Introductionto business ppt-ch10
- 1. PowerPoint Image Slideshow Introduction to Business Chapter 10 ACHIEVING WORLD-CLASS OPERATIONS MANAGEMENT
- 2. Learning Outcomes 1. Why is production and operations management important in both manufacturing and service firms? 2. What types of production processes do manufacturers and service firms use? 3. How do organizations decide where to put their production facilities? What choices must be made in designing the facility? 4. Why are resource-planning tasks such as inventory management and supplier relations critical to production? 5. How do operations managers schedule and control production? 6. How can quality-management and lean-manufacturing techniques help firms improve production and operations management? 7. What roles do technology and automation play in manufacturing and service- industry operations management? 8. What key trends are affecting the way companies manage production and operations?
- 3. How Toyota Changed The Way We Make Things
- 4. Production Creation of products and services Turns inputs into outputs • Natural resources, • Raw materials, • Human resources • Capital Operations Management Managing and supervising the conversion process Production planning Production control Improving production and operations. Planning Stage • Where? • When • How • Site locations and obtain the necessary resources. Decision Making Stage • Controlling quality • Costs • Scheduling • Day-to-day operations Final Stage • Developing more efficient methods of producing the firm’s goods or services. Decisions that must be made in production planning
- 5. Exhibit 10.3 Production Process for Products and Services
- 6. 1. Why is production and operations management important in both manufacturing and service firms? • CONCEPT CHECK 1. What are the three types of decisions that must be made in production planning? 2. What are the three phases of production planning?
- 7. Exhibit 10.5 Classification of Production Types Job Shop
- 8. What are the pros and cons of mass customization? • Pros: • Higher customer retention • Fewer unfinished goods need to be stored • Higher price point resulting in higher profit. • Cons: • Impossible to build up stock • Difficult to forecast trends • Wait time • Increased manufacturing costs.
- 9. Converting Inputs to Outputs Process manufacturing Assembly process Basic input is broken down into one or more outputs. Basic inputs are either combined to create the output or transformed into the output. Production Timing Continuous processes Intermittent processes • long production runs • Last days, weeks, or months without equipment shutdowns. • Short production runs • Batches of different products.
- 11. Harley-Davidson Factory Tour • Were inputs combined to create the output or transformed into the output? • Or perhaps did you notice inputs were transformed and combined? • What else did you learn about manufacturing in a factory setting? • Did you notice how some processes were totally automated with robots doing the work, while some parts of the production process necessitated human intervention?
- 12. Table 10.1 Converting Inputs to Outputs
- 13. 2. What types of production processes do manufacturers and service firms use? • CONCEPT CHECK 1. Describe the different types of production processes. 2. How are inputs transformed into outputs in a variety of industries?
- 14. Location, Location, Location: Where Do We Make It? • Service organizations • Locate where their target market is large and sustainable • Manufacturing facilities • Infrastructure, labor availability, proximity of suppliers • Taxes and regulations Availability of Production Inputs Local Incentives Manufacturing Environment Marketing Factors International Location Considerations
- 15. Exhibit 10.7 Types of Facility Layouts
- 16. Cost Factors and Non-Cost Factors • Labor costs • Transportation costs, • Construction costs • Utility costs • Taxes • Environmental conditions, living conditions, availability of resources, and availability of skilled labor
- 17. 3. How do organizations decide where to put their production facilities? What choices must be made in designing the facility? • CONCEPT CHECK 1. What factors does a firm consider when making a site-selection decision? 2. What should be considered when deciding on a production approach?
- 18. • Make-or-buy decision. • Purchasing items from an outside source instead of making them internally is called outsourcing. • Inventory Management: Not Just Parts • Inventory is the supply of goods it holds for use in production or for sale to customers. • Inventory management involves deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it. • Perpetual inventory, a continuously updated list of inventory levels, orders, sales, and receipts, for all major items. Approaches to Inventory
- 20. Supply Chain Management • Securing inputs, producing goods, and delivering goods to customers
- 21. E-Procurement, Electronic Data Interchange, and Blockchain • E-procurement • Process of purchasing materials online. • Electronic data interchange (EDI) • Two trading partners exchange information electronically. • Blockchain technology • Automate processes to cover multiple transactions with a variety of participating organizations.
- 22. 4. Why are resource-planning tasks such as inventory management and supplier relations critical to production? • CONCEPT CHECK 1. What are the approaches to inventory that businesses can consider? 2. How is technology being used in resource planning?
