Oral Business Product3.pptVIP

Oral  Business English Chapter 3: Production and Operations The Most Important Issue in Business Efficient and Effective Production Increases PRODUCTIVITY, Thus increasing PROFITABILITY Production/Manufacturing Production is, process of transforming inputs into outputs (goods and services) or total product Manufacturing is, one part of production – the making goods Manufacturing comes after resource extraction Operational Functions Production Process Production Inputs Material Inputs Machines Raw materials Parts Human Inputs Unskilled, skilled, managerial Other Inputs Location, electricity, storage, etc Location: Plant/Office Customers Raw Material sources Labor supply Power and Water Community Considerations Taxes, Water supply and sewerage, env. protection standards, clean air, living costs Basic Requirements of Production Process Build and deliver products in response to customer orders at a specified delivery time Provide satisfactory quality Provide at lowest cost Process Manufacturing Synthetic Process Systems Physically or chemically altering materials Assembly: putting components together Analytic Process Systems Breaking down components into raw materials to extract other products Process Lengths Continuous – long production runs Intermittent – short, customized runs Materials Management Materials can be either processed or unprocessed (raw) MRP: Materials Requirement Planning uses sales forecasts to direct purchasing, scheduling and routing sequence MRPII: Manufacturing Resource Planning utilized all resources [sales projections, personnel, plant capacity, distribution limitations ERP: Enterprise Resource Planning links multiple companies into one integrated production unit – can monitor sales, customer satisfaction, quality, and inventory Purchasing Searches for quality material resources Locates best suppliers Negotiates best price for quality Inventory Control Inventory: list of