• Production Application of resources such as people and machinery to convert materials into finished goods and services. • Production and operations management Managing people and machinery in converting materials and resources into finished goods and services. The Production Process: Inputs Conversion Process Outputs

STRATEGIC IMPORTANCE OF THE PRODUCTION FUNCTION • A vital function for generating money for employees, lenders, and stockholders. Mass Production • Manufacturing products in large amounts through specialized employees skills, mechanization, and standardization. • Assembly line Flexible Production • Produces smaller batches of goods cost-effectively. Customer-Driven Production • Links what a manufacturer makes with what customers want to buy.

PRODUCTION PROCESSES • Analytic production system • Synthetic production system • Continuous production process • Intermittent production process

TECHNOLOGY AND THE PRODUCTION PROCESS Robots  • Reprogrammable machine capable of performing numerous tasks that require manipulation of materials and tools. Computer-Aided Design and Manufacturing • CAD—Interactions between a designer and a computer to create a product, facility, or part. • CAM—Analyze CAD output, determine necessary steps to implement the design, and transmit instructions to production equipment.

Flexible Manufacturing Systems • A production facility that workers can quickly modify. Computer-controlled machining centers produce metal parts. Remote-controlled carts deliver materials. Robots handle the parts. All linked by electronic controls. Computer-Integrated Manufacturing • Computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion

THE LOCATION DECISION Factors Affecting Location: Transportation Physical Variables Human Factors

THE JOB OF PRODUCTION MANAGERS • Oversee the work of people and machinery to convert inputs (materials and resources) into finished goods and services. Planning the Production Process • Choose what goods or services to offer customers. • Convert original product ideas into final specifications. • Design the most efficient facilities to produce those products. Determining the Facility Layout • Process layout, product layout, fixed-position layout, and customer-oriented layout.

Implementing the Production Plan • Make, buy, or lease decision • Selection of suppliers • Inventory control • Just-in-time systems • Materials requirement planning Controlling the Production Process • Production control • Production planning • Routing • Scheduling • Dispatching • Follow-up

IMPORTANCE OF QUALITY Quality Control ISO Standards • Best defined as a good or service free of deficiencies. • In some companies, costs of poor quality amount to 20 percent of revenue. • Benchmarking Determining other companies’ standards and best practices. Quality Control • Quality control Measuring goods and services against established quality standards. • Many companies evaluate quality using the Six Sigma concept. ISO Standards