STUDENTS WILL BE ABLE TO UNDERSTAND

PRODUCTION AND OPERATIONS

1

Essential Standard 2.00 POB-F Objective 2.03

TOPICS

Ò Types of productions and manufacturing Ò Production and manufacturing planning Ò Business operations

2

TYPES OF PRODUCTIONS AND MANUFACTURING

3

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

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 Ò Mass production - using assembly processes to

produce large quantities of identical products É  Employees have precise tasks, specialized tools and

equipment É  Can result in monotonous work & reduced motivation É  Companies use computers and robotics to perform many

repetitive procedures Examples: Krispy Kreme donuts, Maybelline lipstick, and Nike

sneakers, automobiles

6

http://www.youtube.com/watch?v=uztA6JCKB4s

TYPES OF PRODUCTIONS AND MANUFACTURING

Ò Custom manufacturing - process of producing a specific and exclusive product for a customer É When customer has unique needs or product has a

specific use É Designers, tool makers, and assemblers work

together É Examples: ceramics, prosthetic limbs, signs,

buildings, landscapes, bridges, dentures, vehicles

7

Eclipse GSX Wide Custom Body Kit Transformation

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

9

PRODUCTION ACTIVITIES

Production and manufacturing involve the following activities in order to produce products: 1.  Product development 2.  Production planning 3.  Inventory management

10

WHAT IS PRODUCT DEVELOPMENT? Ò Product development is the process of

creating or improving the form of another product.

Ò Why do companies develop new product? É Consumer demand É Keep up with trends É New technology É Retain sales

LIFE CYCLE OF A PRODUCT

Ò  Introduction Ò Growth phase Ò Maturity phase Ò Decline Ò obsolete

11

12

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

WHAT IS PRODUCT RESEARCH?

13

1.  Scientist develop idea 2.  Design engineers create models-

prototypes 3.  Models are tested and revised 4.  Best model is chosen 5.  Materials selected to make usable

product 6.  Financial experts determine costs of

production

WHAT ARE STEPS IN PRODUCT DESIGN?

14

APPLIED RESEARCH

Marketing research that studies existing products to develop design improvements or new product uses Ð Auto manufacturers study current design to improve

efficiency of engines or improve product safety Ð Engineers experiment with solar designs for renewable

energy sources Ð Improved athletic shoes designed especially for runners,

aerobics, walking, etc. Ð Development of formulas for corn based ethanol as an

alternative fuel

PURE RESEARCH

Ò Discovers new solutions to problems Ð Drug manufacturers study diseases and immune

systems to uncover treatment or cures Ð Scientists at the CDC (Center for Disease Control) Ð Doctors at Duke U Medical Research Center Ð No specific product in mind Ð Goal- to uncover new treatments or cures

15

16

PRODUCTION PLANNING ACTIVITIES

Ò  Production process –identifying the steps/activities, equipment, and resources needed to manufacture products – what are the steps in the production activity?

Ò  Production resources – setting up machines, tools, and other equipment needed for production

Ò  Personnel – determines # of employees and skills needed for completion of production, hires and trains additional staff if required

PRODUCT DESIGN

Ò  Product design is first creating a model and then deciding the best possible design.

17

18

WHAT IS CONTINUOUS PROCESS

IMPROVEMENT ? Ò  Continuous Process Improvement (CPI) -ongoing

effort to improve manufacturing processes to increase the quality of work

Ò  Purpose: to reduce É Errors É  Inefficiencies É Waste

É  Continuous reviewing with goal of finding ways to improve

É  Not just manufacturing: Disney, McDonalds, teachers

www.thomasgroup.com/eLibrary/case-studies.aspx

19

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?

20

BUSINESS OPERATIONS

Common business operations: É  Inventory management É Facilities management É Logistics É Scheduling É Safety and security É  Information management

INVENTORY MANAGEMENT

Ò  Inventory- detailed account of a company’s materials, supplies and finished product

Ò  Inventory management É maintains the supply of all resources needed É ensures that each item need to make product is

available at time and place needed É keeps record of supply and costs of resources É Keeps accurate record of all merchandise

21

22

WHAT IS FACILITIES MANAGEMENT?

