Objective 2.03 Understand production and operations. 1.
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Transcript of Objective 2.03 Understand production and operations. 1.
Objective 2.03
Understand production and operations.
1
Topics
• Types of productions and manufacturing
• Production and manufacturing planning
• Business operations
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Types of Productions and ManufacturingThe forms of production
– Extraction and cultivation – obtaining products from nature or using natural resources to grow.
• Example: farming, mining, fishing, forestry
– Processing – changing and improving the form of another product.
• Example: paper mill, oil refinery
– Manufacturing – combining raw materials and processed goods into finished products.
• Example: bakery, automotive plant, and shoe factory
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Types of Productions and Manufacturing• Mass production - the process of using
assembly activities to produce large quantities of identical products.– Examples: Krispy Kreme donuts, Honda
Civics, and Nike sneakers
• Custom manufacturing - the process of producing a specific and exclusive product for a customer. – Examples: ceramics, artwork, business signs
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Types of Productions and Manufacturing
Materials processing - the process of changing raw materials to another form in order to be consumed or used to make other products.
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Production and Manufacturing Planning
Production and manufacturing involve the following activities in order to produce products:– Product development– Production planning– Inventory management
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Production and Manufacturing Planning• Product development – the process of
creating a product or improving the form of another product
• Product research - performed by engineers and other scientists to develop new products or to discover improvements for existing products.
• Product design - creating models and then deciding the best possible design.
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Production and Manufacturing Planning
Two types of product research– Applied research is marketing research that
studies existing products to develop design improvements or new product ideas.
– Pure research discovers new solutions to problems.
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Production and Manufacturing PlanningProduction 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.
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Production and Manufacturing Planning• Continuous Process Improvement (CPI) –
an ongoing effort to improve manufacturing processes to increase the quality of work
– What is the purpose of CPI efforts for a manufacturing company?
• Reduce errors, inefficiencies, and waste
• CPI has the following six steps:1. Involve everyone.2. Identify process activities.3. Establish quality performance standards.4. Select measurement tools.5. Monitor performance continuously.6. Improve process quality.
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Business Operations
Common business operations– Facilities management– Logistics– Scheduling– Safety and security
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Business Operations
• Facilities management - managing the buildings and land of a business and ensuring that everything is used, repaired, and running properly.– Why would a business need to be concerned about
management of their facilities?
• Logistics - managing the receiving, moving, and storing of supplies, materials, and finished products– Why is logistics important?
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Business Operations
• What is involved in scheduling work, people, and resources for a business?– Scheduling involves managing work to be
completed, the people who will complete the work, and the resources needed for completing the work.
• What is involved in safety and security for a business?– Safety and security involves managing personnel
being in place to prevent accidents and injuries of employees and customers and protect people and property.
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Business Operations• Management tools
– Operational plan– Operating budget– Schedule– Procedures
– Standards • Technology tools
– Supply chain management software
– Collaboration software– Computer security– Inventory– Project Management– Budgeting– Document Management– Manufacturing Automation
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