© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE Types of Production Production Planning Planning and Managing Business Operations 13 C H A P T E R Production and Business Operations
© 2012 Cengage Learning. All Rights Reserved Types of Production Goal 1Describe the role of producers in the economy and the forms of production. Goal 2Differentiate among the various types of manufacturing.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 3 KEY TERMS ●extraction and cultivation ●processing ●manufacturing ●mass production ●custom manufacturing ●materials processing
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 4 PRODUCTION AS AN ECONOMIC ACTIVITY ●Role of producers ●Forms of production ●Extraction and cultivation ●Processing ●Manufacturing
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 5 Checkpoint ●What are the three forms of production? ●Extraction and cultivation ●Processing ●Manufacturing
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 6 MANUFACTURING ●A manufacturing process ●Types of manufacturing procedures ●Mass production ●Custom manufacturing ●Materials processing
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 7 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.
© 2012 Cengage Learning. All Rights Reserved Production Planning Goal 1Identify the activities involved in production planning. Goal 2Describe how manufacturing is organized.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 9 KEY TERMS ●applied research ●pure research ●production process ●continuous process improvement ●benchmarks
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 10 PRODUCTION ACTIVITIES ●Product development ●Product research ●Product design ●Production planning ●Production process ●Production resources ●Personnel ●Inventory management
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 11 Checkpoint ●Describe the three activities that are a part of production planning. ●Developing a production process ●Obtaining production resources ●Identifying and preparing production personnel
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 12 MANUFACTURING PROCEDURES ●Organizing the work area ●Improving manufacturing
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 13 CONTINUOUS PROCESS IMPROVEMENT ●Involve everyone. ●Identify process activities. ●Establish quality performance standards. ●Select measurement tools. ●Monitor performance continuously. ●Improve process quality.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 14 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.
© 2012 Cengage Learning. All Rights Reserved Planning and Managing Business Operations Goal 1Discuss the importance of effective business operations. Goal 2Describe tools used to manage business operations.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 16 KEY TERMS ●logistics ●just-in-time ●operational plan ●schedule ●standard
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 17 THE IMPORTANCE OF BUSINESS OPERATIONS ●Types of business operations ●Facilities management ●Logistics ●Scheduling ●Safety and security ●Information management
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 18 Checkpoint ●Identify four important types of business operations. ●Facilities management ●Logistics ●Scheduling ●Safety and security
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 19 TOOLS FOR BUSINESS OPERATIONS ●Management tools ●Using technology to manage operations
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 20 COMMON TYPES OF OPERATIONS SOFTWARE ●Project management ●Budgeting ●Scheduling ●Inventory ●Computer security ●Document management ●Manufacturing automation
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 21 Checkpoint ●What are the benefits of using technology to help manage business operations? ●Technology makes planning and decision- making more accurate, rapid, and timely.