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 Production Activities 13 SLIDE 2 ● Product development ● Product research – to develop new products that will meet the needs of customers and improve the current products offered by the company and its competitors. ● applied research – Studies existing product to develop design improvements or new product uses. ● Example? ● pure research - research done without a specific product in mind with the goal of discovering anew solutions to a problem. ● Example? https://www.youtube.com/watch?v=C5wXbm1nPPA © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER Production Activities 13 SLIDE 3 ● Production planning ● Production process – First activities, equipment and resources needed to manufacture a product ● Production resources – Then business orders or builds the machines, tools and other equipment required for each step of the production process. ● Often new products need customized equipment. ● In some cases a business will need to buy or construct a new building. ● Sometimes it can remodel current facilities ● Personnel – Lastly company estimates # of employees needed to complete all production activities. https://www.youtube.com/watch?v=3q6ULOT9Q4M © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER 13 SLIDE 4 Production Activities ● Inventory management ● Inventory – detailed account of a company’s materials, supplies and finished products. ● Inventory management – maintains the supply of all resources needed for production and the products produced. ● Inventory managers keep records of the supply and costs of all resources used in production. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER 13 SLIDE 5 Activity ● With your neighbor identify three different problems that could occur in managing an inventory for manufacturing. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER 13 SLIDE 6 MANUFACTURING PROCEDURES ● Organizing the work area ● Product and production process will determine how the work area is organized. ● Mass production requires large buildings. ● Customized production requires larger workplace for each employee ● Improving manufacturing ● Benchmarks – best practices used by competitors. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER 13 SLIDE 7 How coca cola is made ● https://www.youtube.com/watch?v=yNYJG3WFPak Take notes on the process of how coca cola is made © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER CONTINUOUS PROCESS IMPROVEMENT 13 SLIDE 8 ● Involve everyone. Why? ● Identify process activities. ● Establish quality performance standards. ● Select measurement tools. ● Monitor performance continuously. ● Improve process quality. © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e CHAPTER 13 SLIDE 9 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 CHAPTER 13 SLIDE 10 Assignment ● With a partner you will choose one household product that your or your family uses. ● Evaluate the product and determine a design improvement for the product. ● Sketch a new design that illustrates the improvement. ● Present to the class your sketch and explain the new product design and why it is better than the current design. ● The following needs to be included in the Presentation ● Name and photo of the original product ● Function of the original product ● Describe the improvement to the product ● New function ● Provide an image of the improvement © 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e