1. Understand Production and Operations
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. Forms of Productions Extraction and Cultivation Processing
Obtaining products from nature or using natural resources to grow
Examples: Chicken, Tomatoes, and Broccoli
Processing
Changing and improving the form of another product
Example: Honey, Mango, and Soil
Manufacturing
Combining raw materials and processed goods into finished products
Example: Cosmetics, China, and Shoes

5. Types of Manufacturing Procedures
Mass Production
The process of using assembly activities to produce large quantities of identical products
Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike sneakers
Custom Manufacturing
The process of producing a specific and exclusive product for a customer
Examples: Ceramics, Prosthetic Limb, Signs
Materials Processing
The process of changing raw materials to another form in order to be consumed or used to make other products
Examples: Oil refinery, lumber yard processing trees, mills processing flour, cereal, and feed

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
Product Development
The process of creating or improving the form of another product
Product Research
Performed y engineers and other scientists to develop new products or to discover improvements for existing products
Product Design
First creating a model and then deciding the best possible design

9. Types of Product Research
Applied Research
Marketing research that studies existing products to develop design improvements or new product ideas
Pure Research
Discovers new solutions to problems

10. Production Planning Continued
Production planning involves three activities:
Production process – activities, equipment, and resources needed to manufacture products
Production resources – machines, tools, and other equipment needed for production
Personnel – employees and skills needed for production
Inventory Management
Maintains the supply of all resources needed for production and the products produced
How can a business manage inventory?
Counted by hand, estimated, or can be electronic
Example – grocery stores scan items to know what to order

11. Manufacturing Procedures
Improve the work area
Depends on the product and production process
There must be access for parts and materials needed for precaution, as well as an area for finished products
Improve manufacturing or Continuous Process Improvement
Improving manufacturing may include attention to quality, a change in the production process, or lowering costs of production

12. Continuous Process Improvement (CPI)
Purpose
To increase the quality of work by reducing:
Errors
Inefficiencies
Waste
Continuous Process Improvement (CPI) has the following six steps:
Involve everyone.
Identify process activities.
Establish quality performance standards.
Select measurement tools.
Monitor performance continuously.
Improve process quality.

13. Types of Business Operations

14. Common Business Operations
Facilities management
Logistics
Scheduling
Safety and security

15. Business Operations Continued
Facilities Management
Managing the buildings and land of a business and ensuring that everything is used, repaired, and running properly
How do businesses obtain their products and services in a timely manner to make available for customers?
Logistics – managing the receiving, moving, and storing of supplies, materials and finished products

16. Business Operations Continued
What is involved in scheduling work, people, and resources for a business?
Managing work to be completed, the people who will complete the work, and the resources needed for completing the work
What is involved in safety and security for a business?
Managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property