Bus 101-116 chapter 10 achieving world -class operational management

Production planning has to balance goals.?

(That may conflict) such as providing high-quality service while keeping operation operating costs low, or keeping profits High while maintaining adequate inventories of finish products. (sometime accomplishing all these goals is difficult)

Continuous Improvement

A commitment To constantly seek better ways of doing things in order to achieve greater efficiency and improve quality.

What is a Job Shop

A manufacturing firm that produces goods in response to customer order.

Business Process Management BPM

A unified system that has the power to integrate and optimize a company sprawling functions by automating Each of what it does.

Why is making mistakes or moving a company, when production begins not allowed?

Because making mistake and moving a factory or service facility Once production begin is difficult and costly.

Resource planning

Begins by specifying which raw material Park, parts and components will be required and when, to produce to determine the amount of each item needed the expected quantity of finished goods must be forecast

Poor inventory management

Can result in dissatisfied customer, financial difficulties and even bankruptcy.

Good inventory management

Enhance product quality, makes operations more efficient, and increase profits.

Why should a factory be located closer to the product(or marerals) it needs to produce their products?

Executive must access the availability of raw material, Parts, equipment, and available Manpower for each site under consideration. The cost of shipping raw material and finishing and finished goods can be as much as 25% of the manufacturer total cost so locating the factory where these and other course are as low as possible can make a major contribution to the firm's success

Capital

Factories

(10.6) Quality

Goods and services meet customer expectations by providing reliable performance.

What is mass customization?

Goods are produced using mass production techniques, but only up to a point.( e.g. Dell computers Tech homes and TaylorMade golf clubs at that point, the products or services is custom-tailored to the needs of all desire of individual customers example American leader,a Dallas based Furniture Factory, uses Mass customisation to produce couches and chairs to customize specialization within 30 days.

Electronic data interchange (EDI)

In which one trading partners exchange information electronically. Eddie can be conducted via a link computer system or over the internet the average shoes of exchange information with supplier electronically includes speed, accuracy, and lowered communication costs

Material requirements planning MRP

Is one such system. MRP use the master schedule to ensure that materials, labor, and equipment needed for production are at the right place in the right amount at the right time. Or a computerized system of control the flow of resource and inventory a master schedule is used to ensure that the material labor and equipment needed for production or at the right place and the right moment right time

Inventory

Is the supply of goods It Holes for use in production or for sale to customers

production involves convert input

Natural resources raw material human resources and capital.(output)

(10.3) What does a facility location affects?

Operating and shipping costs and, ultimately, the price of the product or service and the company's ability to compete

the coordination of materials, equipment, and human resources to achieve production and operating efficiency is called

Production control (two of the it's key aspects or routing and scheduling)

Production planning

Production planning allow the firm to consider the competitive environment and its own strategic goals to find the best production methods .

Production outputs

Products and services

Organization need certain resources to produce products and services for sale. Access to these resources, or input, is a huge consideration in what?

Site selection

Operation manager

The people charged with managing and supervising the conversion process, (plays a vital role in today's firm). They control about 3/4 of a firm assets, including inventories, wages, and benefits. They also work closely with other major division of the firm, such as marketing, financing, accounting and human resources, to ensure that the firm produces it's Goods profitably and satisfies the customers.

E-procurement system

The process of purchasing supplies and materials online, is booming Or the process of purchasing Supply and material online using the internet.

Make or buy decision

The the quantity the quantity of items needed in one consideration. or Determination but a firm of Weller to make it own production material or to buy them from outside source.

Computer aided design( CAD)

The use of computers to design and Test new products and modify existing ones.

What are the four discussions that must be made in production planning?

They involve the type of production process that will be used site selection, facility layout, and resource planning

Raw materials

Trees

continuous process

Uses long production runs that may last days, weeks, or months without equipment shutdowns. This is best for high-volume, low variety products standardized parts, such as nails, glass, and paper (e.g. continuous process is used by your Electric Company per-unit costs are low, and production is easy to schedule).

Bill of material

a list of items and the number of each required to make a given product

Cellular Manufacturing

combine some aspect of both product and fix position layouts. Production technique that uses small, self-contained production unit, each performing all or most of the tasks necessary for completing a manufacturing order

Perpetual inventory a

continuously updated list of inventory level,orders, sales, and receipts, for all major items.( today, companies mostly use computer to track inventory levels, calculate order quantities and issue purchase order at the right times.

Who manages a conversion process

conversion process is the role of the operation manager..

