Chap009

WHERE ARE WE IN MFG SECTOR ??
1. MANUFACTURING IS AT AN ALL TIME LOW
2. UNEMP IS AT LOWEST POINT IN YEARS
**this chapter focuses on what manufacturers and service providers can do to revive economy

Services are replacing true manufacturing
Service sector is growing
Managers will become more occupied with service productivity
Focus will become on blending services and true manufacturing

PRODUCTION and PRODUCTION MANAGEMENT * * From Production to Operations Management
Production -- The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production).
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Production Management -- All the activities managers do to help firms create goods.
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PRODUCTION PROCESS
RAW MATERIALS ---WORK IN PROCESS---FINISHED GOODS
****** IF production historically meant this manufacturing process then production mgt would help firms make goods
Transitional time : NOW production includes goods and services

OPERATIONS MANAGEMENT * * From Production to Operations Management
Operations Management -- A specialized area in management that converts or transforms resources into goods and services.
Operations management includes:
Inventory management
Quality control
Production scheduling
Follow-up services
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The PRODUCTION PROCESS * * Production Processes LG3 9-

FORM UTILITY * * Production Processes
Form Utility -- The value producers add to materials in the creation of finished goods and services.
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PROCESS and ASSEMBLY in PRODUCTION * *
Process Manufacturing -- The part of production that physically or chemically changes materials.
Assembly Process -- The part of the production process that puts together components.
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KEY PRODUCTION PROCESSES * *
Production processes are either continuous or intermittent.
Continuous Process -- Long production runs turn out finished goods over time .
Intermittent Process -- Production runs are short and the producer adjusts machines frequently to make different products.
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DEVELOPMENTS MAKING U.S. COMPANIES MORE COMPETITIVE * * The Need to Improve Production Techniques and Cut Costs LG3
Computer-aided design and manufacturing
Flexible manufacturing
Lean manufacturing
Mass customization
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COMPUTER-AIDED DESIGN and MANUFACTURING * * Computer-Aided Design and Manufacturing LG3
Computer-Aided Design (CAD) -- The use of computers in the design of products.
Computer-Aided Manufacturing (CAM) -- The use of computers in the manufacturing of products.
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FLEXIBLE MANUFACTURING * * Flexible Manufacturing LG3
Flexible Manufacturing -- Designing machines to do multiple tasks so they can produce a variety of products.
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LEAN MANUFACTURING * * Lean Manufacturing LG3
Lean Manufacturing -- Using less of everything than in mass production.
Compared to others, lean companies:
Take half the human effort.
Have half the defects in finished products.
Require one-third the engineering effort.
Use half the floor space.
Carry 90% less inventory.
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MASS CUSTOMIZATION * * Mass Customization LG3
Mass Customization -- Tailoring products to meet the needs of a large number of individual customers.
More manufacturers are learning to customize.
Mass customization exists in the service sector too.
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OPERATIONS MANAGEMENT * * Operations Management Planning
Operations management planning helps solve problems like:
Facility location
Facility layout
Materials requirement planning
Purchasing
Inventory control
Quality control
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FACILITY LOCATION * * Facility Location
Facility Location -- The process of selecting a geographic location for a company’s operations.
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Rising numbers of Internet businesses means brick-and-mortar retailers must find great locations.
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FUTURE FACILITY LOCATION * * Facility Location in the Future
Information technology gives firms increased flexibility in terms of location.
Telecommuting -- Working from home via computer and modem.
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SETTING UP the FACILITY * * Facility Layout
Facility Layout -- The physical arrangement of resources, including people, to most efficiently produce goods and provide services.
Facility layout depends on the processes performed:
Service: Help customers find products
Manufacturing: Improve efficiency
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FACILITY LAYOUT OPTIONS * * Facility Layout
Assembly Line Layout – Workers do only a few tasks at a time.
Modular Layout – Teams of workers produce more complex units of the final product.
Fixed-Position Layout – Allows workers to congregate around the product.
Process Layout – Similar equipment and functions are grouped together.
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MRP and ERP * * Materials Requirement Planning
Materials Requirement Planning (MRP) -- A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed.
Enterprise Resource Planning (ERP) -- A newer version of MRP, combines computerized functions into a single integrated software program using a single database.
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PURCHASING * * Purchasing
Purchasing -- The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services.
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The Internet has transformed purchasing.
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INVENTORY CONTROL * * Just-in-Time Inventory Control
Just-in-Time (JIT) Inventory Control -- The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line.
To work effectively, the process requires excellent coordination with suppliers.
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QUALITY CONTROL * * Quality Control
Quality -- Consistently producing what the customer wants while reducing errors before and after delivery.
Six Sigma Quality -- A quality measure that allows only 3.4 defects per million opportunities.
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WHAT is the ISO? * * ISO 9000 and ISO 14000 Standards
The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies.
ISO 9000 -- The common name given to quality management and assurance standards.
ISO 14000 -- A collection of the best practices for managing an organization’s impact on the environment.
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PERT * * Control Procedures: PERT and GANTT Charts
Program Evaluation and Review Technique (PERT) -- A method for analyzing the tasks involved in completing a given project and estimating the time needed.
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STEPS INVOLVED in PERT * * Control Procedures: PERT and GANTT Charts
Analyzing and sequencing tasks
Estimating the time needed to complete each task
Drawing a PERT network illustrating the first two steps
Identifying the critical path
Critical Path -- The sequence of tasks that takes the longest time to complete.
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GANTT CHARTS * * Control Procedures: PERT and GANTT Charts
Gantt Chart – A bar graph that shows what projects are being worked on and how much has been completed.
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Chap009

by Introbus110

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