Production and Operations Management (Operations management is a…
Production and Operations
MANUFACTURING AND SERVICES
• Focusing more on customers.
• Maintaining closer relationships with suppliers and other companies to satisfy customer needs.
• Practicing continuous improvement
• Focusing on quality.
• Saving on costs through site selection.
• Relying on the Internet to unite companies that work together.
• Adopting production techniques such as enterprise resource planning, computer-integrated manufacturing, flexible manufacturing, lean manufacturing, and robotics.
Flexible manufacturing means designing machines to do multiple tasks.
Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less invest ment in tools, and less engineering time to develop a new product.
Production: is the creation of finished goods and services using the factors of pro- duction: land, labor, capital, entrepreneurship, and knowledge
production management is referred to the management activities that helps the firm create goods.
Operations management is a specialized area in management that converts resources into goods and services.
Production Processes. Production adds value, or utility to materials or processes
Form utility is the value producers add to materials in the creation of finished goods and services
Manufacturers use several different processes to produce goods.
Grove production Process
build and deliver products in response to the demands of the customer at a scheduled delivery time.
provide an acceptable quality level
provide everything at the lowest possible cost
Production processes are either continuous or intermittent. A continuous process is one in which long production runs turn out finished goods over time
Process manufacturing: Physically changes the good.
Inputs = Production Control = Outputs
Assembly process puts together components to create a good.
The ultimate goal of operations management is to provide high-quality goods and services instantaneously in response to customer demand.
Computer- aided design : Help in the design of products
Materials requirement planning (MRP) is a computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place.
Enterprise resource planning (ERP), a newer version of MRP
Used to produce large quantities of a few types of products.
Frequently used in operations that serve different customers’ different needs.
Can accommodate changes in design or customer demand.
Customization: Specific service to an specific order
Facility location is the process of selecting a company's operation center because of its geographical position.
Telecommuting : Working from home using a computer
Facility layout is the physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers.