10.5 The Job of Production Managers

just-in-time (JIT) system

broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management.

make, buy, or lease decision

choosing whether to manufacture a needed product or component in-house, purchase it from an outside supplier, or lease it.

materials requirement planning (MRP)

computer-based production planning system that lets a company ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.

3D printing

etching of plastic layers into different shapes by laying down successive layers of material to form a 3D solid.

fixed-position layout

places the product in one spot, and workers, materials, and equipment come to it. This approach suits production of very large, bulky, heavy, or fragile products. For example, a bridge cannot be built on an assembly line. Fixed-position layouts dominate several industries, including construction, shipbuilding, aircraft and aerospace, and oil drilling, to name a few

vendor-managed inventory

process in which the producer and the retailer agree that the producer (or the wholesaler) will determine how much of a product a buyer needs and automatically ship new supplies when needed.

product layout

referred to as an assembly line, sets up production equipment along a product-flow line, and the work in process moves along this line past workstations. This type of layout efficiently produces large numbers of similar items, but it may prove inflexible and able to accommodate only a few product variations

perpetual inventory system

system that continuously monitors the amount and location of a company's stocks.

What four major tasks do production and operations managers perform?

1.Plan the overall production process 2.Determine the best layout for the firm's facilities 3.Implement the production plan 4.Control the manufacturing process to maintain the highest possible quality

customer-oriented layout

Customer-oriented layout arranges facilities to enhance the interactions between customers and a service.

What is the difference between a traditional manufacturing structure and a team-based structure?

In the traditional structure, each manager is given a specific area of authority. In a team-based structure, all workers are responsible for their output.

What factors affect the make, buy, or lease decision?

The costs of leasing or purchasing parts from vendors, versus producing them in-house, the availability of dependable outside suppliers, and the need for confidentiality affect this decision.

List the four major tasks of production and operations managers.

The four tasks are planning the overall production process, determining the best layout for the firm's facilities, implementing the production plan, and controlling manufacturing to maintain the highest quality.

inventory control

function requiring production and operations managers to balance the need to keep stock on hand to meet demand against the costs of carrying inventory.

process layout

groups machinery and equipment according to their functions. Its purpose is to process goods and services that have a variety of functions.