Introduction to Business© Thomson South-Western

ChapterChapterChapterChapter

Production and Business Operations

13-113-1 Types of Production

13-213-2 Production Planning

13-313-3 Planning and Managing Business Operations

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Introduction to Business© Thomson South-Western

Chapter 13

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LESSON 13-1

Types of Production

Goals Describe the role of producers in the

economy and the forms of production. Differentiate among the various types of

manufacturing.

Introduction to Business© Thomson South-Western

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Key Terms

extraction and cultivation processing manufacturing mass production custom manufacturing materials processing

Introduction to Business© Thomson South-Western

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PRODUCTION AS AN ECONOMIC ACTIVITY Role of producers Forms of production

Extraction and cultivation Processing Manufacturing

Introduction to Business© Thomson South-Western

Chapter 13

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>> C H E C K P O I N T

What are the three forms of production?

Introduction to Business© Thomson South-Western

Chapter 13

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MANUFACTURING

A manufacturing process Types of manufacturing procedures

Mass production Custom manufacturing Materials processing

Introduction to Business© Thomson South-Western

Chapter 13

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>> C H E C K P O I N T

What is the difference between custom manufacturing and materials processing?

Introduction to Business© Thomson South-Western

Chapter 13

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LESSON 13-2

Production Planning

Goals Identify the activities involved in

production planning. Describe how manufacturing is

organized.

Introduction to Business© Thomson South-Western

Chapter 13

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Key Terms

applied research pure research production process continuous process improvement benchmarks

Introduction to Business© Thomson South-Western

Chapter 13

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PRODUCTION ACTIVITIES Product development

Product research Product design

Production planning Production process Production resources Personnel

Inventory management

Introduction to Business© Thomson South-Western

Chapter 13

Slide 11

>> C H E C K P O I N T

Describe the three activities that are a part of production planning.

Introduction to Business© Thomson South-Western

Chapter 13

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MANUFACTURING PROCEDURES Organizing the work area Improving manufacturing

Introduction to Business© Thomson South-Western

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CONTINUOUS PROCESS IMPROVEMENTStep 1Step 1 Involve everyone.

Step 2Step 2 Identify process activities.

Step 3Step 3 Establish quality performance standards.

Step 4Step 4 Select measurement tools.

Step 5Step 5 Monitor performance continuously.

Step 6Step 6 Improve process quality.

Introduction to Business© Thomson South-Western

Chapter 13

Slide 14

>> C H E C K P O I N T

Why have manufacturers implemented Continuous Process Improvement (CPI)?

Introduction to Business© Thomson South-Western

Chapter 13

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LESSON 13-3

Planning and Managing Business Operations

Goals Discuss the importance of effective

business operations. Describe tools used to manage

business operations.

Introduction to Business© Thomson South-Western

Chapter 13

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Key Terms

logistics just-in-time operational plan schedule standard

Introduction to Business© Thomson South-Western

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THE IMPORTANCE OF BUSINESS OPERATIONS Types of business operations

Facilities management Logistics Scheduling Safety and security

Information management

Introduction to Business© Thomson South-Western

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>> C H E C K P O I N T

Identify four important types of business operations.

Introduction to Business© Thomson South-Western

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TOOLS FOR BUSINESS OPERATIONS Management tools Using technology to manage operations Common types of operations software

Project management Budgeting Scheduling Inventory Computer security Document management Manufacturing automation

Introduction to Business© Thomson South-Western

Chapter 13

Slide 20

>> C H E C K P O I N T

What are the benefits of using technology to help manage business operations?