Producing Quality Goods and Services. What Is Production? The Conversion Process. Production Operations Management (POM) The Value Chain.

Transcription

1 Producing Quality Goods and Services Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-1 What Is Production? Leading Planning Production Operations Management (POM) Organizing Controlling Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-2 The Conversion Process The Value Chain Synthetic Systems Tangible Goods Inputs Transformation Outputs Analytic Systems Intangible Services Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-3 1

2 Input-Transformation-Output Relationships for Typical Systems System Inputs Transformation Components Transformation Function Typical Desired Output Hospital Patients, medical supplies MDs, nurses, equipment Health care Healthy individuals Restaurant Hungry customers, food Chef, waitress, environment Well-prepared & well-served food Satisfied customers Automobile Factory Sheet steel, engine parts Tools, equipment, workers Fabrication & assembly of cars High-quality cars College or University High School graduates, books Teachers, classrooms Impart knowledge & skills Educated individuals Department Store Shoppers, stock of goods Displays, sales clerks Attract customers, promote products, fill orders Sales to satisfied customers Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-4 Challenges of the Service Industry Customer Involvement Delivery Timing People-Intensive Activities Production and Location Subjective Quality Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-5 Manufacturing Goods Mass Production Mass Customization Customized Production Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-6 2

3 Outsourcing the Manufacturing Function Advantages Disadvantages Capital and Resources Quality and Cost Economies of Scale Privacy Issues Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-7 Production Process Design Identify Supply Chain Forecast Demand Plan for Capacity Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-8 Production Process Design Choose Facility Site Design Facility Layout Schedule Work Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-9 3

4 Suppliers Establish the Supply Chain Manufacturers Distributors Retailers Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-10 Forecast Demand Customer Feedback Market Research Sales Figures Industry Analyses Educated Guesses Business Resources Planning Scheduling Budgeting Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-11 Capacity Planning Level of Resources Customer Demand Prentice Hall, 2007 Excellence in Business, 3e Chapter

5 Facility Location Local Taxes Construction Energy Labor Land Raw Materials Transportation Living Standards Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-13 Facility Layout Process Product Cellular Fixed-Position Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-14 Process Layout Prentice Hall, 2007 Excellence in Business, 3e Chapter

6 Product Layout Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-16 Cellular Layout Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-17 Fixed-Position Layout Prentice Hall, 2007 Excellence in Business, 3e Chapter

7 Production Schedule Scheduling Dispatching Contingencies Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-19 The Gantt Chart ID Task Name Start Date End Date Duration August 2006 September 1 Make legs 8/1/06 8/28/06 20d 2 Cut tops 8/22/06 8/28/06 5d 3 Drill 8/29/06 9/4/06 5d 4 Sand 9/5/06 9/11/06 5d 5 Assemble 9/12/06 9/25/06 10d 6 Paint 9/19/06 9/25/06 5d Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-20 Program Evaluation and Review Technique (PERT) 1. Identify activities 2. Determine sequence 3. Establish time frame 4. Diagram activity network 5. Calculate longest completion path 6. Refine timing Prentice Hall, 2007 Excellence in Business, 3e Chapter

8 PERT Time Estimates Optimistic Pessimistic Most Likely Expected Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-22 Simplified PERT Diagram for Store Opening 5 Days Promotion Plan 15 Days Ads Created 4 Days Ads Placed 14 Days Project Launch Staffing Plan 24 Days Staffing Completed 21 Days Training Completed Opening Day 5 Days Merchandise Plan 3 Days Merchandise Ordered 21 Days Merchandise Received 7 Days Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-23 Industrial Robotics Precision Stamina Diligence Speed Prentice Hall, 2007 Excellence in Business, 3e Chapter

9 Computerized Production Computer-Aided Design (CAD) Computer-Aided Engineering (CAE) Computer-Aided Manufacturing (CAM) Computer-Integrated Manufacturing (CIM) Product Lifecycle Management (PLM) Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-25 Manufacturing Systems Traditional Flexible Mass Production Specialty Operations Resistant to Change Conducive to Change High Set-Up Costs Minimal Set-Up Costs Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-26 Supply Chain Data Interchange Electronic Data Interchange (EDI) Extensible Markup Language (XML) Prentice Hall, 2007 Excellence in Business, 3e Chapter

10 The Production Process Operations Managers Inputs Transformation Outputs Coordinating The Supply Chain Assuring Product Quality Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-28 Supply Chain Coordination Inventory Purchasing Lead Time Inventory Control Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-29 Inventory Control Just-In-Time (JIT) Material Requirements Planning (MRP) Manufacturing Resource Planning (MRP) Prentice Hall, 2007 Excellence in Business, 3e Chapter

11 Supply Chain Management Increased Sales Manage Risks Reduced Inventory Improved Service Cost Savings Manage Relationships Manage Trade-Offs Improved Quality Faster Delivery Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-31 Assuring Product Quality Quality Control Quality Assurance Establishing Standards Statistical Quality Control Measuring Quality Statistical Process Control Minimizing Defects Continuous Improvement Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-32 Total Quality Management Management commitment to TQM Clear customer focus Employee involvement Continuous improvement Partnering with suppliers Meaningful performance standards Prentice Hall, 2007 Excellence in Business, 3e Chapter

12 The Six Sigma Approach Define the Problem Measure Performance Analyze Root Causes Improve the Process Control the Process Prentice Hall, 2007 Excellence in Business, 3e Chapter 9-34 Global Quality Standards ISO 9000 ISO Prentice Hall, 2007 Excellence in Business, 3e Chapter