Manufacturing Performance Management


Visitors: 391

Pricing is undoubtedly one of the most important decision areas of manufacturing performance management. Price and sales volume together decide the revenue of any business. As the sales volume in itself is dependent on price, pricing really becomes the key to the revenue of the business. Pricing is crucial to profits as well.

Stated simply, price is the exchange value of a product. In fact, price revolves around two elements- utility and value. Utility is the generic property of the product to satisfy a need or want of the customer. Value is the quantitative worth the consumer attaches to the product, for which he is willing to part with a certain quantum of money.

Two categories of factors - internal factors and external factors - influence the pricing decisions of any enterprise. In each of these categories some may be economic factors and some psychological factors; again some factors may be quantitative and yet others qualitative. The firm has certain objectives- long term as well as immediate- in pricing. For example, it has certain costs of manufacturing and marketing; and it seeks to recover these costs through the price.

The firm may have a basic philosophy on pricing. The pricing decisions of the firm have to be consistent with his philosophy. Pricing also has to be consistent with the overall objectives of the firm. The firm is also seeking a particular public image though its pricing policies. All these constitute the internal factors that influence pricing. Moreover, pricing strategy has to fit into the overall marketing strategy. It cannot exist interdependently.

In addition, any business firm has to encounter a set of external factors while formulating its pricing strategy. In the first place, the nature of the economy and the nature of competition have to be reckoned with. The purchasing power of consumers has also to be reckoned with. The bargaining power of major customer groups and supplier groups is another important consideration.

Performance Management provides detailed information on Employee Performance Management, Manufacturing Performance Management, Marketing Performance Management, Performance Management and more. Performance Management is affiliated with Job Performance Appraisals .


Article Source:

Rate this Article: 
Mexican Manufacturing – Maquiladora Manufacturing Services in Baja, Mexico
Rated 4 / 5
based on 5 votes

Related Articles:

Performance Change Monitoring - Why You Should Reconsider a Key Principle of ..

by: Rene Tenazas (December 13, 2007) 

Effective Performance Management - 13 Questions to Help You Maximize Employee ..

by: Barbara Brown, Ph.D. (August 15, 2008) 

15 Performance Management Practices That Encourage Positive Performance

by: Barbara Brown, Ph.D. (September 16, 2008) 

Manufacturing Inventory Management Software

by: Alison Cole (July 28, 2006) 
(Computers and Technology/Software)

Interim Management Provides Hope for UK Manufacturing Sector

by: Pauly Wilson (November 29, 2005) 

ERP for Manufacturing- A Great Business Management Tool

by: Kulwant Singh (November 21, 2016) 
(Computers and Technology/Software)

Compound Purification Management Using Manufacturing Execution Systems

by: Jojo Jose (January 03, 2007) 
(Computers and Technology)

Project Management Series - Building Your Job Shop & Manufacturing Quality Plan

by: Dusty Alexander (June 11, 2008) 

Manufacturing Jobs In Mentor Ohio - Use Your Manufacturing Skills To Make a Six .

by: Leigh Brooks (March 10, 2008) 
(Business/Careers Employment)

Mexican Manufacturing – Maquiladora Manufacturing Services in Baja, Mexico

by: Todd Going (July 14, 2006)