Production is organized around some basic inputs
These inputs are set out in the form of an organization consisting of
1. Marketing – Knowing what the targeted customer or consumer requires
2. Having the know-how (technology) to produce the goods identified
3. Creating a structure for the production process –
a) Administration
b) Procurement of all inputs-Raw Material; Equipment; Factory; Location; Competent people with specific skills and varying levels; Services (electricity, telephone, water, road network, access to supporting services such as machine shops etc.
c) Process
d) Quality Management
e) Inventory
f) Engineering
g) Sales
4. The basic concept is to take all these (in the structure) and convert them through a process into a finished good that is demanded by the customer or target market
5. Good production has as a pre-requisite, built in checks that audits the quality of the process through all stages of production. In so doing Quality is not inspected into the product at the end but rather it is built into the product. It avoids costly mistakes, rework and recall from the market so in today’s world we hear of standards such as HACCP, ISO9002. These are methods of documenting and controlling your production process that will guarantee the finished product being the same every time and all the time.
6. Management of cost – begins with procurement, materials of the right quality standards as predetermined by the business, inflow of that inventory in the right quantity at the best price. Avoiding excess stock -will have high interest bearing cost
7. Productivity – Do it right the first time; Engineering to have machinery available at all times to avoid downtime and waste
8. Management to have good business practices, good industrial relations practices, feedback mechanism that tell when things are out of line, thereby taking corrective actions. E.g. accounting systems that give daily information
9. Production Process that is competitive to other producers and a process that aids quality and productivity.
Financial Data: Go to to get financial information.

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