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Producing World-Class Goods and Services - Coggle Diagram
Producing World-Class Goods and Services
Manufacturing and Services in perspective
The current state of manufacturing in the US
Unemployment could reach double-digit levels, home values could plunge a total of 36% , and stocks could fall a total of 55%.
Much of this chapter is devoted to
showing you what manufacturers and service providers can do to revive the U.S. economy to become world-class competitors.
The industries hit first by the recession—housing
and manufacturing—continue to lose jobs.
The US manufacturers have done to increased output
Emphasizing close relationships with suppliers and other companies to satisfy customer needs.
Continuous improvement; quality; site selection; use of the Internet to unite companies
Production techniques such as enterprise resource
planning, computer integrated manufacturing, flexible manufacturing, and lean manufacturing.
From production to Operation Management
Operation management: the specialized area in management that converts or transforms resources, including human resources, into goods and services.
Kind of firms use operations managements: Firms in both the manufacturing and service sectors use operations
managers.
Production management: 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.
Production Processes
The CAD/CAM systems work:
(CAD) the use of computers to design; (CAM) the use into manufacturing in process
The linking of CAD and CAM is computer-integrated manufacturing (CIM)
The flexible manufacturing: means designing machines to produce a variety of products (multitasking)
The differences between process manufacturing and assembly processes
Process manufacturing physically or chemically changes materials.
Assembly processes put together components.
The lean manufacturing: 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.
The mass customization:
Means making custom-designed goods and services
for a large number of individual customers.
Flexible manufacturing makes mass customization possible. Given the exact needs of a customer, flexible
machines can produce a customized good as fast as mass-produced goods were once made.
Mass customization is also important in service industries.
The operations management planning
Facility layout is the physical arrangement of resources,
including people, to produce goods and services effectively and efficiently.
Modular layout: produce more complex units
Fixed-Position layout: congregate around the product
Assembly line layout:few tasks at a time
Process layout: similar grouped together
Managers evaluate different sites: Labor costs and land costs are two major criteria. Other criteria include resources are plentiful and inexpensive, skilled workers, taxes, energy and water, transportation, quality of life and education.
Facility location is the process of selecting a geographic location for a company’s operations. (Ex: telecommuting: work from home with computer)
The relationship between materials requirement planning (MRP) and enterprise resource planning (ERP) have with the production process
MRP is a computer-based operations management system that uses sales forecasts to make sure the needed parts and materials are available at the right time and place.
ERP - a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm—such as finance, human resources, and order fulfillment
Just-in-time (JIT) inventory control: production process minimum inventory is kept delivered just in time.
Six Sigma quality
Statistical quality control (SQC) is the process use to continually monitor all processes in the production process
Statistical process control (SPC): samples of product components at each stage of the production
Six Sigma quality sets standards at just 3.4 defects per million opportunities and detects potential problems before they occur.
The firms un the US use quality standards
The first is a world standard for quality
The second is a collection of the best practices for managing an organization’s impact on the environment.
Demonstrate quality in seven key areas: leadership, strategic
planning, customer and market focus, information and analysis, human resources focus, process management, and business results
Controlling procedures: PERT and GANTT CHART
Program evaluation and
review technique (PERT): A method for analyzing the
tasks involved in completing a given project, estimating
the time needed to complete each task, and identifying
the minimum time needed to complete the total project.
Gantt chart: is a bar graph, that clearly shows what projects are being worked on and how much has been completed at any given time.
Preparing for the future
Students who can see future trends and have the skills to own or work in tomorrow’s highly automated factories and modern service facilities will benefit.
Remains a major industrial country, but competition grows
stronger each year.
Utility: satisfy a human need: 4 types: place, time, possess
The production process:
Distinguish between: key production processes: Continuous process: long turn out finished goods;