j0712 pok chapter 09 pert 11

7/27/2019 J0712 POK Chapter 09 Pert 11

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9-11-1

McGraw-Hill/IrwinUnderstanding Business, 8e 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Nickels McHugh McHugh

**Producing

World-ClassGoodsand

Services

9

CHA

PTER*

* *


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Leading U.S.Manufacturing States

0 100 200 Miles

WASHINGTON

OREGON

IDAHO

MONTANA

WYOMING

NEVADA

CALIFORNIA

UTAH

ARIZONA

COLORADO

NEWMEXICO

KANSAS

OKLAHOMA

MISSOURI

ARKANSAS

TEXAS

LOUISIANA

MISSISSIPPI

ILLINOIS

NORTHDAKOTA

SOUTHDAKOTA

MINNESOTA

WISCONSIN

IOWA

NEBRASKA

MICHIGAN

MICHIGAN

INDIANA

OHIO

WEST

VIRGINIA

PENNSYLVANIA

NEWYORK

VIRGINIA

DC

KENTUCKY

VTNH

MAINE

RI

MASS

CONN

NEW

JERSEY

DELAWARE

MARYLAND

NORTHCAROLINA

TENNESSEE

ALABAMA GEORGIA

SOUTH

CAROLINA

FLORIDA

HAWAII

ALASKA

0 600 Miles0 2 00 M il es

California

New York

Illinois

Ohio

Pennsylvania

Texas

Michigan

Source: Britannica Student Encyclopedia, 2006


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9-3

Top Ten US Manufacturers

1. ExxonMobil

2. Chevron

3. General Motors4. ConocoPhillips

5. Ford Motor

6. General Electric

7. Altria Group

8. IBM Corp.9. Hewlett-Packard

10.Valero Energy

Source: Industry Week, June 1, 2006


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How Manufacturers HaveBecome More Effective Focus on customers

Maintain close relationships

Continuous improvement Focus on quality

Save costs

Rely on the Internet

New production techniques


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Labor Hours / Vehicle Ford 35.79 hours

Daimler/Chrysler33.71 hours

GM 33.19 hours

Honda 32.51 hours

Toyota 29.4 hours

Nissan 28.46 hours

0 20 40

Nissan

Toyota

Honda

GM

Chrysler

Ford

Source: Detroit Free Press, June 2, 2006


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From Production toOperations Management Production

ProductionManagement

OperationsManagement(OM)


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Comparing Asian Giants

CHINA Driving Force:

Manufacturing

Largest CommunistCountry

Population: 1.3Billion

Economic GrowthRate: 9%

Financial/CommercialCapital: Shanghai

INDIA Driving Force:

Services

Largest Democracy

Population: 1.1Billion

Economic Growth

Rate: 7% Financial/Commercial

Capital: Mumbai

Source: Kiplinger.com December 19, 2005, BBC News, In Depth, accessed July 15, 2006


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9-8

Production Processes Form Utility

Process Manufacturing

Assembly Process

Continuous Process

Intermittent Process


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Three RequirementsFor Production1. Build and deliver products in

response to the demands of the

customer at a scheduled delivery time

2. Provide an acceptable quality level

3. Provide everything at the lowestpossible cost


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Production Efficiency Krispy Kreme Doughnuts 5,208 a minute

Twinkies 972 a minute

LifeSavers 5 Flavor Roll

100 rolls a minute

Jell-O Gelatin Boxes 764 a minute

Chips Ahoy!

4,000 a minute

Source: World Features Syndicate


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9-11

What Is IncreasingProductivity?

42%

14%

12%

11%

8%Innovation

Capital

ImprovementStaffDownsizing

Outsourcing

Other

Source: 2005 National Innovation Survey, Council on Competitiveness


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Product Improvements WithComputer Technology Computer-Aided Design - CAD

Computer-Aided Manufacturing - CAM

Computer-Integrated Manufacturing - CIM


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Top Ten Tech Spenders

STATE $ in Billions California 38.9 New York 29.8 Texas 24.6 Illinois 15.1 Florida 13.9 Pennsylvania 12.8

Ohio 11.8 New Jersey 11.3 North Carolina 9.4 Georgia 9.3

Source: Business Week Online, December 5, 2005


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Production Techniques Flexible

Manufacturing

LeanManufacturing

MassCustomization


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Operations ManagementPlanning Facility Location

Facility Layout

Materials RequirementPlanning

Purchasing

J-I-T Inventory Control

Quality Control


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Quality Control Six Sigma Quality Statistical Quality Control (SQC)

Statistical Process Control (SPC) The Baldrige Award

ISO 9000

ISO 14000


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Baldrige Award Recipients

Sunny Fresh Foods, Inc.,Monticello, MN(Manufacturing)

DynMcDermott Petroleum Operations,New Orleans, LA (Service)

Park Place Lexus,Plano, TX (Small Business)

Richland College,Dallas, TX (Education)

Jenks Public Schools,Jenks, OK (Education)

Bronson Methodist Hospital,Kalamazoo, MI, (Health care)

Source: NIST News Release, November 22, 2005


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ISO

ISO was founded in 1947

At the end of 2004, the worldwide

total of certificates: ISO 9000 670,000 in 154 countries

ISO 14000 90,000 in 127 countries

Source: Business Week Online, March 17, 2006


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Control Procedures Program Evaluation &

Review Techniques(PERT)

Gantt Chart

*


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PERT Steps

1. Analyzing and sequencing tasks thatneed to be done

2. Estimating the time needed to complete

each task

3. Drawing a PERT network illustrating theinformation from steps 1 and 2

4. Identifying the critical path

*


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Gantt Chart

Named for its developer,Henry Gantt

A bar graph that clearlyshows what projects arebeing worked on and how

much has beencompleted at any giventime

*


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Learning from Failure

Formalize forums for analyzing failure

Move the goalposts

Share personal stories

Bring in outsiders

Prove yourself wrong, not right

Celebrate smart failures

Source: Business Week Online, July 10, 2006

j0712 pok chapter 09 pert 11

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