1 11. Production & Operations Management

2 Production & Operations Management Production includes manufacturing & non- manufacturing industries Provides form utility to customers Involves a conversion process –Analytic or synthetic Production processes –Continuous or intermittent Ultimate goal: Profit –Achieve through increased efficiency, etc.

3 Production & Operations Management (Cont.) Industrial Revolution –Series of technological advances Mechanization Standardization Specialization  Assembly line Role of computers & related technologies –Automation– CIM systems –Robotics– FMS’s –CAD/CAM

4 Plant Location Three categories of variables –Transportation –Physical factors –Human factors Choice involves optimizing most important variables –Varies depending on product & facility

5 Production & Operations Management Tasks Basic managerial functions –Planning, organizing, directing, controlling –Plus seeing to creation of product Planning production process –Design planning Selecting layout –Process, product, or fixed-position Implementing production plan –Make-buy-lease – Inventory control –Selecting suppliers JIT, MRP

6 Production & Operations Management Tasks (Cont.) Controlling production process –Planning –Routing –Scheduling Gantt charts PERT charts –Critical path –Dispatching –Follow-up

7 Quality Control Ensures that goods & services are produced in accordance with design specifications Methods of controlling quality: –Inspection (goods) & customer surveys (services) –TQM –Six Sigma International Organization for Standardization