Production and Business Operations

1. CHAPTER 13 Production and Business Operations 13-1 Types of Production 13-2 Production Planning 13-3 Planning and Managing Business Operations

2. 13-1 Types of Production Goals Describe the role of producers in the economy and the forms of production. Differentiate among the various types of manufacturing.

3. Chapter 13 PRODUCTION AS AN ECONOMIC ACTIVITY • Role of producers – three categories of products used by businesses and consumers: • Natural resources • Agricultural products • Process goods • Forms of production • Extraction and cultivation • Processing • Manufacturing

4. Chapter 13 MANUFACTURING • A manufacturing process – usually, several manufacturers are a part of the total activity needed to produce goods. • Types of manufacturing procedures • Mass production • Custom manufacturing • Materials processing

5. What is the difference between custom manufacturing and materials processing? Chapter 13 Checkpoint >> Answer • Custom manufacturing is building a unique product to meet the needs of one customer. • Materials processing is changing the form of raw materials so they can be used to make other products. • Custom manufacturing involves a smaller amount of materials; materials processing involves larger quantities.

6. 13-2 Production Planning Goals Identify the activities involved in production planning. Describe how manufacturing is organized.

7. Chapter 13 PRODUCTION ACTIVITIES • Product development • Product research • Product design • Production planning • Production process – the activities, equipment, and resources needed to manufacture a product • Production resources – machines, tools and other equipment required for the production • Personnel – number of employees needed • Inventory management – detailed account of a company’s materials, supplies and finished products.

8. Chapter 13 MANUFACTURING PROCEDURES • Organizing the work area – space for assembly, equipment, tools, employee workspace • Improving manufacturing – competition forces need for faster, better and cheaper

9. Chapter 13 CONTINUOUS PROCESS IMPROVEMENT Step 1 Involve everyone. Step 2 Identify process activities. Step 3 Establish quality performance standards. Step 4 Select measurement tools. Step 5 Monitor performance continuously. Step 6 Improve process quality.

10. Chapter 13 Continuous Process Improvement

11. Why have manufacturers implemented Continuous Process Improvement (CPI)? Chapter 13 Checkpoint >> Answer • Manufacturers have implemented CPI because it can help meet the need for faster production, increased quality, and reduced costs. • CPI increases the quality of work by reducing errors, inefficiencies, and waste.

12. 13-3 Planning and Managing Business Operations Goals Discuss the importance of effective business operations. Describe tools used to manage business operations.

13. Chapter 13 THE IMPORTANCE OF BUSINESS OPERATIONS • Types of business operations • Facilities management – maintenance, safety • Logistics – movement and storage of supplies, materials and finished product • Scheduling – determining what and when activities need to take place • Safety and security

14. Chapter 13 TOOLS FOR BUSINESS OPERATIONS • Management tools – activities must be planned, put into practice, and controlled • Using technology to manage operations • Common types of operations software • Project management – tracks calendars, to-do lists, work assignments • Budgeting – coordinates budgets among departments • Scheduling – manages employees schedules • Inventory – sales, purchases, payments • Computer security – provides access and restrictions • Document management – organizes, files electronic documents • Manufacturing automation – monitors machines, checks for errors and defects