Product planning and Production Management

Question 1

Product Development

Answer 1

1. Develop an idea for new product that consumers want to buy.
   * Conduct consumer research
   * Conduct product research.
2. Turn the idea into a workable product design.
   * Build and test models of product.
   * Determine what resources will be needed to produce large quantities.
   * Determine cost of production and compare to product’s price
3. Produce the product and make it available to consumers at a price they are willing to pay.
   * Build or remodel manufacturing facilities.
   * Purchase raw materials.
   * Train employees.
   * Promote, distribute and sell product.

Question 2

Types of manufacturing processes

Answer 2

• Mass production- Assembly process that produces a large number of identical products.
• Continuous processing- Raw materials moves through special equipment that changes its form to make it more usable for consumption or further manufacturing.
• Repetitive production- Same thing is done over and over to produce a product, usually sub-units to larger mass produced items.
• Intermittent processing- Short production runs are used to make predetermined quantities of different products.
• Custom manufacturing- A unique product is designed and built to the purchaser’s specific needs.
• Mass customization- Technology is used to produce customized products at a low per-unit cost

Question 3

Locating the business

Answer 3

1. Availability of Raw materials
2. Transportation methods
3. Supply and cost of energy and water
4. Land and building costs
5. Labor supply
6. Location of customers
7. Economic and legal factors

Question 4

Production Planning

Answer 4

1. Inventory management- involves planning the quantities of materials and supplies needed for production and the number of finished products required to fill customer orders.
2. Human resources planning- The process of determining the types of jobs required for each part of production, the number of people needed for each job, and the skills each person needs to do the job.
3. Production scheduling- Involves identifying the steps required in a manufacturing process, the time required to complete each step and the sequence of steps.

Building layout

Question 5

Improving Production processes

Answer 5

• Quality management is the process of assuring the product quality by developing standards for all operations and products and measuring results against those standards
• Computer-integrated manufacturing is having all manufacturing systems designed and managed with computers.

Question 6

Managing projects

Answer 6

Project manager is responsible for a time-limited, specific business initiative.

Question 7

Services differ from products

Answer 7

1. From- Intangible
2. Availability- From provider
3. Quality- Depends on skill of provider
4. Timing- Cannot be stored

Question 8

Ensuring service quality

Answer 8

SERVQUAL survey

• Tangibles: The appearance of physical facilities, equipment, personnel.
• Reliability: The ability to perform the promised service dependably and accurately.
• Responsiveness: The willingness to help customers and provide prompt service.
• Assurance- The knowledge and courtesy of employees and ability to convey trust and confidence.
• Empathy- The caring and individualized attention the business provides customers.