1. Production and Operations Management Better Business 1st Edition Poatsy · Martin © 2010 Pearson Education, Inc.1 chapter 11 Slide presentation prepared by Pam Janson Stark State College of Technology

2. The Production Process For goods and services Efficient production processes: oDecrease costs oAllow for lower prices oImprove product oAttract customers oIncrease profits © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2

3. Mass Production Relies on machines and automated assembly lines to produce goods that are identical and adhere to certain standards of quality On an assembly line, partially complete products are moved from one worker to the next on a conveyor belt A disadvantage is inflexibility © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3

4. Facility Location Factors to consider: Raw materials Transportation costs Human factors oLabor availability Physical factors oUtilities oCommunication © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4

5. Transportation Factors Proximity to market Cost of transporting raw materials Presence of highways and other transportation systems © 2010 Pearson Education, Inc.5

6. Human Factors Living conditions oBusiness brings opportunities or, potentially, threats oBusiness seeks area with high quality of life Labor availability oNeeded skills Laws and regulations oProtecting workers oProtecting the environment © 2010 Pearson Education, Inc.6

7. Production Management Also called operations management Goal: ensure products and services provide utility Production planning oFacility location oFacility layout oWhat to produce oHow much to produce oWhat processes and machinery to use oHow to meet the needs of employees oQuality control Production planning oFacility location oFacility layout oWhat to produce oHow much to produce oWhat processes and machinery to use oHow to meet the needs of employees oQuality control © 2010 Pearson Education, Inc.7

8. Just-in-Time (JIT) Inventory Control Keeps on hand the smallest amount of inventory possible Items ordered “just-in-time” for use Reduces storage costs Requires strong supplier relationships Requires robust inventory control system oTechnology helps streamline the process © 2010 Pearson Education, Inc.8

9. Quality Control Activities to guarantee that a good or service meets a specified level of quality Historically, quality control happened at the end of the process (final inspection) More commonly today, the product or service is inspected by workers at each critical operation © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9

10. Total Quality Management © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10 v v v Plan Do Check Act

11. Marketing and Consumer Behavior Better Business 1st Edition Poatsy · Martin © 2010 Pearson Education, Inc.11 chapter 12 Slide presentation prepared by Pam Janson Stark State College of Technology

12. Marketing Fundamentals Marketing oAn organizational function oA set of processes for creating, communicating, and delivering value to customers oManagement of customer relationships in ways that benefit the organization and its stakeholders Product oAny tangible good, service, or idea available for purchase in a market oPlus any intangible benefits derived from its consumption © 2010 Pearson Education, Inc. Publishing as Prentice Hall 12

13. Marketing Benefits Stakeholders Customers oValue = benefits/costs oUtility Form Ownership Time Place Sellers Investors Employees Society © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13

14. Marketing Strategy © 2010 Pearson Education, Inc. Publishing as Prentice Hall 14

15. The 4 Ps © 2010 Pearson Education, Inc. Publishing as Prentice Hall 15 Product differentiation Brand Product Cover costs Competitively priced Price Inform and persuade customers to buy Build positive customer relationships Promotion Distribution channel Distributors and wholesalers Place

16. The Marketing Process © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16

17. The Marketing Plan A written document with: A clearly written marketing objective Performance of situational SWOT analysis Selection of a target market Implementation, evaluation, and control of the marketing mix (the 4 Ps) © 2010 Pearson Education, Inc.17

18. Financing and Tracking Business Operations Better Business 1st Edition Poatsy · Martin © 2010 Pearson Education, Inc.18 chapter 15 Slide presentation prepared by Pam Janson Stark State College of Technology

19. Financial Management Developing plans that outline the company’s financial short-term and long-term needs Defining the sources and uses of funds that are needed to reach the goals Monitoring the cash flow of a company to ensure that obligations are paid and funds owed to the company are collected Investing any excess funds so that those funds can grow and be used for future developments Raising capital for future growth and expansion © 2010 Pearson Education, Inc. Publishing as Prentice Hall 19

20. Planning for Financial Needs Forecast financial needs Develop budgets and plans to meet financial needs Establish controls to ensure that the budgets and plans are being followed © 2010 Pearson Education, Inc. Publishing as Prentice Hall 20

21. Financing Long-Term Business Needs © 2010 Pearson Education, Inc. Publishing as Prentice Hall 21 Financing Short-Term Business Needs

22. Who Uses Financial Statements? Company managers Investors Creditors/lenders Tax authorities Who else? © 2010 Pearson Education, Inc. Publishing as Prentice Hall 22