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