13 Production and Business Operations 13-1 Types of Production C H A P T E R 13 Production and Business Operations 13-1 Types of Production 13-2 Production Planning 13-3 Planning and Managing Business Operations

CHAPTER 13 13-1 Types of Production 6/1/2018 Goal 1 Describe the role of producers in the economy and the forms of production. Goal 2 Differentiate among the various types of manufacturing.

KEY TERMS extraction and cultivation processing manufacturing mass production custom manufacturing materials processing

PRODUCTION AS AN ECONOMIC ACTIVITY Role of producers Forms of production Extraction and cultivation Processing Manufacturing

Checkpoint  What are the three forms of production? Extraction and cultivation Processing Manufacturing

MANUFACTURING A manufacturing process Types of manufacturing procedures Mass production Custom manufacturing Materials processing

Checkpoint  What is the difference between custom manufacturing and materials processing? 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.

13-2 Production Planning Goal 1 Identify the activities involved in production planning. Goal 2 Describe how manufacturing is organized.

KEY TERMS applied research pure research production process continuous process improvement benchmarks

PRODUCTION ACTIVITIES Product development Product research Product design Production planning Production process Production resources Personnel Inventory management

Checkpoint  Describe the three activities that are a part of production planning. Developing a production process Obtaining production resources Identifying and preparing production personnel

MANUFACTURING PROCEDURES Organizing the work area Improving manufacturing

CONTINUOUS PROCESS IMPROVEMENT Involve everyone. Identify process activities. Establish quality performance standards. Select measurement tools. Monitor performance continuously. Improve process quality.

Checkpoint  Why have manufacturers implemented continuous process improvement (CPI)? 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.

13-3 Planning and Managing Business Operations Goal 1 Discuss the importance of effective business operations. Goal 2 Describe tools used to manage business operations.

KEY TERMS logistics just-in-time operational plan schedule standard

THE IMPORTANCE OF BUSINESS OPERATIONS Types of business operations Facilities management Logistics Scheduling Safety and security Information management

Checkpoint  Identify four important types of business operations. Facilities management Logistics Scheduling Safety and security

TOOLS FOR BUSINESS OPERATIONS Management tools Using technology to manage operations

COMMON TYPES OF OPERATIONS SOFTWARE Project management Budgeting Scheduling Inventory Computer security Document management Manufacturing automation

Checkpoint  What are the benefits of using technology to help manage business operations? Technology makes planning and decision-making more accurate, rapid, and timely.