BA 101 Chapter 9

market growth for 3D printing

$35 billion by 2024

information technology

- computers, software, WiFi, e-mail, voice mail, texting, etc. -gives firms/employees increasing flexibility to choose locations while staying competitive -important to quicken response time, firms seek out countries with the most advanced information systems

PERT steps

1. Analyzing and sequencing tasks 2. Estimating the time needed to complete each task 3. Drawing a PERT network illustrating the first two steps 4. Identifying the critical path

these major developments have made US companies more competitive

1. computer-aided design and manufacturing 2. flexible manufacturing 3. lean manufacturing 4. mass customization 5.robotics 6. 3D printing

three basic requirements of production

1. to build and deliver products in response to the demands of the customer at the scheduled delivery time 2. to provide an acceptable quality level 3. to provide everything at the lowest possible cost

2019

12.82 million people worked in manufacturing products made in the US reached a record high

when did American industry reach its postwar peak

1953, factories employed about 30% of the workforce

industrial robots can work

24/7 with great precision (mass customization easy for them)

program evaluation and review technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project. (developed in 50s by US Navy for constructing nuclear submarines)

3D printing (additive manufacturing)

A process that builds—layer by layer in an additive process—a three-dimensional solid object from a digital model.

Gantt Chart

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time

quality (control)

Consistently producing what the customer wants while reducing errors before and after delivery to the customer.

flexible manufacturing

Designing machines to do multiple tasks so that they can produce a variety of products.

critical path

In a PERT network, the sequence of tasks that takes the longest time to complete.

just-in-time (JIT) inventory system

Inventory management system designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise "just in time" for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods; also known as quick response (QR) inventory system in retailing.

mass customization

Tailoring products to meet the needs of a large number of individual customers.

process manufacturing

That part of the production process that physically or chemically changes materials

assembly process

The part of the production process that puts together components

materials requirement planning (MRP)

computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place

Types of Production Processes

continuous and intermittent

most companies use 3D printing to

create prototype models or molds for other industrial projects due to their significantly reduced costs

operations management in the service industry is about

creating a good experience for those who use the service

locating production facilities near supplier facilities

cuts cos of distribution and makes communication easier

global expansion is more

difficult now

outputs

goods, services, ideas

robots have completely changed manufacturing by

improving productivity while also reducing the number of jobs available to humans

operations management includes

inventory management, quality control, production scheduling, follow-up services, and more

inputs (production process)

land, labor, capital, entrepreneurship, knowledge

time to market

manufacturers need sites that allow products to move quickly, at lowest costs. Access to highways, rail lines, waterways, and airports is critical

1979

nearly 20 million people worked in manufacturing

International Organization for Standardization (ISO)

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

most productive time for American manufacturing

now

since 1979

number of Americans employed by factories dropped steadily

production control

planning, routing, scheduling, dispatching, follow-up

over the years, low cost came at the expense of

quality and flexibility

3D printing is spreading to create all sorts of items, including

rubberlike midsoles for Adidas, customized helmet padding for football players (firm Riddel), concrete bridge (Madrid, Spain)

80% of jobs are in the

service sector (lawyers, doctors, teachers, business services)

process layout

similar equipment and functions are grouped together

facility location

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

production adds

value, or utility, to materials or processes

the Baldrige Awards

-standard set for overall company quality with introduction of these awards (names in honor of Malcom Baldrige former US secretary of commerce) -companies can apply in these areas: manufacturing, services, small businesses, nonprofit/government, education, health care

enterprise resource planning (ERP)

A newer version of Materials Requirement Planning (MRP), that combines the computerized functions of all the divisions and subsidiaries of the firm (such as finance, human resources, and order fulfillment) into a single integrated software program that uses a single database.

continuous process

A production process in which long production runs turn out finished goods over time.

intermittent process

A production process in which the production run is short and the machines are changed frequently to make different products.

Six Sigma quality

A quality measure that allows only 3.4 defects per million opportunities.

statistical process control (SPC)

The process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.

statistical quality control (SQC)

The process some managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning.

lean manufacturing

The production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.

computer-integrated manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing. (can control the entire production process)

computer-aided design (CAD)

The use of computers in the design of products

ISO 14001

a collection of the best practices for managing an organization's impact on the environment

current factory employees must have

advanced stills to be hired and succeed

American factories can operate without large amount of human labor due to

advancements in technology and automation

fixed-position layout

allows workers to congregate around the product to be completed

products can be tracked from

beginning of production to the point of delivery

nonomanufacturing

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

inexpensive resources

companies need water, electricity, wood, coals, and other basic resources. firms can lower costs of buying and transporting these resources by moving to an area where these items are inexpensive and plentiful (most important resource often people)

telecommuting benefits

companies no longer need to locate near sources of labor, and will be able to move to areas where land is inexpensive, and the quality of life will be higher

most advanced manufacturing techniques are driven by

computers working with vast amounts of data that controls sensors that measure humidity, global positioning trackers (that fix location), or calipers that measure a material's thickness

the production process

consists of taking the factors of production (land etc.) and using those inputs to produce goods, services, and ideas. Planning, routing, scheduling, and other activities are the means to accomplish the objective (output)

more than 70% of US GDP is

consumer spending

past robots were big and dangerous

current robots can collaborate with human colleagues

computer-aided design and manufacturing makes it possible to

custom-design products to meet needs of small markets with very little cost increase

many factories have struggled to fill positions because

engineers and computer experts have migrated to the tech industry

modern factories depend on ____ to operate technology

engineers and software developers

operations management planning

helps solve many of the problems in the service and manufacturing sectors (including facility location, facility layout, materials requirement planning, purchasing, inventory control, and quality control)

labor costs

in general, US manufacturing firms tend to pay more and offer more benefits than firms elsewhere in the world, so producers move their plants overseas

operations managers must ensure

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

today's economy depends on

services rather than manufacturing

operations management

specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services.

US companies vulnerable to foreign competitors who used advanced production techniques and less expensive labor because

suppliers didn't always deliver when they said they would, so manufacturers had to carry large inventories of raw materials/ components to keep producing

modular layout

teams of workers combine to produce more complex units of the final product

American industry will likely never employ as many people as it did in the 1950s because of

technology

production management

the activities that helped firms create goods

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

facility layout

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

computer-aided manufacturing (CAM)

the use of computers in the manufacturing of products

form utility

the value producers add to materials in the creation of finished goods and services

why would companies spend millions 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 rate, quality of life for employees, cost of living, and the need to train or retrain local workforce

idea behind mass production

to make a large number of a limited variety of products at very low cost

customize

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

ultimate goal of operations management

to provide high-quality goods and services instantaneously in response to customer demand

1980 factories needed 25 people to produce $1 million worth of manufacturing output

today it takes only 6 people

assembly-line layout

workers do only a few tasks at a time

telecommuting

working from home via computer

interfirm operations management

•Outsource engineering, design, and manufacturing to other companies. •Create new relationships with suppliers online. •interfirm process in which companies work closely together to design, produce, and ship products to customers