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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