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

2. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 2 Production Activities ●Product development ●Product research – to develop new products that will meet the needs of customers and improve the current products offered by the company and its competitors. ●applied research – Studies existing product to develop design improvements or new product uses. ●Example? ●pure research - research done without a specific product in mind with the goal of discovering anew solutions to a problem. ●Example? https://www.youtube.com/watch?v=C5wXbm1nPPA

3. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 3 ●Production planning ●Production process – First activities, equipment and resources needed to manufacture a product ●Production resources – Then business orders or builds the machines, tools and other equipment required for each step of the production process. ●Often new products need customized equipment. ●In some cases a business will need to buy or construct a new building. ●Sometimes it can remodel current facilities ●Personnel – Lastly company estimates # of employees needed to complete all production activities. https://www.youtube.com/watch?v=3q6ULOT9Q4M Production Activities

4. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 Production Activities ●Inventory management ●Inventory – detailed account of a company’s materials, supplies and finished products. ●Inventory management – maintains the supply of all resources needed for production and the products produced. ●Inventory managers keep records of the supply and costs of all resources used in production. SLIDE 4

5. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 5 Activity ●With your neighbor identify three different problems that could occur in managing an inventory for manufacturing.

6. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 6 MANUFACTURING PROCEDURES ●Organizing the work area ●Product and production process will determine how the work area is organized. ●Mass production requires large buildings. ●Customized production requires larger workplace for each employee ●Improving manufacturing ●Benchmarks – best practices used by competitors.

7. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 How coca cola is made ●https://www.youtube.com/watch?v=yNYJG3WFPakhttps://www.youtube.com/watch?v=yNYJG3WFPak Take notes on the process of how coca cola is made SLIDE 7

8. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 8 CONTINUOUS PROCESS IMPROVEMENT ●Involve everyone. Why? ●Identify process activities. ●Establish quality performance standards. ●Select measurement tools. ●Monitor performance continuously. ●Improve process quality.

9. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 SLIDE 9 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.

10. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 13 Assignment ●With a partner you will choose one household product that your or your family uses. ●Evaluate the product and determine a design improvement for the product. ●Sketch a new design that illustrates the improvement. ●Present to the class your sketch and explain the new product design and why it is better than the current design. ●The following needs to be included in the Presentation ●Name and photo of the original product ●Function of the original product ●Describe the improvement to the product ●New function ●Provide an image of the improvement SLIDE 10