1 Essential Standard 2.00 POB-F Objective 2.03

 Types of productions and manufacturing  Production and manufacturing planning  Business operations 2

3 The forms of production: 1. Extraction and cultivation -most basic form of production -obtaining products from nature or -using natural resources to grow Examples: -agricultural products- fish, chicken, tomatoes, and broccoli - Natural products- iron ore, bauxite, raw diamonds, oil

Forms of Production 2. Processing – changing and improving the form of another product – Increases its value and usefulness Examples: honey removed with comb and packaged -Fresh mangoes processed at cannery -Oil sent to refineries to be processed into gasoline, heating oil, motor oil 4

Forms of Production 3. Manufacturing – combining raw materials and processed goods into finished products –either other businesses or consumers may use finished products Examples: -Craftsman using tools and materials to build cabinets in a kitchen -Design of a computer microchip -Building high speed rail system -Manufacturing cosmetics, china, shoes, furniture 5

 Mass production - using assembly processes to produce large quantities of identical products  Employees have precise tasks, specialized tools and equipment  Can result in monotonous work & reduced motivation  Companies use computers and robotics to perform many repetitive procedures Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike sneakers, automobiles 6

 Custom manufacturing - process of producing a specific and exclusive product for a customer  When customer has unique needs or product has a specific use  Designers, tool makers, and assemblers work together  Examples: ceramics, prosthetic limbs, signs, buildings, landscapes, bridges, dentures, vehicles 7

Materials processing- process of changing raw materials to another form in order to be consumed or used to make other products Examples: Oil companies refine crude oil Mills process wheat into flour Film processors convert into photographs 8

9 Production and manufacturing involve the following activities in order to produce products: 1. Product development 2. Production planning 3. Inventory management

10  Product development is the process of creating or improving the form of another product.  Why do companies develop new product?  Consumer demand  Keep up with trends  New technology  Retain sales

 Introduction  Growth phase  Maturity phase  Decline  obsolete 11

12 Product research performed by engineers and other scientists to develop new products or to discover improvements for existing products. Goal: to develop new products that will meet the needs of customers and improve current products offered by the company WHAT IS PRODUCT RESEARCH?

13 1.Scientist develop idea 2.Design engineers create models- prototypes 3.Models are tested and revised 4.Best model is chosen 5.Materials selected to make usable product 6.Financial experts determine costs of production WHAT ARE STEPS IN PRODUCT DESIGN?

14 Marketing research that studies existing products to develop design improvements or new product uses  Auto manufacturers study current design to improve efficiency of engines or improve product safety  Engineers experiment with solar designs for renewable energy sources  Improved athletic shoes designed especially for runners, aerobics, walking, etc.  Development of formulas for corn based ethanol as an alternative fuel

 Discovers new solutions to problems  Drug manufacturers study diseases and immune systems to uncover treatment or cures  Scientists at the CDC (Center for Disease Control)  Doctors at Duke U Medical Research Center  No specific product in mind  Goal- to uncover new treatments or cures 15

16  Production process –identifying the steps/activities, equipment, and resources needed to manufacture products – what are the steps in the production activity?  Production resources – setting up machines, tools, and other equipment needed for production  Personnel – determines # of employees and skills needed for completion of production, hires and trains additional staff if required

 Steps in production activity  Identify each step in the assembly line process  om/Volume- 1/Pencil.html om/Volume- 1/Pencil.html  Identify raw materials, types of processes involved, types of production needed, manufacturing procedures involved  Production Resources  List materials, tools, equipment needed for production  Personnel Resources  List people and skills needed to complete production 17

 Steps in production activity  Peanut butter and jelly sandwich  Production Resources Your favorite pants  Fabrics, pattern, buttons, zippers, thread, elastic, “sparkles”, sewing machine, ergonomic chair, iron, ironing board, scissors, good lighting, storage space  Personnel Resources at WSHS  Administration  Coaches  Certified teachers  Core-math, sci, ss, Eng  Art, drama, music  CTE, EC, Yes Ctr,  Foreign language  Custodians  Cafeteria workers  Bus drivers 18

