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M Why is production and operations
management important in both
manufacturing and service firms?
M What types of production processes are
used by manufacturers and service
firms?
M How do organizations decide where to
put their production facilities? What
choices must be made in designing the
facility?
M Why are resource planning tasks like
inventory management and supplier
relations critical to production?
|

  

 
M How do operations managers schedule
and control production?
M How can quality management and lean
manufacturing techniques help firms
improve production and operations
management?
M What roles do technology and
automation play in manufacturing and
service industry operations
management?
M What key trends are affecting the way
companies manage production and
operations?
 6
 
 


 
M 6roduction & Operations
Management are important because
‡ Consumers demand quality
products/services at reasonable prices
in a timely fashion
‡ Consumers also demand better service
and individualized attention
 6
 
 


 
 
M ¦ Main types of decisions
‡ 6roduction 6lanning
‡ 6roduction Control
‡ Improving 6roduction & Operations
 6
 6
 
M xind the best production methods to
meet and balance company goals
M ¦ phases
‡ Long term
‡ Medium term
‡ Short term
M Important decisions/elements
‡ 6roduction 6rocess
‡ Site Selection
‡ xacility Layout
‡ Resource 6lanning
‡ Supply Chain Management
 6
 6

M How should the goods be made?
‡ Mass 6roduction
‡ Mass Customization
‡ Customization
M Job shop
M How should the inputs be converted
into outputs?
‡ 6rocess manufacturing
‡ Assembly process
 6
 6

 
M What should the timing of the
process be?
‡ Continuous 6rocess
‡ Intermittent 6rocess
 ÔÔ

M Affects operating cost, price of the
product/service, ability to compete
M xactors to consider
‡ Availability of inputs
‡ Marketing factors
‡ Local incentives
‡ Manufacturing environment
‡ International considerations
 


   
!Ô
States with above average labor
quality and below average labor
cost:
M Alabama
M Alaska
M Georgia
M Hawaii
M Virginia
M Wyoming
Ô
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 x

#
#
M etermine what the most efficient &
effective design is for the production
process
M Types
‡ 6rocess layout
‡ 6roduct layout
‡ xixed 6osition layout
 ë
6
 
M Make sure resources are available
when needed
M Steps of resource planning
1. etermine which resources are needed
and when
2. ecide if the production materials
should be made or bought
¦. etermine how much inventory to
have & how it should be managed
4. ecide if a computerized resource
planning system is needed
 Ô#|
 

 
M Supply Chain
‡ Secure Inputs £ 6roduce Goods £ eliver
Goods
M Want a smooth transition along the
supply chain
M Strategies
‡ Create tight bonds with suppliers
‡ Improve supplier communications
M Internet, Electronic ata Interchange (EI)
 6
 
 | 
M Gaining efficiencies through the
coordination of materials, equipment,
and human resources
M Key aspects
‡ Routing ± determines workflow
‡ Scheduling ± sets time needed for each step
M Gantt Charts
M Critical 6ath Method
M 6rogram Evaluation & Review Technique (6ERT)
 u#


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  "

% 6
 
 
M Improving Quality
‡ Quality Control
‡ Total Quality Management (TQM)
M Lean Manufacturing
‡ Just
Just--in-
in-time
M Automation
‡ Computer
Computer--aided systems
‡ Robotics
‡ xlexible Manufacturing Systems
‡ Computer
Computer--Integrated Manufacturing
‡ Others
 u  6

M Modular 6roduction
‡ ecrease cost of design & development
‡ Increases ability to meet rapidly
changing conditions
M Agile Manufacturing
‡ Increases flexibility and speed
M Work Cell esign
‡ Improves quality & efficiency
M Review
‡ 6roduction 6lanning
M 6rocesses, Site selection, xacility layout,
Resource planning, Supply Chain
Management
‡ 6roduction & Operations Control
M Routing & Scheduling
‡ Improving 6roduction & Operations
M Total Quality Management, Lean
Manufacturing, Automation
‡ Trends

M Looking Ahead
‡ Exam Chapters 6 - 8