Essential Standard 2.00 Understand nature of business. 1

Objective 2.03 Understand production and operations. 2

Topics  Types of productions and manufacturing  Production and manufacturing planning  Business operations 3

Types of productions and manufacturing Essential Question: What are the different types of production? 4

Types of Productions and Manufacturing continued The forms of production: Extraction and cultivation – obtaining products from nature or using natural resources to grow.Extraction and cultivation – obtaining products from nature or using natural resources to grow.  Example: chicken, tomatoes, and broccoli Processing – changing and improving the form of another product.Processing – changing and improving the form of another product.  Example: honey, mango, and soil Manufacturing – combining raw materials and processed goods into finished products.Manufacturing – combining raw materials and processed goods into finished products.  Example: cosmetics, china, and shoes 5

Types of Productions and Manufacturing continued  Mass production is the process of using assembly activities to produce large quantities of identical products. Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike sneakersExamples: Krispy Kreme donuts, Maybelline lipstick, and Nike sneakers  Custom manufacturing is the process of producing a specific and exclusive product for a customer. Examples: ceramics, prosthetic limb, signs,Examples: ceramics, prosthetic limb, signs, 6

Types of Productions and Manufacturing continued Materials processing is the process of changing raw materials to another form in order to be consumed or used to make other products. 7

Production and manufacturing planning Essential Questions: What is the difference among the manufacturing procedures? How are production planning activities and manufacturing procedures classified? 8

Production and Manufacturing Planning Production and manufacturing involve the following activities in order to produce products: Product developmentProduct development Production planningProduction planning Inventory managementInventory management 9

Production and Manufacturing Planning continued  What is involved with product development?  Product research is performed by engineers and other scientists to develop new products or to discover improvements for existing products.  Product design is first creating a model and then deciding the best possible design. 10

Production and Manufacturing Planning continued Two types of product research: Applied research is marketing research that studies existing products to develop design improvements or new product ideas.Applied research is marketing research that studies existing products to develop design improvements or new product ideas. Pure research discovers new solutions to problems.Pure research discovers new solutions to problems. 11

Production and Manufacturing Planning continued Production planning involves three activities: Production process consists of activities, equipment, and resources needed to manufacture products.Production process consists of activities, equipment, and resources needed to manufacture products. Production resources consists of machines, tools, and other equipment needed for production.Production resources consists of machines, tools, and other equipment needed for production. Personnel consists of employees and skills needed for production.Personnel consists of employees and skills needed for production. 12

Production and Manufacturing Planning continued  What is the purpose of Continuous Process Improvement (CPI) efforts for a manufacturing company?  Improve manufacturing processes to increase the quality of work by reducing: ErrorsErrors InefficienciesInefficiencies WasteWaste  Continuous Process Improvement (CPI) has the following six steps: 1. Involve everyone. 2. Identify process activities. 3. Establish quality performance standards. 4. Select measurement tools. 5. Monitor performance continuously. 6. Improve process quality. 13

Business Operations Essential Question: Why is it important for businesses to plan business operations? 14

Business Operations Common business operations: Facilities managementFacilities management LogisticsLogistics SchedulingScheduling Safety and securitySafety and security 15

Business Operations continued  Why would a business need to be concerned about management of their facilities?  What is Facilities Management? Managing the buildings and land of a business and ensuring that everything is used, repaired, and running properly.Managing the buildings and land of a business and ensuring that everything is used, repaired, and running properly.  How do businesses obtain their products and services in a timely manner to make available for customers? LogisticsLogistics  Managing the receiving, moving, and storing of supplies, materials, and finished products 16

Business Operations continued  What is involved in scheduling work, people, and resources for a business?  Scheduling involves managing work to be completed, the people who will complete the work, and the resources needed for completing the work.  What is the purpose of a business managing safety and security?  Safety and security involves managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property.  What is involved in safety and security for a business? 17

Business Operations continued  Management tools: Operational planOperational plan Operating budgetOperating budget ScheduleSchedule ProceduresProcedures StandardsStandards  Technology tools Supply chain management softwareSupply chain management software Collaboration softwareCollaboration software Computer securityComputer security InventoryInventory Project ManagementProject Management BudgetingBudgeting Document ManagementDocument Management Manufacturing AutomationManufacturing Automation 18