Ch. 18 BMGT 3510 - Marasi
continuous process repetitive process job shop process
3 types of manufacturing processes
profitability liquidity activity leverage
4 types of ratios
capacity location product process layout human resources
6 operation strategy types
product layout
best for an organization that produce and service a limited number of different products
repetitive process
product oriented production process that uses modules to produce items in large lots
operations management
the performance of managerial activities that involve selecting, designing, operating, controlling, and updating production systems
strategy
the plan of action
ratio analysis
the process of generating information that summarized the financial position of an organization through the calculation of ratios based on various financial measures that appear on the organizations balance sheet and income statements
break even analysis
the process of generating information that summarized various levels of profit or loss associated with various levels of production
fixed position layout
the product is stationary while resources flow.
job shop process
the production of on or a kind items as well as unit production
productivity
the relationship between the total amount of goods or services being produced and the organizational resources needed to produce them
automation
the replacement of human effort by electromechanical devices in such operations as welding, materials handling, design, drafting, and decision making
transformation
the set of steps necessary to change resources into products
work methods analysis
improve productivity and ensure the safety of workers
goals of automation
increase org. productivity reduce inventories have faster billing and production
process (functional) layout
layout pattern that groups together similar types of equipment.
pure preventative maintenance policy
machine adjustments, lubrication, cleaning, parts replacement, painting, and needed repairs and overhauls are done regularly, before facilities or machines malfunction
robots
mechanical devices built to perform repetitive tasks efficiently
work measurement methods
operational tools used to establish labor standards
layout
overall arrangement of equipment work areas service areas, and storage areas within a facility
continual
performed essentially without interruption
periodic
performed from time to time
labor force planning
plan for hiring the right employee for a job and training them to be productive
management by expectation
a control technique that allows only significant deviations between planned and actual performance to be brought to a mangers attention
value analysis
a cost control and cost reduction technique that helps managers control operations by focusing primarily on managerial costs
process
a flow of interrelated events toward a goal, purpose, or end. often visualized as a flowchart of sequence of activities with relevant rules
system
a particular linking of organizational components that facilitates carrying out of a process
capacity strategy
a plan of action aimed at providing an organization with the right facilities to produce the needed output at the right time
process strategy
a plan of action outlining the means and methods an organization will use to transform resources into goods and services
layout strategy
a plan of action that outlines the locations and flow of all organizational resources, around, into and within production and service facilities
location strategy
a plan of action that provides an organization with a competitive location for its headquarters, manufacturing, services and distribution activities
quality circles
a small group of workers that meets to discuss quality related problems in a particular project and to communicate solutions with management
control tool
a specific procedure or technique that presents pertinent organizational information in a way that helps managers and workers develop and implement an appropriate control strategy
just in time inventory control
a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility just in time for them to be used
process control
a technique that assists in monitoring production processes
maintenance control
aimed ate keeping an organizations facility and equipment functioning at predetermined work levels
organizational resources
all the assets available to a manager to generate products
product strategy
an operational plan of action outlining which goods and services and organization will produce and market
human resource strategy
an operational plan to use an organizations human resources effectively and efficiently while maintaining or improving the quality of work life
materials control
an operations control activity that determines the flow of materials form vendors through an operations system to customers
quality assurance
an operations process involving a broad group of activities aimed at achieving an organizations quality objective
fixed position layout
appropriate for an organization involved in a large number of different tasks that require low volumes, multipurpose equipment and broad employee skills
process layout
best serves a company whose production volumes are low, whose equipment is multipurpose, and whose employees skills are broad
competitive locations
cause lower transportation and communication costs among the various facilities
outputs
consists of products appropriate for human use
pure breakdown policy
decrees that facilities and equipment be fixed only after they malfunction
operations control
defined as making sure that operations activities are carried out as planned
product layout
designed to accommodate high production volumes, highly specialized equipment, and narrow employee skills
computer aided manufacturing
employs computers to plan and program equipment used in the production and inspection of manufactured items
capacity flexibility
enables companies to deliver goods and services to its customers more quickly than its competitors do
quality assurance
examples include: having the safest system for delivering products to customers and maintaining quality of raw materials or purchased parts
budget
financial plan outlining how funds in a given period will be obtained and spent
higher the productivity
higher the value in the productivity ratio
fewer than 8 members
how many members do quality circles usually have
quality
how well a product does what it is intended to do. how closely it satisfies the specifications to which it was built
job design
plan that determines who will do a specific job and how and where the job will be done
repetitive process
process used to create automobiles, appliances, and potato chips
continuous process
process used to create beer and chemicals
job shop process
process used to create furniture and spaceships
statistical quality control
process used to determine how many products should be inspected to calculate a probability that the total number of products will meet organizational quality standards
continuous process
product oriented, high volume, low variety process used
outputs / inputs
productivity =
no rejects philosophy
quality assurance works best when this is adopted
optimal capacity
quantity and timing are in balance, provides an excellent basis for maximizing profits
excess capacity
results in higher production costs
insufficient capacity
results in loss of sales, which in turn effects profit
decision tree analysis
statistical and graphical multiphased decision making technique that contains a series of steps showing the sequence and interdependence of decisions
computer aided design
systems include several automated design technologies
effectiveness
the degree to which managers attain organizational objectives
efficiency
the degree to which organizational resources contribute to productivity
robotics
the study of the development and use of robots
Production
the transformation of organizational resources into products or services
no rejects philosophy
this is not economically feasible for most mass produced products
no rejects philosophy
this trans employees not to make the same mistake twice and emphasizes quality in early stages
capacity strategy
used to balance the costs of overcapacity and undercapacity
products
various goods or services aimed at meeting human need
statistical quality control
what determines whether corrective action needs to be taken
hardware and software
what do most automated systems combine?
design and redesign
what does demings flow diagram start and end with?
organizations reputation
what does quality determine?
quality
what is based on appearance, performance, availability, flexibility, and reliability
customers
what is quality determined by?
product strategy
what is the main component of an organizations operations strategy
cost control
wide ranging control aimed at keeping organizational costs at planned levels
