Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE CHAPTER Types of Production Production Planning Planning and Managing Business Operations Production and Business Operations

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Types of Production Goals Describe the role of producers in the economy and the forms of production. Differentiate among the various types of manufacturing. 13-1

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 13 3 PRODUCTION AS AN ECONOMIC ACTIVITY Role of producers – three categories of products used by businesses and consumers: Natural resources Agricultural products Process goods Forms of production Extraction and cultivation Processing Manufacturing

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 13 4 MANUFACTURING A manufacturing process – usually, several manufacturers are a part of the total activity needed to produce goods. Types of manufacturing procedures Mass production Custom manufacturing Materials processing

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 13 5 What is the difference between custom manufacturing and materials processing? Answer Custom manufacturing is building a unique product to meet the needs of one customer. Materials processing is changing the form of raw materials so they can be used to make other products. Custom manufacturing involves a smaller amount of materials; materials processing involves larger quantities. Checkpoint >>

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Production Planning Goals Identify the activities involved in production planning. Describe how manufacturing is organized. 13-2

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 13 7 PRODUCTION ACTIVITIES Product development Product research Product design Production planning Production process – the activities, equipment, and resources needed to manufacture a product Production resources – machines, tools and other equipment required for the production Personnel – number of employees needed Inventory management – detailed account of a company’s materials, supplies and finished products.

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 13 8 MANUFACTURING PROCEDURES Organizing the work area – space for assembly, equipment, tools, employee workspace Improving manufacturing – competition forces need for faster, better and cheaper

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter 13 9 CONTINUOUS PROCESS IMPROVEMENT Step 1Involve everyone. Step 2Identify process activities. Step 3Establish quality performance standards. Step 4Select measurement tools. Step 5Monitor performance continuously. Step 6Improve process quality.

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter Continuous Process Improvement

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter Why have manufacturers implemented Continuous Process Improvement (CPI)? Answer Manufacturers have implemented CPI because it can help meet the need for faster production, increased quality, and reduced costs. CPI increases the quality of work by reducing errors, inefficiencies, and waste. Checkpoint >>

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Planning and Managing Business Operations Goals Discuss the importance of effective business operations. Describe tools used to manage business operations. 13-3

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter THE IMPORTANCE OF BUSINESS OPERATIONS Types of business operations Facilities management – maintenance, safety Logistics – movement and storage of supplies, materials and finished product Scheduling – determining what and when activities need to take place Safety and security

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE Chapter TOOLS FOR BUSINESS OPERATIONS Management tools – activities must be planned, put into practice, and controlled Using technology to manage operations Common types of operations software Project management – tracks calendars, to-do lists, work assignments Budgeting – coordinates budgets among departments Scheduling – manages employees schedules Inventory – sales, purchases, payments Computer security – provides access and restrictions Document management – organizes, files electronic documents Manufacturing automation – monitors machines, checks for errors and defects