Manufacturing and Services in persepctive
it faces increased competition from all over the world
Although American industry is more productive than ever,
didn't always deliver when they needed to and therefore manufacturers had to carry large inventories of raw materials.
Another flaw in the mass production process is that suppliers
meet the needs of small markets with very little increase in cost
Both the use of CAD and CAM make it possible to custom design products to
make retention of employees easier
Businesses look for a high quality of life for managers and workers in order to
many producer to their plants in Malaysia, China, India, Mexico, Vietnam and other countries.
Even though labor is becoming a smaller percentage of the cost of production, availability of low-cost labor or the right kind of skilled labor remained the key reason to move
The need to inspect work required extra people and resources If an error was found someone had to correct the mistake or scrap the product which is costly if the customer found the mistake he or she might be dissatisfied and might even buy from another firm after
Firms used to conduct quality controls at the end of each production line. What three problems did this result in?
an accurate production schedule and excellent coordination with carefully selected suppliers who are connected electronically so they know what will be need and when
For a JIT system to wokr correctly a company requires
6 people
In 1980 it took 25 people to produce $1million worth of manufacturing output. Today it takes
smooth running elevators, fine restaurants, comfortable beds, and a front desk that processes people quickly.
In example what would operations management include in the Hilton hotels
just in time to go on the assembly line
JIT systems keep a minimum inventory on the premises and work to deliver parts suppliers and other needs
70 and 80
More than __ percent of the US GDP is consumer spending and about __ percent of jobs are now in the service sector
people (they tend to cluster where smart and talented people are like silicon valley)
Often what is the most important resource for companies
items in storage for later use
One major cost of production is the expense of holding
sensor can detect immediately and notify someone to make the needed changes
Products are starting to be able to be tracked from the beginning of production to the point of delivery, The moment that anything goes wrong a
engineers and software developers
Rather than relying on low-skill assembly-line workers, modern factories depend on ______________ and ______________ _____________ to operate their cutting edge equipment and technology
suppliers and other companies in order to satisfy customer needs
Service sector businesses must develop relationships with
computer-aided manufacturing (CAM)
The next step was to bring computers directly into production process with
Computer Aided design and manufacturing, flexible manufacturing, lean manufacturing, mass customization, robotics, and 3D printing
What 6 things made US companies much more competitive:
Advancements in technology and automation
Why do the numbers of factory workers continue to fall despite increases in productivity?
modular layout
a layout in which teams of workers combine to produce more complex units of the final product
six sigma quality
a quality measure that allows only 3.4 defects for every million opportunities
Malcolm Baldridge National Quality Awards
a standard was set for overall company quality with the introduction of the
Industrial Robots
can work 24 hours a day, seven days a week with great precision
production management
has described the activities that helped manufacturing plants make goods
continuous process
is one in which long production runs turn out finished goods over time
purchasing
is the function that searches for high quality material resources, finds the best suppliers, and negotiates the best price for quality of goods and services
Form Utility
is 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 for a vacation package
modular layout
many companies are moving from an assembly line layout to a
production themselves
many rapidly growing companies do very little
low cost quality and flexibility
mass production creates _____ _________ but also causes a drop in __________ and ____________
to customize
means to make a unique product or provide service to specific individuals
by computers working with vast amounts of data.
most advanced manufacturing techniques are driven
those who use the service
operations management in the service industry is all about creating a good experience for
on budget, and to specifications
operations managers must ensure the products are manufactured and delivered on time,
process manufacturing
physically or chemically changes materials
Manufacturing
production as historically meant
continuous or intermittent
production processes are either
assembly process
puts components together to make a product
the number of human jobs available
robots have completely changed manufacturing by improving productivity while also reducing
tripled
service businesses have also ___________ the use of artificial intelligence in the last three years
crowded
service providers will need to step up their game as the sector becomes increasingly
will benefit
students who can see future tends and have the technological and creative skills to work in tomorrow's highly automated factories and modern service facilities
computer-aided design (CAD)
the use of computers in the design of products
Information Technology
this includes computers, software, Wi-Fi, e-mail, voice mail, texting and so forth gives firms and employees increased flexibility to choose locations while staying competitive in mainstream markets
Just in time inventory control
to cut costs associated with storage many companies have developed the
tech industry
Many American factories have struggled to fill positions as engineers and computer experts have migrated to the
online
The internet has changed the purchasing function because businesses can now search for the best prices
goods, services, and ideas
The production process consists of taking the factors of production and using those inputs to produce
never ending process of continually improving what a company produces
The struggles associated with end of the line quality checks made companies realize that quality is not an outcome; it is a
computer-integrated manufacturing (CIM)
The uniting interface of computer aided design and computer aided manufacturing
show quality in key areas such as leadership, strategic planning, customer and market focus, information analysis, human resource focus, process management, and business results.
