1. Principles of Business, Marketing, and Finance Production, Distribution, and Other Business Operations Copyright © Texas Education Agency, 2011. All rights reserved

2. “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2011. All rights reserved 2

3. Production Activities Product Research Applied Research -studies existing products to develop design improvements or new product uses Pure Research -research done without a specific product in mind with the goal of discovering new solutions to problems Product Design -new product idea is developed into a product to sell profitably Copyright © Texas Education Agency, 2011. All rights reserved 3

4. Production Planning Process Production Resources -machines, tools, other equipment Personnel -employees with necessary skills Copyright © Texas Education Agency, 2011. All rights reserved 4

5. Inventory Management Detailed account of a company’s materials, supplies, and finished products Maintains the supply of all resources needed for production and the products produced Copyright © Texas Education Agency, 2011. All rights reserved 5

6. Manufacturing Procedures Organizing the work area by type of process or assembly required Improving Manufacturing –Need for faster production –Need for increased quality –Need for reduced costs Copyright © Texas Education Agency, 2011. All rights reserved 6

7. Continuous Process Improvement (CPI) Increases the quality of work by reducing errors, inefficiencies, and waste Achieves goals by improving the quality of work Benchmarks-best practices among all competitors Copyright © Texas Education Agency, 2011. All rights reserved 7

8. Importance of Business Operation Determines the Success or Failure of a Business Copyright © Texas Education Agency, 2011. All rights reserved 8

9. Facilities ManagementJust-in-TimeScheduling Safety & Security Logistics Information Management Types of Business Operations Copyright © Texas Education Agency, 2011. All rights reserved 9

10. Tools for Business Operations Operational Plan –How work will be done –Who will do the work –What resources will be needed Schedule -time plan for completing activities Standard -specific measurement against which an activity or result is judged Copyright © Texas Education Agency, 2011. All rights reserved 10

11. Using Technology to Manage Operations More accurate decision making and planning Easier to access and exchange information Supply chain management -technology allows companies to share ordering, production, shipping information, etc. Collaboration software -real-time communications for team members located in different parts of the world Copyright © Texas Education Agency, 2011. All rights reserved 11

12. Types of Businesses Producers –Extractors –Manufacturers Intermediaries -sell goods and services of producers to consumers and other businesses Service Business -carries out activities that are consumed by its customers Contingent Worker -no contract for long-term employment Copyright © Texas Education Agency, 2011. All rights reserved 12

13. Product Planning Product-everything a business offers to satisfy a customer’s needs –Basic product –Product features-additions and improvements to the basic product –Options-customers are offered choices of features –Brand name-unique identification –Packaging-provides protection and security for the product –Guarantee or warranty-builds customer confidence Copyright © Texas Education Agency, 2011. All rights reserved 13

14. Product Planning Procedures Idea Development Idea Screening Strategy Development Production and Financial Planning Limited Production and Test Marketing Full-scale Production Copyright © Texas Education Agency, 2011. All rights reserved 14