Supply Chain management

focuses on smoothing transitions along the supply chain, with the ultimate goal of satisfying customers with quality product and service. Or The process of smoothening transitions along with supply chain so that the firm can satisfy its customers with quality products and services focuses on developing tight bonds with suppliers.

Converting input to outputs (production)

involves converting inputs raw materials natural resources, Human Resources, Capital into output which is products or service (Example a hospital converts the Knowledge and Skills of its medical personnel, along with equipment and supplies from a variety of sources, into health care service for patient).

(10.5) Rooting

is the first step in production control Or the aspects of production control that involves setting out to workflow -the sequence of machine (good routine procedures increase productivity and cut unnecessary costs).

fixed position layout

let the product stay in one place while workers and Machinery moved to its as needed. Or a facility arrangement in which the product stays in one place and workers and machinery move to it as needed. (Product that are impossible to move such a ship, airplane, and construction projects are typically products used in fixed position layout). Fixed position layout is also coming for on-site services such as housekeeping cleaning services pest control and Landscaping.

(10.2) What are the three types of production

mass production, customization goods, customisation

Computer integrated Manufacturing (CIM)

the combination of computerized manufacturing manufacturing process (such as robots and flexible manufacturing system ) with other computerized system that control design, inventory, production, and purchases.

Critical Path

the largest pass through these linked activities. Or In a critical path method Network, the largest path through the link activities.

Critical path method CPM

the manager identifies all of the activities required to complete the project, relationships between these activities, and the order in which they need to be completed. Or a schedule tool that enables a manager to determine the critical path of activities for a project the activities that will cause the entire project to fall behind schedule if they are not completed on time.

Blockchain technology

there is the potential to automate these type of process to cover multiple transaction with a variety of participating organization. Or refers to a this send the decentralized public league Ledger off all transaction that have ever been executed. It is constantly expanding, as completed blocks are added to the Ledger with each new transaction.

Outsourcing

when items are purchased from an outside Source instead of being made internal it is called Outsourcing . (Harley-Davidson, for example purchase its tires, brake system, and other motorcycle components from manufacturers that make them to Harleys specification.

Computer aided manufacturing (CAM)

The use of computers to develop and control the production process.

Production process

The way a good or service is created (best fit withCompany goals and customer demands)

operations managers clarifies production processes in two ways

(1) how input are converted into outputs (2) the timing of the process.

What are the two basic process to convert input into output

(1.) Process Manufacturing, the basic inputs (raw materials, natural resources )are broken down into one or more output (product). ( e.g. bauxite the (input) is process to extract aluminum (the output)). (2.) Assembly process is just the opposite the basic input, like natural resources, raw materials, or human resources, are either combined to create the output or transferred into the output (1.)(e.g. an airplane for example is created by assembling thousands of Parts, which are its raw material inputs. Steel manufacturers use heat to transfer iron and other material into Steel in service customers may play a role in the transformation process (2.) (e.g. a tax preparation service combines the knowledge of the tax preparer with the clients information about personal finances iterm-45n order to complete the tax return).

Production and operation management involve three main types of decision typical me at three different stages.

1. Production planning play. First decisions facing operations managers at the planning stage at this stage managers decide where, when, and how production will occur they determine site location and obtain the necessary resources. 2. Production control. At this stage, this decision making process focus on controlling Quality and costs,scheduling and the actual day-to-day operation of running a factory or service facility. 3. Improving production and operations. The final stage of operations management focuses on developing more efficient method of producing the goods or services.

Gantt charts

Are bar graphs plotted on a timeline that shows the relationship between scheduled and actual production. Or progress plotted on a time line that shows the relationship between schedule an actual production.

What is Customisation

Customisation is opposite of mass production. in customisation The Firm produces goods and or services one at a time according to the specific needs or wants of individual customers. (1.) (a print shop me handle a variety of projects including newsletters, brochures stationary and reports). (2.) ( custom homes legal services, haircuts, doctors and real estate agents).

marketing personnel

Help them decide which products to make or which service to offer. Accounting and Human Resources help them face the challenge of combining people and resources to produce high-quality Goods on time and at a reasonable cost.( they are involved in the development and design of goods and determine which production process will be most effective.),

One way to determine the best inventory levels is to look at 3 costs:

Holding inventory, frequent reordering, and not keeping enough inventory on hand.( management must measure all three horses and try to minimize them)

What are inputs?