To qualify for a Malcolm Baldridge National Quality Award companies must
service
Todays economy overwhelmingly depends on ____________ rather than manufacturing
whether customer wants and needs are being met and whether customer satisfaction ratings are better than those of competitors
What are the major criteria for earning the award
analyzing and sequencing tasks that need to be done, estimating the time needed to complete the tasks, drawing a PERT network illustrating information from steps 1 and 2, and identifying the critical path.
What are the steps used in pert?
(1) to build and deliver products in response to the demand of the customer at a scheduled delivery time, (2) to provide an acceptable quality level, and (3) to provide everything at the lowest possible cost
What are the three basic requirements of production:
manufacturing, services, small businesses, nonprofit/government, education, and health care
What areas can companies apply for the Malcolm Baldridge National Quality Awards in?
They outsource engineering, design, manufacturing, and other tasks to companies such as Flex and Sanmina that specialize in those functions
What do rapidly growing companies do instead of producing themselves?
Inventory management, quality control, production scheduling, follow-up services and more
What does operations management usually entail?
Production Controls (Planning, routing, scheduling, dispatching, follow up)
What is needed to turn the inputs of a society into outputs?
Being able to get the good from home
What is the ultimate convenience when it comes to facility location?
lawyers, doctors, and teachers as well as business services like accounting, finance, and management consulting
What jobs are considered service?
The EU demands that companies that want to do work in the EU are certified by ISO 9001
What makes the ISO 9001 important
facility location, facility layout, materials requirement planning, purchasing, inventory control, and quality control
What of the many problems does operations planning help solve?
to make a large number of limited variety of products at a very low cost
What was the idea of mass production
weather delays
When could JIT run into failures
The consider labor costs: availability of resources, including labor; access to transportation that can reduce time to market; proximity to suppliers; proximity to customers; crime rates; quality of life for employees; cost of living; and the need to train or retrain the local workforce
Why would companies spend millions of dollars to move their facilities from one location to another?
decreasing its need for resources
a company becomes lean by continuously increasing its capacity to produce high quality gods while
Program Evaluation and Review Technique (PERT)
a method of analyzing the tasks involved in completing a give project, estimating the time needed to complete each task, and identifying the minimum time need to complete the project
Enterprise resource planning (ERP)
a newer version of MRP combines computerized functions of all divisions and subsidiaries of the firm such as finance, human resources and order fulfillment into a single integrated software that uses a single database
International Organization for Standardizations
a worldwide federation of national standard bodies from more than 170 countries that set global measure for the quality of individual products
fixed position layout
allows workers to congregate around a product for it to be completed
this cuts the cost of distribution and makes communication easier
another way to work closely with suppliers to satisfy customers' needs is to locate production facilities near supplier facilities because
time to market
as manufactures attempt to compete globally, they need sites that allow products to move quickly to increase their
work closely with companies to design, produce and ship products to customers
companies create relationships with suppliers to form and interfirm process in which they
quality care and attention
companies in the service sector must focus on providing customers with
inexpensive resources
companies need _____________ ______________ like water, electricity, wood, coal, and other basic resources
never employ as many people as it did in 50s
due to advances in technology, American industry will likely
3D printing
during this advanced procedure also known as additive manufacturing, a product is created one layer at a time by a nozzle similar to those found in inkjet printers
ISO 14001
is a collection of the best practices for managing organization's impact on the environment
Materials Requirement Planning (MRP)
is 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.
ISO
is a nongovernmental organization established to promote the development of world standards to facilitate the international exchange of goods and services
Operations Management
is a term used in both manufacturing and service industries, is a specialized are in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services
process layout
is one in which similar equipment and functions are grouped together
ISO 9001
is the common name given to quality management and assurance standards
production
is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
facility layout
is the physical arrangement of resources, including people to most efficiently produce good and provide services for customers
facility location
is the process of selecting a geographic location for a company's operations
Statistical Process Control (SPC)
is the process of testing statistical samples of product components at each stage of production and plotting the test results on a graph
statistical quality control
is 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
is the production of goods using less of everything than mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product
critical path
is the sequence of tasks that takes the longest to complete
nanomanufacturing
means being able to manipulate materials on a molecular or even atomic scale
quality
means consistently producing what the customer wants while reducing errors before and after delivery
flexible manufacturing
means designing machines to do multiple tasks so they can produce a variety of products
mass customization
means tailoring products to meet the needs of a large number of customers is now widely practical
intermittent process
production run is short and the producer adjusts machines frequently to make different products
buy from multiples suppliers incase one cannot deliver
some manufactures buy from only one manufacturer and form a strong relationship while others,
Deming Cycle (PDCA)
the quality control process in which you plan, do, check and act
shorter time between orders and payment, less staff needed to do ordering and order processing, reduced inventories and better customer service.
the result of MRP or ERP is
Telecommuting
working from home via a computer is a major business trend