Chap 9 Production and Operations Management
GANTT CHARTS
Gantt Chart - A bar graph that shows what projects are being worked on and how much has been completed. PERT and GANTT are both used to control manufacturing processes
INVENTORY CONTROL
Just-in-Time (JIT) Inventory Control -- The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line. To work effectively, the process requires excellent coordination with suppliers. Toyota: The inventor of 'Just-in-Time Processing' : https://youtu.be/cAUXHJBB5CM
MRP and ERP
Materials Requirement Planning (MRP) -- A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed. Enterprise Resource Planning (ERP) -- A newer version of MRP, combines computerized functions into a single integrated software program using a single database.
PROCESS and ASSEMBLY in PRODUCTION
Process Manufacturing -- The part of production that physically or chemically changes materials. Assembly Process -- The part of the production process that puts together components.
PRODUCTION and MANAGEMENT
Production -- The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production). Production Management -- All the activities managers do to help firms create goods.
PERT
Program Evaluation and Review Technique (PERT) -- A method for analyzing the tasks involved in completing a given project and estimating the time needed. a statistical tool used in project management, which was designed to analyze and represent the tasks involved in completing a given project.
LEAN MANUFACTURING
Using less of everything than in mass production. Compared to others, lean companies: Take half the human effort. Have half the defects in finished products. Require one-third the engineering effort. Use half the floor space. Carry 90% less inventory. Top companies with the best lean manufacturing: https://www.manufacturingglobal.com/top-10/top-10-lean-manufacturing-companies-world Example of a Lean Manufacturing Production Plant: https://youtu.be/jYby_HczyDA
The PRODUCTION PROCESS
a single firm can produce output at a lower cost than can a larger number of firms (slide 9)
Facility Location --
he process of selecting a geographic location for a company's operations.
Operations Management -
A specialized area in management that converts or transforms resources into goods and services. Operations management includes: Inventory management Quality control Production scheduling Follow-up services
FACILITY LAYOUT OPTIONS
Assembly Line Layout - Workers do only a few tasks at a time. (often called product layout) Modular Layout - Teams of workers produce more complex units of the final product. Fixed-Position Layout - Allows workers to congregate around the product. Process Layout - Similar equipment and functions are grouped together.
COMPUTER-AIDED DESIGN and MANUFACTURING
Computer-Aided Design (CAD) -- The use of computers in the design of products. Computer-Aided Manufacturing (CAM) -- The use of computers in the manufacturing of products.
DEVELOPMENTS MAKING U.S. COMPANIES MORE COMPETITIVE
Computer-aided design and manufacturing Flexible manufacturing Lean manufacturing Mass customization
Flexible Manufacturing -
Designing machines to do multiple tasks so they can produce a variety of products. Allen-Bradley uses flexible manufacturing to build motor starters. 26 machines and robots build, test and package parts.
OPERATIONS MANAGEMENT PLANNING
Operations management planning helps solve problems like: Facility location Facility layout Materials requirement planning Purchasing Inventory control Quality control
QUALITY CONTROL
Quality -- Consistently producing what the customer wants while reducing errors before and after delivery. Six Sigma Quality -- A quality measure that allows only 3.4 product defects per million opportunities
Mass Customization -
Tailoring products to meet the needs of a large number of individual customers. More manufacturers are learning to customize. Mass customization exists in the service sector too.
The PRODUCTION PROCESS
The production process takes inputs such as land, labor, capital, entrepreneurship, and knowledge to produce outputs in the form of goods, services, and ideas. This is accomplished by using the production control activities of planning, routing, scheduling, dispatching, and follow-up.