Principles of Business, Marketing, and Finance Lesson Eight Production, Distribution, and Other Business Operations UNT in partnership with TEA, Copyright ©. All rights reserved

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 UNT in partnership with TEA, Copyright ©. All rights reserved 2

Production Planning Process Production Resources -machines, tools, other equipment Personnel -employees with necessary skills UNT in partnership with TEA, Copyright ©. All rights reserved 3

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 UNT in partnership with TEA, Copyright ©. All rights reserved 4

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 UNT in partnership with TEA, Copyright ©. All rights reserved 5

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 UNT in partnership with TEA, Copyright ©. All rights reserved 6

Importance of Business Operation Determines the Success or Failure of a Business UNT in partnership with TEA, Copyright ©. All rights reserved 7

Facilities ManagementJust-in-TimeScheduling Safety & Security Logistics Information Management Types of Business Operations UNT in partnership with TEA, Copyright ©. All rights reserved 8

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 UNT in partnership with TEA, Copyright ©. All rights reserved 9

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 UNT in partnership with TEA, Copyright ©. All rights reserved 10

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 UNT in partnership with TEA, Copyright ©. All rights reserved 11

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 UNT in partnership with TEA, Copyright ©. All rights reserved 12

Product Planning Procedures Idea Development Idea Screening Strategy Development Production and Financial Planning Limited Production and Test Marketing Full-scale Production UNT in partnership with TEA, Copyright ©. All rights reserved 13