Saturday, 8 October 2016

key 10 Issues that will determine the production growth of your business

key 10 Issues that will determine the production growth of your businessThere are several factors, issues that determine or affect the volume of production in a business and the key 10 issues are outlined below

  1. The quantity and quality of factors of production: ( that is land, capital and entrepreneur) the above factors determine the volume of production in a lot of ways. e.g the amount of capital determines the labour to be hired and raw materials to be bought. the quality and quantity of land available determines the agricultural products or output and the size of factory to be built. the efficiency of labour determines to a large extent the amount of goods to be consumed. generally the availability and the efficiency or inefficiency of the factors of production determine the volume of production.
  2. The size of market: the size of market here talks about the extent the products produced are in demand. this is because production is tailored according to demand.
  3. the nature of the product: If the goods are durable in nature, more can be produced and stored. on the other hand, perishable goods have to be produced based on the ones that can be sold at that time since they cannot be stored for a long time
  4. availability of raw materials: the raw materials available will determine that quantity of goods that will be produced . if the raw material available are not enough , production will be adversely affected.
  5. the management: the efficiency or in efficiency of the management is efficient , more goods will be produced and vice versa
  6. the attitude of the workers: the attitude of the workers of a firm to work has a lot of influence in determining the volume of production. if workers show negative attitude to work, it will affect the volume of goods to be produced
  7. storage facilities: availability of these encourage mass production because the higher the cost of installing storage facilities, the less the volume to be produced and vice versa
  8. division of labour: the application of division of labour or its non application of labour determines the volume of production. if it is applied , it will make workers to become specialist in their different stages of production and increase the volume of production and increase the volume of production and vice versa.
  9. the level of technology: the level of technology used in production determines to a great extent the volume of production. for instance the application of machines and human labour in production will increase the level of productivity and vice versa.
  10. government policy: this has to be with the nature of economic policy of the government. the more favorable the government economic policy, the more the volume of goods to be produced and vice versa

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