 Product design is first creating a model and then deciding the best possible design. 19

 kwww.youtube.com/watch?v=f4OTj9yNOa k  Watch youtube video 20

21  Continuous Process Improvement (CPI) -ongoing effort to improve manufacturing processes to increase the quality of work  Purpose: to reduce  Errors  Inefficiencies  Waste  Continuous reviewing with goal of finding ways to improve  Not just manufacturing: Disney, McDonalds, teachers

22 Continuous Process Improvement (CPI) has the following six steps: 1.Involve everyone. 2.Identify process activities. 3.Establish quality performance standards aka benchmarks. 4.Select measurement tools. 5.Monitor performance and compare to standard continuously. 6.Look for ways to improve process quality. Would Continuous Process Improvement affect prices that consumers pay for products? How might you apply the CPI concepts to your personal goals?

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24 Common business operations:  Inventory management  Facilities management  Logistics  Scheduling  Safety and security  Information management

 Inventory- detailed account of a company’s materials, supplies and finished product  Inventory management  maintains the supply of all resources needed  ensures that each item need to make product is available at time and place needed  keeps record of supply and costs of resources  Keeps accurate record of all merchandise 25

26  Why would a business need to be concerned about management of their facilities?  To know buildings and land are repaired, running properly and prepared to be used  Facilities management - managing buildings and land of a business and ensuring that everything is used, repaired, and running properly.

27 How do businesses obtain their products and services in a timely manner to make available for customers? LOGISTICS Logistics - managing the receiving, moving, and storing of supplies, materials, and finished products WHAT IS LOGISTICS?

 Transport of:  Employees  Equipment  Materials in  Finished products out  Highways, interstates  Railroads  Ships, boats  airports  Storage of/workspace for:  Employees supplies  Raw materials  Finished goods  Shipping area  Movement of goods between departments 28

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30  What is involved in scheduling work, people, and resources for a business?  Scheduling – managing:  activities to be completed  the people who will complete the work  the resources needed for completing the task

 When might additional employees be hired by the following businesses?  Clothing retailer  Hospital  School system  Day care operation  Military supplier  Police department 31

32  What is involved in safety and security for a business?  Safety and security - managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property.

 Goal: Minimizing human and property losses  Procedures- fire drills, tornado drills  Personnel  Security plans- catastrophic events  Hurricane, fire, tornado  Encourage workplace safety  Secure employees & customers  Recognize safety records 33

34  When does a company use information management? When information needs to be coordinated between  Customers, employees, supervisors, managers  Locations at various sites-local, regional, international

35 GOALS: 1. To collect, organize, and securely maintain all needed information 2. To provide instantaneous access to info required to perform work and make decisions 3. To prevent access to information by those unauthorized to use it 4. To use technology to improve communication and information sharing

36  Operational plan-identifies how work will be done, who will do it, and what resources will be needed  Operating budget -detailed financial plan for a production unit, marketing department or other area of the business  Schedules - matching people with resources  Procedures – list of steps to be followed for performing a particular work activity  Standards – a specific measurement against which a result is judged

 Supply chain management software allows cooperating companies to share ordering, production, and shipping information, tract products, and exchange customer data  Collaboration software provides real time communications by voice, texts, videos using computers around the world  Computer security provides access and restrictions, usage data, privacy, virus protection for networks  Inventory management of sales, purchases, payment; tracks production, usage and sales, prints bar codes 37

 Project Management keeps tract of project calendars, tasks, to-do lists, work assignments and project resources  Budgeting automates budget planning, compares budgets from one time period to another, coordinates budgets among department  Document Management controls production, storage, management, and distribution of electronic documents  Manufacturing Automation monitors and controls manufacturing machines, checks for errors and defects, reports on production levels 38