WEEK 3 Flashcards
It refers to the process of managing the activities of a business to furnish desired outputs of products and services.
It involves planning, executing, and directing operations to convert raw materials into finished goods and services.
Production Management
The division of production management functions into 5 P’s
✓ product
✓plant
✓ programme
✓ processes
✓ People
the link between production and marketing.
Product
should match the needs of the product; market, the worker and the organization.
Plant
The plant is concerned with;
a. Design and layout of building and offices
b. Reliability, perfect, maintenance of equipment
c. Safety of operations
d. The financial constraint
There are always number of alternative methods of creating a
product. But it is required to select the one best method, which
attains the objectives.
Process
refers to the timetable of production.
Program
Production depends upon people.
➢ The people vary in their attitudes, skill and expectations from the
work.
People
initial idea to after its market release or its
commercialization.
Product Development
also called new product management.
Product Development
Series of Steps:
- Idea Generation (Brain Storming);
- Idea Screening/Validation;
- Concept Development and Testing
(Prototyping) - Market Strategy and Business Analysis
(7Ps/FS) - Product Design and Development,
- Market Testing;
- Marketing Entry and Commercialization.
It is the continuous and systematic
quest for new product
opportunities, including updating or
changing an existing product.
Idea Generation (Brain Storming)
less wanted product
ideas out of the running.
Idea Screening/Validation
must be tested on a true
customer base.
Concept Development and Testing (Prototyping)
It is an analysis that identifies the product strategy of how to optimally market and sell a product or service.
Market Strategy and Business Analysis (7Ps/FS)
7 P’s of marketing:
✓ product,
✓ price,
✓ Promotion,
✓ place;,
✓ People,
✓ Process, and
✓ Physical Evidence.
yields information critical to the
product’s success.
Feasibility Analysis or Study
It is a series of steps that includes the
conceptualization, design, development
and marketing of newly created or newly
rebranded goods or services.
Product Design and Development
the goal is to validate the entire concept
Market Testing
offering the product to a
random sample of the target market.
Test Market
the product is introduced to the target market.
Market Entry and Commercialization
broken down into seven steps that track how a product goes from an idea to a viable commercial good.
product development life cycle
7 Steps in product development life cycle
initial product concept
➢ market research
➢ planning,
➢ prototyping,
➢ sourcing,
➢ assessing costs and prices, and
➢ a commercial introduction.
from the time it is introduced in the market till it leaves the
market.
Product Life Cycle
A product life cycle consists of four stages:
✓ introduction,
✓ growth,
✓ maturity, and
✓ decline.
first time customers are introduced to the
new product.
Introduction Phase
growing demand, an increase in production, and expansion in its availability. the product becomes more popular and recognizable.
Growth Stage
is the most profitable stage,
the time when the costs of producing and marketing decline.
Maturity Stage
increased competition as other
companies emulate its success, the product may lose market share and begin its decline.
Decline Stage
is the process of controlling a
company’s operations to provide the services and products it
wants to produce. It comprises organizing, carrying out, and
managing processes that transform raw resources into
completed products and services
Production Management
