1. PowerPoint Presentation  Section 16.2  Pages 273- 279  53 Slides

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

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

4. 16.2 Production and Distribution What you’ll learn  The elements of distribution management

5. Why it’s important  Production and distribution are the ways that a business makes an idea come true and gets it to the customers. 16.2 Production and Distribution

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

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

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

9. I.PRODUCT MANAGEMENT Once a prototype is developed, plan production. 16.2 Production and Distribution

10. II.AN OVERVIEW OF PRODUCTION There are three functions of production management. 16.2 Production and Distribution

11. A. Acquiring resources B. Planning how to convert resources into products. C. Making sure products meet the standards set for them. 16.1 From Idea to Product

12. 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

13. IV.GANTT CHARTS Gantt charts list tasks on the vertical axis and the time required for each task on the horizontal axis. 16.2 Production and Distribution

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

16. 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. 16.1 From Idea to Product

17. D. Finally, estimate and indicate the time necessary to complete each activity. 16.2 Production and Distribution

19. VI.CONTROLLING QUALITY A. Quality control is the process of making sure that goods or services produced meet certain standards. 16.2 Production and Distribution

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

21. VII. CONTROLLING QUALITY Quality circles are groups of employees who handle problems regarding quality. 16.2 Production and Distribution

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

23. IX. MANAGING OTHER AREAS OF PRODUCTION Productivity, automation, and prevention maintenance are additional areas of production that should be managed effectively. 16.2 Production and Distribution

24. 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. 16.2 Production and Distribution

25. XI. AUTOMATION A. Automation is the use of machines to do the work of people. 16.2 Production and Distribution

26. B. Automation can cut product time, reduce errors, and simplify procedures. C. Automation can be expensive. 16.2 Production and Distribution

27. XII. MAINTENANCE There are three basic ways to manage maintenance. A. Organize your production process. 16.2 Production and Distribution

28. B. Build up inventories at each stage of the production process. C. Conduct preventative maintenance. 16.2 Production and Distribution

29. XIII. DISTRIBUTION MANAGEMENT A. Distribution management includes transportation, storage, materials handling, and specification of delivery terms. 16.2 Production and Distribution

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

31. XIV. TRANSPORTATION A. Common carriers, such as Federal Express and United Parcel Service, can be used by the general public. 16.2 Production and Distribution

32. B. Contract carriers have a contract with a particular shipper to handle the goods. A railroad is a contract carrier. 16.2 Production and Distribution

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

34. XV. STORAGE Entrepreneurs with limited resources might have a wholesaler store and distribute their products, or store products in a public warehouse. 16.2 Production and Distribution

35. XVI. MATERIALS HANDLING Besides transporting and storing products, you must handle the products without damaging them. 16.2 Production and Distribution

36. 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. 16.2 Production and Distribution

37. C. The most favorable deliver term is “free on board” or FOB. This means the buyer pays all freight costs. 16.2 Production and Distribution

38. D. In addition, the title of the goods passes to the buyer when the goods leave the manufacturer. 16.2 Production and Distribution

39. 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. 16.2 Production and Distribution XVIII. OUTSOURCING LOGISTICS

40. 16.2 Production and Distribution PowerPoint Presentation End of Section 16.2