- 23. Production and Operations Control Routing: Where to Next? • First step in controlling production. • It sets out a work-flow • Sequence of machines and operations • Product or service progresses from start to finish. Scheduling: When Do We Do It? • Specifying and controlling the time required for each step in the production process.
- 24. Exhibit 10.9 A Typical Gantt Chart Relationship between scheduled and actual production
- 25. Exhibit 10.10 A CPM Network for Building a House Critical Path – longest path Program evaluation and review technique (PERT) • Identify critical tasks • Assess how delays will affect operations or production
- 26. 5. How do operations managers schedule and control production? • CONCEPT CHECK 1. What is production control, and what are its key aspects? 2. How can value-stream mapping improve routing efficiency? 3. Identify and describe three commonly used scheduling tools.
- 27. Looking for a Better Way: Improving Production and Operations Putting Quality First • Quality control involves creating those quality standards and measuring finished products and services against them. • Total quality management (TQM) refers to the use of quality principles in all aspects of a company’s production and operations. • LEED Certification • Globally recognized green building rating system • Green construction boosts a company's public image • Tangible incentives such as tax rebates and zoning allowances
- 28. Lean Manufacturing • Streamlines production by eliminating steps known as non- value-added production processes that do not add benefits customers want. • Just-in-time (JIT) • Belief that materials should arrive exactly when they are needed for production, rather than being stored on site.
- 29. 6. How can quality-management and lean- manufacturing techniques help firms improve production and operations management? • CONCEPT CHECK 1. How can managers use techniques to improve efficiency? 2. Define Six Sigma. 3. What was Edward Demming’s contribution to operations management?
- 30. Computer-Aided Design and Manufacturing Systems Robotics Adaptable Factories: Flexible and Computer Integrated Manufacturing Systems. Quick Change with Computer-Integrated Manufacturing. Computer-integrated manufacturing (CIM) • Design and test new products and modify existing ones • Integrate design, testing, manufacturing control into one linked computer system • Technology involved in designing, constructing, and operating robots • Blends computers, robots, machine tools, and materials- and parts-handling machinery Flexible manufacturing system (FMS) • Combine automated workstations with computer-controlled transportation devices • Combines computerized manufacturing processes with other computerized systems • Control design, inventory, production, and purchasing Transforming the Factory Floor with Technology
- 31. DaVinci Robotic Surgery • Sutter Health shows how computer-aided surgery improves outcomes for hernia surgery, demonstrating how robotics can be a positive force for humanity.
- 32. Robot Revolution • Self-driving vehicles, where automation will likely improve some aspects of life, but will also most probably cause serious disruptions in the workforce of the near future.
- 33. Better Than Us • Better Than Us • Shows imagines a not-too- distant future where lifelike robots will be commonplace in the world, but where there are also militant groups who wish to destroy them as threat to workers and others in society.
- 34. Transforming the Factory Floor Through technology 1. After viewing all these videos, think about the future. Is automatic inevitable? 2. Will robots continue to replace people in the workforce, perhaps even lifelike versions made to resemble human beings? 3. Is robotics a good thing when it comes to factories, surgery, or performing dangerous or dirty jobs? 4. But what about job losses? What do you think are the pros and cons of the growth of intelligent machines?
- 35. 7. What roles do technology and automation play in manufacturing and service-industry operations management? • CONCEPT CHECK 1. Describe total quality management and the role that Six Sigma, ISO 9000, and ISO14000 play in it. 2. How can lean manufacturing and just-in-time inventory management help a firm improve its production and operations? 3. How are both manufacturing and nonmanufacturing firms using technology and automation to improve operations?
- 36. Trends in Production and Operations Management Looming Workforce Crisis Threatens U.S. Competitiveness Finding qualified workers is a major concern in U.S. industry. Competition with lower-paid workers in less developed countries is getting stronger. American Innovation Leadership at Risk To maintain its position as the world’s leading innovator, it is essential that more federal investment is needed for science and research. Business Process Management (BPM) – The Next Big Thing? Integrate and optimize a company’s functions by automating what it does.
- 37. 8. What key trends are affecting the way companies manage production and operations? • CONCEPT CHECK 1. Describe the impact of the anticipated worker shortage on U.S. business. 2. How are today’s educational trends affecting the future of manufacturing? 3. What is business process management (BPM), and how do businesses use it to improve operations management?