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).
