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

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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, All rights reserved 3

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

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, All rights reserved 5

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, All rights reserved 6

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, All rights reserved 7

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

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

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, All rights reserved 10

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, All rights reserved 11

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, All rights reserved 12

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, All rights reserved 13

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, All rights reserved 14