chapter 9 business

how can us business maintain a competitive edge?
Focusing on customers, practicing continuous improvement, focusing on quality, relying on the internet to unite companies, adopting new production techniques
production
the creating of goods using land labor capital entrepreneurship and knowledge
production management
all the activites managers do to help firms create goods
operations management
a specialized area in magnagement that converts or transforms resources into goods and services
operations mangagemetn includes..
inventory management , quality control , production scheduling, follow-up services
the production process
inputs(land labor capital entrepreneurship,knowledge). Production control(planning routing scheduling dispatching follow up). outputs(goods, services, ideas)
form utility
the value producers add to materials in the creation of finished goods and services. example. when a company transforms raw steel into the body of an automobile they are creating form utility.
Grove’s basic production requirements
1.build and deliver products in response to the demands of the customer
2. provide an acceptable quality level
3. to provide everything at the lowest possible cost
Process manufacturing
the part of production that physically or chemically changes materials
assembly process
part of the production process that puts together components
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
flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of products
lean maufacturing
using less of everything than in mass production. less.. human eforrt defects engingering effort floor space and less inventory
mass customization
tailoring products to meet the needs of a large number of individual customers. more manufacters are learning to customize. takes place in the service sector too
operations management planning helps solve problems like…
facility location, layot, materials requirement planning, purchasing, inventory control, quality contorl
facilitiy location
the process of selecting a geographic location for a companys operations.
information technology…
gives firms increased flexibility in terms of location
telecommuting
working from home via computer and modem
Facility layout
physical arrangement of resources , including people, to most efficiently produce goods and provide services
facility layout depend son the processes perfomed..
service: help customers find products
manufacturing: improve effieciency
assembly 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
simililar equipement and functions are grouped together
materials reaurement planning MRP
computer based operations management system that uses sales forecasts to make sure parts and materialas are available when needed
enterprise resource planning ERP
a newer version of MRP, combines computerized functions into a single intergrated software program using a single database
purchasing
the function that searches for high quality material resources, find sth ebset suppliers and negotiates the best price for good and services. the internet has transforemed perchasing
Just in time inventory conttrol
the production process in which a minimum of inventory is kept an dparts, supplies and other neds are deliverd just in tiem to go on the assembly line . the work effectively , the process requires excellent coordination with suppliers
quality
consistently producint what the customer wants while reducitn gerrors before and after delivery
six sigma quality
a quality measure that allows only 3.4 defects per million opportunities
statiscitcal 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 o prodcutions
measuring quality along the production process reduces ..
the need for quality control at the end
baldgrige awards
companies can apply for awards in these areas.. manufacturing, services, small businesses, education, healthcare. 85 applicants and evalutated in the seven areas of leadership, strategic planning , customer and market focus , measurement, anayliss and kowslege management, human resource focus , process mangament and results
Iso. international organization for standarization
largest developer and publisher of international standards. the purpose of the iso is to form a bridge between the public and private sectors bases in Switzerland.
iso 9000
the common name given to quality mangagemetn and assurance standarsd
iso 14000
a collection of the best practices for managaing an organizations impact on the environment
Pert
a method for analyzing the taks involed in completing a given project and estimation the time needed
steps involved in pert
1. analyzing and sequencing tasks
2. estimating the time needed to complete each task
3. drawing a pert network illustrating the first 2 steps
4. identifiying the critical path
critical path
path that will take the longest
gantt chart
a bar graph that shows what projects are being worke don and how much has been compelted