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ESSENTIAL STANDARD 2.

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Understand the nature of business.

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OBJECTIVE 2.03

Understand production and operations.

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TOPICS
 Types of productions and manufacturing  Production and manufacturing planning  Types of business operations

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TYPES OF PRODUCTIONS AND MANUFACTURING

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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
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TYPES OF PRODUCTIONS AND MANUFACTURING CONTINUED
Types of Manufacturing Procedures:  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

 Materials processing is 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.

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PRODUCTION AND MANUFACTURING PLANNING

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PRODUCTION AND MANUFACTURING PLANNING
Production and manufacturing involve the following activities in order to produce products:
 Product development  Production planning  Inventory management

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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 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.

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PRODUCTION AND MANUFACTURING PLANNING CONTINUED

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.
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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.

What is inventor y management ? maintains the supply of all resources needed for production and the products produced.

How can a business manage inven
Inventory can be counted by hand, estimated, or can be electronic. Example – grocery store scanning items to know what to order.

tory?
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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.

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PRODUCTION AND MANUFACTURING PLANNING CONTINUED  What is the purpose of Continuous Process Improvement
(CPI) ef forts for a manufacturing company?
 is an ongoing effort to improve manufacturing processes to increase the quality of work by reducing:  Errors  Inefficiencies  Waste

Continuous Process Improvement (CPI) has the following six steps:
1. 2. 3. 4. 5. 6. Involve everyone. Identify process activities. Establish quality performance standards. Select measurement tools. Monitor performance continuously. Improve process quality.

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TYPES OF BUSINESS OPERATIONS

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BUSINESS OPERATIONS
Common business operations:
    Facilities management Logistics Scheduling Safety and security

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BUSINESS OPERATIONS CONTINUED
 Why would a business need to be concerned about management of their facilities?  What is facilities management?
 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
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BUSINESS OPERATIONS CONTINUED
 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.

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