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Essential Standard 2.00. Understand nature of business. Objective 2.03. Understand production and operations. Topics. Types of productions and manufacturing Production and manufacturing planning Business operations. Types of productions and manufacturing.

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essential standard 2 00

Essential Standard 2.00

Understand nature of business.

objective 2 03

Objective 2.03

Understand production and operations.

  • Types of productions and manufacturing
  • Production and manufacturing planning
  • Business operations
types of productions and manufacturing continued
Types of Productions and Manufacturing continued

The forms of production:

  • Extraction and cultivation – obtaining products from nature or using natural resources to grow.
    • Example: chicken, tomatoes, and broccoli
  • Processing – changing and improving the form of another product.
    • Example: honey, mango, and soil
  • Manufacturing – combining raw materials and processed goods into finished products.
    • Example: cosmetics, china, and shoes
types of productions and manufacturing continued1
Types of Productions and Manufacturingcontinued
  • Mass production is the process of using assembly activities to produce large quantities of identical products.
    • Examples: KrispyKreme donuts, Maybelline lipstick, and Nike sneakers
  • Custom manufacturing is the process of producing a specific and exclusive product for a customer.
    • Examples: ceramics, prosthetic limb, signs,
types of productions and manufacturing continued2
Types of Productions and Manufacturing continued

Materials processing is the process of changing raw materials to another form in order to be consumed or used to make other products.

production and manufacturing planning1
Production and Manufacturing Planning

Production and manufacturing involve the following activities in order to produce products:

Product development

Production planning

Inventory management

production and manufacturing planning continued
Production and Manufacturing Planning continued

What is involved with product development?

Product research is performed by engineers and other scientists to develop new products or to discover improvements for existing products.

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

Product development is the process of creating or improving the form of another product.

production and manufacturing planning continued1
Production and Manufacturing Planning continued

Two types of product research:

Applied researchis marketing research that studies existing products to develop design improvements or new product ideas.

Pure researchdiscovers new solutions to problems.

production and manufacturing planning continued2
Production and Manufacturing Planning continued

Production planning involves three activities:

Production process consists of activities, equipment, and resources needed to manufacture products.

Production resources consists of machines, tools, and other equipment needed for production.

Personnel consists of employees and skills needed for production.

production and manufacturing planning continued3
Production and Manufacturing Planning continued

What is the purpose of Continuous Process Improvement (CPI) efforts for a manufacturing company?

Continuous Process Improvement (CPI) has the following six steps:

Involve everyone.

Identify process activities.

Establish quality performance standards.

Select measurement tools.

Monitor performance continuously.

Improve process quality.

business operations1
Business Operations

Common business operations:

Facilities management



Safety and security

business operations continued
Business Operationscontinued

Why would a business need to be concerned about management of their facilities?

What is facilities management?

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

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


Business Operations

  • Logistics
  • is managing the receiving, moving, and storing of supplies, materials, and finished products
business operations continued1
Business Operationscontinued

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

What is the purpose of a business managing safety and security?

What is involved in safety and security for a business?

business operations continued2
Business Operations continued

Management tools:

Operational plan

Operating budget




Technology tools

Supply chain management software

Collaboration software

Computer security


Project Management


Document Management

Manufacturing Automation