exam review module 4 Flashcards
overall activity in manufacturing sector in Canada has
declined
job loss
although, productivity has increased
fewer employees, same work, same/better output
most of Canadas industry is focused on natural resources. this leads to two things
Significant progress when world economies are growing.
Retraction of progress when world economies are stagnant.
Canadian Manufacturers have increased output. How?
By emphasizing strategies with supplies and other companies to better satisfy customer needs.
Continuous improvement, quality, site selection, use of Internet to unite companies
Better production techniques (i.e: enterprise resource planning, computer-integrated manufacturing, flexible manufacturing, lean manufacturing, robotics).
Operations Management
Is a specialized area in management that converts or transforms resources (including HR) into goods and services.
Firms in both the manufacturing and the service sectors use operations managers.
Productivity is hard to measure. Why?
Traditional method to track production was through tracking inputs (worker hours) compared to outputs (dollars). Therefore, quality improvements are not weighed.
how to counter difficulty in measuring productivity
new information systems must be developed to measure the quality of goods and services, the speed of delivery, and customer satisfaction.
Issues in Operations Management planning in Manufacturing. & Service Sectors
Facility location Facility layout Materials requirement planning Purchasing JIT (just-in-time) inventory control Quality Control Supply Chain Management
Facility Location
Is the process of selecting a geographic location for a company’s operations.
facility layout
the physical arrangement of resources (including people) to produce goods and services effectively and efficiently.
why is facility layout important
because manufacturing depends on its ability to remain competitive, therefore needing to make inputs less costly (reducing costs of labour & land) or increasing outputs from present inputs. (increasing productivity).
2 major criteria for selecting facility location
Labour costs & Land costs
other criteria for selecting facility location include
- are resources are plentiful and inexpensive?
- are skilled workers are available or are trainable?
- are taxes are low and does the local government offer support?
- are energy and water available?
- are transportation costs low?
- is the quality of life and quality of education high?
Materials Requirement Planning
MRP = computer-based operations management system that uses sales forecasts to make sure the needed parts and materials are available at the right time and place.
Enterprise Resource Planning
ERP = newer version of MRP.
It combines the computerized functions of all the divisions and subsidiaries of the firm (finance, material requirements planning, human resources, and order fulfilment) into software that uses a single database.
This leads to shorter period of time between orders and payments, less staff to do ordering and order processing, reduced inventories, better customer service for all firms involved.
JIT Inventory Control (Just-in-Time)
JIT = suppliers deliver parts & materials just in time to go on the assembly line so they do not have to be stored in warehouses. (Reduces required inventory space).
i.e: Car manufacturing plants.
