Understand nature of business.
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Understand production and operations.
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Topics
 Types of productions and manufacturing
 Production and manufacturing planning
 Business operations
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Types of Productions and Manufacturing
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The forms of production:
 Extraction and cultivation – obtaining products from
nature or using natural resources to grow.
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Example: chicken, tomatoes, and broccoli
 Processing – changing and improving the form of
another product.
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Example: honey, mango, and soil
 Manufacturing – combining raw materials and
processed goods into finished products.
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Example: cosmetics, china, and shoes
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Types of Productions and Manufacturing
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 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
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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
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
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 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
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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
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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
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What is the purpose of Continuous Process
Improvement (CPI) efforts for a manufacturing
company?
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
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?
 How do businesses obtain their products and services
in a timely manner to make available for customers?
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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?
 What is involved in safety and security for a business?
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Business
Operations
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 Management tools:
Operational plan
Operating budget
Schedule
Procedures
 Standards
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 Technology tools
 Supply chain management
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software
Collaboration software
Computer security
Inventory
Project Management
Budgeting
Document Management
Manufacturing Automation
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