Essential Standard 2.00
POB-F Objective 2.03
STUDENTS WILL BE ABLE TO UNDERSTAND
PRODUCTION AND OPERATIONS
1
TOPICS
Types of productions and manufacturing
 Production and manufacturing planning
 Business operations

2
TYPES OF PRODUCTIONS AND
MANUFACTURING
The forms of production:
1. Extraction and cultivation
-most basic form of production
-obtaining products from nature or
-using natural resources to grow
Examples:
-agricultural products- fish, chicken, tomatoes,
and broccoli
- Natural products- iron ore, bauxite, raw
diamonds, oil
3
Forms of Production
2. Processing
– changing and improving the form of another product
– Increases its value and usefulness
Examples: honey removed with comb and packaged
-Fresh mangoes processed at cannery
-Oil sent to refineries to be processed into
gasoline, heating oil, motor oil
4
Forms of Production
3. Manufacturing
– combining raw materials and processed goods into finished
products
–either other businesses or consumers may use finished
products
Examples:
-Craftsman using tools and materials to build cabinets in a kitchen
-Design of a computer microchip
-Building high speed rail system
-Manufacturing cosmetics, china, shoes, furniture
5
TYPES OF PRODUCTIONS AND
MANUFACTURING

Mass production - using assembly processes to
produce large quantities of identical products
Employees have precise tasks, specialized tools and
equipment
 Can result in monotonous work & reduced motivation
 Companies use computers and robotics to perform many
repetitive procedures
Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike
sneakers, automobiles

http://www.youtube.com/watch?v=u
ztA6JCKB4s
6
TYPES OF PRODUCTIONS AND MANUFACTURING

Custom manufacturing - process of producing a
specific and exclusive product for a customer
 When
customer has unique needs or product has a
specific use
 Designers, tool makers, and assemblers work
together
 Examples: ceramics, prosthetic limbs, signs,
buildings, landscapes, bridges, dentures, vehicles
Eclipse GSX Wide Custom Body Kit
Transformation
7
TYPES OF PRODUCTIONS AND
MANUFACTURING
Materials processing- process of changing raw
materials to another form in order to be
consumed or used to make other products
Examples:
Oil companies refine crude oil
Mills process wheat into flour
Film processors convert into photographs
8
PRODUCTION ACTIVITIES
Production and manufacturing involve the
following activities in order to produce
products:
1.
2.
3.
Product development
Production planning
Inventory management
9
WHAT IS PRODUCT DEVELOPMENT?
Product development is the process of
creating or improving the form of another
product.
 Why do companies develop new product?

 Consumer
demand
 Keep up with trends
 New technology
 Retain sales
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NEW PRODUCT IDEAS
Work with your partner to brainstorm an idea for a
new/improved product that you could sell.
 Ideas:
Toothpaste, writing instrument, shoes, clothing,
deodorant, frozen food, athletic equipment, writing
instrument, etc.
 No video games, software, plays
 What are your products features? What will it do
special? What colors does it come in. Draw a pic and
label its features.
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LIFE CYCLE OF A PRODUCT
Introduction
 Growth phase
 Maturity phase
 Decline
 obsolete

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WHAT IS PRODUCT RESEARCH?
Product research
performed by engineers and other
scientists to develop new products or to
discover improvements for existing
products.
Goal: to develop new products that will
meet the needs of customers and improve
current products offered by the company
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WHAT ARE STEPS IN PRODUCT DESIGN?
1.
2.
3.
4.
5.
6.
Scientist develop idea
Design engineers create modelsprototypes
Models are tested and revised
Best model is chosen
Materials selected to make usable
product
Financial experts determine costs of
production
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APPLIED RESEARCH
Marketing research that studies existing products to
develop design improvements or new product uses
 Auto
manufacturers study current design to improve
efficiency of engines or improve product safety
 Engineers experiment with solar designs for renewable
energy sources
 Improved athletic shoes designed especially for runners,
aerobics, walking, etc.
 Development of formulas for corn based ethanol as an
alternative fuel
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PURE RESEARCH

Discovers new solutions to problems
 Drug
manufacturers study diseases and immune
systems to uncover treatment or cures
 Scientists at the CDC (Center for Disease Control)
 Doctors at Duke U Medical Research Center
 No specific product in mind
 Goal- to uncover new treatments or cures
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PRODUCTION PLANNING ACTIVITIES
Production process –identifying the
steps/activities, equipment, and resources
needed to manufacture products – what are the
steps in the production activity?
 Production resources – setting up machines,
tools, and other equipment needed for
production
 Personnel – determines # of employees and
skills needed for completion of production,
hires and trains additional staff if required

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PRODUCTION PLANNING ACTIVITIES

Steps in production
activity




Production Resources

Identify each step in the
assembly line process
http://www.madehow.c
om/Volume1/Pencil.html
Identify raw materials, types of
processes involved, types of
production needed, manufacturing
procedures involved

List materials, tools,
equipment needed for
production
Personal Resources

List people and skills
needed to complete
production
http://www.youtube.com/watch?v=er9CLxS
mQE0
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PRODUCTION PLANNING ACTIVITIES

Steps in production
activity

Peanut butter and jelly
sandwich
Production Resources
Your favorite pants


Fabrics, pattern, buttons,
zippers, thread, elastic,
“sparkles”, sewing
machine, ergonomic chair,
iron, ironing board,
scissors, good lighting,
storage space

Personnel Resources at
CHS



Administration
Coaches
Certified teachers
Core-math, sci, ss, Eng
 Art, drama, music
 CTE, EC, Yes Ctr,
 Foreign language




Custodians
Cafeteria workers
Bus drivers
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PRODUCT DESIGN

