Chapter 9: Production and Operations Management

Steps in the production process:

1. Inputs (land, labor, capital, entrepreneurship, knowledge) 2. Production Control (planning, routing, scheduling, dispatching, follow-up) 3. Outputs (goods, services, ideas)

What are two goals of operations management?

1. To keep operations running efficiently 2. To create a good experience for the customer

Three basic requirements of production

1. to build and deliver products in response to the demands of the customer at a scheduled delivery time 2. to provide an acceptable quality level 3. to provide everything at the lowest possible cost

An additive manufacturing process that creates a product layer at a time using nozzle similar to those inkjet printers is...

3D printing

Materials Requirement Planning (MRP)

A computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place

The International Organization for Standardization (ISO)

A nongovernmental organization established to promote the development of world standards to facilitate the international exchange of goods and services ISO 9001 is the common name given to quality management and assurance standards

3D Printing (Additive Manufacturing)

A production process

Just-In-Time (JIT) Inventory Control

A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line

Operations Management

A specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services

Industrial robots have completely changed manufacturing because they:

Can work 24/7 with great precision Reduce costs Improve productivity

Interfirm Process

Companies work closely together to design, produce, and ship products to customers

Quality

Consistently producing what the customer wants while reducing errors before and after delivery to the customer

Ordering a new suit that will be made specifically for you by a tailor is an example of which process?

Customization

Production Management

Describes the activities that helped firms create goods

Flexible Manufacturing

Designing machines to do multiple tasks so they can produce a variety of products

The process of ____________ is significant because, once the decision has been made and implemented, the firm must live with it due to the high costs of moving

Facility location

Examples of a problem solved by operations management planning as it relates to manufacturing include:

Inventory control Facility location

Operations Management Plannning

It helps solve many problems in the service and manufacturing sectors. Includes facility location, facility layout, materials requirement planning, purchasing, inventory control, and quality control.

Which sector has lost more jobs due to technological changes?

Manufacturing

The production process should be a sequence of steps starting with inputs, followed by production control, and ending with:

Outputs Finished products

Industrial robots can work 24 hours a day, seven days a week with great...

Precision

Mass Customization

Tailoring products to meet the needs of a large number of individual customers

Production

The creation of finished goods and services using the factors of production: land, labor, capital, entreprneurship, and knowledge

Purchasing

The function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services

Uses of sensors to control manufacturing processes include:

The measurement of the thickness of material Measuring humidity

Facility Layout

The physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers

Facility location

The process of selecting a geographic location for a company's operations

Statistical Quality Control

The process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning

Lean Manufacturing

The production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.

Computer-Aided Design (CAD)

The use of computers in the design of products

Form Utility

The value producers add to materials in the creation of finished goods and services, such as by transforming silicon into computer chips or putting services together to create a vacation package.

What is the goal of operations management in service industries?

To provide good experiences for those who use the service

Telecommunicating

Working from home via computer

Mass production focuses on producing...

a limited variety of products

The main idea behind mass production is to produce a large number of a limited variety of products...

at a very low cost

When machines are programmed to do multiple tasks in order to produce a variety of products, a firm is said to be employing...

flexible manufacturing

Companies sometimes spend millions to move location...

for proximity to customers

Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the internet, thus, developing a(n) ___________ approach to operations management

interfirm

Technological changes have had such a great impact on the __________ that this segment of the American economy will likely never employ as many people as it did in the 1950s

manufacturing industry

To Customize...

means to make a unique product or provide a specific service to specific individuals

The production process should be a sequence of steps starting with inputs, followed by production control, and ending with:

outputs and finished products

Sometimes a company is willing to spend millions to move their facility from one location to another in order to increase buyer traffic, drawing more potential

purchasing

When a computerized data control ________ detects a problem, it notifies someone to make needed changes

sensor

Information Technology (IT)

Computers, software, WiFi, email, voice mail, texting, etc.- It gives firms and employees increased flexibility to choose locations while staying in the competitive mainstream

The Production Process

Consists of taking the factors of production (land, etc.) and using those inputs to produce goods, services, and ideas. Planning, routing, scheduling, and other activities are the means to accomplish the objective — output