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 The forms of production: –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. Example: honey, mango, and soil –Manufacturing – combining raw materials and processed goods into finished products. Example: cosmetics, china, and shoes 4

Types of Productions and Manufacturing Mass production is the process of using assembly activities to produce large quantities of identical products. –Examples: 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, 5

Types of Productions and Manufacturing Materials processing is the process of changing raw materials to another form in order to be consumed or used to make other products. 6

Production and Manufacturing Planning Production and manufacturing involve the following activities in order to produce products: –Product development –Production planning –Inventory management 7

Production and Manufacturing Planning What is involved with product development? –Product development is the process of creating or improving the form of another product. 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. 8

Production and Manufacturing Planning Two types of product research: –Applied research is marketing research that studies existing products to develop design improvements or new product ideas. –Pure research discovers new solutions to problems. 9

Production and Manufacturing Planning Production planning involves three activities: –Production process consists of activities, equipment, and resources needed to manufacture products. –Production resources consists of machines, tools, and other equipment needed for production. –Personnel consists of employees and skills needed for production. 10

Production and Manufacturing Planning What is the purpose of Continuous Process Improvement (CPI) efforts for a manufacturing company? –Continuous Process Improvement (CPI) is an ongoing effort to improve manufacturing processes to increase the quality of work by reducing Errors, Inefficiencies, and Waste 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. 11

Business Operations Common business operations: –Facilities management –Logistics –Scheduling –Safety and security 12

Business Operations Why would a business need to be concerned about management of their facilities? What is facilities management? –Facilities management is managing the buildings and land of a business and ensuring that everything is used, repaired, and running properly. 13 is

14 Business Operations How do businesses obtain their products and services in a timely manner to make available for customers? Logistics is managing the receiving, moving, and storing of supplies, materials, and finished products

Business Operations 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? What is involved in safety and security for a business? –Safety and security involves managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property. 15

Business Operations Management tools: –Operational plan –Operating budget –Schedule –Procedures –Standards Technology tools –Supply chain management software –Collaboration software –Computer security –Inventory –Project Management –Budgeting –Document Management –Manufacturing Automation 16