Product design is first
creating a model and
then deciding the best
possible design.
20
HOW IT IS MADE?

http://www.madehow.com/Volume1/Aluminum-Foil.html
Watch youtube video
 Complete guided literacy activity

21
WHAT IS CONTINUOUS PROCESS
IMPROVEMENT ?
Continuous Process Improvement (CPI) -ongoing
effort to improve manufacturing processes to
increase the quality of work
 Purpose: to reduce

Errors
 Inefficiencies
 Waste

Continuous reviewing with goal of finding ways
to improve
 Not just manufacturing: Disney, McDonalds,
teachers

www.thomasgroup.com/eLibrary/case-studies.aspx
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Continuous Process Improvement (CPI)
has the following six steps:
1. Involve everyone.
2. Identify process activities.
3. Establish quality performance standards
aka benchmarks.
4. Select measurement tools.
5. Monitor performance and compare to
standard continuously.
6. Look for ways to improve process
quality.
Would Continuous Process Improvement affects prices that consumers pay
for products?
How might you apply the CPI concepts to your personal goals?
23
TOAST AND DELL
http://www.youtube.com/watch?v=cdg9rpg6Dt
8&feature=related
 http://www.youtube.com/watch?v=3N89JJ991
pE
 http://www.youtube.com/watch?v=Q89qAbAAR
3Q&feature=related

24
BUSINESS OPERATIONS
Common business operations:
 Inventory
management
 Facilities management
 Logistics
 Scheduling
 Safety and security
 Information management
25
INVENTORY MANAGEMENT
Inventory- detailed account of a company’s
materials, supplies and finished product
 Inventory management

 maintains
the supply of all resources needed
 ensures that each item need to make product is
available at time and place needed
 keeps record of supply and costs of resources
 Keeps accurate record of all merchandise
26
WHAT IS FACILITIES MANAGEMENT?

Why would a business need to be concerned
about management of their facilities?
 To
know buildings and land are repaired,
running properly and prepared to be used

Facilities management - managing buildings
and land of a business and ensuring that
everything is used, repaired, and running
properly.
27
FACILITIES MANAGEMENT AT CHS

Manager- B. Little,
Assistant Principal


Supervises custodial
staff
Submits work orders for
maintenance

What types of problems
might our facility have?








Electrical outages
Lights
Computer systems
Storm damage-hail, wind,
water
Plumbing issues
Entry/exit/halls/doors
Furniture, equipment
Parking, street
accessibility
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How do businesses obtain their
products and services in a timely
manner to make available for
customers? LOGISTICS
WHAT IS LOGISTICS?
Logistics - managing the receiving,
moving, and storing of supplies,
materials, and finished products
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LOGISTICS

Transport of:








Employees
Equipment
Materials in
Finished products out
Highways, interstates
Railroads
Ships, boats
airports

Storage of/workspace
for:





Employees supplies
Raw materials
Finished goods
Shipping area
Movement of goods
between departments
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WHAT CAN BROWN DO FOR YOU?

http://www.youtube.com/watch?v=g23mkL69ic&feature=BFa&list=PL79DF4DEC6
808C29E&lf=rellist
31
SCHEDULING
What is involved in scheduling work, people,
and resources for a business?
 Scheduling – managing:

 activities
to be completed
 the people who will complete the work
 the resources needed for completing the task
32
ADDITIONAL HIRING NEEDED WHEN?

When might additional employees be hired by
the following businesses?
 Clothing
retailer
 Hospital
 School
system
 Day care operation
 Military supplier
 Police department
33
SAFETY AND SECURITY
What is involved in safety and security for a
business?
 Safety and security - managing personnel
being in place to prevent accidents and
injuries of employees and customers and
protect people and property.

34
SAFETY AND SECURITY
Goal: Minimizing human and property losses
 Procedures- fire drills, tornado drills
 Personnel
 Security plans- catastrophic events

 Hurricane,
fire, tornado
Encourage workplace safety
 Secure employees & customers
 Recognize safety records

35
INFORMATION MANAGEMENT

When does a company use information
management?
When information needs to be coordinated
between
 Customers,
employees, supervisors, managers
 Locations at various sites-local, regional, international
36
INFORMATION MANAGEMENT
1.
2.
3.
4.
GOALS:
To collect, organize, and securely
maintain all needed information
To provide instantaneous access to info
required to perform work and make
decisions
To prevent access to information by
those unauthorized to use it
To use technology to improve
communication and information sharing
37
MANAGEMENT TOOLS

Operational plan-identifies how work will be done, who
will do it, and what resources will be needed

Operating budget -detailed financial plan for a
production unit, marketing department or other area of
the business

Schedules - matching people with resources

Procedures – list of steps to be followed for performing a
particular work activity

Standards – a specific measurement against which a
result is judged
38
TECHNOLOGY TOOLS - TYPES OF SOFTWARE


Supply chain management
software
allows cooperating
companies to share
ordering, production, and
shipping information, tract
products, and exchange
customer data
Collaboration software
provides real time
communications by voice,
texts, videos using
computers around the world

Computer security
provides access and
restrictions, usage data,
privacy, virus protection for
networks

Inventory
management of sales,
purchases, payment; tracks
production, usage and sales,
prints bar codes
39
TECHNOLOGY TOOLS - TYPES OF SOFTWARE

Project Management
keeps tract of project
calendars, tasks, to-do
lists, work assignments
and project resources

Document Management
controls production,
storage, management, and
distribution of electronic
documents

Budgeting
automates budget
planning, compares
budgets from one time
period to another,
coordinates budgets
among department

Manufacturing Automation
monitors and controls
manufacturing machines,
checks for errors and
defects, reports on
production levels
40