Question
What are material resources? While planning state the important decisions to be made by the entrepreneur.

Answer

Whether a business enterprise markets a product or a service, certain operations are essentially carried out combining raw material, processing and assembling, machines, tools, power etc. A deep insight into the production processes is essential for effective handling of the enterprise. To successfully convert raw material into finished products with value addition, a wide arrange of arrangements need to be worked out by entrepreneur. Some of the important decisions are regarding:
  1. Size of the unit and its installed capacity.
  2. Identifying machinery and the technical know-how required.
  3. Technical training involved.
  4. Quality control systems required.
  5. Type of technical staff required.
  6. Maintenance cost.
  7. Availability of spares parts and support services (after sale services).
  8. Wear and tear rate of assets.
  9. Type of raw materials required.
  10. Supplies of the raw material, their number and location.

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