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Chapter 9 (Operations Management (Facility Location (is the process of…
Chapter 9
Operations Management
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Managing Sites
Labor costs and land costs are two major criteria for selecting the right sites. Other criteria include whether resources are plentiful and inexpensive, skilled workers are available or are trainable, taxes are low and the local government offers support, energy and water are available.
Inventory Control (JIT)
JIT requires suppliers to deliver parts and materials just in time to go on the assembly line so they don’t have to be stored in warehouses.
Facility Layout
is the physical arrangement of resources, including people, to produce goods and services effectively and efficiently.
Production Processes
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Manufacturing
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Lean manufacturing: is the production of goods using less of everything than in mass production: less human effort,less manufacturing space, less investment in tools, and less engineering time to develop a new product.
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Management
Operations
is the specialized area in management that converts or transforms resources, including human resources, into goods and services.
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Production
It consists of all the activities managers do to help their firms create goods.To reflect the change in importance from manufacturing to services, the term production is often replaced by the term operations.