Essential Standard 2.00
Understand nature of
business.
1
Objective 2.03
Understand production and
operations.
2
Topics
Types of productions and
manufacturing
 Production and manufacturing
planning
 Business operations

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Types of productions and
manufacturing
Essential Question: What are the different
types of production?
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Types of Productions and
Manufacturing continued
The forms of production:
• Extraction and cultivation – obtaining
products from nature or using natural
resources to grow.

Example: chicken, tomatoes, and broccoli
• Processing – changing and improving the
form of another product.

Example: honey, mango, and soil
• Manufacturing – combining raw materials
and processed goods into finished products.

Example: cosmetics, china, and shoes
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Types of Productions and
Manufacturing continued

Mass production is the process of
using assembly activities to produce
large quantities of identical products.
• Examples: Krispy Kreme donuts,
Maybelline lipstick, and Nike sneakers

Custom manufacturing is the
process of producing a specific and
exclusive product for a customer.
• Examples: ceramics, prosthetic limb,
signs,
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Types of Productions and
Manufacturing continued
Materials processing is the process
of changing raw materials to another
form in order to be consumed or
used to make other products.
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Production and
manufacturing planning
Essential Questions: What is the difference
among the manufacturing procedures?
How are production planning activities and
manufacturing procedures classified?
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Production and Manufacturing
Planning
Production and manufacturing involve
the following activities in order to
produce products:
• Product development
• Production planning
• Inventory management
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Production and Manufacturing
Planning continued
What is involved with product
development?
 Product research is performed by
engineers and other scientists to
develop new products or to discover
improvements for existing products.
 Product design is first creating a
model and then deciding the best
possible design.

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Production and Manufacturing
Planning continued
Two types of product research:
• Applied research is marketing
research that studies existing products
to develop design improvements or new
product ideas.
• Pure research discovers new solutions
to problems.
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Production and Manufacturing
Planning continued
Production planning involves three
activities:
• Production process consists of
activities, equipment, and resources
needed to manufacture products.
• Production resources consists of
machines, tools, and other equipment
needed for production.
• Personnel consists of employees and
skills needed for production.
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Production and Manufacturing
Planning continued

What is the purpose of Continuous Process Improvement
(CPI) efforts for a manufacturing company?

Improve manufacturing processes to increase the quality of
work by reducing:
• Errors
• Inefficiencies
• Waste

Continuous Process Improvement (CPI) has the following
six steps:
1.
2.
3.
4.
5.
6.
Involve everyone.
Identify process activities.
Establish quality performance standards.
Select measurement tools.
Monitor performance continuously.
Improve process quality.
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Business Operations
Essential Question: Why is it important for
businesses to plan business operations?
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Business Operations
Common business operations:
• Facilities management
• Logistics
• Scheduling
• Safety and security
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Business Operations
continued


Why would a business need to be concerned
about management of their facilities?
What is Facilities Management?
• Managing the buildings and land of a business and
ensuring that everything is used, repaired, and
running properly.

How do businesses obtain their products and
services in a timely manner to make available
for customers?
• Logistics

Managing the receiving, moving, and storing of supplies,
materials, and finished products
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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?


Scheduling involves managing work to be completed, the
people who will complete the work, and the resources
needed for completing the work.
Safety and security involves managing personnel being
in place to prevent accidents and injuries of employees and
customers and protect people and property.
What is involved in safety and security for a
business?
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Business Operations continued

Management tools:
•
•
•
•
Operational plan
Operating budget
Schedule
Procedures
• Standards

Technology tools
• Supply chain
management software
• Collaboration software
• Computer security
• Inventory
• Project Management
• Budgeting
• Document Management
• Manufacturing
Automation
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