Ò Why would a business need to be concerned about management of their facilities? É To know buildings and land are repaired, running

properly and prepared to be used Ò Facilities management - managing buildings

and land of a business and ensuring that everything is used, repaired, and running properly.

FACILITIES MANAGEMENT AT CHS

Ò  Manager- L, Oborne, Assistant Principal É  Supervises custodial

staff É  Submits work orders for

maintenance

Ò  What types of problems might our facility have? É  Electrical outages É  Lights É  Computer systems É  Storm damage-hail, wind,

water É  Plumbing issues É  Entry/exit/halls/doors É  Furniture, equipment É  Parking, street

accessibility 23

24

How do businesses obtain their products and services in a timely manner to make available for customers? LOGISTICS

Logistics - managing the receiving, moving, and storing of supplies, materials, and finished products

WHAT IS LOGISTICS?

LOGISTICS

Ò  Transport of: É  Employees É  Equipment É  Materials in É  Finished products out

Ò  Highways, interstates Ò  Railroads Ò  Ships, boats Ò  airports

Ò  Storage of/workspace for: É  Employees supplies É  Raw materials É  Finished goods É  Shipping area É  Movement of goods

between departments

25

26

SCHEDULING

Ò What is involved in scheduling work, people, and resources for a business?

Ò Scheduling – managing: É activities to be completed É the people who will complete the work É the resources needed for completing the task

ADDITIONAL HIRING NEEDED WHEN?

Ò When might additional employees be hired by the following businesses? É Clothing retailer É Hospital É School system É Day care operation É Military supplier É Police department

27

28

SAFETY AND SECURITY

Ò What is involved in safety and security for a business?

Ò Safety and security - managing personnel being in place to prevent accidents and injuries of employees and customers and protect people and property.

SAFETY AND SECURITY

Ò Goal: Minimizing human and property losses Ò Procedures- fire drills, tornado drills Ò Personnel Ò Security plans- catastrophic events

É Hurricane, fire, tornado Ò Encourage workplace safety Ò Secure employees & customers Ò Recognize safety records

29

30

INFORMATION MANAGEMENT

Ò When does a company use information management?

When information needs to be coordinated between

Ð Customers, employees, supervisors, managers Ð Locations at various sites-local, regional, international

31

INFORMATION MANAGEMENT

GOALS: 1.  To collect, organize, and securely

maintain all needed information 2.   To provide instantaneous access to info

required to perform work and make decisions

3.   To prevent access to information by those unauthorized to use it

4.   To use technology to improve communication and information sharing

32

MANAGEMENT TOOLS

Ò  Operational plan-identifies how work will be done, who will do it, and what resources will be needed

Ò  Operating budget -detailed financial plan for a

production unit, marketing department or other area of the business

Ò  Schedules - matching people with resources

Ò  Procedures – list of steps to be followed for performing a particular work activity

Ò  Standards – a specific measurement against which a result is judged

TECHNOLOGY TOOLS - TYPES OF SOFTWARE

Ò  Supply chain management software allows cooperating companies to share ordering, production, and shipping information, tract products, and exchange customer data

Ò  Collaboration software

provides real time communications by voice, texts, videos using computers around the world

Ò  Computer security provides access and restrictions, usage data, privacy, virus protection for networks

Ò  Inventory

management of sales, purchases, payment; tracks production, usage and sales, prints bar codes

33

TECHNOLOGY TOOLS - TYPES OF SOFTWARE

Ò  Project Management keeps tract of project calendars, tasks, to-do lists, work assignments and project resources

Ò  Budgeting

automates budget planning, compares budgets from one time period to another, coordinates budgets among department

Ò  Document Management controls production, storage, management, and distribution of electronic documents

Ò  Manufacturing Automation

monitors and controls manufacturing machines, checks for errors and defects, reports on production levels

34