Please enable JavaScript.

Coggle requires JavaScript to display documents.

CHAPTER 6: PRODUCING QUALITY GOODS AND SERVICES - Coggle Diagram

- - - - Performance standards
      - Amount of inventory (raw material & finished products)
      - Product quality
      - Production cost
- - - - work-in-process inventory: partially completed products
      - finished-goods inventory : completed goods
      - raw materials inventory:
        during production process
  - - - Scheduling through Gantt Charts
      - Scheduling via PERT
  - - - Reliability
      - Credit terms
      - Quality
      - Shipping costs
      - Price
  - - - Improving quality through employee participation
        Successful firms encourage employees to accept full responsibility for the quality of their work
      - World Quality Standards: ISO 9000 and ISO 14000
        This certification as evidence that a company meets the standards for quality control procedures
- - - - outputs : completed good or services
  - - - how far the resources physically changed
    - - Single firm - employ one production process or many
        Larger firm - use multiple production process
    - - resources that comprise the most important input ; financial, material,information &people
- - - - human resources & operations manager work closely together
        
        human resources manager will recruit managers and employees with the appropriate skills, develop training programs or do both
        
        transfer skilled workers to new location/train local workers
    - - arrangement of machinery, equipment and personnel within the production facility
        
        Product Layout
        
        assembly line used when all products undergo the same operations in the same sequence
        
        Fixed-position layout
        
        used when a very large product is produced
        
        Process layout
        
        used when different operations are required for creating small batches of different products/working on different parts of a product
    - - the cost of refurbishing an existing factory is less than the cost of building a new one
  - - - When market demand exceeds capacity
      - When capacity exceeds market demand
  - - - Capacity: amount of product/services that an organization can produce in a given period of time
        
        operations managers, working with the firm's marketing manager must determine the required capacity
        
        determine the size of production facility ( the facility not too much, and not insufficent )
        
        the capacity of a business service : the number of customers it can serve in one time
    - - management must determine which automation will be used to produce a product or service
        
        Automation: high initial costs &low operating cost
        
        Human : low initial costs & high operating costs
        
        Labor-intensive technology : people do most of the work
        
        Capital-intensive technology : machines &equipment do most of the work
    - - group of similar products that differ only in minor characteristics
        
        balance customer preferences &production requirements
        
        marketing manager will decide product -line decisions
        
        each distinct product within the line must be designed
        
        product design : creating a set of specifications from which the product can be produced