POBF 2.03 Guided Notes NAME
Students will be able to understand production and operations
PRODUCTION
- The forms of production:
- Extraction and is the most basic form of where products are obtained from or from using natural resources to . Examples include products such as fish, chicken, tomatoes and broccoli and products such as iron ore, bauxite, raw diamonds and oil
- Processing is and improving the form of product which increases its and . Examples include honey removed from the comb and packaged, fresh mangoes processed at a cannery, oil sent to refineries to be into gasoline, heating oil or motor oil
- is combining and processed goods into products which may be sold to other businesses or to consumers. Examples include craftsmen using tools and materials to cabinets in a kitchen; a computer chip; building high speed rail system, cosmetics, china, or shoes.
- The types of production:
- production is using processes to produce quantities of products. Employees use precise tasks, tools and equipment; the work may be and have reduced (boring), companies use and to perform many procedures. Examples include: Krispy Kreme doughnuts, Maybelline lipstick, Nike sneakers and automobiles.
- manufacturing is a process of a and product for a customer. Used when a customer has needs or the product has a use; designers, tool makers and assemblers work . Examples include ceramics, prosthetic limbs, signs, buildings, landscapes, bridges, dentures, vehicles
- Materials processing is changing to another form in order to be or used to make products. Examples include oil companies refining crude oil, mills process wheat into flour, film processors convert film into photographs.
- Production activities include: product , production and management.
- Product development is the process of or the form of product. Why do companies develop new products?
- Consumer
- Keep up with
- New
- Sales
- Life cycle of a product:
- Introduction
- Growth phase
- Phase
- Decline
- Product research’s goal is to develop products that will meet the of customers and current products offered by the company.
- Six steps of product design:
- Scientists develop
- Design engineers models or prototypes
- Models are and revised
- The model is chosen
- Materials are selected to make a product
- Financial experts determine of
- Applied research is marketing research that studies products to develop design or new product
- In research new to problems are discovered. There is no product in mind and the goal is to something new.
- Production planning activities include:
- Production - identifying the steps/, equipment and needed to manufacture products
- Production - setting up , tools and other equipment needed for production
- Personnel – determines number of and needed for completion of production, and additional staff.
- Continuous Improvement – ongoing effort to improve manufacturing to increase the of work.
Purpose is to reduce , and waste.
- Six steps of CPI:
- Involve
- Identify process
- Establish performance (benchmarks)
- measurement tools
- Monitor performance and to standard
- Look for ways to process quality
BUSINESS OPERATIONS
- Inventory - account of a company’s , supplies and product
- Inventory management:
- Maintains the of all resources needed
- Ensures that each production item is at time and place needed
- Keeps records of and of resources
- Keeps record of all merchandise
- Facilities management – managing and of a business to ensure that everything is used, and running properly
- – managing the , moving and of supplies, materials and finished products
- Scheduling is managing to be completed, the who will complete the work and the needed for completing the task
- Safety and is managing personnel to prevent and of employees and and protect and . Goal = minimizing and losses. Examples: fire drills, tornado drills, recognize safety records, signs encouraging workplace safety.
- Information management: coordinating information between , employees, , and managers; may be at multiple locations.
- To , , and securely all needed information
- To provide access to information required to work and make
- To prevent to by those to use it
- To use technology to improve and information
- Management tools include:
- Operational plan – identifies work will be done, will do it and resources will be needed
- Operating budget – detailed plan for a production unit, marketing department or other area of the business
- Schedules – matching with
- Procedures – list of to be followed for a particular work activity
- Standards – a against which a result is judged
- Technology tools – types of software
- Supply chain management software – allows cooperating companies to ordering, and shipping , tract products and exchange data
- Collaboration software – provides communications by voice, text, videos using computers around the world
- Computer security – provides and , usage data, privacy, protection for networks.
- Inventory – management of , purchases, payment; tracks production, usage and sales, prints .
- Project management – keeps track of project , tasks, to-do lists, assignments and project
- Budgeting – automates budget planning, budgets from one period to another, coordinates budgets among
- Document management – controls production, , management and of electronic documents
- Manufacturing automation – monitors and manufacturing machines, checks for and , reports on production levels