1. Understand production and operations.
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: farming, mining, fishing, forestry
Processing – changing and improving the form of another product.
Example: paper mill, oil refinery
Manufacturing – combining raw materials and processed goods into finished products.
Example: bakery, automotive plant, and shoe factory

4. Types of Productions and Manufacturing
Mass production - the process of using assembly activities to produce large quantities of identical products.
Examples: Krispy Kreme donuts, Honda Civics, and Nike sneakers
Custom manufacturing - the process of producing a specific and exclusive product for a customer.
Examples: ceramics, artwork, business signs

5. Types of Productions and Manufacturing
Materials processing - 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
Product development – the process of creating a product or improving the form of another product
Product research - performed by engineers and other scientists to develop new products or to discover improvements for existing products.
Product design - creating models and then deciding the best possible design.
What is involved with product development?
Product development is the process of creating or improving the form of another product.

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
Continuous Process Improvement (CPI) – an ongoing effort to improve manufacturing processes to increase the quality of work
What is the purpose of CPI efforts for a manufacturing company?
Reduce errors, inefficiencies, and waste
CPI has the following six steps:
Involve everyone.
Identify process activities.
Establish quality performance standards.
Select measurement tools.
Monitor performance continuously.
Improve process quality.
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
Waste

11. Business Operations Common business operations Facilities management
Logistics
Scheduling
Safety and security

12. Business Operations
Facilities management - managing the buildings and land of a business and ensuring that everything is used, repaired, and running properly.
Why would a business need to be concerned about management of their facilities?
Logistics - managing the receiving, moving, and storing of supplies, materials, and finished products
Why is logistics important?
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.
How do businesses obtain their products and services in a timely manner to make available for customers? Logistics
Logistics is managing the receiving, moving, and storing of supplies, materials, and finished products

13. 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 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.
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 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.

14. Business Operations Management tools Technology 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