Nations that to glory aspire, Their common men should prosper, By nurturing in every household, An enterprising culture.

UDYAM SHASTRA- Chapter 02, Verse 01

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.:

n 3 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 machineries
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 
    like lifting, cutting, hammering, soldering, turning, grinding etc.

  2. Mental abilities 
    like - data sensing e.g. light, temperature etc.
    - data processing i.e. interpreting the data sensed
    - decision making i.e. using the data sensed and processed, to make decisions for
    effective actions
    - communication i.e. transmission of data and thoughts through talking, writing, signaling etc. to achieve the enterprise objectives.
    2.1 Placing Men:
    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.
    Machines and tools are often required to produce a product or offer a service.
    The entrepreneur would do well to keep some of the following points in mind about machines and tools:
    i) Is it appropriate? Does it perform the production function?
    ii) Is it affordable?
    iii) Does it have a service backup?
    iv) Can the machine be upgraded to make it modern?
    v) Is it safe to use?
    vi Other questions.

    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
    about materials)
    i) Where can you buy it from (suppliers) ?
    ii)How often do you need the materials ?
    iii) How much of each material do you need for one unit of production or service?
    iv) How much will you need to buy each time?
    v) Other points.

    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".


Activity 1 - Unit production.

Activity 2 - Mass production.

Activity 3 - Make your own production-plan.