production operations and management

process layout

all workers performing similar tasks are grouped together and the products pass from one workstation to another (from grinding to assembling to inspection)

production control (management)

at this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-today operations of running a factory or service facility

resource planning

begins by specifying which raw materials, parts, and components will be required, and when, to produce finished goods

customization

company produces goods or services one at a time according to the specific needs or wants of individual customers (opposite of mass production)

six sigma

company-wide, quality-control program that focuses on measuring the # of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible key process is called DMAIC: define, measure, analyze, improve, control

computerized resource planning

computerized systems used by many manufacturing companies to control the flow of resources and inventory

lean manufacturing

streamlines production by eliminating steps in the production process that do not add benefits customers want

product layout

workstations or departments are arranged in a line with products moving along the line. good for products that require a continuous or repetitive production process (eg food processing plants)

many technologies are automating manufacturing tasks, such as

-computer-aided design and manufacturing systems -robotics -adaptable factories

critical path method (cpm)

-manager identifies all of the activities required to complete the project, the relationships between these activities, and the order in which they need to be completed - the longest path through these linked activities is called the critical path

.improving production and operations (improvement)

.the final stage of operations management focuses on developing more efficient methods of producing the firm's goods or services

in addition to production type, operations managers also classify production processes in two ways

1. how inputs are converted into outputs 2. the timing of the process

4 decisions must be made in production planning

1. type of production process that will be used 2. site selection (where are u going to put ur facility?) 3. facility layout (depends on the type of product) 4. resource planning (where are you getting your necessary resources?)

supply chain KPI example

OTIF (on time in full) -the expected product has been delivered -the ordered quantity has been delivered -the quality is conform to the required level -the product has been delivered at the place asked by the customer and on time

inventory management

deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it consideration: how to meet customer/production demands while minimizing costs (tying up money, storage, frequent reordering, etc)

make-or-buy decision

decision whether a company will make its own production materials or buy them from outside sources (outsourcing) considerations: quantity of items needed, special design features, reliability/quality of outside sources

total quality management (TQM)

emphasizes the use of quality principles in all aspects of a company's production and operations. it recognizes that all employees involved with bringing a product or service to customers-- marketing, purchasing, accounting, shipping, manufacturing-- contribute to its quality. -focuses on continuous improvement

supply-chain management

focuses on smoothing transitions along the supply chain, with the ultimate goal of satisfying customers with quality products and services

mass customization

goods are produced using mass-production techniques, but only up to a point, at that point, the product or service is custom-tailored to the needs or desires of individual customers. ex. modular homes- allow customers to make changes to the base home package

operations management

managing the conversion process of production is the role of _____ ______

mass production

manufacturing many identical goods at once (canned goods, o-t-c. drugs, household appliances)

facility layout types

process layout, product layout, fixed position layout

production

the creation of products and services -turns inputs, such as natural resources, raw materials, and capital, into outputs, which are products and services

supply chain

the entire sequence of securing inputs, producing goods, and delivering goods to customers

production planning (design)

the first decisions facing operations managers come at the planning stage. at this stage, managers decide where, when, and how production will occur. they determine site locations and obtain the necessary resources. 3 phases: long term (3-5 years), medium-term (2 years), short-term (within 1 year)

fixed position layout

the product or service stays in one place while workers and machinery move to it (good for large products, such as airplanes and for services such as house cleaning)

production process

the way a good or service is created -need to determine which type of production process best fits with the type of good or service being produced