TLE - 10

Week 5

Lesson Objectives:

At the end of the lesson, students will know…

1. The concept and scope of manufacturing.

2. Steps in writing a production plan.
3. Stages of Manufacturing.
4. Importance of production planning.
 CONCEPT & SCOPE OF
MANUFACTURING
MANUFACTURING- IS THE WORK THAT GOES ON IN
YOUR FACTORY OR WORKSHOP THAT RESULTS IN A
FINISHED OR SEMI-FINISHED PRODUCT DEPENDING
OF YOUR ORIGINAL CHOICE OF WHAT BUSINESS TO GO
INTO.
In a retail business, you do not come up with a new product , you go into the
process of purchasing the goods ,arranging them, and selling them to the
consumers.
In a service business, the process is to actually do the required service as in
repair service,laundry service, or restaurant or catering service.
 STEPS IN WRITING A PRODUCTION PLAN

1. ESTIMATE THE NUMBER OF PRODUCTS TO

PRODUCE
MARKET SIZING
MAKE SURE THERE ARE ENOUGH CUSTOMERS TO MAKE
YOUR BUSINESS IDEA VIABLE.

2. PLAN YOUR RAW MATERIALS AND COMPONENTS.

BETTER INVENTORY CONTROL.
REDUCE STORAGE COST.
3. IDENTIFY SPECIFIC OPERATIONS FOR PRODUCTION.
PROCESS.

4. IDENTIFY THE MACHINES AND EQUIPMENT NEEDED

AND KNOW HOW TO USE THEM.
KNOWLEDGE: KNOW-HOW
5. PLAN THE NUMBER AND LEVEL OF SKILLS OF WORKERS
NEEDED.
6. PLAN THE STAGES OF MANUFACTURING.
7. COST THE PRODUCT OR SERVICE.
8. PLAN MACHINE & EQUIPMENT MAINTENANCE.
9.PLAN FINANCIAL REQUIREMENTS FOR PRODUCTION.
10.PLAN HOW MUCH WORKING CAPITAL WILL BE TIED UP IN
STOCK.

WORKING CAPITAL IS THE AMOUNT OF CASH A BUSINESS CAN SAFELY SPEND. IT'S
COMMONLY DEFINED AS CURRENT ASSETS MINUS CURRENT LIABILITIES.
STAGES OF MANUFACTURING

STAGE 1 STORING-
THE MATERIALS & PARTS WHICH HAVE BEEN
BOUGHT ARRIVE FROM THE RAW MATERIALS
STORE. THEY ARE CHECKED AND STORED.
STAGE 2 PROCESSING- THE RAW MATERIALS ARE
PROCESSED.

FOR EXAMPLE BY CUTTING,SAWING, MACHINING,OR SEWING.

STAGE 3 ASSEMBLING-
THE PARTS ARE PUT TOGETHER TO MAKE A
PRODUCT.THIS IS CALLED ASSEMBLY.FOR PRODUCTS
THAT ARE SIMPLE, LIKE RICE, STEEL BARS, AND CEMENT
ASSEMBLY DOES NOT TAKE PLACE.

STAGE 4 FINISHING

INCLUDES PAINTING, POLISHING,WASHING,DYEING,OR

STAGE 5 INSPECTION-
IS DONE TO CHECK IF THE PRODUCT HAS BEEN
MADE CORRECTLY OR IF IT MEETS THE REQUIRED
STANDARD OF QUALITY.THIS IS DONE FOR QUALITY
PURPOSES.
STAGE 6 PACKING-IS THE LAST STAGE OF
PRODUCTION & INVOLVES THE ARRANGEMENT OF
THE PRODUCT IN CONTAINERS,BOXES, CANS,OR
PLASTIC PACKS BEFORE THEY REACH THE
CONSUMERS.
ACTIVITY:

1. WHAT ARE THE STEPS IN WRITING A PRODUCTION

PLAN.

2. WHAT ARE THE STAGES OF MANUFACTURING.

 ASSIGNMENT
GET A SAMPLE  OF A PRODUCT  WITH WHICH YOU ARE FAMILIAR.

ANSWER THE FOLLOWING QUESTIONS.

1. WHAT ARE THE FEATURES OF THE PRODUCT ?

2. HOW IT WAS PRODUCED ?

3. WHAT IT IS MADE OF ?

4. HOW MUCH IT COSTS TO PRODUCE IN TERMS OF MATERIALS  LABOR AND

OVERHEAD ?

5. POSSIBLE PROBLEMS IN PRODUCING THE PRODUCT ?

THANK YOU !

SEE YOU !