Tutorial:Business Academy Topic: Manufacturing activities Prepared by:Ing. Marcela Zlatníková Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/ je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

Production- it is a process of transformation of input factors into output ones Production process – is a process of interaction of production factors and its result is goods and services. Structure of production process can be carried out according to various criteria. The production process according to labour force participation: √ Working process- a worker affects current assets using fixed assets ∙MANUAL – lies in physical force of the worker, tools are usually used, e.g. hand drill drilling ∙MACHINE-MANUAL – effect of long-term assets is connected to physical strength of a worker using machines, e.g. electric drill drilling ∙MACHINE – uses machines on higher technical level, e.g. standing drill drilling, the worker controls and directs the machine

√ Automatic process-a man checks and prepares the process, e.g. Numerically controlled drill drilling √ Natural process- a man does not participate in the process, he creates conditions for it, e.g. rising, ripening, baking, fermentation Manufacturing process according to product determination: √ Main processes- the result are products t ha t are intended for sale a/ basic production – production of goods, the business was set up for b/ secondary production – production of components and accessories to products of basic production c/ additional production – it is a waste processing or production under way of better use of available capacity of machines d/ associated production– production of goods of other manufacturing industry

√ Auxiliary processes- resulting in products that are mainly used for producer‘s needs √ Operating processes- help basic processes, e.g. Transport, storage

 Are distinguished by the number of produced types, range of production and its repetition  They are divided into: Piece production – is production of a large number of types of products, but only in small quantities and production is irregular from the time standpoint. Production preparation is careful. Machinery is multipurpose, workers must be highly qualified to handle different types of work. Series production – is production of fewer types of products, but in larger number of each type. It is characterized by some repetability. Depending on the number of pieces of one type it can be further divided into small-lot, medium-series and large- series production. Multipurpose machines are used, they are specialized in large-series production. Mass production– is production of a small number od types in large quantities, high repetability is characteristic. Machines are single-purpose. Workers can be low-qualified, but qualified professionals are also needed. It has high productivity, lowest costs, it allows the use of production lines and has a short production cycle.

 Is transition from piece to series and mass production  By means of accumulation effective use of technology is achieved  It is carried out by concentration, specialization and cooperation Concentration – centralization of production in one place Specialization – is a process of independent production by particular types of work, which leads to higher labour productivity, it is specialized either on the product or the stages of the production process. Ways to specialization are unification ( unification of shapes and sizes), typing (selection of a small number of types that will be produced) a standardization ( using the same components for several machines). Cooperation- is cooperation of specialized departments manufacturing complex products

 Three questions should be answered before the start of production: 1. WHAT TO PRODUCE – which products, how many, design 2. HOW TO PRODUCE – what raw materials will be used, material, what technology, amount of human work 3. FOR WHOM TO PRODUCE – who the consumer will be Planning department and marketing deal with the composition of the plan. It must: - determine the type and range of production - determine the volume of production - spread out production into periods - divide the total sales and supply for domestic and foreign trade and for investment development Indicators of production are: natural units, units of effort, monetary units, added value

 Is maximum number of products that the business (or machine) can produce per time unit under optimal conditions.  It is determined in natural units Annual PC= usable time fund/capacity time standard Annual time fund= number of calendar days in a year – number of days of rest (Saturdays, Sundays, holidays) – plant holiday – planned duration of reconstruction Usable time fund = annual time fund * number of daily working hours

1/Capacity of the manufacturer of vynil windows is used in 65%.What could be done to increase utilization of capacity, if in the next two years significant growth of contracts is not expected? 2/ Specify whether the following points are main, auxiliary or operating processes: a/ footwear production b/ tool production c/ waste processing d/ production of energy for production line drive e/ storage of material f/ transportation of finished products 3/ Give examples of piece, series and mass production

 Biňovec, K. Přehled učiva k maturitní zkoušce z ekonomiky. Fortuna, ISBN  Švarcová Jena, ing a kolektiv, Ekonomie, stručný přehled. Ing. Jena Švarcová, Ph.D., CEED nakladatelství a vydavatelství, ISBN  Klínský Petr, Munch Otto, Ekonomika pro obchodní akademie a ostatní střední školy Fortuna, 2003, ISBN