Small and medium enterprises and production management functions



What is a small and medium-sized enterprise? What is a small and medium-sized enterprise? Actually, this standard is very difficult to clarify. Enterprise standards can be changed depending on different countries and different times. For example, in France, there are about 300-500 people; in Japan, it depends on the industry, for example, in the mining, manufacturing, and construction industries, the maximum is 300 people and 100 million yen, in the wholesale industry, the maximum is 100 people and 30 million yen, and in the retail and service industries, the maximum is 50 people and 10 million yen. In Vietnam, it is about 200-500 people.

Five main activities of small and medium enterprises

– Internal logistics: Includes activities such as: loading, unloading, warehousing, inventory checking, and planning transportation from suppliers to businesses.
– Production: Includes activities such as: processing raw materials into products, semi-finished products, operating and maintaining equipment, assembling, etc.
– Peripheral logistics: Includes activities such as: gathering, storing, and delivering products to the point of consumption.
– Commoditization: Includes activities such as: order processing, distribution channel selection, sales promotion, etc.
– Customer service: Includes activities such as: pre-sales service and after-sales service.

Four small and medium-sized enterprise side activities

-Supplies
– Technology development
– Human resource management
– Business organization

Production and Service Management Function

– Production and service management is the process of transforming raw materials into goods or services through the use of human resources, materials and machinery.

– Input of production system:

  • Product planning: product evaluation, design and development
  • Raw material management: managing all stages of purchasing, supplying, controlling, transporting goods and controlling inventory costs
  • Labor: knowledge, skills, health status, and behavioral patterns.
  • Capital: appropriate to the type and scale of business
  • Management: the coordination of the above components into production.
  • Processing:
  • Factory location, factory layout
  • Raw material management (transportation, packaging, storage, etc.)
  • Maintenance (factories, structures, machinery, equipment)
  • Production scheduling,
  • Production check.

– Output of the production system:

  • Control product and service quality
  • Cost Control