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  Compare alternative layouts for
Outline the importance of production facilities.

production and operations
management.
 List the steps in the purchasing
process.
 Explain the roles of computers and
related technologies in production.
 Outline the advantages and
disadvantages of maintaining large
Identify the factors involved in a inventories.

plant location decision.

 Identify the steps in the production

Explain the major tasks of control process.

production and operations
managers.
 Explain the benefits of quality
control.
ã ?

 pplication of resources such as people and
machinery to convert materials into finished goods and services.
ã ?

 
 
   
anaging people
and machinery in converting materials and resources into
finished goods and services.
ã vital function is necessary for generating money
to pay employees, lenders, and stockholders.
ã Effective production and operations management
can

 lower a firm¶s costs of production.
 boost the quality of its goods and services.
 allow it to respond dependably to customer demands.
 enable it to renew itself by providing new products.
ã `ass Production  manufacturing products in
large amounts through standardization,
mechanization and specialized skills.
ã Flexible Production  producing smaller
batches using information technology,
communication and cooperation.
ã Customer-Driven Production  evaluating
customer demands to link with manufacturer.
ã :obots  reprogrammable machines capable of performing routine
jobs and manipulating material
ã Computer-Aided Design and `anufacturing  enables engineers
to design parts and buildings on computer screens faster and with
fewer mistakes.
ã Flexible `anufacturing Systems  a production facility that
workers can quickly modify to manufacture different products.
ã Computer-Integrated `anufacturing  integrates robots,
computers and other technologies to help workers design products,
control machines, handle materials, and control the production
function.
versee the work of people and machinery to convert inputs
(materials and resources) into finished goods and services.
ã Choose what goods or services to offer customers.
ã Convert original product ideas into final specifications.
ã esign the most efficient facilities to produce those products.
ã rocess layout groups
machinery and equipment
according to their functions.
ã acilitates production of a
variety of nonstandard
items in relatively small
batches.
ã roduct layout sets up production equipment along a product-
flow line, and the work in process moves along this line past
workstations.
ã Efficiently produces large numbers of similar items.
ã fixed-position layout places the product in one spot, and
workers, materials, and equipment come to it.
ã Customer-oriented layout arranges facilities to enhance the interactions
between customers and a service.
`ake, Buy, or Lease Decision
ã Choosing whether to manufacture a needed product
or component in-house, purchase it from an outside
supplier, or lease it.
ã actors in the decision include cost, availability of
reliable outside suppliers, and the need for
confidentiality.
Selection of Suppliers
ã ased on comparison of quality, prices, dependability
of delivery, and services offered by competing
companies.
Inventory Control
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ÿust-in-Time Systems
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`aterials :equirement Planning
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ã roduction control creates a well-defined
set of procedures for coordinating
people, materials, and machinery.
1) lanning
2) Routing
3) Scheduling
4) ispatching
5) ollow-up
Dispatching
anager instructs each department on what work to do and the time
allowed for its completion.

Follow-Up
Employees and their supervisors spot problems in the
production process and determine needed changes.
ã good or service free of deficiencies.
ã oor quality can account for ¢
loss in revenue.
ã enchmarking is the process of analyzing other firms¶ best
practices.
ã uality control is measuring goods and services against
established quality standards.
ã any companies evaluate quality using the Six Sigma concept.
 company tries to make error-free products 99.9997% of the time,
a tiny 3.4 errors per million opportunities.
ã International rganization for Standardization (IS) - mission
is to promote the development of standardized products to
facilitate trade and cooperation across national borders.
ã Representatives from more than 146 nations.
ã ISO 9000 series of standards sets requirements for quality
processes.
ã early half a million ISO 9000 certificates have been awarded to
companies around the world.
ã ISO 14000 series also sets standards for operations that
minimize harm to the environment.