6- manufacturing & operations 2013(1)

8/10/2019 6- Manufacturing & Operations 2013(1)

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anufacturing

& Operations

Entrepreneurship [email protected]

2011 Stevens Institute of Technolog. "ll #ights #eserved


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Manufacturing & Operations

Learning Objectives: The students will

1. Learn basic business operations

terminology

2. Analyze and Manage Operations

3. Estimate Cost of Goods old

2


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Module Outline

1. $perations $%jective & 'hat are ou selling(

2. Suppl )hain & *o+ do ou get our products,services(

-. ill of /aterials 'hat goes into our product,service(

. /anufacturing ead Ti3e & "re there an delas(

4. )ost of 5oods Sold & *o+ 3uch is spent on operations(

6. 5ross /argin & *o+ 3uch is left after op. e7penditures(

8. )ost of 9ualit & *o+ 3uch is spent to i3prove :ualit(

;. $perations


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1. Objective for Operations

!oes your business sell products" ser#ices orbot$%

Example: A lady (Customer) buys a dress from your store(Business)

tore sells a product & '!ress(

tore sells a ser#ice ) if itperforms 'alterations( for a

better *t.

Or bot$.


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Do all businesses selling

products manufacture them?

4

No! Not Necessarily!

Products can be obtained from a SPPL"#$%N& of vendors'

One or more su((liers can manufacture the

(roducts'


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2. The Suppl !hain

6

Store

Designer

Apparel Manufacturer

Weaver

Yarn

Supplier

Cloth

Thread

& Trim

Order

Fabric

!attern

Order

Dresses


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Suppl !hains

8

"pparel/anufactur

er


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". #ill of aterials $#O %

;

,tem -uantity

Cost upplier

E3%roider

ed )loth

13 7 1.4 3 A84 'eaver

lacB ace)loth

13 7 1.0 3 A24 3 ace'eaver

SilB ining 1 3 7 0.843

A24 Cs SilB

Dipper 1 7 60 c3 A2 >KK *e3

Threads1 3- 3

A4 Thread/aBer

Su% Total A1-2

/aBe a co3prehensive list of everthing that +ill %needed %efore the product can %e %uilt.

" tpical $/ listsite3sF :uantitiesF

costs and suppliers


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roduct #OM '(ample

G

-8 Parts for this projector asse3%l. "ll parts are sho+n.


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). *ead Time

ime ta/en for an order to be *lled by asupply c$ain.

10

"pparel

/anufacturer

Store

$rders 100


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*ead Time '(ample

11

>arnSupplier

/aterials?)otton


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+evie, -1

4usiness operations may re5uire bot$ products

and ser#ices to be made a#ailable to t$e

customers

Operations re5uire 6or/ing 6it$ a supply c$ain

A map of t$e components of t$e products or

brea/do6n of ser#ices is re5uired for e7ecti#e

management of costs

upply c$ains come 6it$ lead times & time

bet6een ordering and obtaining t$e products.

12

Le7t Seg3ent

?Topics 48


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.!O/S 0 !ost of /oods Sold

Cost of Goods old 8COG9 refers to t$e costsof t$ose goods ))) products and;or ser#ices )))a business $as sold during a particular period8e.g. 5uarter9

)$5S includes )osts forM

"ll 3aterials purchasedF

"ll 3anufacturing ?conversion fro3 ra+

3aterialsF

"n other direct indirect costs incurred

1-


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#ill of aterials $#O %

Mac Observer; Ixit!com; "ttp:##$$$!isuppli!com# 1

i+$one < 4OM


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"ttp:##$$$!isuppli!co

COG= >1?? @Manuf. Costs

ypical AssemblyCosts >COG = >2B

,ncludes automatedinsertion of t$ecomponents andsoldering on boardsand manual

assembly of t$eproduct.

Estimate based onprior #ersions orsimilar products.

'stimation of !O/S

14


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. /ross Margin $%

Gross Margin refers to t$e re#enueremaining for ot$er eDpenses and pro*t afterpaying for t$e Cost of Goods old 8COG9

1

16


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/ross Margin '(ample31

18

#evenue per dress J A14G4

Price paid to dress supplier J A440

Gross Margin = 81


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'(ample 24 /ross Margin

Cost of Components = >1BEstimated Cost for Manufacturing @ Ot$er = >0.B

otal Estimated Cost of t$e +roduct = >1?F?'ithout I$S soft+are related costs

Apple sells at M 1B?? = H! >0

Gross Margin 89= 8>0 ) >1?F9 ; 8>09 D 1

= 0B.B1;


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'(ample "4

!ost of Service

1G

tore c$arges t$e customer >F for reducingt$e lengt$ of t$e slee#es and $emming.

Cost AssumptionsTailor )hargesM A24 , hour for O *our J A12.40

Tools M Se+ing 3achineF scissors (%ailor &rovides) ' /aterialsM Thread ?Tailor Provides *e3 )loth J A4Transportation to fro3 the tailorM A8.40

Cost of Goods 8 Cost of er#ice9= >12.


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'(ample )4 #OM 5or 6eadSet

+ac/age J Manuals C$arger and Keadset O#er Ear Clip J Main 4od

4ac/ Co#er and Logo Clams$ell Case 4attery" Circuit 4oardpea/er" Microp$one20


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/ross Margin

Cost of Goods old = 8>.1


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/ross argin for 6eadsets?

ales +riceI >2

ales +rice I >1

Lo6 Margine.g COG = 13 8betterbass9

>1

atter >B 8LongerLife9

>2

acBgroundLoise Processor

)hip

>< > 8ot used9

Production:ualit control

>F >1

)ost Su%Total >1? >F

)ost 1

6- manufacturing & operations 2013(1)

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