Essential Standard 2.00 Understand the nature of business. 1

Objective 2.03 Understand production and operations. 2

Topics Types of productions and manufacturing Production and manufacturing planning Types of business operations 3

Types of productions and manufacturing 4

Types of Productions and Manufacturing continued The forms of production: –Extraction and cultivation –Processing –Manufacturing 5

Types of Productions and Manufacturing continued Types of Manufacturing Procedures: Mass production Custom manufacturing Materials processing 6

Production and manufacturing planning 7

Production and Manufacturing Planning Production and manufacturing involve the following activities in order to produce products: –Product development –Production planning –Inventory management 8

Production and Manufacturing Planning continued What is product development? What is involved with product development? –Product Research –Product Design 9

Production and Manufacturing Planning continued Two types of product research: –Applied Research –Pure Research 10

Production and Manufacturing Planning continued Production planning involves three activities: –Production process –Production resources –Personnel What is inventory management? How can a business manage inventory? 11

Production and Manufacturing Planning continued Manufacturing procedures are: –Improving the work area. How is the work area improved? –Improving manufacturing or Continuous Process Improvement. How could a company improve manufacturing? 12

Production and Manufacturing Planning continued What is the purpose of Continuous Process Improvement (CPI) efforts for a manufacturing company? Continuous Process Improvement (CPI) has the following six steps: 1.Involve everyone. 2.Identify process activities. 3.Establish quality performance standards. 4.Select measurement tools. 5.Monitor performance continuously. 6.Improve process quality. 13

Types of Business Operations 14

Business Operations Common business operations: –Facilities management –Logistics –Scheduling –Safety and security 15

Business Operations continued Why would a business need to be concerned about management of their facilities? What is facilities management? How do businesses obtain their products and services in a timely manner to make available for customers? 16

Business Operations continued What is involved in scheduling work, people, and resources for a business? What is the purpose of a business managing safety and security? What is involved in safety and security for a business? 17