Chapter 9: Production and Operations Management

Production Management

All the activities managers do to help firms create goods.

Fixed-Position Layout

Allows workers to congregate around the product

Purchasing

Function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods. Ex: The Internet

Continuous Process

Long Production runs turn out finished goods over time.

Intermittent Process

Production runs are short and the producer adjusts machines frequently to make different products.

Facility Layout

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

Computer- Integrated Manufacturing (CIM)

The uniting of computer-aided design with computer-aided 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. Ex: An manufacturer programs the computer to make a simple design change, and that change is readily incorporated into production

Lean Manufacturing

Using Less of everything than in mass production.

Assembly Line Layout

Workers do only a few tasks at a time

Telecommuting

Working from home via computer

Materials Requirement Planning (MRP)

a computer-based operations management system that uses sales forecasts (prediction) to make sure parts and materials are available when needed.

Just-in-time (JIT) inventory control

a production process in which a minimum of inventory is kept and parts,

Production

the creation of goods using land, labor, capital, entrepreneurship and knowledge.

Process Manufacturing

The part of production that physically or chemically changes materials.

Enterprise Resource Planning (ERP)

(a newer version of MRP), combines computerized functions into a single integrated software program using a single database.

Facility Layout Options

1) Assembly Line Layout 2) Modular Layout 3) Fixed- Position Layout 4) Process Layout

Three Requirements of Production

1) Build and deliver products 2) Provide an acceptable quality level 3) Provide everything at the lowest possible cost

Major Developments That Made U.S Companies More Competitive

1) Computer-aided design and manufacturing 2) Flexible manufacturing 3) Lean manufacturing 4) Mass customization 5) Robotics

Problems of Operations Management

1) Facility Location 2) Facility Layout 3) Materials requirement planning 4) Purchasing 5) Inventory control 6) Quality control

Operations Management

A specialized area in management that converts (change) or transforms (switch) resources into goods and services.

Flexible Manufacturing

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

Process Layout

Same equipment and functions are grouped together

Mass Customization

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

Modular Layout

Teams of workers produce more complex units of the final product

Form Utility

The Value producers add to materials in the creation of finished goods and services.

Assembly Process

The part of production process that puts together components (piece).