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STRATEGIC IMPORTANCE OF THE PRODUCTION FUNCTION

•  Production Application of resources such as people and machinery to convert materials into finished goods and services. •  Production and operations management Managing people and machinery in converting materials and resources into finished goods and services.

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STRATEGIC IMPORTANCE OF THE PRODUCTION FUNCTION

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  1. • ProductionApplication of resources such as people and machinery to convert materials into finished goods and services. • • Production and operations managementManaging people and machinery in converting materials and resources into finished goods and services. • The Production Process: Inputs Conversion Process Outputs

  2. STRATEGIC IMPORTANCE OF THE PRODUCTION FUNCTION • • A vital function for generating money for employees, lenders, and stockholders. • Mass Production • • Manufacturing products in large amounts through specialized employees skills, mechanization, and standardization. • • Assembly line • Flexible Production • • Produces smaller batches of goods cost-effectively. • Customer-Driven Production • • Links what a manufacturer makes with what customers want to buy.

  3. PRODUCTION PROCESSES • • Analytic production system • • Synthetic production system • • Continuous production process • • Intermittent production process

  4. TECHNOLOGY AND THE PRODUCTION PROCESS • Robots • • Reprogrammable machine capable of performing numerous tasks that require manipulation of materials and tools. • Computer-Aided Design and Manufacturing • • CAD—Interactions between a designer and a computer to create a product, facility, or part. • • CAM—Analyze CAD output, determine necessary steps to implement the design, and transmit instructions to production equipment.

  5. Flexible Manufacturing Systems • • A production facility that workers can quickly modify. Computer-controlled machining centers produce metal parts. Remote-controlled carts deliver materials. Robots handle the parts. All linked by electronic controls. • Computer-Integrated Manufacturing • • Computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion

  6. THE LOCATION DECISION

  7. THE JOB OF PRODUCTION MANAGERS • • Oversee the work of people and machinery to convert inputs (materials and resources) into finished goods and services. • Planning the Production Process • • Choose what goods or services to offer customers. • • Convert original product ideas into final specifications. • • Design the most efficient facilities to produce those products. • Determining the Facility Layout • • Process layout, product layout, fixed-position layout, and customer-oriented layout.

  8. Implementing the Production Plan • • Make, buy, or lease decision • • Selection of suppliers • • Inventory control • • Just-in-time systems • • Materials requirement planning • Controlling the Production Process • • Production control • • Production planning • • Routing • • Scheduling • • Dispatching • • Follow-up

  9. IMPORTANCE OF QUALITY • • Best defined as a good or service free of deficiencies. • • In some companies, costs of poor quality amount to 20 percent of revenue. • • BenchmarkingDetermining other companies’ standards and best practices. • Quality Control • • Quality control Measuring goods and services against established quality standards. • • Many companies evaluate quality using the Six Sigma concept. • ISO Standards

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