Bài giảng Understanding Business - Chapter 9 Production and Operations Management

Production and Operations ManagementChapter 09McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive.Describe the evolution from production to operations management.Identify various production processes and describe techniques that improve productivityDescribe operations management planning.Explain the use of PERT and Gantt charts to control manufacturing processes.LEARNING GOALSChapter Nine9-2Manufacturing and Services in PerspectiveThe U.S. is still the world’s leading manufacturer.Manufacturing has continued to grow since 1970. In fact, U.S. manufacturing is 2x bigger than in 1970.MANUFACTURING in the U.S.Almost 25% of all goods produced each year come from the U.S.LG19-3The market for new green products and services is almost endless.Given the rate of population growth, it’s important to plan ahead for a world with limited resources.Companies like DuPont, Michelin, Chevron and Nokia are working on sustainability projects.Procter & Gamble and Kaiser Permanente issue their own mandatory sustainability scorecards to their supply chains.KEY WORD:SUSTAINABILITY(Thinking Green)9-4The U.S. economy is no longer manufacturing based.85% of jobs are in the service sector.The top-paying service jobs in the U.S. are in:Legal servicesMedical servicesEntertainmentAccountingFinanceManagement consulting TOP-PAYING SERVICE JOBSLG1Manufacturing and Services in Perspective9-5Manufacturers and Service Organizations Become More CompetitiveU.S. is still the leader in nanotechnology and biotechnology.How can U.S. businesses maintain a competitive edge?Focusing on customersMaintaining close relationships with suppliersPracticing continuous improvementFocusing on qualitySaving on costs through site selectionRelying on the Internet to unite companiesAdopting new production techniquesREMAINING COMPETITIVE in GLOBAL MARKETSLG19-6Ten years ago, Germany’s economy was much like ours today.Stihl invested in highly trained workers.LEARNING from GERMANY(Reaching Beyond Our Borders)Stihl remained competitive in the manufacturing world.German companies poured money into research and stayed away from high tech products.9-7From Production to Operations ManagementProduction -- The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production).PRODUCTION and PRODUCTION MANAGEMENTProduction Management -- All the activities managers do to help firms create goods.LG29-8Operations Management -- A specialized area in management that converts or transforms resources into goods and services.Operations management includes:Inventory managementQuality controlProduction schedulingFollow-up servicesOPERATIONS MANAGEMENTLG2From Production to Operations Management9-9All about creating a good experience for those who use the service.OPERATIONS MANAGEMENTin the SERVICE SECTORLG2Operations Management in the Service SectorIn hotels, like Ritz-Carlton, operation management includes fine dining, fresh flowers, and training for every employee.9-10Production ProcessesThe PRODUCTION PROCESSLG39-11Form Utility -- The value producers add to materials in the creation of finished goods and services. FORM UTILITY LG3Production Processes9-12To build and deliver products in response to the demands of the customer at the scheduled delivery time.To provide an acceptable quality level.To provide everything at the lowest possible cost. GROVE’S BASIC PRODUCTION REQUIREMENTSLG3Production Processes9-13Process Manufacturing -- The part of production that physically or chemically changes materials.Assembly Process -- The part of the production process that puts together components.PROCESS and ASSEMBLY in PRODUCTIONLG3Production Processes9-14Production processes are either continuous or intermittent.Continuous Process -- Long production runs turn out finished goods over time.Intermittent Process -- Production runs are short and the producer adjusts machines frequently to make different products.KEY PRODUCTION PROCESSESLG3Production Processes9-15The Need to Improve Production Techniques and Cut CostsDEVELOPMENTS MAKING U.S. COMPANIES MORE COMPETITIVEComputer-aided design and manufacturingFlexible manufacturingLean manufacturingMass customizationLG39-16Computer-Aided Design and ManufacturingCOMPUTER-AIDED DESIGN and MANUFACTURINGComputer-Aided Design (CAD) -- The use of computers in the design of products.Computer-Aided Manufacturing (CAM) -- The use of computers in the manufacturing of products.LG39-17Computer-Aided Design and ManufacturingCOMPUTER-INTEGRATED MANUFACTURINGComputer-Integrated Manufacturing (CIM) -- The uniting of computer-aided design with computer-aided manufacturing.CIM is expensive but it cuts as much as 80% of the time needed to program machines