All You Need to Know About Production

The objective of any business firm is to maximize the difference between total revenue and total cost. This requires among other conditions that the firm purchases and combines factors inputs in such a way that the total cost of producing any particular level of output is the lowest possible figure, given existing technological and institutional conditions. The word production means manufacturing.

Production in the wide sense includes other activities that do not imply manufacturing of physical commodities. This is because the manufacturing of such commodities will be useless until they get to the consumers who need them for their satisfaction. This includes the process of getting goods manufactured to the final consumer such activities includes transportation, distribution and marketing. In addition , services which does not involve the “creating” of physical goods but which goes into adding to the satisfaction or utility of human beings are included in production and all these lead to the satisfaction of consumers and therefore, they are all part of production. A production process is the set of all activities that are required to convert a set of inputs (human resources, raw materials) into desired output such as finished products and services. Production therefore is the conversion or transformation of input into desire output.

WHY YOU MUST UNDERSTAND THE KEY ASPECT OF FACTORY PRODUCTION

There are major key aspects or let me say types of production namely: job production, batch production and flow production. It is possible that these keys speech of production are utilized in a factory at different stages of the production of a product. JOB PRODUCTION: is the manufacture of a single complete unit of a product by an operative or a group of operatives and a number of such products can be worked upon simultaneously by different groups of workers. Each group of workers will complete work on the unit before taking up another.

BATCH PRODUCTION: batch production requires that the work on any product is divided into parts or operations. And that each operation is completed through the individual units making up the batch before the next operation is under taken.

FLOW PRODUCTION: is the processing of the materials continuously and progressive. Thus, their is no idle time as in batch processing since work is complete on a unit at a stage of production, it is moved on to the next stage without waiting for the other Items in the batch. It is necessary each operation or manufacturing stage is of equal length, and there is no moment off the production line; inspection is located within the flow production line and the inspection function does not occupy more than the unit operation time, all stages are balance, the correct material, plant and equipment is provided on time and maintenance is by anticipation not default.

SEE THE TYPES OF GOODS IN PRODUCTION

The goods in production can be classified in various ways, such classification includes: capital goods, consumer goods, durable goods and non-durable goods.

CAPITAL GOODS: these are goods needed for the production of some other goods such as machines, equipments.

CONSUMER GOODS: are those goods that are needed for the satisfaction of immediate wants, such as food stuffs.

DURABLE GOODS: these are goods that can last for a long period of time and can therefore be used as many time as possible such as furniture, electronics.

NON – DURABLE GOODS: these are goods which have shot life spam and can therefore be used probably only once or a few number of time such as raw materials generally.

KNOW THE PRODUCTION FUNCTION

Supposing the maximum amount of any production that a firm can produce with any given collection of factor input is determined by prevailing institutional circumstances and by the existing state of technical knowledge. The relationship between the inputs and the outputs is expressed symbolically by a production function of the general form Q=F(V1 V2 Vn) where the variables V1 V2. Vn represent quantities of various factor input and the variable Q represent the maximum output that the firm can produce with a giving set of the input variables. It is assumed that the effect of an increase in any of the input variable is at least up to some limit to increase output. It is also assumed that the proportions in which various factor inputs can be combined to produce a given quantity of output are normally variable. Cases of fixed proportions (at least among ingredients) are found in certain chemical processes; but otherwise, experience indicates that input proportions can be varied significantly with output at a constant level.

FIND OUT ABOUT PRODUCTION LIFE CYCLE

The essence of successful new product introduction of simplification may lie in the appropriate timing of the action. The characteristics of a generalizing product life cycle. The product life cycle is an important tool for analysis and planning of the market activity, it shows the trends in sales and profitability of a particular product over its life cycle. This life spam further has clearly separate stages just like the life of an individual human being.

SEE MORE ABOUT STAGES IN THE PRODUCTION LIFE CYCLE

There are four major stages in the production life cycle these are: introduction stage, growth stage, maturity stage and decline stage.

INTRODUCTION STAGE: this stage will be dominated by the need to establish the product in the market by building buyers and distributors’ awareness of the product and its benefit, consumer advertising and trade promotions will be important in this initial communication process.

GROWTH STAGE: once successfully established, the new product may begin to enjoy rapid sales growth which along with the lack of competition may make this the most profitable stage of the life cycle of the product. The growth stage should be managed so that a full demand base is built in market; there is selective building of customer demand at the expense of existing or substitute product types marketed by competitors.

MATURITY STAGE: it is essential to company profitability and cash flow that , the stage be prolonged for as long as possible for well established products and brands this should be a time for consolation in the market place is mainly concerned with market share, so critical marketing activities need to be managed. To maintain product distribution and customer access to the product, to maintain customer loyalty to the brand or product and hence the race of re- purchase.

