Download - Essential Standard 2.00
Essential Standard 2.00
Understand 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
• Business operations
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Types of Productions and ManufacturingThe 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• 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,
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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.
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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• 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.
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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.
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Production and Manufacturing PlanningProduction 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.
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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.
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Business Operations
Common business operations:– Facilities management– Logistics– Scheduling– Safety and security
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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.
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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.
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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
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