business copyright 2005 prentice- hall, inc. 14-1
TRANSCRIPT
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Copyright 2005 Prentice- Hall, Inc. 14-1
Bu
sin
ess
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14-2
ChapteChapte
rr 1414
Producing Goods Producing Goods And ServicesAnd Services
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Copyright 2005 Prentice- Hall, Inc. 14-3
Bu
sin
ess Chapter OutlineChapter Outline
What Does “Production” What Does “Production” Mean TodayMean Today
Creating Value Through Creating Value Through OperationsOperations
Operations PlanningOperations PlanningOperations SchedulingOperations SchedulingOperations ControlOperations Control
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Copyright 2005 Prentice- Hall, Inc. 14-4
Bu
sin
ess
Operations &Operations &Production GrowthProduction Growth
• DefinitionsDefinitions–Service OperationService Operation
–Goods ProductionGoods Production
• Global OperationsGlobal Operations
• Technology/InternetTechnology/Internet
• Quality PlanningQuality Planning
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Copyright 2005 Prentice- Hall, Inc. 14-5
Bu
sin
ess
Goods/ServicesGoods/ServicesEmploymentEmployment
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Copyright 2005 Prentice- Hall, Inc. 14-6
Bu
sin
ess Goods/Services GDPGoods/Services GDP
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Copyright 2005 Prentice- Hall, Inc. 14-7
Bu
sin
ess
Top 5 U.S. Top 5 U.S. Manufacturing StatesManufacturing States
0 100 200 Miles
WASHINGTON
OREGON
IDAHO
MONTANA
WYOMING
NEVADA
CALIFORNIA
UTAH
ARIZONA
COLORADO
NEW MEXICO
KANSAS
OKLAHOMA
MISSOURI
ARKANSAS
TEXAS
LOUISIANA
MISSISSIPPI
ILLINOIS
NORTH DAKOTA
SOUTH DAKOTA
MINNESOTA
WISCONSIN
IOWA
NEBRASKA
MICHIGAN
MICHIGAN
INDIANA
OHIO
WESTVIRGINIA
PENNSYLVANIA
NEW YORK
VIRGINIA
DC
KENTUCKY
VTNH
MAINE
RI
MASS
CONN
NEWJERSEY
DELAWARE
MARYLAND
NORTH CAROLINA
TENNESSEE
ALABAMA GEORGIA
SOUTHCAROLINA
FLORIDA
HAWAII
ALASKA
0 600 Miles0 200 Miles
CaliforniCaliforniaa
New YorkNew York
IllinoisIllinois
OhiOhioo
PennsylvaniPennsylvaniaa
TexaTexass
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Copyright 2005 Prentice- Hall, Inc. 14-8
Bu
sin
ess UtilityUtility
• Product’s Ability To Satisfy Product’s Ability To Satisfy WantWant
• TypesTypes– TimeTime
–PlacePlace
–PossessionPossession
– FormForm
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Copyright 2005 Prentice- Hall, Inc. 14-9
Bu
sin
ess Operations (Production)Operations (Production)
• Management- Systematic Management- Systematic Direction/Control Of Processes Direction/Control Of Processes That Transform That Transform Resources Into Finished Resources Into Finished Goods Creating ValueGoods Creating Value
• Managers- Ensure Processes Managers- Ensure Processes Create Value/BenefitsCreate Value/Benefits
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Copyright 2005 Prentice- Hall, Inc. 14-10
Bu
sin
ess Transformation ProcessTransformation Process
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Copyright 2005 Prentice- Hall, Inc. 14-11
Bu
sin
ess Goods ManufacturingGoods Manufacturing
•AnalyticAnalytic
•SyntheticSynthetic
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Copyright 2005 Prentice- Hall, Inc. 14-12
Bu
sin
ess Service ProcessesService Processes
• Service: Extent Of Customer Service: Extent Of Customer ContactContact
• High-ContactHigh-Contact
• Low-ContactLow-Contact
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Copyright 2005 Prentice- Hall, Inc. 14-13
Bu
sin
ess
Focus of ServiceFocus of Servicevs. Manufacturingvs. Manufacturing
• PerformancePerformance• Process & OutcomeProcess & Outcome• Service CharacteristicsService Characteristics• Customer-Service LinkCustomer-Service Link• E-Commerce- “Virtual” E-Commerce- “Virtual”
Presence Of CustomerPresence Of Customer• Service Quality ConsiderationsService Quality Considerations
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Copyright 2005 Prentice- Hall, Inc. 14-14
Bu
sin
ess Operations PlanningOperations Planning
• CapacityCapacity• For ProducingFor Producing–GoodsGoods–ServicesServices
• LocationLocation–GoodsGoods–ServicesServices
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Copyright 2005 Prentice- Hall, Inc. 14-15
Bu
sin
ess
Operations Operations Planning/ControlPlanning/Control
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Copyright 2005 Prentice- Hall, Inc. 14-16
Bu
sin
ess Service CharacteristicsService Characteristics
• IntangibilityIntangibility
