To get a better grip of production industries, we are going to see first hand what it is like to be in the biz, the manufacturing biz that is. Each student must come up with a four part portfolio proposal of some type of prototype that we, as a class, could reasonably or feasibly manufacture in a virtual company that we will also develop.
We will not be going through the 5 stages of production. We will pretend that we are already in the manufacturing business and looking for a new line, a new product. So we will be doing R & D, research and development. In some instances, we will be putting the cart before the horse. For example; due to the fact that we do not know what kind of product we will be dealing with, we will actually identify the business after we agree on the product or products. This will happen once we produce the proposals and the prototypes. The most obvious type of business would be wood products because of our shop and so-on, but it may turn out to be cement, wax, or even stained glass depending on our resources and your imagination. Another thing is that we will start our prototypes before we develop our final designs. There is much to learned in the doing, that will greatly influence your final product. When you make it first, then design and plan the production, it is called reverse engineering. By no means, is that to say that you are going to start without a plan. It just means that you will very likely modify and enhance you original ideas. You will by the best of your abilities try to design, figure out all the materials and costs, as well how to go about making your product before you start. Some students may find themselves on special assignment, fulfilling a need within the school, and will apply the same requirements to their project.
team up to produce their physical prototypes, but not with out first coming up
with their own designs. Perhaps they may combine the best of ideas, produce both
designs or even get together and come up with a new design. The 4 part
Proposal must be an individual unique submission. There will be overlap with
those who worked together, but due to the fact their original ideas have to be
their own, requires different drawings for example. So what are the 4 parts?
- The operation tree (An abbreviated illustration of the entire sequential operational flow that results in the final product. )
- The task table ( identifies each operation, resources required, and the steps in performing that particular operation.
Once you tally up the results of your survey, conclude by comparing them to your costs and decide or suggest what barring this will have on your product.
Starting up the Company
Now we are going to get serious. We should have learned a number of lessons from the experience of the prototype exercise. This R & D (research and development) has made you some kind of expert on the production of your product. The first thing is to share what you have learned and sell your product to the rest of the class if you believe it has the potential of being a profitable venture.
Once the class decides on the product or products, (as we are likely to become one company with 2 departments that produce 2 different products) we are to develop the company around what we are to produce. Everyone is to become an investor in the company. As an investor, you have a financial stake in the business. If we don't make a profit, you loose money; if there is a profit, you make money. We will obviously have to do things differently than when we made the prototypes. Hopefully you will see that the approach to mass produce something is quit different from the single item approach. But first:
We have to decide on our company structure.
We need a company name that reflects what we do, what we are about.
We need a company logo
We also want a motto
Business' external frame work begins with the type of ownership. Ownership and operation of any organization or business falls under 3 categories:
Proprietorship - The proprietor (owner) is the single person, usually because of a good idea or skill, began a business. They are responsible for all aspects of running the company. Often they are the manager, fabricator, sales person, and bookkeeper; all in one. They may hire people to work for them, but the proprietor is liable for aspects of the company. In this situation, the owner's personal assets are not protected from creditors of the business.
Partnership - When there are two or more people responsible and/or running a company. Often when a proprietor's business grows too big for that person to handle. They may look for a partner to help with decision making or share operating responsibilities. Sometimes it may be a silent partner, one who offers financial assistance for a share in the profits, but has little influence in the running of the business.
Corporation - The type of ownership usually pertaining to large business organizations. With corporations, the business becomes a separate entity, like a third person. In this situation, the people running the business are not directly liable for any misfortune of the business. For example if someone was injured as a result of a fault with a product and decided to sue, or if sales dropped and the bank foreclosed on the company, or for any reason the company declares bankruptcy; the owner's and operator's personal property and savings would be safe, protected from creditors.
The internal frame work varies from one business to another depending on the size and philosophy of the business. Traditionally, western large business is run in a similar hierarchical format.
We then need to allocate everyone's duties, things like
Note that in small companies EVERYONE are workers, in other words, even the owner gets their hands dirty.
supply & demand