Entrepreneurship and Small Business Management

Section 2: Production and Distribution

Section 16.2 Summary
Production and distribution are two ways entrepreneurs bring new products to market. Production management has three functions: (1) acquiring the resources needed for production, (2) planning the steps to convert the resources into products, and (3) making sure the products meet the standards set for them. Businesses plan their production through schedules. Two commonly used graphic scheduling techniques are Gantt charts and PERT diagrams. Quality circles and inspections are two ways to ensure that the goods and services you produce meet the standards you set for them. Productivity, automation, and preventative maintenance must be managed effectively as part of the production process. Distribution management concerns the physical movement of the product from the manufacturer to the customer.

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