Understand Production and Operations Objective 2.03 Understand Production and Operations

Topics Types of productions and manufacturing Production and manufacturing planning Types of business operations

Types of productions and manufacturing

Forms of Productions Extraction and Cultivation Processing Obtaining products from nature or using natural resources to grow Examples: 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

Types of Manufacturing Procedures Mass Production The process of using assembly activities to produce large quantities of identical products Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike sneakers Custom Manufacturing The process of producing a specific and exclusive product for a customer Examples: Ceramics, Prosthetic Limb, Signs Materials Processing 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

Production and manufacturing planning

Production and Manufacturing Planning Production and manufacturing involve the following activities in order to produce products: Product development Production planning Inventory management

Production and Manufacturing Planning Continued Product Development The process of creating or improving the form of another product Product Research Performed y engineers and other scientists to develop new products or to discover improvements for existing products Product Design First creating a model and then deciding the best possible design

Types of Product Research Applied Research Marketing research that studies existing products to develop design improvements or new product ideas Pure Research Discovers new solutions to problems

Production Planning Continued Production planning involves three activities: Production process – activities, equipment, and resources needed to manufacture products Production resources – machines, tools, and other equipment needed for production Personnel – employees and skills needed for production Inventory Management Maintains the supply of all resources needed for production and the products produced How can a business manage inventory? Counted by hand, estimated, or can be electronic Example – grocery stores scan items to know what to order

Manufacturing Procedures Improve the work area Depends on the product and production process There must be access for parts and materials needed for precaution, as well as an area for finished products Improve manufacturing or Continuous Process Improvement Improving manufacturing may include attention to quality, a change in the production process, or lowering costs of production

Continuous Process Improvement (CPI) Purpose To increase the quality of work by reducing: Errors Inefficiencies Waste Continuous Process Improvement (CPI) has the following six steps: Involve everyone. Identify process activities. Establish quality performance standards. Select measurement tools. Monitor performance continuously. Improve process quality.

Types of Business Operations

Common Business Operations Facilities management Logistics Scheduling Safety and security

Business Operations Continued 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 – managing the receiving, moving, and storing of supplies, materials and finished products

Business Operations Continued What is involved in scheduling work, people, and resources for a business? 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? Managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property