DECLINE STAGE: ether for reasons of technical obsolescence, changes in customer or Trade attitudes towards the product over familiarity with it or the emergence of a better product elsewhere in the market; a stage may be reached when sales and profitability start a consistence and perhaps irreversible decline. Once management has recognized and accepted the inevitable, he should withdraw all expenditure on the product above its variables cost of production, and perhaps raising its price.

SEE THE PRODUCTION FACTOR:

Production factors are the agents, inputs or resources used in the process of production. Without such factors, productions may not be possible. However, it is not production factors themselves that are of much importance but the services that such factors could render in production. These production factors includes: land, capital, entrepreneur and labour.

LAND: is the earth and all the natural resources found in and on it. Such resources includes: forest, rivers, minerals and even it includes such thing as sunlight. Land is the final source of all materials because any commodity can be ultimately traced back to the land. The reward of land is rent. The term land is used in the widest sense to include all kinds of natural (as distinct from man-made) resources.

CAPITAL: could be as all forms of wealth that are set aside for the production of further wealth. Thus, capital represents the collection of wealth that are not needed for immediate consumption. Capital is also described as a derived factor because capital has to be produced before being used to produce commodities.

ENTREPRENEUR: is a person who initiates, organizes, control and directs the process of production and bears the resulting risk in the production process. An entrepreneur is the business organizer and the one who combines other factors of production for maximum output. The shapes of the curves in this figure are based on a normal distribution. The actual shape of the curve and the length of duration of the four constituent stages will of course, varies for each production or brand.

Just Ask These 4 Essential Questions To Find The Best Affiliate Product For You

If you’re just starting out in the internet marketing world, then it’s likely that you’ll turn to affiliate marketing for some quick income. Affiliate marketing is easy to do, once you’ve chosen your product. But from all the offers available, how do you find the best affiliate product for you?

Well, that’s easy too, you just need to answer these four essential questions, to make sure that your affiliate career gets off to a great start!

No.1. Are You Interested In The Product You’re Marketing?

This definitely comes first. Just as when choosing a product to create yourself, you need to pick an affiliate product that you’re interested in or already know about. For example something connected with one of your hobbies or leisure activities, or previous employment.

Having this kind of connection to the affiliate product, will help to bring your personal experience into your promotion and will maintain your own interest when you’re doing your marketing.

You’ll find this of most help if you’re using the regular blogging and article marketing, which is recommended for the best affiliate product promotion. It’s always so much easier to write about something with which you’re familiar, rather than trying to make up a post for something that you don’t know about and have no real interest in. If you do go down that route, you’re likely to find your initial enthusiasm waning quite quickly and your promotional output slipping as well.

No.2. What Is The Commission Rate?

When you’re looking for the best affiliate product, you’re intending to make a profit. That means earning more from sales than you pay out in expenses. So, obviously, the commission rate that’s paid, coupled with the products selling price, is of prime importance.

The way to approach this step to finding the best affiliate product, is to take the subjects that interest you and compare the different affiliate offers in those markets, until you find the higher value products and their commission rates.

Obviously, at any given commission rate, the more expensive the product, the more profit you make. So, generally, the higher value products will be the best bet. However, you’ll also need to assess the product’s saleability as well (No.3.), in order to decide the overall profitability of the product.

This is something to be learnt from experience and a good step right now would be to have a look at the range of offers on ClickBank.com and familiarize yourself with the sales statistics they give for each offer.

No.3. Will The Product Be Saleable?

Here you need to consider the saleability of the product. By that I mean, is it likely to be popular. Is it something that people will want and is it something that your target market will find both affordable and value for money.

These are the key elements that will achieve the product sales, once the prospects have arrived at your site. Another aspect that will make sales easier, is if the product is seen as unique or is easily recognizable to customers, for example by having a brand name or trademark.

Picking a product that has this sort of individuality, will make it easier for you to carry out your search engine optimization and will bring more focused traffic to your site, than will a general product description.

No.4. Is The Product Merchant Well Established?

If you are right at the beginning of your own internet business, the best affiliate product to choose will be one from an established seller. Here you’ll get the benefit of knowing that all the production and commission systems are set up and bug free, and all you need to do is concentrate on making the sales.

Well established merchants will often have good quality sales aids, like ads and banners and sometimes offer affiliate help lines. They’re also more likely to have the benefit of some brand recognition, which will help your own sales and marketing.

So, if you’re ready to start, two of the best known places to take a look at are ClickBank.com and Commission Junction. Take some time and look around these sites to see how they work, what’s on offer and how the commissions are paid.

Then, wherever you choose your product remember to answer these four questions to find the best affiliate offer for you.

Productivity and Motivation

Motivation and productivity are two interrelated concepts, the latter fuels the former and the former is the ending result of the latter.

