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Creating Value: Producing Quality Goods and Services

Creating Value: Producing Quality Goods and Services. What Is Production?. Production Operations Management Planning Leading Organizing Controlling. What Is the Conversion Process?. Inputs Transformation Outputs. System. Inputs. Transformation Components. Transformation Function.

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Creating Value: Producing Quality Goods and Services

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  1. Creating Value:Producing Quality Goods and Services Excellence in Business, 3e

  2. What Is Production? • Production Operations Management • Planning • Leading • Organizing • Controlling Excellence in Business, 3e

  3. What Is the Conversion Process? • Inputs • Transformation • Outputs Excellence in Business, 3e

  4. System Inputs Transformation Components Transformation Function Typical Desired Output Hospital Patients, medical supplies MDs, nurses, equipment Health care Healthy individuals Restaurant Hungry customers, food Chef, waitress, environment Well-prepared & well-served food Satisfied customers Automobile Factory Sheet steel, engine parts Tools, equipment, workers Fabrication & assembly of cars High-quality cars College or University High School graduates, books Teachers, classrooms Impart knowledge & skills Educated individuals Department Store Shoppers, stock of goods Displays, sales clerks Attract customers, promote products, fill orders Sales to satisfied customers Input-Transformation-Output Relationships for Typical Systems Excellence in Business, 3e

  5. Challenges of the Service Industry • Customer involvement • Delivery timing • People-intensive activities • Production and location • Subjective quality Excellence in Business, 3e

  6. Manufacturing Goods • Mass production • Mass customization Excellence in Business, 3e

  7. Outsourcing the Manufacturing Function • Advantages • Capital and resources • Economies of scale • Disadvantages • Job displacement • Lost wages Excellence in Business, 3e

  8. Production Process Design • Forecast demand • Plan for capacity • Choose facility site • Design facility layout • Schedule work Excellence in Business, 3e

  9. The Supply Chain • Suppliers • Manufacturers • Distributors • Retailers Excellence in Business, 3e

  10. Forecasting Demand • Customer feedback • Market research • Sales figures • Industry analyses • Educated guesses Excellence in Business, 3e

  11. Capacity Planning • Level of resources • Customer demand Excellence in Business, 3e

  12. Land Construction Labor Local taxes Energy Living standards Transportation Raw materials Facility Location Excellence in Business, 3e

  13. Types of Facility Layout • Process • Product • Cellular • Fixed-position Excellence in Business, 3e

  14. Process Layout • Made-to-order products • Process arrangement • Specialized employees • Specialized materials Excellence in Business, 3e

  15. Product Layout • Mass production of few items • Process arrangement • Continuous sequence Excellence in Business, 3e

  16. Cellular Layout • Mass customization • Process arrangement • Work centers • Teamwork Excellence in Business, 3e

  17. Fixed-Position Layout • Immovable product • Process arrangement • Employee go to the site • Materials are brought to the site Excellence in Business, 3e

  18. Production Schedule • Scheduling • Dispatching • Contingencies Excellence in Business, 3e

  19. The Gantt Chart • ID Number • Task name • Start date • End date • Duration Excellence in Business, 3e

  20. Identify activities Determine sequence Establish time frame Diagram activity network Calculate longest completion path Refine timing Program Evaluation and Review Technique (PERT) Excellence in Business, 3e

  21. PERT Time Estimates • Optimistic • Pessimistic • Most likely • Expected Excellence in Business, 3e

  22. Industrial Robotics • Precision • Diligence • Stamina • Speed Excellence in Business, 3e

  23. Computer-aided design (CAD) Computer-aided engineering (CAE) Computer-aided manufacturing (CAM) Computer-integrated manufacturing (CIM) Computerized Production Excellence in Business, 3e

  24. Mass Production Specialty Operations Resistant to Change Conducive to Change High Set-Up Costs Minimal Set-Up Costs Manufacturing Systems Traditional Flexible Excellence in Business, 3e

  25. Supply Chain Data Interchange • Electronic Data Interchange (EDI) • Extensible Markup Language (XML) Excellence in Business, 3e

  26. The Production Process • Inventory management • Quality assurance Excellence in Business, 3e

  27. Supply Chain Coordination • Inventory • Purchasing • Lead time • Inventory control Excellence in Business, 3e

  28. Inventory Control • Just-in-time (JIT) • Materials requirements planning (MRP) Excellence in Business, 3e

  29. Supply Chain Management • Manage risks • Manage relationships • Manage trade-offs Excellence in Business, 3e

  30. Maintaining Quality • Quality control • Quality assurance Excellence in Business, 3e

  31. Total Quality Management • Management commitment to TQM • Clear customer focus • Employee employment • Commitment to continuous improvement • Partner with suppliers • Meaningful performance measurements Excellence in Business, 3e

  32. Six-Sigma Approach • Define the problem • Measure performance • Analyze root causes • Improve the process • Control the process Excellence in Business, 3e

  33. Global Quality Standards • ISO 9000 • ISO 14000 Excellence in Business, 3e

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