1. Essential Standard 2.00 Understand the nature of business. 1

2. Objective 2.03 Understand production and operations. 2

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

4. Types of productions and manufacturing 4

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

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

7. Production and manufacturing planning 7

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

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

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

11. 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

12. 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

13. 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

14. Types of Business Operations 14

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

16. 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

17. 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