© prentice hall, 2005excellence in business, revised edition chapter 9 - 1 production of quality...
TRANSCRIPT
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 1
Production of Quality Production of Quality Goods and ServicesGoods and Services
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 2
What is Production?What is Production?
• Production Operations Management
–Planning
–Leading
–Organizing
–Controlling
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 3
What is the Conversion What is the Conversion Process?Process?
• Core process
– Inputs
–Transformation
–Outputs
• Conversion types
–Analytic
–Synthetic
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 4
Input-Transformation-Output Input-Transformation-Output Relationships for Typical SystemsRelationships for Typical Systems
Department Store
Shoppers, stock of goods
Displays, sales clerks
Attract customers, promote products,
fill orders
Sales to satisfied customers
College or University
High School graduates, books
Teachers, classrooms
Impart knowledge & skills
Educated individuals
Automobile Factory
Sheet steel, engine parts
Tools, equipment, workers
Fabrication & assembly of cars High-quality cars
Restaurant Hungry customers, food
Chef, waitress, environment
Well-prepared & well-served food
Satisfied customers
Hospital Patients, medical supplies
MDs, nurses, equipment Health care Healthy
individuals
Typical Desired Output
Transformation Function
Transformation Components
InputsSystem
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 5
Production Process Production Process DesignDesign
• Forecasting demand
• Planning for capacity
• Choosing facility location
• Designing facility layout
• Scheduling work
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 6
Forecasting DemandForecasting Demand
• Customer feedback
• Market research
• Sales figures
• Industry analyses
• Educated guesses
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 7
Capacity PlanningCapacity Planning
• Expanding facilities
• Contracting facilities
• Risks
–Long-term capacity decisions
–Shifts in customer demand
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 8
Facility LocationFacility Location
• LandLand
• ConstructionConstruction
• LaborLabor
• Local taxesLocal taxes
• EnergyEnergy
• Living standardsLiving standards
• TransportationTransportation
• Raw materialsRaw materials
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 9
Types of Facility LayoutTypes of Facility Layout
• Process
• Product
• Cellular
• Fixed-position
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 10
Process LayoutProcess Layout
• Made-to-order products
• Process arrangement
–Specialized employees
–Specialized materials
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 11
Product LayoutProduct Layout
• Mass production of few items
• Process arrangement
–Continuous sequence
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 12
Cellular LayoutCellular Layout
• Mass customization
• Process arrangement
–Work centers
–Teamwork
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 13
Fixed-Position LayoutFixed-Position Layout
• Immovable product
• Process arrangement
–Employee go to the site
–Materials are brought to the site
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 14
Production ScheduleProduction Schedule
• Scheduling
• Dispatching
• Contingencies
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 15
The Gantt ChartThe Gantt Chart
• ID Number
• Task name
• Start date
• End date
• Duration
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 16
Program Evaluation and Program Evaluation and Review Technique (PERT)Review Technique (PERT)
• Identify activities
• Sequence activities
• Establish time frame
• Diagram activity network
• Identify critical path
• Refine timing
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 17
PERT Time EstimatesPERT Time Estimates
• Optimistic
• Pessimistic
• Most likely
• Expected
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 18
PERT Diagram for PERT Diagram for Manufacturing ShoesManufacturing Shoes
• Critical path– Receiving– Cutting the pattern– Dyeing the leather– Sewing the tops– Sewing tops to soles and heels– Finishing– Packaging– Shipping
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 19
Improving Production Improving Production Through TechnologyThrough Technology
• Robots
• Computer-aided design
• Computer-aided engineering
• Computer-aided manufacturing
• Computer-integrated manufacturing
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 20
Manufacturing Manufacturing SystemsSystems
TraditionalTraditionalManufacturingManufacturing
FlexibleFlexibleManufacturingManufacturing
Mass Production
Resistant to Change
High Set-Up Costs
Mass Customization
Conducive to Change
Minimal Set-Up Costs
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 21
The Production ProcessThe Production Process
• Operations management
– Inputs
–Transformation
–Outputs
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 22
Inventory ManagementInventory Management
• Purchasing
• Lead time
• Inventory control
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 23
Inventory ControlInventory Control
• Just-in-time (JIT)
• Materials requirements planning (MRP)
• Manufacturing resource planning (MRP)
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 24
Manufacturing Resource Manufacturing Resource PlanningPlanning
• Input of data
• Computer processing
• Output of data
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 25
Maintaining QualityMaintaining Quality
• Quality control
• Quality assurance
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 26
What is Total Quality What is Total Quality Management? Management?
• Employee involvement
• Customer focus
• Benchmarking
• Continuous improvement
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 27
Quality InitiativesQuality Initiatives
• Six Sigma– Cost control– Process improvement– Cycle-time reduction
• ISO Certification– Customer satisfaction– User needs– Continuous improvement
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 28
Supply Chain Supply Chain ManagementManagement
• Suppliers
• Manufacturers
• Distributors
• Retailers
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 9 - 29
Manufacturing Manufacturing TrendsTrends
OutsourcingOutsourcing Supplier InvolvementSupplier Involvement
Redirect Resourcesand Capital
Increase ProductionEfficiencies
Access State-of-the-ArtFacilities
Improve Overall Quality
Maximize the Use of Time
Reduce Work-in-ProcessInventory