Class 17 Midterm II

the creation of products and services by transforming inputs, such as natural resources, raw materials, human resources, and capital, into outputs, products, and services
Operations Management
management of the operations process
3 Important factors of Operations Management
Quality, customer satisfaction, financial success
4 types of Operations Planning
Process, Site selection, Facility layout, Resource planning
7 process types
Mass production, Mass customization, Customization, Process manufacturing, Assembly, Continuous, Intermittent
Mass production
manufacturing identical goods to keep costs low
Mass customization
mass produced for individual needs of the customer
production of goods one at a time for individual customers
Process manufacturing
breaking down input into products
Assembly process
combining or transforming inputs into products
Continuous process
long production runs
Intermittent process
short production runs
5 Factors of Site Selection
availability of production inputs, Marketing factors, Local incentives, Manufacturing environment, International location considerations
4 Types of Facility Layout
Product, process, fixed-position, cellular
Product layout
for continuous or repetitive production
Process layout
arranges workflow around the production processes such as welding, finishing
Fixed-position layout
the product remains fixed while the workers and machinery shift
Small work groups manufacture a product
4 Elements of Resource Planning
Purchasing or procurement, internal vs. outsourcing (make or buy decision), inventory management, computerized resource planning
3 types of Computerized resource planning
materials requirement planning; all inputs
manufacturing resource planning; all operations
enterprise resource planning; single program
Supply Chain
the entire sequence of securing inputs, producing goods, and delivering goods to the customer
Supply Chain Management
the process of using information to smooth transitions along the supply chain. Creates stronger bonds with suppliers, improves supplier communications
3 ways that supply chain management creates stronger bonds with suppliers
increases quality standards, reduce production costs, design new products
2 ways that supply chain management can improve supplier communications
increased internet use (E-procurement), electronic data interchange (EDI)
Operations Control
Routing & Scheduling
determining workflow
specifying and controlling timing
3 ways of scheduling
Gantt charts to show scheduled and achieved production; critical path method (CPM), activities to complete a project; program evaluation and review technique (PERT) involves optimistic, pessimistic and most probable estimates
3 ways to improve Operations Management
Total quality management (TQM), Lean manufacturing, Automating operations
Total quality management (TQM)
company wide quality principles & continuous improvement
Lean manufacturing
streamlining production; just-in-time (JIT) principles
Automating operations
manufacturing using Computer-aided design (CAD), computer-aided manufacturing (CAM), flexible manufacturing systems (FMS), and Computer integrated manufacturing (CIM)
International Quality Standards
The International Organization for Standardization (ISO) has developed standards of quality that are used by businesses around the world
Quality Control
the process of creating standards for quality and then measuring finished products and services against them
Flexible Manufacturing Systems (FMS)
a system that combines automated workstations with computer-controlled transportation devices - automatic guided vehicles (AGVs) - that move materials between workstations and into and out of the system