Producing Quality Goods and Services Prentice Hall, 2004 Business In Action 2e Chapter 8-1 What Is Production? Leading Planning Production Operations Management (POM) Organizing Controlling Prentice Hall, 2004 Business In Action 2e Chapter 8-2 What Is the Conversion Process? Synthetic Systems Inputs Transformation Outputs Analytic Systems Prentice Hall, 2004 Business In Action 2e Chapter 8-3 1
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, 2004 Business In Action 2e Chapter 8-4 Manufacturing Goods Mass Production Mass Customization Prentice Hall, 2004 Business In Action 2e Chapter 8-5 Production Process Design Forecast Demand Plan for Capacity Choose Facility Site Design Facility Layout Schedule Work Prentice Hall, 2004 Business In Action 2e Chapter 8-6 2
Forecasting Demand Customer Feedback Market Research Sales Figures Industry Analyses Educated Guesses Business Resources Planning Scheduling Budgeting Prentice Hall, 2004 Business In Action 2e Chapter 8-7 Capacity Planning Level of Resources Customer Demand Prentice Hall, 2004 Business In Action 2e Chapter 8-8 Land Construction Labor Raw Materials Facility Location Local Taxes Transportation Living Standards Energy Prentice Hall, 2004 Business In Action 2e Chapter 8-9 3
Types of Facility Layout Process Product Cellular Fixed-Position Prentice Hall, 2004 Business In Action 2e Chapter 8-10 Process Layout Prentice Hall, 2004 Business In Action 2e Chapter 8-11 Product Layout Prentice Hall, 2004 Business In Action 2e Chapter 8-12 4
Cellular Layout Prentice Hall, 2004 Business In Action 2e Chapter 8-13 Fixed-Position Layout Prentice Hall, 2004 Business In Action 2e Chapter 8-14 Production Schedule Scheduling Dispatching Contingencies Prentice Hall, 2004 Business In Action 2e Chapter 8-15 5
The Gantt Chart ID Task Name Start Date End Date Duration August 2004 September 1 Make legs 8/1/04 8/28/04 20d 2 Cut tops 8/22/04 8/28/04 5d 3 Drill 8/29/04 9/4/04 5d 4 Sand 9/5/04 9/11/04 5d 5 Assemble 9/12/04 9/25/04 10d 6 Paint 9/19/04 9/25/04 5d Prentice Hall, 2004 Business In Action 2e Chapter 8-16 Program Evaluation and Review Technique (PERT) Identify activities Determine sequence Establish time frame Diagram activity network Calculate longest completion path Refine timing Prentice Hall, 2004 Business In Action 2e Chapter 8-17 PERT Time Estimates Optimistic Pessimistic Most Likely Expected Prentice Hall, 2004 Business In Action 2e Chapter 8-18 6
PERT Diagram for Manufacturing Shoes Prentice Hall, 2004 Business In Action 2e Chapter 8-19 Improving Production Through Technology Robots Computer-aided design Computer-aided engineering Computer-aided manufacturing Computer-integrated manufacturing Prentice Hall, 2004 Business In Action 2e Chapter 8-20 Electronic Information Systems Responsiveness Service Communication Prentice Hall, 2004 Business In Action 2e Chapter 8-21 7
Manufacturing Systems Traditional Manufacturing Mass Production Flexible Manufacturing Specialty Operations Resistant to Change Conducive to Change High Set-Up Costs Minimal Set-Up Costs Prentice Hall, 2004 Business In Action 2e Chapter 8-22 The Production Process Inventory Management Quality Assurance Prentice Hall, 2004 Business In Action 2e Chapter 8-23 Inventory Management Inventory Lead Time Purchasing Inventory Control Prentice Hall, 2004 Business In Action 2e Chapter 8-24 8
Inventory Control Just-In-Time (JIT) Material Requirements Planning (MRP) Manufacturing Resource Planning (MRP) Prentice Hall, 2004 Business In Action 2e Chapter 8-25 Manufacturing Resource Planning Prentice Hall, 2004 Business In Action 2e Chapter 8-26 Maintaining Quality Quality Control Quality Assurance Statistical Quality Control Statistical Process Control Continuous Improvement Prentice Hall, 2004 Business In Action 2e Chapter 8-27 9
Global Quality Standards ISO Certification Deming Prize Malcolm Baldrige Award Prentice Hall, 2004 Business In Action 2e Chapter 8-28 Supply Chain Management The Supply Chain Suppliers Manufacturers Distributors Retailers Facilities Functions Activities Production of Goods and Services Prentice Hall, 2004 Business In Action 2e Chapter 8-29 Manufacturing Trends Outsourcing Supplier Involvement Redirect Resources and Capital Improve Overall Quality Increase Production Efficiencies Maximize the Use of Time Access State-of-the-Art Facilities Reduce Work-in-Process Inventory Prentice Hall, 2004 Business In Action 2e Chapter 8-30 10