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