moreover,
remember that having too much
inventory could also affect cash
flow.
 PROCESSES
A production system is made up of processes, from
acquiring your raw materials until the delivery of your
goods. Make sure that each step is well-documented and
carried out without any deviation nor modification. Quality
standards should also be in place to make sure that your
products remain consistent.
 MANAGEMENT
Management is the glue that holds everything
together. Most business owners would handle this
responsibility but hiring managers should be considered
specially for large production systems. In the simple terms,
management checks and rechecks everything and
ensures that your production is working like a well-oiled
machine.