Essential Standard 2.00 Understand the nature of business. 1

Objective 2.03 Understand production and operations. 2

 Types of productions and manufacturing  Production and manufacturing planning  Types of business operations 3 Topics

Types of productions and manufacturing 4

The forms of production:  Extraction and cultivation  Processing  Manufacturing 5 Types of Productions and Manufacturing continued

Types of Manufacturing Procedures:  Mass production  Custom manufacturing  Materials processing 6 Types of Productions and Manufacturing continued

Production and manufacturing planning 7

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

9 Production and Manufacturing Planning continued  What is product development?  What is involved with product development?  Product Research  Product Design

10 Production and Manufacturing Planning continued Two types of product research:  Applied Research  Pure Research

11 Production and Manufacturing Planning continued Production planning involves three activities:  Production process  Production resources  Personnel What is inventory management? Inventory management maintains the supply of all resources needed for production and the products produced. How can a business manage inventory? by hand, estimated, or can be electronic

12 IInventory Management What is inventory management? Inventory management maintains the supply of all resources needed for production and the products produced. How can a business manage inventory?  By hand  Estimated  or can be electronic such as grocery store scanning items which updates inventory immediately

Manufacturing procedures are: Improving the work area. Improving the work area depends on the product and production process. There must be access for parts and materials needed for production, as well as an area for finished products. Improving manufacturing or Continuous Process Improvement. Improving manufacturing may include attention to quality, a change in the production process, or lowering costs of production. 13 Production and Manufacturing Planning continued

14 Production and Manufacturing Planning continued  What is the purpose of Continuous Process Improvement (CPI) efforts for a manufacturing company?  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.

Types of Business Operations 15

16 Business Operations Common business operations:  Facilities management - Management of the buildings and land of a business and ensuring that everything is used, repaired, and running properly.  Logistics - managing the receiving, moving, and storing of supplies, materials, and finished products  Scheduling - managing work to be completed, the people who will complete the work, and the resources needed for completing the work  Safety and security - security involves managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property

17 Business Operations continued Business are concerned about the management of their facilities because the facilities need to be safe for employees and business operations need to run smoothly.