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Effective Business Operation/Production

Business production or operation is one of the most important function in business management. Like what I’ve said in the previous article, production is actually the life of the business. The simplest definition of its function is it is a process of converting materials and labor into products and services as competently as possible to maximize the profit of the business or company. For me, it is the behind the scenes. It is the procedure and preparation to deliver the highest level of efficiency in products or service. Below are the keys to a successful business operation or production.


1. Demand. The first thing to determine is the demand. How much do you need to produce and is the resources enough to meet the demand? This is where costing saving skill is necessary. You have to be creative as much as possible in your negotiation skill for your production cost to save a lot of money. Making sure that the production meets the demand is a number one factor that affects business production’s success.   

2.  Labor Force Requirements. To make sure that the production meets demand, you have to estimate the labor force requirements ahead of time. Failing to compute this accurately could lead to company’s big loss. This is one reason why a lot of construction companies in Kingdom of Saudi Arabia today have been filing bankruptcy. Recruitment of people overseas are ongoing and massive lay off go hand in hand at the same time. The needed labor force requirements should be gauged properly because failing to do so may lead to production or business operation’s failure. If there’s an increase in demand, see first if you can extend the employees’ working time before considering hiring new workers. Mismanagement in this area contributes a lot to company’s loss.   

3. Quality. Meeting the demands in production is not the only thing to be focused on but also producing highly effective and quality products or service. This is one reason why quality assurance or quality control is another important branch or department in business’ production or operation. There must be a clear set of standards and make sure that the production meets such criteria at the scheduled time. 

4. Timeline. A goal without timeline is not a goal at all. You have to make sure that you have a clear record or deadline on production’s delivery, dues or bills to pay and business’ goals. Having a clear timeline will also help you estimate the time and amount of working operation needed to meet certain deadlines to avoid unexpected delays. -M.D.

We’d also love to hear from you. Feel free to comment below to share your business experience. You may also email us at mybusinessgrowsbigger@gmail.com for free business consultation. You may also follow us on twitter https://twitter.com/BusinessSavvy2

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