Production process
It is the description of the
process which need not be
lengthy but should cover all the
major operations
Capacity utilization
100% capacity utilization
normally means that the
equipment is working eight
hours a day, six days a week
Raw material
requirement
Find out the type, quality and
quantity of raw materials
needed
Find out input output or
conversion ratio
Overhead expenses
Overhead expenses include cost
such as :
Rent
Maintenance and repair cost
Depreciation
Cost of utilities (water, electricity)
Business organization
There are four comon forms of
business organization:
Sole proprietorship
Partnership
Private limited company
Public limited company
Most small business however, are
registered as sole proprietorship
Business management
To manage and operate business
efficiently, their must be some
structure of authority and
responsibility;
Division of labour
Chain of command
Job disign