1. Essential Standard 2.00 Understand the nature of business. 1

2. Objective 2.03 Understand production and operations. 2

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

4. Essential Questions What are the types of production? How do manufacturing procedures differ? What are the types of manufacturing procedures? What is involved in production and manufacturing planning? What are the types of business operations? 4

5. Types of productions and manufacturing 5

6. Key Terms Extraction and Cultivation Processing Manufacturing Mass Production Custom Manufacturing Materials Processing 6

7. Focus on Real Life Page 318 7

8. Types of Productions and Manufacturing continued 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 8

9. Types of Productions and Manufacturing continued Types of Manufacturing Procedures: Mass production –the process of using assembly activities to produce large quantities of identical products. Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike sneakers Custom manufacturing –the process of producing a specific and exclusive product for a customer. Examples: ceramics, prosthetic limb, signs Materials processing –the process of changing raw materials to another form in order to be consumed or used to make other products Examples: Oil refinery, lumber yard processing trees, mills processing flour, cereal, and feed 9

10. FYI In 2002, 344,000 US manufacturers produced and sold nearly $4 trillion dollars of products. Ten years earlier, there were more manufactures – over 370,000 – but they produced nearly a trillion dollars less. Reorganization, new technology, and production efficiency result in more products from fewer businesses. 10

11. Activity: Think of a product you are familiar with. Try to determine all of the components of that product that need to be produced and assembled to form the final product you purchase and consume. 11

12. S T O P 12

13. Production and manufacturing planning 13

14. Key Terms Applied Research Pure Research Production Process Continuous Process Improvement Benchmarks 14

15. Production and Manufacturing Planning Production and manufacturing involve the following activities in order to produce products: –Product development –Production planning –Inventory management 15

16. Production and Manufacturing Planning continued What is product development? –the process of creating or improving the form of another product What is involved with product development? –Product Research performed by engineers and other scientists to develop new products or to discover improvements for existing products –Product Design first creating a model and then deciding the best possible design 16

17. Production and Manufacturing Planning continued Two types of product research: –Applied Research marketing research that studies existing products to develop design improvements or new product ideas –Pure Research discovers new solutions to problems 17

18. Production and Manufacturing Planning continued 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 18

19. Production and Manufacturing Planning continued What is inventory management? –maintains the supply of all resources needed for production and the products produced How can a business manage inventory? –Inventory can be counted by hand, estimated, or can be electronic. Example – grocery store scanning items to know what to order. 19

20. Production and Manufacturing Planning continued Manufacturing procedures are: –Improving the work area. How is the work area improved? –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. How could a company improve manufacturing? –Improving manufacturing may include attention to quality, a change in the production process, or lowering costs of production. 20

21. Production and Manufacturing Planning continued What is the purpose of Continuous Process Improvement (CPI) efforts for a manufacturing company? –an ongoing effort to improve manufacturing processes to increase the quality of work by reducing: Errors Inefficiencies Waste 21

22. Production and Manufacturing Planning continued 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. 22

23. Types of Business Operations 23

24. Business Operations Common business operations: –Facilities management –Logistics –Scheduling –Safety and security 24

25. Business Operations continued Why would a business need to be concerned about management of their facilities? What is facilities management? How do businesses obtain their products and services in a timely manner to make available for customers? 25

26. Business Operations continued What is involved in scheduling work, people, and resources for a business? What is the purpose of a business managing safety and security? What is involved in safety and security for a business? 26