to make parts.LG39-18Flexible Manufacturing TYPES OF MANUFACTURINGFlexible Manufacturing -- Designing machines to do multiple tasks so they can produce a variety of products.Lean Manufacturing -- Using less of everything than in mass production.Compared to others, lean companies:Take half the human effort.Have half the defects in finished products.Require one-third the engineering effort.Use half the floor space.Carry 90% less inventory.LG39-19Mass CustomizationMASS CUSTOMIZATIONMass Customization -- Tailoring products to meet the needs of a large number of individual customers.LG3More manufacturers are learning to customize.Mass customization exists in the service sector too.9-20Operations Management PlanningOperations management planning helps solve problems like:Facility locationFacility layoutMaterials requirement planningPurchasingInventory controlQuality controlOPERATIONS MANAGEMENTLG49-21Facility LocationFacility Location -- The process of selecting a geographic location for a company’s operations.FACILITY LOCATIONRising numbers of Internet businesses means brick-and-mortar retailers must find great locations.LG49-22Taking Operations Management to the InternetSometimes businesses outsource engineering, design and manufacturing to other companies.Often these relationships are managed through the Internet.Many companies are developing Internet-focused strategies.OPERATIONS MANAGEMENT on the INTERNETLG49-23Facility Location in the FutureInformation technology gives firms increased flexibility in terms of location.Telecommuting -- Working from home via computer.FUTURE FACILITY LOCATIONLG49-24Facility LayoutFacility Layout -- The physical arrangement of resources, including people, to most efficiently produce goods and provide services.Facility layout depends on the processes performed:Service: Help customers find productsManufacturing: Improve efficiencySETTING UP the FACILITYLG49-25Assembly Line Layout – Workers do only a few tasks at a time.Modular Layout – Teams of workers produce more complex units of the final product.Fixed-Position Layout – Allows workers to congregate around the product.Process Layout – Similar equipment and functions are grouped together.FACILITY LAYOUT OPTIONSLG4Facility Layout9-26Materials Requirement PlanningMaterials Requirement Planning (MRP) -- A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed.Enterprise Resource Planning (ERP) -- A newer version of MRP, combines computerized functions into a single integrated software program using a single database.MRP and ERPLG49-27PurchasingPurchasing -- The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services.The Internet has transformed purchasing.PURCHASINGLG49-28Just-in-Time Inventory ControlJust-in-Time (JIT) Inventory Control -- The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line.To work effectively, the process requires excellent coordination with suppliers.INVENTORY CONTROLLG49-29Quality ControlQuality -- Consistently producing what the customer wants while reducing errors before and after delivery.Six Sigma Quality -- A quality measure that allows only 3.4 defects per million opportunities. QUALITY CONTROLLG4Photo Courtesy of: Argonne National Laboratory 9-30Statistical Quality Control -- A process used to continually monitor all phases of the production process.Statistical Process Control -- A process of testing statistical samples of product components at each stage of production. Measuring quality along the production process reduces the need for quality control at the end.STATISTICAL QUALITY CONTROL & STATISTICAL PROCESS CONTROLLG4Quality Control9-31The Baldrige AwardsCompanies can apply for awards in these areas:ManufacturingServicesSmall BusinessesNon-Profit/GovernmentEducationHealthcare The BALDRIGE AWARDSLG49-32ISO 9000 and ISO 14000 StandardsThe International Organization for Standardization (ISO) is a worldwide federation of national standards bodies.ISO 9000 -- The common name given to quality management and assurance standards.ISO 14000 -- A collection of the best practices for managing an organization’s impact on the environment.WHAT is ISO?LG49-33Control Procedures: PERT and Gantt ChartsProgram Evaluation and Review Technique (PERT) -- A method for analyzing the tasks involved in completing a given project and estimating the time needed.Analyzing and sequencing tasksEstimating the time needed to complete each taskDrawing a PERT network illustrating the first two stepsIdentifying the critical pathCritical Path -- The sequence of tasks that takes the longest time to complete.PERTLG59-34Gantt Chart – A bar graph that shows what projects are being worked on and how much has been completed.Doll Factory GANTTGANTT CHARTSLG5Control Procedures: PERT and Gantt Charts9-35