Bus Tech 100 Ch 8

Chapter 8 – Achieving World Class Operations Management:

Chapter 8 – Achieving World Class Operations Management

Chapter 8 Learning Goals:

Chapter 8 Learning Goals Why is production and operations management important in both manufacturing and service firms? What types of production processes are used by manufacturers and service firms? How do organizations decide where to put their production facilities? What choices must be made in designing the facility? Why are resource planning tasks like inventory management and supplier relations critical to production?

Chapter 8 Learning Goals (cont’d.):

Chapter 8 Learning Goals (cont’d.) How do operations managers schedule and control production? How can quality management and lean manufacturing techniques help firms improve production and operations management? What roles do technology and automation play in manufacturing and service industry operations management? What key trends are affecting the way companies manage production and operations?

Production & Operations Management:

Production & Operations Management Production & Operations Management are important because Consumers demand quality products/services at reasonable prices in a timely fashion Consumers also demand better service and individualized attention

Production & Operations Management, cont.:

Production & Operations Management, cont. 3 Main types of decisions Production Planning Production Control Improving Production & Operations

Production Planning:

Production Planning Find the best production methods to meet and balance company goals 3 phases Long term Medium term Short term Important decisions/elements Production Process Site Selection Facility Layout Resource Planning Supply Chain Management

Production Process:

Production Process How should the goods be made? Mass Production Mass Customization Customization Job shop How should the inputs be converted into outputs? Process manufacturing Assembly process

Production Process, cont.:

Production Process, cont. What should the timing of the process be? Continuous Process Intermittent Process

Site Selection:

Site Selection Affects operating cost, price of the product/service, ability to compete Factors to consider Availability of inputs Marketing factors Local incentives Manufacturing environment International considerations

Good Labor Locations in the US:

Good Labor Locations in the US States with above average labor quality and below average labor cost: Alabama Alaska Georgia Hawaii Virginia Wyoming Source: Corporate Location, www.corporatelocation.com

Facility Layout:

Facility Layout Determine what the most efficient & effective design is for the production process Types Process layout Product layout Fixed Position layout

Resource Planning:

Resource Planning Make sure resources are available when needed Steps of resource planning Determine which resources are needed and when Decide if the production materials should be made or bought Determine how much inventory to have & how it should be managed Decide if a computerized resource planning system is needed

Supply Chain Management:

Supply Chain Management Supply Chain Secure Inputs  Produce Goods  Deliver Goods Want a smooth transition along the supply chain Strategies Create tight bonds with suppliers Improve supplier communications Internet, Electronic Data Interchange (EDI)

Production & Operations Control:

Production & Operations Control Gaining efficiencies through the coordination of materials, equipment, and human resources Key aspects Routing – determines workflow Scheduling – sets time needed for each step Gantt Charts Critical Path Method Program Evaluation & Review Technique (PERT)

Typical Gantt Chart:

Typical Gantt Chart Scheduling Designing Ordering Delivering materials Machining components Assembling Inspecting Shipping September October 8 Symbols: scheduled start completed work time not avail. scheduled end review date

Improving Production & Operations:

Improving Production & Operations Improving Quality Quality Control Total Quality Management (TQM) Lean Manufacturing Just-in-time Automation Computer-aided systems Robotics Flexible Manufacturing Systems Computer-Integrated Manufacturing Others

Trends in Production:

Trends in Production Modular Production Decrease cost of design & development Increases ability to meet rapidly changing conditions Agile Manufacturing Increases flexibility and speed Work Cell Design Improves quality & efficiency

Slide 18:

Review Production Planning Processes, Site selection, Facility layout, Resource planning, Supply Chain Management Production & Operations Control Routing & Scheduling Improving Production & Operations Total Quality Management, Lean Manufacturing, Automation Trends Looking Ahead Exam Chapters 6 - 8