Chapter 9 - Production and Operations Management
PERT vs. Gantt
- PERT: estimates time required for project - Gantt: provides status of project
goal of operations management
- ensure that operations are running efficiently - create good experience for the customer
Examples of a problem solved by operations management planning as it relates to manufacturing
- facility location - time-to-market - inventory control
characteristics of a lean company
- less inventory - half floor space
Malcolm Baldrige National Quality Award
- manufacturing - services - small businesses - nonprofit/government - education - health care
benefits of ERP
- status of an order can be viewed at any time by any dept. - shorts times between orders & payments - less staff required to process orders
What does the production process add to materials?
- value - form utility
Six Sigma quality
3.4 defects per million opportunities
examples of each type of layout
- ASSEMBLY (PRODUCT): vehicle manufacturing - FIXED POSITION: bridge construction, new home build, new road construction - PROCESS: metal products for frequently changing customer needs - CELLULAR/MODULAR: woodworking requiring different designs of a product
Which production method uses computer technology to make the United States more competitive globally?
- CAD - CAM - lean manufacturing
What are the computerized methods that have made the United States more competitive both domestically and globally?
- CAM - CAD - mass customization - flexible manufacturing
reasons to use a Gantt chart
- identify projects in process - determine project stages - trace a production process
factors of production
- labor - knowledge - entrepreneurship
steps used in PERT
1. analyze and sequence tasks to be done 2. estimate required time for each task 3. draw a PERT network 4. identify critical path
when should an assembly-line layout be used
automobiles?
materials requirement planning
computer-based operations management system that uses slaes forecasts to make sure needed parts and materials are available at the right time and place
What must a firm do in order to be a quality organization?
consistently produce what the customer wants
flexible manufacturing
designing machines to do multiple tasks to produce variety of products
three basic requirements of production
- build/deliver products in response to customer demands - provide acceptable level of quality - provide everything at lowest cost possible
cellular/modular layout
- can accommodate design or customer-demand changes - workers combine to produce more complex units of final product
some of the basic premises of the contemporary view of quality in organizations
- continuous improvement - process oriented - part of operations management
inputs into the production process
- labor - capital - land
Entrepreneurs building new green ventures will lead to:
- stronger economy - more employment
critical path
sequence of tasks that takes longest time to complete
assembly-line (product) layout
workers only do a few tasks at a time
the Deming cycle
Plan, Do, Check, Act (PDCA)
enterprise resource planning (ERP)
combination of all divisions into single integrated software program that uses single database
operations management
converts/transforms resrources into goods/ser ices
goal of the International Organization for Standardization
facilitate international exchange of goods/services
computer-aided design (CAD)
help in design of products
What has caused an increase in flexibility in choice of business location while allowing firms to remain competitive?
infotech
basic premise for just-in-time inventory
minimum inventory is kept on hand
ISO 14000
organization impact on environment requirements for certification: - have environmental policy - specific improvement targets
process manufacturing
physically or chemically changes materials
lean manufacturing
production of goods using less of everything
What is a key to company growth?
providing goods/services to developing markets
continuous improvement
states that quality is a process of its own rather than just one step in a process
program evaluation and review technique (PERT)
technique for monitoring progress of production
form utility
value added to materials in creation of finished goods/services
example of form utility
when a butcher produces a specific cut of beef
just-in-time inventory control
minimum inventory, and deliver materials just in time to go on assembly line
