The enterprise
and business on the market economy
Economics and Production
Organization
Nature of enterprise
Marketing
Production
Finance
Innovations
The personnel
Management
- Purpose of enterprise
- Objectives of enterprise
- Production as a system
- Example
Purpose of enterprise
- High quality of output
- High labor productivity
- Low cost of production
- Maximum profit in long-term prospect
Objectives of
enterprise
- full and timely satisfaction of requirements
of the consumers
- competitiveness of production on the basis
of high quality of output
- flexible updating of production on the
new demands of customers
- Effectiveness of production
- Favorable and safety labor conditions
- Personal trainings
Nature of enterprise
The enterprise is a basic primary
economic unit in economic system which targeted on making and realizing
production process
Has subsystems:
- Production/Operations
- Finance
- Marketing
Enterprise
Operations function
consists of all activities
directly
related to producing goods or providing services.
Finance
Production/
Operations
Marketing
Organization
Business Operations Overlap
Marketing
Production/
Operations
Finance
Production
Input
Production
Output
Factors of
Production
Factors |
Resources |
Economic
benefit |
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Land
- a factor of production comprising all naturally
occurring resources
- Natural resources are fundamental to the production
of all goods, including capital goods.
- capital good, or simply capital in economics, is a manufactured
means of production.
- Capital goods are acquired by a society by saving
wealth which can be invested in the means of production.
Wage labor
- is the socioeconomic relationship between a worker
and an employer, where the worker sells their labor under a formal or
informal employment contract
Capital
- In economics, capital, capital goods, or real capital are those already-produced
durable goods that are used in production of goods or services
- capital is one of the factors of production
Physical Capital
- Two types
- Real (fixed)-
- Working-
Types of Operations
Operations
Examples
Goods Producing
Farming, mining, construction
,
manufacturing, power generation
Storage/Transportation
Warehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange
Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment
Films, radio and television,
concerts, recording
Communication
Newspapers, radio and television
newscasts, telephone, satellites
Manufacturing vs Service
Characteristic
Output
Customer contact
Uniformity of
input
Labor content
Uniformity of
output
Measurement of
productivity
Opportunity to
correct
Manufacturing
Tangible
Low
High
Low
High
Easy
High
Service
Intangible
High
Low
High
Low
Difficult
Low
quality problems
High
Food Processor
Inputs
Processing
Outputs
Raw Vegetables
Cleaning
Canned vegetables
Metal Sheets
Making cans
Water
Cutting
Energy
Cooking
Labor
Packing
Building
Labeling
Equipment
Hospital Process
Inputs
Processing
Outputs
Doctors, nurses
Examination
Healthy patients
Hospital
Surgery
Medical Supplies
Monitoring
Equipment
Medication
Laboratories
Therapy
Value-Added
•
The difference
between the cost of inputs
and the value
or price of outputs.
Inputs
Land
Labor
Capital
Transformation/
Conversion
process
Outputs
Goods
Services
Control
Feedback
Feedback
Feedback
Value added
Operations Interfaces
Function of
subsystems
- Marketing – to come
out on top on sales of production of a certain kind on the market
- Production – to reach
the highest labor productivity and the minimum cost price at production
of demanded quality.
- Finance – to keep
and support at necessary level all kinds of financial resources.
Function of
subsystems
- Innovations – to win
leading positions on input of new kinds of production, using on researches
and workings out certain percent of profit.
- The personnel – to provide the conditions necessary for development
of creative potential of workers and increase of their level and interest
in work.
- Management – to define critical areas of administrative influence
and the priority problems providing reception of planned results.
General shifts
of enterprise
- The technological unity – means close interrelation of all
parts of enterprise which is supplemented with presence of factory services
- The organizational-economic
unity - organization of production
on a commercial basis
- Economic independence – provides a self-sufficiency by real and working
capital, independent sale of production, financial report.
Production as
a system
- Departments
- Shops
- Sections
- Workplaces
ExampleOJSC "Glubokoye
dairy-canning factory" ОАО «Глубокский МКК»
- The main production units (milk processing and
output of the production), workshops and auxiliary units:
- canning shop;
- butter workshop;
- whole-milk processing shop;
- workshop of dried milk;
- can workshop.
- Auxiliary units include
- boiler room
- ammoniac compressor-house;
- electric shop;
- machine workshops;
- motor transport shop;
- building site;
- battery-house;
- electrolytic- house;
- smithy;
- laundry
- Для осуществления производственной деятельности на организованы цеха основного производства (переработка молока и выпуск продукции), цеха и участки вспомогательных производств.
- Оонсновные производственные подразделения:
- консервный цех;
- маслоцех;
- цельномолочный цех;
- цех сухого молока;
- жестянобаночный цех.
- К вспомогательным подразделениям относятся:
- котельная;
- аммиачная компрессорная;
- электроцех;
- механические мастерские;
- автотранспортный цех;
- ремонтно-строительный участок;
- аккумуляторная;
- электролитная;
- кузница;
- прачечная.
- http://glmkk.by/ru/production/price
Structure of
enterprise