Productivity is a measure of performance to show how effective an organization can turn its resources into products (or services) intended.

Measure

Productivity is known as a relative measure despite its many forms, since being used for comparing the effectiveness of many different entities. These may be individuals, countries or organizations.

Productivity can show how effective an organization can transform the inputs into the outputs. Usually it is expressed as a ratio output/input in the manufacturing area.

What Multi-factor Measurement is

Productivity may be stated as multi-factor measures, partial measures or overall measures.

Partial productivity is single input. (for calculate products (or services) produced per hour, per plant or per worker etc.)

Multi-factor productivity measures can show the use of multiple inputs (for example output units in the total of labor, energy, capital or production units in the total of labor and materials).

What Productivity Motivation is

Productivity motivation is in relation to the way for motivating a person is performing an activity or task. Improvement programs for workers are based on the way to motivate workers to improve productivity.

Some organizations nowadays offer their workers the recreational activities and sports, leisure and fitness activities and several programs orienting to family.

This approach to increase the performance of employees can capitalize on quality measures such as value, quality circles, Total Quality Management (aka TMQ), performance and innovation standards (on-time delivery, profitability, customer satisfaction, efficiency) as well as bring a variety of team and personal incentives and rewards.

General Knowledge of Mutual Reward Theory

Mutual reward theory (MRT) is known as a very incentive program to help their employees of an organizations or company achieve their goals. This is achieved while meeting production goals of the company.

The greatest rewards are obtained when profits are optimal for all people. Generally, productivity is proportional to the success degree of MRT directly.

How to Calculate the Growth of Productivity

The growth of productivity is known as the measure of the sum of services and products produced within a given period of time. First, it is necessary to determine a standard. Next, the standard (or benchmark) can become the measure against that most of productions in the future will be measured against.

The annual growth rate In a country is being observed. The growth rate of productivity may be proportional to the people’s wealth directly. If the productivity levels increase, so the buying power of people increase too. The sum economy can benefit from the increase in turn.

Most valuable resource

Many researchers of productivity agree that people are the most valuable of all resources of the world. It has been suggested training and education are responsible to raise the productivity levels of individuals.

The researchers of productivity also suggested that achieving expertise through training and education could be maximized by the development of the ones wanting to work and learn and improve continuously at their potential.

Motivation

As there are motives for employees to be proud of who and what they are working for, these employees are able to add a remarkable value to the company or organization. They are able to contribute more to the productivity for themselves, their company or organization and the economy in general.

Choosing a Niche Product to Dropship

Time and time again I recommend that you choose a niche product to dropship from your website or sell on eBay. But how do you choose your niche? The following are brainstorming tips to help you come up with a niche product that can be sold online.

First: Check Your Purchases. Many prospective online entrepreneurs try to think of really out-there products like unicycles or bamboo knitting needles so they can enter a market that isn’t too saturated. This is a good idea in some respects, but one of the most important factors when choosing a product is to choose something that people actually buy online. One way to brainstorm this type of product is to think what you yourself buy online.

In the past month, I’ve bought three second-hand novels written by Mildred Walker, a pair of studded motorcycle boots, a Hebrew-printed t-shirt, tickets to a murder mystery play, a pair of Cubs swim trunks, and a calligraphy set. Not surprisingly, almost all of my purchases represent niche markets. Why is that? Because with the exception of a few broad categories like electronics, most items bought online are niche products. This is because common, general products can easily be purchased at physical locations close to your home. You go online to find unusual items that can’t be bought at the mall.

Second: Check Logistics. Let’s assume that I want to dropship my products, not purchase them wholesale. This means that some of the products I purchased last month are out of the running for my niche inspiration. Used books aren’t generally dropshipped, and neither are theater tickets. Shoes and clothing are usually sold wholesale, but in this case the items that I bought might still be appropriate since they weren’t common apparel and accessories. The studded motorcycle boots might be a good candidate for a dropship niche product for a few reasons: first, they are a product that’s not easily found in local stores. I bought those boots online because after searching the three malls in my area I couldn’t find anything quirky enough to satisfy my Sarah Connor Chronicles obsession.

The studded motorcycle boots are a good pick for another reason: they’re a theme product that I could easily build a whole product line around. With the boots as my central product, I could have a goth/punk/emo website, a motorcycle apparel site, or a studded leather accessories site. Finally, while I might not be able to find this product through a dropship supplier, they are expensive enough that I could possibly use a wholesaler to dropship them. Let’s say my wholesale supplier has a $100 order minimum: if a single pair of studded boots costs $125, I can likely have single pairs shipped directly to my customers even though the supplier is ostensibly a wholesaler.

Stay tune for more tips on choosing a niche to dropship products.