Chapter 9 BA 101

Manufacturing in the US

-In 1953 American industry reached its postwar peak as factories employed about 30% of the workforce -By 1979, nearly 20 million people worked in manufacturing -->since then, the number of Americans employed by factories has steadily dropped year after year -12.82 million people worked in manufacturing in 2019 -->that same year the value of products made in the US reached a record high, there's never been a more productive time for American manufacturing than the present

operations management in the service sector

All about creating a good experience for those who use the service ex: Hilton hotel

just-in-time (JIT) inventory control

Minimizes the inventory by having frequent deliveries just in time for assembly into the final product

quality

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

information technology (IT)

gives firms and employees increased flexibility to choose locations while staying in the competitive mainstream -important to quicken response time, so many firms seek countries with the most advanced information systems

Robotics

industrial robotics can work 24 hours a day, seven days a week with great precision -robots have completely changed manufacturing by improving productivity while also reducing the number of jobs available to humans

Why did many producers moved their plants to Malaysia, China, India, Mexico, Vietnam, and other countries?

labor is becoming a smaller percentage of total cost in highly automated industries, availability of low-cost labor or the right kind of skilled labor --In general, U.S. manufacturing firms tend to pay more and offer more benefits than firms elsewhere in the world

Malcolm Baldrige National Quality Awards

named in honor of a former U.S. secretary of commerce -companies can apply for these awards in manufacturing, services, small businesses, nonprofit/government, education, and health care

ISO

nongovernmental organization established to promote the development of world standards to facilitate the international exchange of goods and services

what is often the most important resource?

people -so companies tend to cluster where smart and talented people are, such as Silicon Valley

facility location

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

How has output been able to increase while the number of factory workers continues to fall?

thanks to advancements in technology and automation, American factories can operate efficiently without large amounts of human labor -->whereas robots have been performing manufacturing tasks for decades past models were so big and dangerous that people could rarely be in the same room with them

3D printing

-during this advanced procedure, a product is created one layer at a time by a nozzle similar to those found in inkjet printers -it has grown rapidly over the past five years driven by rapid technological developments -could grow to a market reaching $35 billion by 2024 -most companies use it to create prototype models

What are some operations management planning?

-facility location -facility layout -materials requirement planning -purchasing -inventory control -quality control

What are some of the data control sensors that computers work with?

-measuring humidity -global positioning trackers (that fix location) -calipers that measure a material's thickness

Using Sensing, Measurement, and Process Control...

-most advancing manufacturing techniques are driven by computers working with vast amounts of data -products can be tracked from the beginning of production to the point of delivery--> the moment anything goes wrong, a sensor can detect it immediately and notify someone to make the needed changes --companies are also using nanomanufacturing

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

how does an organization qualify for Baldrige Award?

an organization has to show quality in key areas such as leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results

time to market

as manufacturers attempt to compete globally, they need sites that allow products to move quickly, at the lowest costs, so they can be delivered to customers fast -access to highways, rail lines, waterways, and airports is critical

Nanomanufacturing

being able to manipulate materials on a molecular or even atomic scale

Facility Location in the Future

companies that no longer need to locate near sources of labor will be able to move to areas where land is less expensive and the quality of life may be higher

interfirm operations management

companies work closely together to design, produce, and ship products to customers -manufacturing companies are developing online strategies that will enable them and others to compete more effectively in the future -they must now deal with an environment that is constantly changing and evolving

Information technology examples

computers, software, WiFi, e-mail, voice mail, and texting

production process

consists of taking the factors of production and using those inputs to produce goods, services, and ideas -planning, routing, scheduling, and the other activities are the means to accomplish the objective--output

flexible manufacturing

designing machines to do multiple tasks so they can produce a variety of products -ex: Allen-Bradley uses flexible manufacturing to build motor starters --> orders come in daily, and w/in 24 hours the company's machines and robots manufacture, test, and package the starters--which are untouched by human hands

operations management planning

helps solve many of the problems in the service and manufacturing sectors

What are some more reasonings for for moving production facilities?

inexpensive resources -companies usually need water, electricity, wood, coal, and other basic resources -by moving to areas where these items are inexpensive and plentiful, firms can significantly lower not only the cost of buying such resources but also the cost of shipping finished products

What has happened to the factory assembly line?

robots began performing the repetitive tasks in the assembly lines -employees in these positions, must have advanced skills in order to be hired and succeed --due to these changes, American industry will likely never employ as many people as it did in the 1950s --more than 70% of U.S. GDP is consumer spending and about 80% of jobs are now in the service sector

what must operations mangers must ensure?

that products are manufactured and delivered on time, on budget, and to specifications

ISO 9001

the common name given to quality management and assurance standards

production

the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, 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

the need to improve production techniques and cut costs...

the idea behind mass production was to make a large number of a limited variety of products at a very low cost -over the years, low cost often came at the expense of quality and flexibility --suppliers didn't always deliver when they said they would, so manufacturers had to carry large inventories of raw materials and components to keep producing --> such inefficiencies made U.S. companies vulnerable to foreign competitors who were using more advanced production techniques and less expensive labor

facility layout

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

lean manufacturing

the production of goods using less of everything than in mass production -less human effort -less manufacturing space -less investment in tools -less engineering time to develop a new product

computer-aided design (CAD)

the use of computers to design products -businesses ranging from construction companies to carmakers to video game designers depend on 3D modeling software to create new products

why would companies spend millions of dollars to move their facilities from one location to another?

they 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 -the need to train or retrain the local workforce

customize

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

what is major criteria for earning the Baldrige Award?

whether customer wants and needs are being met and whether customer satisfaction ratings are better than those of competitiors

telecommuting

working from home via computer, is a major trend in business