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Chapter 8 (8-5 How Do Managers Plan Production? (8-5a Design Planning - …
Chapter 8
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8-1 What is production? Operation manager- a person who manages the system that convert resources into goods and services.This area of
management is usually referred to as operation management, which consists of all the activities required to produce goods and services
8-1a How American Manufacturers Compete in the Global Marketplace
The Bad News For Manufacturers, three major factors explain why employment in this economic sector has declined: 1. many of the U.S. manufacturing jobs that were lost were workers in nations where there are few labor, safety, and environmental regulations. 2. It costs about 20 percent more to manufacture goods in the United States than it does anywhere in the world. 3. The number of unemployed factory workers increased during the economic crisis that began in 2008 because of decreased costumer demand for manufacturing goods. Although the number of jobs in manufacturing has increased during the economic recovery, manufacturing employment is close to all time lows.
The Good News for Manufacturers: 1. U.S. manufacturers produce approximately 18% of total global manufacturing output. 2. Every year, manufacturing contributes about 12% of the gross domestic product and almost $2 trillion to the U.S. economy. 3. Manufacturing exports are nearly 60 percent of all U.S. exports. 4. Compared to other economic activities, manufacturing has a huge multiplier effect. For every $1 spent in manufacturing, an additional $1.35 is generated in the nation's economy because of purchases from suppliers and businesses that support manufactuers.
Although the number of manufacturing jobs has declined, productivity has increased. At least two very important factors account for increases in productivity: First, innovation-finding a better way to produce products- is the key factor that has enabled American manufacturers to compete in global marketplace. Second, today's workers in the manufacturing sector are highly skilled in order to operate sophisticated equipment. Simply put Americans are making more goods, but with fewer employees.
The bottom line: The global marketplace has never been more competitive and successful U.S. firms will focus on the following: 1. Meeting the needs of customers and improving product quality. 2. Motivating employees to cooperate with management and improve productivity. 3. Reducing costs by selecting suppliers that offer higher quality raw materials and components at reasonable prices. 4. Using computer-aided and flexible manufacturing systems that allow a higher degree of customization. 5. Improving control procedures to help ensure lower manufacturing costs. 6. Using green manufacturing to conserve natural resources and sustain the planet.
8-1b Careers in Operation Management: Mass production is a manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time. An analytical process breaks raw materials into different components parts.. A synthetic process is just the opposite of the analytical one; it combines raw materials or components to create a finished product.
Once you understand operations managers are responsible for producing tangible goods and services that costumers want, you must determine how you fit into the production process. Today's successful operations managers must:: 1. Be able to motivate and lead people 2. Understand how technology can make a manufacturer more productive 3. Appreciate the cost- control processes that help lower production costs and improve product quality. 4. Understand the relationship between the customer, the marketing of a product, and the production of a product.
8-6b inventory control
Inventory control-the process of managing inventories in such a way as to minimize inventory costs,including both holding costs,and potential stock out costs
Materials requirements planning (MRP)- a computerized system that integrates production planning and inventory control.
Just-in-time inventory(JIT) system- a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storages and holding costs are minimized
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8-7 Improving productivity growth
Lean manufacturing-a concept built on the idea of elimination waste from all of the activities required to produce or service
-the United States must stabilize it’s economy so that firms will invest more money in new facilities,equipment , technology,and employee training.
-managers and executives must cooperate with employees to increase employee motivation and participation in workplace.
-all government policies must be examined to ensure that unreasonable regulation that may be hindering productivity growth are eliminated.
-successful techniques that have been used in manufacturing firms must be used to increase productivity in the service industry.
-increased use of automation,robotics,& computer manufacturing systems must be used to lower production costs
-there must be more emphasis on satisfying the customers needs with quality good and services
8-7d sustainability and technological displacement
customer-driver production-is often used to describe a manufacturing system that is driven by customer needs and what customers want to buy**not this part
Sustainability:was defined as creating and maintaining the conditions under which humans and nature can exist in productive harmony that permit fulfilling the social,economic,and other requirements of present and future generations.
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8-2 The Conversion Process
Utility- the ability of a good or service to satisfy a human need
Form Utility- is created by people converting raw materials, finances, and information into finished products
8-2a Manufacturing Using a Conversion Process
Focus- by the focus of a conversion process, we mean the resource or resources the make up the major or most important input.
Magnitude of Change- the magnitude of a conversion process is the degree to which the resources are physically changed.
Number of Production Processes- a single firm may employ one production process or many. In general, larger firms that make a variety of products use multiple production processes.
8-6c scheduling
scheduling- the process of ensuring that materials and other resources are at the right place at the right time.
8-6d quality control
Malcolm baldrige national quailty award- an award given by the president of the United States to organization judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services
Quality control-the process of ensuring that good and services are produced in accordance with design specifications.
Improving quality through employee participation
-quality circle-a team of employees who meet on company time to solve problems of product quality
-inspection-the examination of the quality of work-in-process
-six sigma-a disciplined approach that relies on statistical data and improved methods to eliminate defects for a firm’s products and services
World quality standards:ido 9000 and ido 14000
International Organization for standardization (ISO)-a network of national standards institutes and similar organizations from over 160 different countries that is charged with developing standards for quality products and services that are traded throughout the globe
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8-7c the impact of automation,robotics,&comouters on productivity
-automation: the total or near-total use of machines to do work
Robotics
robotics: the use of programmable machines to perform a variety of tasks by manipulating materials and tools
Computee Manufacturing Systems
Computer-aided design(CAD):the use of computers to aid in the development of products
Computer-aided manufacturing(CAM): the use of computers to plan and control manufacturing processes
Computer-integrated manufacturing(CIM):a computer system that not only helps to design products but also controls the machinery needed to produce the finished product
Flexible manufacturing Systems
Continuous process:a manufacturing process in which a firm produces the same product(s) over a long period of time
flexible manufacturing system(FMS):a single production system that combines electronic machines and CIM
Intermittent process: a manufacturing process in which a firms manufacturing machines and equipment are changed to produce different products
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