• CustomizationCustomization
• UnstorabilityUnstorability
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Copyright 2005 Prentice- Hall, Inc. 14-17
Bu
sin
ess Layout PlanningLayout Planning
• Producing GoodsProducing Goods– Productive FacilitiesProductive Facilities– Nonproductive FacilitiesNonproductive Facilities– Support FacilitiesSupport Facilities
• Product LayoutsProduct Layouts– ProcessProcess– CellularCellular– ProductProduct– Others For FlexibilityOthers For Flexibility
• Service LayoutService Layout
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Copyright 2005 Prentice- Hall, Inc. 14-18
Bu
sin
ess Process LayoutProcess Layout
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Copyright 2005 Prentice- Hall, Inc. 14-19
Bu
sin
ess Cellular LayoutCellular Layout
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Copyright 2005 Prentice- Hall, Inc. 14-20
Bu
sin
ess Goods Producing LayoutGoods Producing Layout
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Copyright 2005 Prentice- Hall, Inc. 14-21
Bu
sin
ess Cafeteria LayoutCafeteria Layout
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Copyright 2005 Prentice- Hall, Inc. 14-22
Bu
sin
ess
Other Layout Other Layout DevelopmentsDevelopments
• U-Shaped Production U-Shaped Production LinesLines
• Flexible Manufacturing Flexible Manufacturing SystemSystem
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Copyright 2005 Prentice- Hall, Inc. 14-23
Bu
sin
ess QualityQuality
“…“…characteristics of a product characteristics of a product
or service that bear on its or service that bear on its
ability to satisfy stated or ability to satisfy stated or
implied needs.” implied needs.”
––American Society for QualityAmerican Society for Quality
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Copyright 2005 Prentice- Hall, Inc. 14-24
Bu
sin
ess Methods PlanningMethods Planning
• Methods ImprovementMethods Improvement–GoodsGoods–ServicesServices
• Service Flow AnalysisService Flow Analysis• Designing To Control Employee Designing To Control Employee
DiscretionDiscretion• Design For Customer ContactDesign For Customer Contact
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Copyright 2005 Prentice- Hall, Inc. 14-25
Bu
sin
ess Service Flow AnalysisService Flow Analysis
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Copyright 2005 Prentice- Hall, Inc. 14-26
Bu
sin
ess Operations SchedulingOperations Scheduling
• Master Production Schedule Master Production Schedule
• Tools for SchedulingTools for Scheduling–Gantt ChartGantt Chart
–PERT ChartPERT Chart
SCHEDULE
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Copyright 2005 Prentice- Hall, Inc. 14-27
Bu
sin
ess Gantt ChartGantt Chart
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Copyright 2005 Prentice- Hall, Inc. 14-28
Bu
sin
ess PERT ChartPERT Chart
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Copyright 2005 Prentice- Hall, Inc. 14-29
Bu
sin
ess Operations ControlOperations Control
• Material ManagementMaterial Management
• Operations Process Operations Process ControlControl
• FollowupFollowup
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Copyright 2005 Prentice- Hall, Inc. 14-30
Bu
sin
ess Materials ManagementMaterials Management
• Plan/Organize Material FlowPlan/Organize Material Flow• Emphasizes StandardizationEmphasizes Standardization• Areas Of Material ManagementAreas Of Material Management– TransportationTransportation–WarehousingWarehousing– Inventory ControlInventory Control–PurchasingPurchasing
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Copyright 2005 Prentice- Hall, Inc. 14-31
Bu
sin
ess Purchasing ProcessesPurchasing Processes
• Forward BuyingForward Buying
• Holding CostsHolding Costs
• Opportunity CostsOpportunity Costs
• Hand-To-Mouth PatternHand-To-Mouth Pattern
• Lead TimesLead Times
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Copyright 2005 Prentice- Hall, Inc. 14-32
Bu
sin
ess Supplier SelectionSupplier Selection
• InvestigateInvestigate
• Evaluate/IsolateEvaluate/Isolate
• NegotiateNegotiate
• MaintainMaintain
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Copyright 2005 Prentice- Hall, Inc. 14-33
Bu
sin
ess
Tools ForTools ForProcess ControlProcess Control
• Worker TrainingWorker Training
• Lean Production Systems: JITLean Production Systems: JIT
• Materials Requirement PlanningMaterials Requirement Planning–Bill Of MaterialsBill Of Materials
–Manufacturing Resource PlanningManufacturing Resource Planning
• Quality ControlQuality Control