what is production and it’s meaning ?

As per Carl Heyel (16 Feb 1908 - 16 May 2000),

"Production is the process of transforming raw materials or purchased components into finished products for sale."

Production is a process of transforming (converting) inputs (raw-materials) into outputs (finished goods).

So, production means the creation of goods and services. It is done to satisfy human wants. Thus, production is a process of transformation.

Types of production system

A. Job production system

B. Batch production system

C. Mass production system

• Job production- sometimes called jobbing or one-off production, it is characterised by manufacturing of one or few quality of products designed and produced as per the customer specification within prefixed time and cost.

• It requires or demands unique technological, demands processing on machines in a certain sequence .

• batch production-as a form of manufacturing in which the job passes through the functional departments in lots or batches and each lot may have a different routing .

• In this system limited number of products produced at regular intervals and stocked awaiting sales .

• Mass production-manufacturing of discrete parts or assemblies using a continuous process are called mass production .

What is productivity ?

Productivity is the ratio of output to inputs in production; it is an average measure of the efficiency of production. Efficiency of production means production’s capability to create incomes which is measured by the formula real output value minus real input value.

EntrepreneurshipIntroduction

Entrepreneur word has origin of French and it means someone who identifies the profitable opportunity and organize the business venture and assume the risk for it and finally convert that in to profitable activity.

In olden days , entrepreneur was consider who sign the contract and take particular responsibility. On successful contract ,entrepreneur was being paid some amount.

Today , entrepreneur is a dynamic person who innovates, assemble inputs, select human power to perform the required function and creates wealth for himself as well as his society.

Entrepreneur is one who bring resources, labor, materials, and other assets into combination that generate greater value than resources utilized by applying his innovative ideas.

CHARACTERISTICS OF ENTREPRENEUR Risk taking ability Self-confidence Qualitative organizer Problem solving capability Foresight Decision taking ability Technical knowledge Communication ability Creativity

DIFFERENTIATE BETWEEN ENTREPRENEUR AND ENTREPRENEURSHIP

ENTREPRENEUR ENTREPRENEURSHIP

Entrepreneur is used to describe the person who establish and manage their own business.

The process of development of entrepreneur is called entrepreneurship.

Entrepreneurs are tangible persons and they are the role players.

Entrepreneurship is the quality and intangible asset of the entrepreneur.

ECONOMIC ORDER QUANTITY

DEFINATION:

Economics order quantity is the order quantity that minimizes total inventory holding costs and ordering costs.

This is the one type of the classical production scheduling models.

There is always fixed cost for each order placed, regardless of the number of units ordered . there is also a cost for each unit held in storage sometimes expressed as a percentage of the purchased cost of item.

The total cost associated with the purchase , delivery and storage of the product, is minimized and respective quantity is termed as EOQ.

EOQ depends upon on ordering cost as well as on storage cost.

From the we can observe that the carrying costs linearly various according to number of quantities held as inventory , but the ordering cost reduces as the number of quantity increases in per order

So , according to that the total cost decreases up to some quantities ordered but again it increases.

The figure given below shows the concept of EOQ diagrammatically.

Thank you