08 production dist-operations

Principles of Business, Marketing, andPrinciples of Business, Marketing, and Finance FinanceLesson EightLesson Eight

Principles of Business, Marketing, andPrinciples of Business, Marketing, and Finance FinanceLesson EightLesson Eight

Production, Distribution, and Other Business Production, Distribution, and Other Business OperationsOperations

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Production ActivitiesProduction ActivitiesProduction ActivitiesProduction Activities

• Product ResearchApplied Research -studies existing products to develop

design improvements or new product uses

Pure Research -research done without a specific

product in mind with the goal of discovering new solutions to problems

Product Design -new product idea is developed into a

product to sell profitably

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Production Planning ProcessProduction Planning ProcessProduction Planning ProcessProduction Planning Process

• Production Resources

-machines, tools, other equipment

• Personnel -employees with necessary

skills


Inventory ManagementInventory ManagementInventory ManagementInventory Management

• Detailed account of a company’s materials, supplies, and finished products

• Maintains the supply of all resources needed for production and the products produced


Manufacturing ProceduresManufacturing ProceduresManufacturing ProceduresManufacturing Procedures

• Organizing the work area by type of process or assembly required

• Improving Manufacturing– Need for faster production– Need for increased quality– Need for reduced costs


Continuous Process Improvement Continuous Process Improvement (CPI)(CPI)

Continuous Process Improvement Continuous Process Improvement (CPI)(CPI)

• Increases the quality of work by reducing errors, inefficiencies, and waste

• Achieves goals by improving the quality of work

• Benchmarks-best practices among all competitors


Importance of Business OperationImportance of Business OperationImportance of Business OperationImportance of Business Operation

• Determines the Success or Failure of a Business


Types of Business OperationsTypes of Business Operations


Tools for Business OperationsTools for Business OperationsTools for Business OperationsTools for Business Operations

• Operational Plan– How work will be done– Who will do the work– What resources will be

needed

• Schedule-time plan for completing activities

• Standard-specific measurement against which an activity or result is judged


Using Technology to Manage Using Technology to Manage OperationsOperations

Using Technology to Manage Using Technology to Manage OperationsOperations

• More accurate decision making and planning• Easier to access and exchange information• Supply chain management -technology allows companies to share ordering,

production, shipping information, etc.

• Collaboration software -real-time communications for team members located in

different parts of the world


Types of BusinessesTypes of BusinessesTypes of BusinessesTypes of Businesses

• Producers– Extractors– Manufacturers

• Intermediaries-sell goods and services of producers to consumers and other businesses

• Service Business-carries out activities that are consumed by its customers

• Contingent Worker-no contract for long-term employment


Product PlanningProduct PlanningProduct PlanningProduct Planning

• Product-everything a business offers to satisfy a customer’s needs– Basic product– Product features-additions and improvements to the basic

product– Options-customers are offered choices of features– Brand name-unique identification– Packaging-provides protection and security for the product– Guarantee or warranty-builds customer confidence


Product Planning ProceduresProduct Planning ProceduresProduct Planning ProceduresProduct Planning Procedures

• Idea Development• Idea Screening• Strategy Development• Production and Financial

Planning• Limited Production and Test

Marketing• Full-scale Production


Education

08 production dist-operations