Memory Reed Harris County High School July 2008 Global Production Management Managing Manufacturing...

Memory Reed Harris County High School July Memory Reed Harris County High School July 20082008

Global Production Global Production ManagementManagement

Managing Manufacturing & Managing Manufacturing & InventoryInventory

Memory Reed Harris County High School July 2008

Global Production Global Production ManagementManagement

► Production process Production process – turning raw – turning raw materials into materials into finished marketable finished marketable goodsgoods

► ResourcesResources NaturalNatural HumanHuman CapitalCapital EntrepreneurshipEntrepreneurship


Economic UtilityEconomic Utility

► Form UtilityForm Utility – turning raw materials into – turning raw materials into product (manufacturing)product (manufacturing)

► Time UtilityTime Utility – putting the product out at a – putting the product out at a time convenient for customerstime convenient for customers

► Place UtilityPlace Utility – having the product available – having the product available to customers where they can conveniently to customers where they can conveniently purchase itpurchase it

► Information UtilityInformation Utility – giving information – giving information about the product to customers so they can about the product to customers so they can know about it and make a decisionknow about it and make a decision


Operations ManagementOperations Management► Operations managementOperations management – designing & – designing &

managing a production systemmanaging a production system Goal – to produce a good or service at the lowest Goal – to produce a good or service at the lowest

possible cost while maintaining the highest possible cost while maintaining the highest possible qualitypossible quality

► ForecastingForecasting – determining how much to – determining how much to produce (usually by looking at past sales, produce (usually by looking at past sales, current demand and economic conditions)current demand and economic conditions)

► SchedulingScheduling – determining the time frame for – determining the time frame for producing the productproducing the product Taking into consideration raw material availability, Taking into consideration raw material availability,

human resources and facility availabilityhuman resources and facility availability


Inventory ControlInventory Control

► Inventory ControlInventory Control – keeping up with the – keeping up with the amount of raw materials and finished amount of raw materials and finished goods that are on hand (in inventory)goods that are on hand (in inventory)

► Just-In-Time (JIT) Inventory ControlJust-In-Time (JIT) Inventory Control – – company works closely with suppliers so company works closely with suppliers so they only receive materials when they they only receive materials when they are needed in the production process. are needed in the production process. This keeps inventory costs low.This keeps inventory costs low.


Production Methods Around the Production Methods Around the WorldWorld

► ManualManual – human labor is the main method – human labor is the main method Making quilts, craftsmen, mining goldMaking quilts, craftsmen, mining gold

► AutomatedAutomated – machines perform the work – machines perform the work Refining oil, making plastic, spinning cottonRefining oil, making plastic, spinning cotton

► ComputerizedComputerized – computers control machines – computers control machines & perform work& perform work Computer-assisted manufacturing (CAM)Computer-assisted manufacturing (CAM) – –

computer run equipmentcomputer run equipment Computer-aided design (CAD)Computer-aided design (CAD) – designers can – designers can

create very detailed designs for CAM to usecreate very detailed designs for CAM to use


Computerized Production Computerized Production Systems ContinuedSystems Continued

► RoboticsRobotics – technology connected with design, – technology connected with design, construction & operation of robotsconstruction & operation of robots Used in dangerous situations or for difficult or Used in dangerous situations or for difficult or

repetitive workrepetitive work

► Automated WarehousesAutomated Warehouses – Using computers and – Using computers and robots to run a warehouse is more efficient and robots to run a warehouse is more efficient and fasterfaster

► Computer-Integrated Manufacturing (CIM)Computer-Integrated Manufacturing (CIM) – – computers guide the entire manufacturing computers guide the entire manufacturing process from design through packaging for process from design through packaging for shipmentshipment


Measuring Production OutputMeasuring Production Output

►Production output is measured in Production output is measured in terms of productivity and quality terms of productivity and quality control.control.

►ProductivityProductivity – the amount of work – the amount of work completed in a span of time (ex: 8 completed in a span of time (ex: 8 hours)hours)

►Quality ControlQuality Control – measuring goods and – measuring goods and services against the product standard. services against the product standard.


ProductivityProductivity

►Changing work patternsChanging work patterns►Capital investmentsCapital investments► Just-in-time inventory controlJust-in-time inventory control►Synchronized manufacturingSynchronized manufacturing – work is – work is

distributed according to current output distributed according to current output demands – so different departments demands – so different departments may be working at different capacities may be working at different capacities based on the demands on them at the based on the demands on them at the time.time.


Safety & Health StandardsSafety & Health Standards► In the U.S. worker safety and health are monitored by OSHA In the U.S. worker safety and health are monitored by OSHA

(Occupational Safety & Health Administration) (Occupational Safety & Health Administration) ► Internationally the safety and health of workers varies depending Internationally the safety and health of workers varies depending

on the country and the legal requirements and culture.on the country and the legal requirements and culture.► International standards (OHSAS – Occupational Health & Safety International standards (OHSAS – Occupational Health & Safety

Management System) have been set by several world national Management System) have been set by several world national standards bodies, certification bodies & specialist consultancies.*standards bodies, certification bodies & specialist consultancies.*

► OSHA International has been formed by China, U.S., EU, Mexico OSHA International has been formed by China, U.S., EU, Mexico and Canadaand Canada

► ILO (International Labor Organization) & WHO (World Health ILO (International Labor Organization) & WHO (World Health Organization) work together to set standards for countriesOrganization) work together to set standards for countries


Quality ControlQuality Control►Total Quality Control (TQC)Total Quality Control (TQC) – everyone in – everyone in

the company takes responsibility for the the company takes responsibility for the quality of the product. (Also called total quality of the product. (Also called total quality management – TQM)quality management – TQM)

►Quality CircleQuality Circle – using team management – using team management – teams are formed from different areas – teams are formed from different areas and they meet regularly to determine and they meet regularly to determine what needs to be done to improve what needs to be done to improve qualityquality Cross-functional teamsCross-functional teams – teams with people – teams with people

from different parts of the organization to from different parts of the organization to bring different skills and experiences.bring different skills and experiences.


Team-working SkillsTeam-working Skills►Ability to work with others from different Ability to work with others from different

backgrounds and culturesbackgrounds and cultures►Enthusiasm to focus on the needs of the Enthusiasm to focus on the needs of the

team rather than the individualteam rather than the individual►Cooperation and ready to share Cooperation and ready to share

leadership rolesleadership roles►Competency to participate in group Competency to participate in group

decision making and divide work among decision making and divide work among members of the teammembers of the team

►Compromise for the benefit of the goals Compromise for the benefit of the goals of the teamof the team


Service IndustriesService Industries

►Major portion of U.S. exports are Major portion of U.S. exports are services (+70% of GDP)services (+70% of GDP)

►Tailored Logistics – combine services Tailored Logistics – combine services with a product to better serve with a product to better serve consumersconsumers Buying a product without ever interacting Buying a product without ever interacting

with a personwith a person


The End!!!The End!!!

Works CitedWorks Cited

► Dlabay, Les, and James Calvert Scott. Dlabay, Les, and James Calvert Scott. International International Business 3E.Business 3E. Mason, Ohio: Thomson/Southwestern, Mason, Ohio: Thomson/Southwestern, 2006.2006.

► www.ohsas-18001-occupational-health-and-safety.com 7/8/2008

► www.osha.gov/international 7/8/2008► www.wikipedia.com 7/8/08


Memory Reed Harris County High School July 2008 Global Production Management Managing Manufacturing...

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