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SLIDE 1
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
13-113-1 Types of Production
13-213-2 Production Planning
13-313-3 Planning and Managing BusinessOperations
1313C H A P T E R
Production and Production and Business OperationsBusiness Operations
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© 2012 Cengage Learning. All Rights Reserved.
13-113-1 Types of ProductionTypes of Production
Goal 1 Describe the role of producers in the economy and the forms of production.
Goal 2 Differentiate among the various types of manufacturing.
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SLIDE 3
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
KEY TERMS
● extraction and cultivation
● processing
● manufacturing
● mass production
● custom manufacturing
● materials processing
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SLIDE 4
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13PRODUCTION AS AN ECONOMIC ACTIVITY
● Role of producers
● Forms of production● Extraction and cultivation● Processing● Manufacturing
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SLIDE 5
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
Checkpoint
● What are the three forms of production?● Extraction and cultivation● Processing● Manufacturing
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SLIDE 6
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
MANUFACTURING
● A manufacturing process
● Types of manufacturing procedures● Mass production● Custom manufacturing● Materials processing
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SLIDE 7
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
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.
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© 2012 Cengage Learning. All Rights Reserved.
13-213-2 Production PlanningProduction Planning
Goal 1 Identify the activities involved in production planning.
Goal 2 Describe how manufacturing is organized.
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SLIDE 9
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
KEY TERMS
● applied research
● pure research
● production process
● continuous process improvement
● benchmarks
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SLIDE 10
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
PRODUCTION ACTIVITIES
● Product development● Product research● Product design
● Production planning● Production process● Production resources● Personnel
● Inventory management
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SLIDE 11
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
Checkpoint
● Describe the three activities that are a part of production planning. ● Developing a production process● Obtaining production resources● Identifying and preparing production
personnel
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SLIDE 12
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13MANUFACTURING PROCEDURES
● Organizing the work area
● Improving manufacturing
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SLIDE 13
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13CONTINUOUS PROCESS IMPROVEMENT
● Involve everyone.● Identify process activities.● Establish quality performance
standards.● Select measurement tools.● Monitor performance
continuously.● Improve process quality.
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SLIDE 14
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
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.
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© 2012 Cengage Learning. All Rights Reserved.
13-313-3 Planning and Managing Planning and Managing Business OperationsBusiness Operations
Goal 1 Discuss the importance of effective business operations.
Goal 2 Describe tools used to manage business operations.
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SLIDE 16
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
KEY TERMS
● logistics
● just-in-time
● operational plan
● schedule
● standard
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SLIDE 17
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13THE IMPORTANCE OF BUSINESS OPERATIONS
● Types of business operations● Facilities management● Logistics● Scheduling● Safety and security
● Information management
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SLIDE 18
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
Checkpoint
● Identify four important types of business operations. ● Facilities management● Logistics● Scheduling● Safety and security
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SLIDE 19
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13TOOLS FOR BUSINESS OPERATIONS
● Management tools
● Using technology to manage operations
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SLIDE 20
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13COMMON TYPES OF OPERATIONS SOFTWARE
● Project management
● Budgeting
● Scheduling
● Inventory
● Computer security
● Document management
● Manufacturing automation
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SLIDE 21
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
C H A P T E R 13
Checkpoint
● What are the benefits of using technology to help manage business operations? ● Technology makes planning and decision-
making more accurate, rapid, and timely.