ch 8 Flashcards
All activities required to produce goods and services
Operations management
The number of Americans employed in the manufacturing sector has decreased.
-today fewer than 1/10 work in manufacturing
Experts predict that employment in manufacturing will continue to decline
Bad news for MFG
Although the number of manufacturing has declined, productivity has increased with leads to innovation and highly skilled workers.
Reshoring - A situation in which US manufacturers bring manufacturing jobs back to the US
Good news for MFG
-The global market place has never been more competitive/successful US firms focus:
-Meeting customer needs, & improving prod quality
-Using green manufacturing to conserve natural resources & sustain the planet
Good news for MFG
Ability of a good or service to satifsy human needs
Utillity
utility created by ppl converting raw materials, finances, and info into finished prod.
Form Utility
An economy in which more effort is devoted to the production of services than to the prod of goods
Service Economy
Set of activities intended to identify a new idea that has the potential to result in new goods and services
Research & development
To stay in the bus, a firm, must find ways to refine or extend the want capability of its product or service.
Prod extension and refinement
For most firms, extension and refinement are expected results of their research, development, and implementation activities
-Each refinement or extension results in an essentially “new” product whose sales makeup for the declining sales of a product that was introduced earlier
Prod extention & refinement
How do managers plan for production
- Design planning develops a plan to convert the idea into a new good/service
- Facilities planning identifies a site where the good or service can be produced
- operational planning decides on the amt of goods/services that will be prod within a specific time period
Development of a plan for converting an idea into an actual prod or service
Design planning
Group of similar products that differ only in relatively minor characteristics
Product Line
Process of creating a set of specifications from which a product can be produced
product design
To determine production facilities management must consider:
-locations of major customers and suppliers
-Availability and cost of labor
-Cost of Land & Building Costs
-Local/State Taxes, environmental regulations, & zoning laws
-Amt of financial supports and subsidies, if any, offered by local/state govts.
Before making a final decision abt where a proposed plant will be located & how it will be organized, 2 factors - Human resources and play layout - should be examined
Site selection and Facilities Planning
- Selected a planning horizon - How long an operational plan will take into effect
- Estimating Market Demand - Quantity of a prod that customers will purchase at the going price
- Compare market Demand w capacity - If market demand and capacity are equal, the facility should be operated at full capacity. If not equal adjustments may be necessary
- Adjusting Prod/Serv to meet demand -
More work shifts, or expand current facility if market demands exceed capacity.
Lay off workers, shorter workweeks, sell unused facilities
operational Planning
-Obtaining required materials, supplies, components, and parts from other firms
Ex. Levi purchases denim cloth, zippers, etc before it can produce jeans
-The choice of supplier is determined by:
-price
-quality
-reliability
-credit terms
-Shipping Costs
Purchasing
Process of ensuring that materials and other resources are at the right place at the right time
scheduling
Process of ensuring that goods/services are produced in accordance w design specifications.
Quality control
Process of ensuring that goods/services are produced in accordance w design specifications.
Quality control
Team of employees who meet on company time to solve probs of prod quality
quality circle
examination of the quality of work-in-process
inspection
A disciplined approach that relies on statistical data and improved methods to eliminate defects in a firm’s prod/services
Six sigma
The concept is built on the idea of eliminating waste from all of the activities required to produce a product or service
Lean manufacturing
Total/near-total use of machines to do the work
automation
The use of programmable machines to perform a variety of tasks by manipulating materials and tools. Highly effective in repetitive, tedious, assembly line jobs, as well as handling hazardous equipment
Robotics
Use of computers to aid in the development of prod
computer-aided design
Computer plan and control manufacturing processes
Computer-aided manufacturing
computer system that helps design products but also controls the machinery needed to prod the finished prod
Computer-integrated manufacturing
computer system that helps design products but also controls the machinery needed to prod the finished prod
Computer-integrated manufacturing
Firm produces same product(s) over a long period of time
Continous process
Single prod system that combines electronic machines and CIM
Flexible manufacturing system (FMS)
Manufacturing process in which a firms manufacturing machines and equipment are changed to prod diff products
intermittent process
