© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 1

13-1 Types of Production

13-2 Production Planning

13-3 Planning and Managing BusinessOperations

13C H A P T E R

Production and Business Operations

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 2Production as an economic

activity

● Produce to sell to consumers and businesses

● Role of producers● Natural resources, agricultural products, and

processed goods

● 4 types of business that are responsible for production● Producers, extractors, farmers, manufacturers

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13

3 Forms of Production● Extraction and cultivation

● Obtained from nature or grown

● Processing● Changing and improving the form of another

product

● Manufacturing● Combine raw materials and processed goods

into finished products

● What classifies?

SLIDE 3

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13

Manufacturing Process

● Mass production● Assembly process

● Custom manufacturing● Specific and unique product to meet needs of

each customers

● Materials processing● Changing raw materials so can be used

SLIDE 4

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C H A P T E R 13SLIDE 5

Checkpoint

● Page 320 Key Concepts 1. D. All are correct

2. False. Extraction and cultivation is the most basic form of production

3. D. Custom manufacturing

4. C. Textbooks

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 6

PRODUCTION ACTIVITIES● Product development

● Product research● Applied research v Pure research

● Product design

● Production planning● Production process● Production resources● Personnel

● Inventory management● Just in time

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 7CONTINUOUS

PROCESS IMPROVEMENT

● Involve everyone.● 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

C H A P T E R 13SLIDE 8

Checkpoint

● Page 326, 13-2 Assessment1. False. As customer needs and competition

change, new products have to be developed

2. True.

3. C. Production resources and finished products

4. B. Benchmarks

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 9THE IMPORTANCE OF

BUSINESS OPERATIONS

● Business operations almost all business do● Facilities management● Logistics (Supply Chain Management) ● Scheduling● Safety and security

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13

Information management

● Collect, organize, and securely maintain all info

● Provide instantaneous access to information to perform work and make decisions

● Prevent access to information by those unauthorized

● Use technology to improve communication

SLIDE 10

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 11TOOLS FOR BUSINESS

OPERATIONS

● Management tools● Operational plan● Schedule● Procedure

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 12Using technology to manage

operations● Microsoft, SAP, etc.

● Common types of operations software● Project management● Budgeting● Scheduling● Inventory● Computer security● Document management● Manufacturing automation

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 13

Checkpoint

● Page 334, 13-3 Assessment1. C. Energy and environmental MGT

2. B. Schedule

3. False. This software controls the production, storage, management, and distribution of electronic documents.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 13SLIDE 14

Checkpoint

● Identify four important types of business operations. ● Facilities management● Logistics● Scheduling● Safety and security