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Published by Ashish Jain

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Categories:Types, Business/Law
Published by: Ashish Jain on Aug 25, 2013
Copyright:Attribution Non-commercial


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> > > > > > > > Chapter 11

Production and Operations Management


Outline the importance of production and operations management. Explain the roles of computers and related technologies in production. Identify the factors involved in a plant location decision. Explain the major tasks of production and operations managers.

5 Compare alternative layouts for
production facilities.

6 List the steps in the purchasing


7 Outline the advantages and


disadvantages of maintaining large inventories.

8 Identify the steps in the production 4
control process.

9 Explain the benefits of quality

• Production and Operations Management: Managing people and machinery in converting materials and resources into finished goods and services. .• Production: Application of resources such as people and machinery to convert materials into finished goods and services.


and stockholders. • Effective production and operations management can: – lower a firm’s costs of production. – allow it to respond dependably to customer demands.• A vital function is necessary for generating money to pay employees. lenders. . – boost the quality of its goods and services. – enable it to renew itself by providing new products.

mechanization and specialized skills. • Customer-Driven Production – evaluating customer demands to link with manufacturer.• Mass Production – manufacturing products in large amounts through standardization. . communication and cooperation. • Flexible Production – producing smaller batches using information technology.

• Flexible Manufacturing Systems – a production facility that workers can quickly modify to manufacture different products. computers and other technologies to help workers design products. . handle materials. control machines.• Robots – reprogrammable machines capable of performing routine jobs and manipulating material • Computer-Aided Design and Manufacturing – enables engineers to design parts and buildings on computer screens faster and with fewer mistakes. • Computer-Integrated Manufacturing – integrates robots. and control the production function.


Oversee the work of people and machinery to convert inputs (materials and resources) into finished goods and services. .

• Choose what goods or services to offer customers. • Convert original product ideas into final specifications. • Design the most efficient facilities to produce those products. .

• Facilitates production of a variety of nonstandard items in relatively small batches. .• Process layout groups machinery and equipment according to their functions.

• Efficiently produces large numbers of similar items.• Product layout sets up production equipment along a productflow line. . and the work in process moves along this line past workstations.

and workers. materials.• A fixed-position layout places the product in one spot. and equipment come to it. .

.• Customer-oriented layout arranges facilities to enhance the interactions between customers and a service.

Selection of Suppliers • Based on comparison of quality. prices. dependability of delivery. and services offered by competing companies. . Buy. or Lease Decision • Choosing whether to manufacture a needed product or component in-house. • Factors in the decision include cost. availability of reliable outside suppliers.Make. or lease it. and the need for confidentiality. purchase it from an outside supplier.

Inventory Control – Perpetual inventory – Vendor-managed inventory Just-in-Time Systems • Improving profits and return on investment by minimizing costs and eliminating waste through cutting inventory on hand. Materials Requirement Planning • Computer-based production planning system by which a firm can ensure that it has the correct materials for production. .

and machinery.• Production control creates a well-defined set of procedures for coordinating people. 1) Planning 2) Routing 3) Scheduling 4) Dispatching 5) Follow-up . materials.



.Dispatching Manager instructs each department on what work to do and the time allowed for its completion. Follow-Up Employees and their supervisors spot problems in the production process and determine needed changes.

9997% of the time. • Poor quality can account for 20% loss in revenue. – A company tries to make error-free products 99. • Benchmarking is the process of analyzing other firms’ best practices. • Quality control is measuring goods and services against established quality standards. . a tiny 3. • Many companies evaluate quality using the Six Sigma concept.4 errors per million opportunities.• A good or service free of deficiencies.

mission is to promote the development of standardized products to facilitate trade and cooperation across national borders. . • ISO 9000 series of standards sets requirements for quality processes. • Nearly half a million ISO 9000 certificates have been awarded to companies around the world. • Representatives from more than 146 nations. • ISO 14000 series also sets standards for operations that minimize harm to the environment.• International Organization for Standardization (ISO) .

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