L.8 - Production

Conversion of raw materials, Know ye' is production called, Methods, Processes, Resources, Have to be well controlled.

UDYAM SHASTRA- Chapter 09, Verse 05

Key Objectives :

This module and its associated activities should help the students to:

    • Understand how different production strategies affect productivity and profits.

    • Compare unit production and mass production.

Enterprise Concepts:

Production.: Production is the intentional act of manufacturing, assembling or creating something useful.

Production process/system.: Production Process is an organized procedure for accomplishing the conversion of inputs into outputs.

The production process may also be referred to as a Production System.

Enterprise idea.: IDEA of an Enterprise is a broad concept and is a simplified way of referring to VISION or MISSION of the enterprise. IDEA ,then, is not just the name of the product or service.

For e.g. "Babies should be healthy" could be an idea that leads to health biscuits as a product.

"School-children should enjoy physical activity" could be an idea that leads to making sports goods as a product.

"People in the town should wear neat clothes " could be an idea that leads to laundry as a service.

Production systems.:

M's of a Production Plan

Important parts of a production plan are the 3 M's:

1. Men:

This implies people who are required for production.

2. Machine:

This implies tools, equipment and machinery required to process the materials.

3. Materials:

This implies raw materials and components required to be processed into products or services.

An entrepreneur has to think of all three aspects in an integrated manner. This is represented in the following figure:

1. MEN: (Men imply Men and Women)

1.1 Men and their activities

An entrepreneur may do her enterprise single handily.

But more than often she will need people to work for her.

In the latter case, she must be able to understand

human abilities suited to her enterprise.

These abilities include:

  1. Physical abilities

  2. like lifting, cutting, hammering, soldering, turning, grinding etc.

  3. Mental abilities

  4. like - data sensing e.g. light, temperature etc.

  5. - data processing i.e. interpreting the data sensed

  6. - decision making i.e. using the data sensed and processed, to make decisions for

  7. effective actions

  8. - communication i.e. transmission of data and thoughts through talking, writing, signaling etc. to achieve the enterprise objectives.

  9. 2.1 Placing Men:

  10. After an entrepreneur has identified the physical and mental abilities required by her for people she wishes to engage for her enterprise, she must be able to locate people with these abilities and match them to the work she requires to be done in the enterprise.

  11. MACHINES :

  12. Machines and tools are often required to produce a product or offer a service.

  13. The entrepreneur would do well to keep some of the following points in mind about machines and tools:

  14. i) Is it appropriate? Does it perform the production function?

  15. ii) Is it affordable?

  16. iii) Does it have a service backup?

  17. iv) Can the machine be upgraded to make it modern?

  18. v) Is it safe to use?

  19. vi Other questions.


  21. The materials and supplies required for production should be well thought of and documented .The entrepreneur may do well to keep the following points in mind

  22. about materials)

  23. i) Where can you buy it from (suppliers) ?

  24. ii)How often do you need the materials ?

  25. iii) How much of each material do you need for one unit of production or service?

  26. iv) How much will you need to buy each time?

  27. v) Other points.

  28. Trainers should ask the students to study the Production Plan flow-chart to appreciate more fully the importance of these three M's.

Enterprise Skills: The student 'Activities' in each lesson are designed to clarify the ENTERPRISE CONCEPTS of the lesson and develop some ENTERPRISE SKILLS (E.SKILLS).

The E.SKILLS included in a lesson may not be exhaustive, but are indicative. E.SKILLS stated in a lesson elsewhere may also get addressed through the activities of a particular lesson.

Some useful E.SKILLS are dealt with below:

Assembling product.: Very often an entrepreneur has to produce a product by joining combining, riveting, soldering, fastening etc. of component parts. This is referred to as "Assembling a Product".

Discipline in production.: The ability to stay focused and adhere to a schedule and deadlines is called "Discipline in Production".



Instruction To Students

    • Students should see the pictures given below, which demonstrate how the pen is produced. There could be minor changes in sequence of steps and piece parts depending on ball pens available for production.

    • After completing the activity, each group should present and share its main discussion points with the rest of the class.


Instruction To Students

    • Mass production will require each student to do part of the total job to produce a pen. A group of 6 students will perform this activity.

    • After completing the activity, each group should present and share its main discussion points with the rest of the class.


Instruction To Students

      • You should study the Production Plan Flow Chart given. In your group decide some product/ service your group wishes to produce or provide.

      • Use some of the questions given in the Production Plan chart to make your own Production Plan.

      • Use the 3M’s concept for this.

      • After completing the activity, each group should present and share its main discussion points with the rest of the class.

Work Sheet

Q 1. Idea: What is the IDEA behind your enterprise ?


Q 2. Men/Women :

2.1 What physical/mental abilities are required by you/your workmen?


2.2 How many workmen are required?


2.3 Efficiency:

Can you divide up the work into parts or sections? What are these sections?

Who is going to be responsible for Efficiency and Quality control?


2.4 Place of Work:

Where are you going to do the work? Is it suitable? Is it big enough?

Does it have the required power supply, water etc.?


2.5 Management:

Who is going to make sure that:

- Production begins in time with right equipment?

- Waste is reduced and things are made properly?

- Supplies are brought on time and in the correct amount?


2.6 Record Keeping:

What details do you need about what has been produced or what service has been offered?

What details do you need about material supplies?

What details do you need about stocks?

Who will be the record keeper?


Q 3. Machines :

3.1. What machines, tools and equipment do you need?

3.2. Where are you going to borrow, hire or buy these machines,tools and equipment?


Q 4. Materials :

4.1. Where can you buy your material from?

4.2. How often will you need the material ?

4.3. How much will you need each time you buy?

4.4. Can you get discounts?

4.5. Who will do the buying ?

4.6. Stores & Stocks

Where are you going to store the things?

How are you going to get this storage place?