Bus Tech 100 Ch 8
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Transcript of Bus Tech 100 Ch 8
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Chapter 8Chapter 8 AchievingAchieving
World Class OperationsWorld Class OperationsManagementManagement
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Chapter 8 Learning GoalsChapter 8 Learning Goals
Why is production and operationsWhy is production and operationsmanagement important in bothmanagement important in bothmanufacturing and service firms?manufacturing and service firms?
What types of production processes areWhat types of production processes areused by manufacturers and serviceused by manufacturers and servicefirms?firms?
How do organizations decide where toHow do organizations decide where toput their production facilities? Whatput their production facilities? What
choices must be made in designing thechoices must be made in designing thefacility?facility?
Why are resource planning tasks likeWhy are resource planning tasks likeinventory management and supplierinventory management and supplier
relations critical to production?relations critical to production?
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Chapter 8 Learning GoalsChapter 8 Learning Goals (contd.)(contd.)
How do operations managers scheduleHow do operations managers scheduleand control production?and control production?
How can quality management and leanHow can quality management and leanmanufacturing techniques help firmsmanufacturing techniques help firmsimprove production and operationsimprove production and operationsmanagement?management?
What roles do technology andWhat roles do technology andautomation play in manufacturing andautomation play in manufacturing and
service industry operationsservice industry operationsmanagement?management?
What key trends are affecting the wayWhat key trends are affecting the waycompanies manage production andcompanies manage production and
operations?operations?
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Production & OperationsProduction & Operations
ManagementManagement Production & OperationsProduction & Operations
Management are important becauseManagement are important because
Consumers demand qualityConsumers demand qualityproducts/services at reasonable pricesproducts/services at reasonable pricesin a timely fashionin a timely fashion
Consumers also demand better serviceConsumers also demand better service
and individualized attentionand individualized attention
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Production & OperationsProduction & Operations
Management, cont.Management, cont. 3 Main types of decisions3 Main types of decisions
Production PlanningProduction Planning
Production ControlProduction Control
Improving Production & OperationsImproving Production & Operations
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Production PlanningProduction Planning Find the best production methods toFind the best production methods to
meet and balance company goalsmeet and balance company goals 3 phases3 phases
Long termLong term
Medium termMedium term Short termShort term
Important decisions/elementsImportant decisions/elements Production ProcessProduction Process
Site SelectionSite Selection
Facility LayoutFacility Layout
Resource PlanningResource Planning
Supply Chain ManagementSupply Chain Management
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Production ProcessProduction Process
How should the goods be made?How should the goods be made?
Mass ProductionMass Production
Mass CustomizationMass Customization CustomizationCustomization
Job shopJob shop
How should the inputs be convertedHow should the inputs be convertedinto outputs?into outputs?
Process manufacturingProcess manufacturing
Assembly processAssembly process
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Production Process, cont.Production Process, cont.
What should the timing of theWhat should the timing of theprocess be?process be?
ContinuousProcessContinuousProcess
Intermittent ProcessIntermittent Process
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Site SelectionSite Selection
Affects operating cost, price of theAffects operating cost, price of theproduct/service, ability to competeproduct/service, ability to compete
Factors to considerFactors to consider Availability of inputsAvailability of inputs
Marketing factorsMarketing factors
Local incentivesLocal incentives
Manufacturing environmentManufacturing environment
International considerationsInternational considerations
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Good Labor Locations in theGood Labor Locations in the
US
US
States with above averageStates with above average laborlaborqualityquality and below averageand below average laborlaborcost:cost:
AlabamaAlabama
AlaskaAlaska
GeorgiaGeorgia
HawaiiHawaii
VirginiaVirginia
WyomingWyomingSource: Corporate Location, www.corporatelocation.com
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Facility LayoutFacility Layout
Determine what the most efficient &Determine what the most efficient &effective design is for the productioneffective design is for the productionprocessprocess
TypesTypes
Process layoutProcess layout
Product layoutProduct layout
Fixed Position layoutFixed Position layout
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Resource PlanningResource Planning
Make sure resources are availableMake sure resources are availablewhen neededwhen needed
Steps of resource planningSteps of resource planning
1.1. Determine which resources are neededDetermine which resources are neededand whenand when
2.2. Decide if the production materialsDecide if the production materialsshould be made or boughtshould be made or bought
3.3. Determine how much inventory toDetermine how much inventory tohave & how it should be managedhave & how it should be managed
4.4. Decide if a computerized resourceDecide if a computerized resourceplanning system is neededplanning system is needed
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Supply Chain ManagementSupply Chain Management
Supply ChainSupply Chain Secure InputsSecure Inputs Produce GoodsProduce Goods DeliverDeliver
GoodsGoods
Want a smooth transition along theWant a smooth transition along thesupply chainsupply chain
StrategiesStrategies
Create tight bonds with suppliersCreate tight bonds with suppliers Improve supplier communicationsImprove supplier communications
Internet, Electronic Data Interchange (EDI)Internet, Electronic Data Interchange (EDI)
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Production & Operations ControlProduction & Operations Control
Gaining efficiencies through theGaining efficiencies through thecoordination of materials, equipment,coordination of materials, equipment,and human resourcesand human resources
Key aspectsKey aspects
RoutingRouting determines workflowdetermines workflow
SchedulingScheduling sets time needed for each stepsets time needed for each step
Gantt ChartsGantt Charts
Critical Path MethodCritical Path Method
Program Evaluation & Review Technique (PERT)Program Evaluation & Review Technique (PERT)
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Typical Gantt ChartTypical Gantt Chart
Scheduling
Designing
Ordering
Delivering materialsMachining components
Assembling
Inspecting
Shipping
September October
8
Symbols:Symbols:
scheduled start completed work time not avail.
scheduled end review date
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Improving Production & OperationsImproving Production & Operations Improving QualityImproving Quality
Quality ControlQuality Control
Total Quality Management (TQM)Total Quality Management (TQM)
Lean ManufacturingLean Manufacturing JustJust--inin--timetime
AutomationAutomation ComputerComputer--aided systemsaided systems
RoboticsRobotics
Flexible Manufacturing SystemsFlexible Manufacturing Systems
ComputerComputer--Integrated ManufacturingIntegrated Manufacturing
OthersOthers
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Trends in ProductionTrends in Production
Modular ProductionModular Production
Decrease cost of design & developmentDecrease cost of design & development
Increases ability to meet rapidlyIncreases ability to meet rapidlychanging conditionschanging conditions
Agile ManufacturingAgile Manufacturing
Increases flexibility and speedIncreases flexibility and speed
Work Cell DesignWork Cell Design
Improves quality & efficiencyImproves quality & efficiency
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ReviewReview Production PlanningProduction Planning
Processes, Site selection, Facility layout,Processes, Site selection, Facility layout,Resource planning, Supply ChainResource planning, Supply ChainManagementManagement
Production & Operations ControlProduction & Operations Control
Routing & SchedulingRouting & Scheduling Improving Production & OperationsImproving Production & Operations
Total Quality Management, LeanTotal Quality Management, LeanManufacturing, AutomationManufacturing, Automation
TrendsTrends
Looking AheadLooking Ahead Exam Chapters 6Exam Chapters 6 -- 88