Producing World Class Goods and Services

Chapter 12

What is Production

Production is the use of people and machinery to convert materials into finished products or services.

4 Basic Kinds of Utility

Place(Marketing)

Time(Marketing)

Possession(Production)

UtilityWant Satisfying

Power

Form (Production)

Strategic Importance of Production

Essential for creating profit for the company Effective management of production processes

can lower the costs. Effective managers can also boost the quality

of goods and services Effective managers can also respond quickly

and dependably to customer’s demands.

Mass Production

Specialization– Dividing work into simple components so that tasks

can be accomplished more efficiently. Mechanization

– Use of machines to perform tasks. Standardization

– The production of uniform, interchangeable goods and parts.

Assembly Line

New Approaches to Production

Flexible Production Customer Driven Production Team Concept

Production Processes

Analytic System Synthetic System Continuous Process Intermittent Process

– Job Order Production– Lot-Order Production

Production and Technology

Robots Computer Aided Design

(CAD) Computer Aided

Manufacturing (CAM)– Flexible systems operation

Computer Integrated Manufacturing (CIM)

Choosing the Best Location for Production

Transportation Human Resources Physical Factors

Tasks of Production Managers

I. Must plan the overall production process

II. Must determine the best layout for the production facilities

III. Must implement the production plan

IV. Responsible for controlling the production process as efficiently as possible.

Facility Layout

Process- Manufacturing Industry

Product– Automotive Industry

Fixed Position– Construction Industry

Customer Oriented– Healthcare Industry

Implementing the Production Plan

Decide whether to buy, sell or lease decision determines whether to manufacture a product or component, or purchase it from an outside supplier.

Choosing Vendors Controlling Inventory

– JIT Reengineering is the process of mapping out

delivery-chain processes in detail.

Steps in Production Control

1. Production Planner develops a “shopping list”2. Routing determines the sequence of work

through out the facility3. Scheduling develops time tables that specify

the amount of time each operation takes4. Dispatching is the issuing of instructions5. Follow up ensures that work is proceeding

according to plan.

Quality

Quality Control to check for defective products

Ensure processes in involved in producing goods and services are efficient as possible

Quality in the design of the product usually ensures the products quality in the end.