MGMT 1 - C/9 - PRODUCTION & OPERATIONS MANAGEMENT

Steps used in PERT (Program Evaluation and Review Technique):

1. Analyzing and sequencing tasks that need to be done 2. Estimating the time needed to complete each task 3. Drawing a PERT network illustrating the information from steps 1 & 2 4. Identifying the critical path

Problems that occur when products are completed first and then tested for quality

1. The need to inspect work required extra people and resources 2. If an error was found, someone had to correct the mistake or scrap the product which is costly 3. If the customer found the mistake, he/she might be dissatisfied and might even buy from another firm thereafter

Match the facility layout with the type of product being manufactured 1. Product (Assembly)-line layout (workers do only a few tasks at a time) 2. Modular layout (teams of workers combine to produce more complex units of the final product 3. Fixed-position layout (allows workers to congregate around the product to be completed 4. Process layout (similar equipment and functions are grouped together)

1. Vehicle manufacturing 2. Woodworking requiring differing designs of a product 3. Work on a major project i.e. a bridge or an airplane 4. Metal products for frequently changing customer needs

Intel's Grove says the three basic requirements of production are:

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

The acronym for the computer software that makes it possible for CAD and CAM systems to communicate to manufacture products more efficiently is referred to as ___.

CIM (Computer-integrated manufacturing)

Which production method uses computer technology to make the US more competitive globally

Lean manufacturing, CAD, CAM

A modern quality control standard that allows for 3.4 defects per one million opportunities is called ___.

Six Sigma Quality - sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence

Operations management

Specialized area of management that converts or transforms resources, including human resources, into goods and services

In developing countries, the use of technology reduces poverty and hunger.

T

Information technology gives more flexibility in choice of business location while allowing firms to remain competitive

True

T/F Economic slow down has had more of an effect on the manufacturing sector when compared to the service sector

True

T/F Industrial productivity gains will LOWER the number of workers companies require

True

T/F Operations management is the implementation phase of management

True

Time-to-market

a decision-making factor where in order for manufacturers to attempt to compete globally, they need sites that allow products to move quickly, at the lowest costs, so they can be delivered to customers fast

Intermittent process

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

Deming cycle

a quality control method geared toward finding errors before they happen

ISO 14000

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

ISO 9000

common name given to quality management and assurance standards

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

Production process

consists of taking the factors of production (land, labor, 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. Inputs (land,labor,capital,Entrepreneurship,knowledge) -> Production control (planning,routing,scheduling,dispatching,follow-up) -> Outputs (goods,services,ideas)

The main idea behind mass production is to produce a large number of a limited variety of products at a very low ___.

cost

Developing countries are providing new markets for companies that can provide them with needed:

goods, technology, services

Operations management planning

helps solve problems in service and mfg sectors such as: facility location, facility layout, materials requirement planning, purchasing, inventory control, and quality control

The basic premise of just-in-time inventory is:

minimum inventory is kept on hand

Enterprise resource planning (ERP)

newer version of MRP; combines the computerized functions of all the divisions and subsidiaries of the firm (finance, human resources, and order fulfillment) into a single integrated software program that uses a single database. Benefits: - shorter time between orders and payment - less staff needed to do ordering and order processing - reduced inventories - better customer service

Malcolm Balridge National Quality Award

overall company quality is outlined by the standards set by this award; companies can apply for these awards in each of the following areas: manufacturing, services, small businesses, nonprofit/government, education, and health care

Facility Layout

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

Process manufacturing

physically or chemically change materials i.e. boiling physically changes the egg or sand into glass/computer chips

Statistical process control (SPC)

process of testing statistical samples of product components at each stage of production and plotting the test results on a graph

Statistical quality control (SQC)

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

lean manufacturing

production of goods using less of everything compared to mass production

PERT chart

program evaluation and review technique; tasks to complete a given project, estimate the time needed to complete each, and compute the minimum time needed to complete the whole project is analyzed

flexible manufacturing

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

The goal of the ISO is to:

facilitate the international exchange of goods and services nongovernmental international standards of bodies

Purchasing

function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services.

Definition of "Critical Path":

the sequence of tasks that takes the longest time to complete ("critical" is used to show that a delay anywhere along this path will cause the project or production run to be late)

Examples of a problem solved by operations management planning as it relates to manufacturing include:

time-to-market, inventory control, facility location, facility layout, materials requirement planning, purchasing, quality control

Production management

used to describe all activities managers do to help their firms create goods

A process layout:

where similar equipment and functions are grouped together; the order in which the product visits a function depends on the design of the item

Assembly process

puts together components (eggs, toast, and coffee) to make a product (breakfast)

Mass customization

tailoring products to meet the needs of individual customers

What does the production process add to materials?

uses basic inputs to produce outputs: adds value/utility to materials/processes

Form utility

value producers add to materials in the creation of finished goods and services ie. transforming silicon into computer chips or putting services together to create a vacation package

Identify the use of each layout: 1. Product layout 2. Process layout 3. Cellular/module layout 4. Fixed-position layout

1. used to produce large quantities of a few types of products 2. Frequently used in operations that serve different customers' different needs 3. Can accommodate changes in design or customer demand 4. A major feature of planning is scheduling work operations

CAM (computer-aided manufacturing)

system of production that uses computers to control the manufacturing process

Telecommuting

working from home via computer; companies that don't need to locate near sources of labor can move to areas where land is less expensive and quality of life may be higher; more salespeople keep in touch with the company and its customers through videoconferencing via computers