PowerPoint Presentation Section 16.2 Pages 273- 279 53 Slides.

PowerPoint Presentation

Section 16.2Section 16.2 Pages 273-Pages 273-

279279 53 Slides53 Slides

What you’ll learnWhat you’ll learn How to manage the production How to manage the production

aspects of a businessaspects of a business

16.2 Production and Distribution


What you’ll learnWhat you’ll learn How to use Gantt charts and How to use Gantt charts and

PERT diagramsPERT diagrams


What you’ll learnWhat you’ll learn The elements of distribution The elements of distribution

managementmanagement

Why it’s importantWhy it’s important Production and distribution Production and distribution

are the ways that a business are the ways that a business makes an idea come true and makes an idea come true and gets it to the customers.gets it to the customers.


Key TermsKey Terms

Gantt chartsGantt charts

PERT diagramsPERT diagrams

quality controlquality control

quality circlesquality circles


Key Terms (cont.)Key Terms (cont.)

productivityproductivity

automationautomation

common carrierscommon carriers

contract carrierscontract carriers



Key Terms (cont.)Key Terms (cont.)

private carriersprivate carriers

FOBFOB

logisticslogistics

I.I. PRODUCT PRODUCT MANAGEMENTMANAGEMENT

Once a prototype is developed, Once a prototype is developed, plan plan productionproduction..


II.II. AN OVERVIEW OF AN OVERVIEW OF PRODUCTION PRODUCTION There are three functions of There are three functions of production management.production management.


A.A. AcquiringAcquiring resources resources

B.B. Planning how to Planning how to convertconvert resources into products.resources into products.

C.C. Making sure products meet Making sure products meet the the standardsstandards set for them. set for them.

16.1 From Idea to Product

III.III. Scheduling SchedulingA.A. Businesses plan production Businesses plan production

by making by making schedulesschedules..

B.B. There are two widely used There are two widely used scheduling techniques: scheduling techniques:

1. Gantt charts 1. Gantt charts

2. PERT diagrams2. PERT diagrams


IV.IV. GANTT CHARTSGANTT CHARTSGantt charts list Gantt charts list taskstasks on the on the vertical axis and the vertical axis and the timetime required for each task on the required for each task on the horizontal axis.horizontal axis.


V.V. PERT DIAGRAMSPERT DIAGRAMSA.A. PERT stands for Program PERT stands for Program

Evaluation and Review Evaluation and Review TechniqueTechnique


B.B. Identify a project’s major Identify a project’s major activitiesactivities. Then . Then arrangearrange activities on the diagram in activities on the diagram in order.order.

C.C. Connect with Connect with arrowsarrows activities that must occur in activities that must occur in a fixed a fixed sequencesequence..


D.D. Finally, estimate and Finally, estimate and indicate the indicate the timetime necessary necessary to complete each activity.to complete each activity.


VI.VI. CONTROLLING CONTROLLING QUALITYQUALITYA. A. Quality control Quality control is the is the

process of making sure that process of making sure that goods or services produced goods or services produced meet certain standards.meet certain standards.


B.B. Two major ways to control Two major ways to control quality include the following.quality include the following.

1.1. Quality CirclesQuality Circles

2.2. Inspection Inspection


VII. CONTROLLING VII. CONTROLLING QUALITYQUALITYQuality circles are groups of Quality circles are groups of employeesemployees who handle who handle problemsproblems regarding quality. regarding quality.


VIII. INSPECTIONVIII. INSPECTIONInspectInspect your products to your products to improve qualityimprove quality


IX. MANAGING OTHER IX. MANAGING OTHER AREAS OF PRODUCTIONAREAS OF PRODUCTIONProductivityProductivity, , automationautomation, and , and preventionprevention maintenance are maintenance are additional areas of production additional areas of production that should be managed that should be managed effectively.effectively.


X. PRODUCTIVITYX. PRODUCTIVITYA.A. Productivity is a measure of Productivity is a measure of

how much a business how much a business producesproduces in a given time. in a given time.

B.B. Use productivity Use productivity ratesrates to to measure and improve measure and improve performanceperformance..


XI. AUTOMATIONXI. AUTOMATIONA.A. Automation is the use of Automation is the use of

machinesmachines to do the work of to do the work of people.people.


B.B. Automation can cut product Automation can cut product timetime, reduce , reduce errorserrors, and , and simplify simplify proceduresprocedures..

C.C. Automation can be Automation can be expensiveexpensive..


XII. MAINTENANCEXII. MAINTENANCEThere are three basic ways to There are three basic ways to manage maintenance.manage maintenance.

A.A. Organize your Organize your productionproduction process.process.


B.B. Build up Build up inventoriesinventories at each at each stage of the production stage of the production process.process.

C.C. Conduct Conduct preventativepreventative maintenance.maintenance.


XIII. DISTRIBUTION MANAGEMENTXIII. DISTRIBUTION MANAGEMENT

A.A. Distribution management Distribution management includes includes transportationtransportation, , storagestorage, materials , materials handlinghandling, , and specification of and specification of deliverydelivery termsterms..



B.B. It controls the It controls the movementmovement of of product from the product from the manufacturer to the manufacturer to the customers. customers.

XIV. TRANSPORTATIONXIV. TRANSPORTATIONA.A. CommonCommon carriers, such carriers, such

as Federal Express and as Federal Express and United Parcel Service, United Parcel Service, can be used by the can be used by the general general publicpublic..


B.B. ContractContract carriers have a carriers have a contract with a particular contract with a particular shipper to handle the goods. shipper to handle the goods. A A railroadrailroad is a contract is a contract carrier.carrier.



C.C. PrivatePrivate carriers - private carriers - private companies, such as companies, such as truckingtrucking companies, that ship goods.companies, that ship goods.

XV. STORAGEXV. STORAGEEntrepreneurs with Entrepreneurs with limitedlimited resources might have a resources might have a wholesaler store and wholesaler store and distribute their products, or distribute their products, or store products in a public store products in a public warehouse.warehouse.


XVI. MATERIALS XVI. MATERIALS HANDLINGHANDLINGBesides transporting and Besides transporting and storing products, you must storing products, you must handle the products without handle the products without damagingdamaging them. them.


XVII. DELIVERY TERMSXVII. DELIVERY TERMSA. A. On any shipment there On any shipment there

must be delivery must be delivery termsterms..

B.B. Delivery terms Delivery terms identifyidentify who is who is responsibleresponsible for the for the various components of various components of distribution.distribution.


C. C. The most favorable deliver The most favorable deliver term is “term is “free on boardfree on board” or ” or FOB. This means the FOB. This means the buyerbuyer pays all freight costs.pays all freight costs.


D.D. In addition, the In addition, the titletitle of the of the goods passes to the buyer goods passes to the buyer when the goods when the goods leaveleave the the manufacturer.manufacturer.


A. A. The The detailsdetails of a products of a products movement from the movement from the manufacturer to the manufacturer to the customer are called customer are called logisticslogistics..

B. B. You can handle logistics You can handle logistics yourself or yourself or outsourceoutsource it. it.


XVIII. OUTSOURCING LOGISTICSXVIII. OUTSOURCING LOGISTICS


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PowerPoint Presentation Section 16.2 Pages 273- 279 53 Slides.

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