1. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 1 13-1 13-1Types of Production 13-2 13-2Production Planning 13-3 13-3Planning and Managing Business Operations 13 C H A P T E R Production and Business Operations

2. © 2012 Cengage Learning. All Rights Reserved. 13-1 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.

3. © 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

4. © 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

5. © 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

6. © 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

7. © 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.

8. © 2012 Cengage Learning. All Rights Reserved. 13-2 Production Planning Goal 1Identify the activities involved in production planning. Goal 2Describe how manufacturing is organized.

9. © 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

10. © 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

11. © 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

12. © 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

13. © 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.

14. © 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.

15. © 2012 Cengage Learning. All Rights Reserved. 13-3 Planning and Managing Business Operations Goal 1Discuss the importance of effective business operations. Goal 2Describe tools used to manage business operations.

16. © 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

17. © 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

18. © 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

19. © 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

20. © 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

21. © 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.