Input are natural resources, Raw material, human resource, capital

Quality control

Involves creating quality standards, producing goods and meet them, and measuring finished goods and services against them. Or the process of creating quality standard, producing goods and meet them, and measuring finished goods and service against them

Manufacturing resource planning to MPR 2

It use a complex computerized system to integrate data from any Department including Finance marketing accountant engineering and Manufacturing. MPR 2 can generate a production plan for the firm, as well as management reports, forecasts, and financial statements. Or a complex computerized system that integrates data from many Department to allow managers to more accurately forecast and assess the impact of production plans and profitability.

Natural resources are

Land

(10.4) ,CAD/CAM system

Link computer system that combine Adventures of computer aided design and computer aided Manufacturing. The system helped design the product control to flow off resources needed to produce the product and operate the production process.

Mass production

Manufacturing many identical goods at once, was a product of the Industrial Revolution. (1.) (example Henry Ford Model T automobile is a good example of early mass production. Each car turned out by Ford's factories was identical right down to the its color). (2.) (e.g. breakfast cereals, soft drinks, in computer keyboards).

Why do manufacturer use mass production

Mass production -keeping Manufacturing costs low by producing uniform products using repetitive and standardized processes.

What are three types of decisions made in Production planning?

Production planning involves three phases(1) Long-term planning has a time frame of three to five years. it focuses on which Goods to produce how many to produce and where they should be produced, (2) medium term planning discussion covers about 2 years. They concerned the layout of the factory or service facility, where and how to obtain the resources needed for production and labor issues. (3) short-term planning, within a one-year time frame, converts these Broader goals into specific production plan and materials management strategies.

another quality control method is a Six Sigma

Six Sigma is a company-wide process that focuses on measuring the number of defects that occurs and systematically eliminating them in order to get as close as 0 degrees as possible. Or a quality control process that relies on the finding what needs to be done to ensure quality measuring and analyzing products results systematically, and finding ways to improve and control quality.

(10.1) Production

The creation of products and service, is an essential function in every form

Malcolm baldrige National Quality award

Was established by the United States Congress in 1987 to recognize u.s. companies that offer goods and service of world-class quality. The Award promotes awareness of quality and allows the business community to assess which quality control program are most effective Or an award given to recognize us companies that offer goods and service of world-class quality established by Congress in 1987 and named for a former Secretary of Commerce.

Value- stream mapping

Where by production managers map to flow from suppliers through the factory to customers. Or Roofing technique that use simply icon to in visually represent the flow of materials and information from suppliers through the factory to customers.

Enterprise Resource Planning (ERP)z

a computerized resource planning system that incorporates information about The Firm suppliers and customers with its internally generated data. Or Computer writes resource planning system that incorporates information about The Firm supplier and customers with its internally generated data.

Assembly process.

a product process in which the basic inputs are either combined to create the output or transferred into the output

Total Quality Management (TQM)

emphasized the use of quality principle in all aspects of a company's production and operations. Or the use of quality principle in all aspects of a company production and operation. it recognizes that all employees involved with Bringing a product or service to customers marketing, purchasing, accounting, shipping, manufacturing contributes to its quality.

Inventory management

involves deciding how much of each type of inventory to keep on hand and the ovary ordering, receiving, storing, and tracking of it. The goal of inventory management is to keep down the cost of ordering and holding inventory while maintaining enough on hand for production and sales.

Scheduling scheduling .

involves specific buying and controlling the time required for each step in the production process Or The aspect of production control that involves specifying and controlling the time required for each step in the production process. ( the operational manager prepares timetables showing the most affectionate sequence of production and then tries to ensure that necessary material and labor are in the right place at the right time scheduling is important to both manufacturering and service firms.)

intermittent process

short production run are used to make batches of different products. Machines are shut down to change them to make different products at different time. This process is best for low volume high variety products such as those produced by mass customization or customisation 1) ( Job Shop are example of firms using an intermediate process). (e.g. a restaurant preparing gourmet meals, a physician performing Surgical procedures, and an advertising agency developing ad campaigns for business clients all customize their service to suit each customer. an investing agent developing ads campaigns for business clients all customize their service to each customer). (e.g. note that Production run" maybe very short-one grilled salmon or one physical exam at a time).

Supply chain

the entire sequence of securing input, producing goods, and delivering Goods to customers. If any links in this process are weak chances are customers the endpoint office supply chain will end up dissatisfied. Effective supply-chain strategies reduced cost. (for example integration of the shipper and customer's Supply chain Allows company to automate more process and save time.)