PowerPoint Presentation  Section 16.2  Pages  53 Slides

What you’ll learn  How to manage the production aspects of a business 16.2 Production and Distribution

What you’ll learn  How to use Gantt charts and PERT diagrams

16.2 Production and Distribution What you’ll learn  The elements of distribution management

Why it’s important  Production and distribution are the ways that a business makes an idea come true and gets it to the customers Production and Distribution

Key Terms Gantt charts PERT diagrams PERT diagrams quality control quality control quality circles quality circles 16.2 Production and Distribution

Key Terms (cont.) productivity automation automation common carriers contract carriers contract carriers 16.2 Production and Distribution

Key Terms (cont.) private carriers FOB FOB logistics logistics

I.PRODUCT MANAGEMENT Once a prototype is developed, plan production Production and Distribution

II.AN OVERVIEW OF PRODUCTION There are three functions of production management Production and Distribution

A. Acquiring resources B. Planning how to convert resources into products. C. Making sure products meet the standards set for them From Idea to Product

III. Scheduling A. Businesses plan production by making schedules. B. There are two widely used scheduling techniques: 1. Gantt charts 2. PERT diagrams 16.2 Production and Distribution

IV.GANTT CHARTS Gantt charts list tasks on the vertical axis and the time required for each task on the horizontal axis Production and Distribution

V.PERT DIAGRAMS A. PERT stands for Program Evaluation and Review Technique 16.1 From Idea to Product

B. Identify a project’s major activities. Then arrange activities on the diagram in order. C. Connect with arrows activities that must occur in a fixed sequence From Idea to Product

D. Finally, estimate and indicate the time necessary to complete each activity Production and Distribution

VI.CONTROLLING QUALITY A. Quality control is the process of making sure that goods or services produced meet certain standards Production and Distribution

B. Two major ways to control quality include the following. 1. Quality Circles 2. Inspection 16.2 Production and Distribution

VII. CONTROLLING QUALITY Quality circles are groups of employees who handle problems regarding quality Production and Distribution

VIII. INSPECTION Inspect your products to improve quality 16.2 Production and Distribution

IX. MANAGING OTHER AREAS OF PRODUCTION Productivity, automation, and prevention maintenance are additional areas of production that should be managed effectively Production and Distribution

X. PRODUCTIVITY A. Productivity is a measure of how much a business produces in a given time. B. Use productivity rates to measure and improve performance Production and Distribution

XI. AUTOMATION A. Automation is the use of machines to do the work of people Production and Distribution

B. Automation can cut product time, reduce errors, and simplify procedures. C. Automation can be expensive Production and Distribution

XII. MAINTENANCE There are three basic ways to manage maintenance. A. Organize your production process Production and Distribution

B. Build up inventories at each stage of the production process. C. Conduct preventative maintenance Production and Distribution

XIII. DISTRIBUTION MANAGEMENT A. Distribution management includes transportation, storage, materials handling, and specification of delivery terms Production and Distribution

B. It controls the movement of product from the manufacturer to the customers.

XIV. TRANSPORTATION A. Common carriers, such as Federal Express and United Parcel Service, can be used by the general public Production and Distribution

B. Contract carriers have a contract with a particular shipper to handle the goods. A railroad is a contract carrier Production and Distribution

C. Private carriers - private companies, such as trucking companies, that ship goods.

XV. STORAGE Entrepreneurs with limited resources might have a wholesaler store and distribute their products, or store products in a public warehouse Production and Distribution

XVI. MATERIALS HANDLING Besides transporting and storing products, you must handle the products without damaging them Production and Distribution

XVII. DELIVERY TERMS A. On any shipment there must be delivery terms. B. Delivery terms identify who is responsible for the various components of distribution Production and Distribution

C. The most favorable deliver term is “free on board” or FOB. This means the buyer pays all freight costs Production and Distribution

D. In addition, the title of the goods passes to the buyer when the goods leave the manufacturer Production and Distribution

A. The details of a products movement from the manufacturer to the customer are called logistics. B. You can handle logistics yourself or outsource it Production and Distribution XVIII. OUTSOURCING LOGISTICS

16.2 Production and Distribution PowerPoint Presentation End of Section 16.2