13-2 notes

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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
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