12 14 13 Chapter 9 Notes Production and Operations Management Manufacturing and Services in Perspective Focus on customers Maintain close relationships with suppliers and other companies to satisfy customer needs Practice continuous improvement Focus on quality Save costs though site selection Rely on internet to unite companies Adopt production techniques From Production to Operations Management Production creation of finished goods and services using the factors of production land labor capital entrepreneurship and knowledge Production management used to describe all the activities managers do to help their firms create goods Operations management specialized area in management that converts or transforms resources into goods and services all about creating good experiences for those who use the service Production Process Form utility the value producers add to materials in the creation of finished goods and Process manufacturing part of the production process that physically or chemically services changes materials Assembly process part of the production process that puts together components Continuous process part of the production process in which long production runs turn out finished goods over time Intermittent process a production process in which the production run is short and the machines are changed frequently to make different products Computer aided design the use of computers in the design of products Computer aided manufacturing the use of computers in the manufacturing process Computer integrated manufacturing the uniting of computer aided design with computer Flexible manufacturing designing machines to do multiple tasks so that they can produce Lean manufacturing the production of goods using less of everything compared to mass aided manufacturing a variety of products production Mass customization tailoring products to meet the needs of individual customers Operations Management Planning Facility location process of selecting a geographic location for a company s operations Reasons to move location inexpensive resources companies cluster where smart and talented people are time to market move to foreign countries to get closer to international customers quality of life for workers and managers near schools nice weather low crime rate Interfirm process companies work closely together to design produce and ship products to customers over the Internet Telecommuting working from home via computer Facility layout the physical arrangement of resources including people in the production process o Moving from assembly line to modular layout teams of workers combine to produce more complex units of the final product o Fixed position layout allows workers to congregate around the product to be completed o Process layout similar equipment and functions are grouped together Materials requirement planning computer based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place Enterprise resource planning newer version of materials requirement planning that combines the computerized functions of all the divisions and subsidiaries of the firm such as finance human resources and order fulfillment into a single integrated software program that uses a single database Purchasing the function in a firm that searches for high quality material resources finds the best suppliers and negotiates the best price for goods and services Just in time inventory control a production process which a minimum inventory is kept on the premises and parts supplies and other needs are delivered just in time to go on the assembly Quality consistently producing what the customer wants while reducing errors before and after delivery to the customer o Six sigma quality a quality measure that allows only 3 4 defects per million opportunities o Statistical quality control the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning o Statistical process control the process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph Any variances from quality standards are recognized and can be corrected if beyond the set standards o Baldrige award national quality award showing quality in leadership strategic planning customer and market focus information and analysis human resources focus process management and business results o ISO 9000 common name given to quality management and assurance standards o ISO 14000 collection of the best practices for managing an organizations impact on the environment Control Procedures PERT and Gantt Charts Program evaluation and review technique a method for analyzing the tasks involves in completing a given project estimating the time needed to complete each task and identifying the minimum time needed to complete the total project Critical path in a PERT network the sequence of tasks that takes the longest time to complete Gantt charts bar graph showing production managers what projects are being worked on and what stage they are in at any given time
View Full Document
Unlocking...