13 Production and Business Operations 13-1 Types of Production C H A P T E R 13 Production and Business Operations 13-1 Types of Production 13-2 Production Planning 13-3 Planning and Managing Business Operations

Production as an economic activity Produce to sell to consumers and businesses Role of producers Natural resources, agricultural products, and processed goods 4 types of business that are responsible for production Producers, extractors, farmers, manufacturers

3 Forms of Production Extraction and cultivation Processing Obtained from nature or grown Processing Changing and improving the form of another product Manufacturing Combine raw materials and processed goods into finished products What classifies?

Manufacturing Process Mass production Assembly process Custom manufacturing Specific and unique product to meet needs of each customers Materials processing Changing raw materials so can be used

Checkpoint  Page 320 Key Concepts D. All are correct False. Extraction and cultivation is the most basic form of production D. Custom manufacturing C. Textbooks

PRODUCTION ACTIVITIES Product development Product research Applied research v Pure research Product design Production planning Production process Production resources Personnel Inventory management Just in time

CONTINUOUS PROCESS IMPROVEMENT Involve everyone. Identify process activities. Establish quality performance standards. Select measurement tools. Monitor performance continuously. Improve process quality.

Checkpoint  Page 326, 13-2 Assessment False. As customer needs and competition change, new products have to be developed True. C. Production resources and finished products B. Benchmarks

THE IMPORTANCE OF BUSINESS OPERATIONS Business operations almost all business do Facilities management Logistics (Supply Chain Management) Scheduling Safety and security

Information management Collect, organize, and securely maintain all info Provide instantaneous access to information to perform work and make decisions Prevent access to information by those unauthorized Use technology to improve communication

TOOLS FOR BUSINESS OPERATIONS Management tools Operational plan Schedule Procedure

Using technology to manage operations Microsoft, SAP, etc. Common types of operations software Project management Budgeting Scheduling Inventory Computer security Document management Manufacturing automation

Checkpoint  Page 334, 13-3 Assessment C. Energy and environmental MGT B. Schedule False. This software controls the production, storage, management, and distribution of electronic documents.

Checkpoint  Identify four important types of business operations. Facilities management Logistics Scheduling Safety and security