Science of Products Creation Part2

— Products Manufacturing and Supply that wants to be understood by Top Management —

Abstract

Products manufacturing and supply, which contain a lot of basic lessons for business management, are very important functions for products creation as well as products planning and development. This research was done to show what top management, especially less experienced management should learn about products manufacturing and supply. This paper discusses the basic process of products manufacturing and supply first. Basic concept of manufacturing is to achieve the targeted Quality(Q), Cost(C) and Delivery(D) by using Material, Man, Machine and Method(4M). Especially in order to create true added value, which generates more profits, the waste taking action such as waste of materials, waste of time, waste of waiting, waste of labor and so on is very important.

Management accounting is very important and valuable tool for management to understand the difference between the planned goal and the real numbers and to take proper countermeasures timely.

This paper also explains the benefit and risk of manufacturing in foreign countries and cost management by CVP (Cost Volume Profit) analysis.