Production and distribution

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Presentation transcript:

Production and distribution Thessalie Robinson/Geoff Leese November 2005 revised September 2006, July 2007, August 2008, August 2009

Introduction Inputs to production Outputs from production Distribution Quality issues Continuous improvement

Functional Strategies Production & Distribution Aim to support the Business’s Strategy Produce and deliver the product or service output to specification of quality, amount, price, location and timescale Investment of finance crucial to strategy and its delivery Seek to be efficient and effective in all operations

Inputs to Production Resources Technology Design (product and process) Raw materials Market research Finance Technology Design (product and process) Procurement Engineering (including green issues)

Production Activities Planning and scheduling Making product/delivering service Design of product/service and process Research Quality assurance and control Technical development Efficiency/effectiveness development

Procurement Buying what is necessary Correct price Quantity Timing Make or buy Centralisation? Warehousing

Outputs from Production Finished goods/services Quality Pricing/costs Brand and image Waste

Location Ease of delivery – in and out Skill base Relationship to other areas of the company Costs Investment Lease/buy Servicing

Methods Use of technology Skill levels Quantities Costings Product or service itself Batch/job/flow Standardisation and flexibility Quality assurance and control

R and D Raw materials Processing Skilling Plant and machinery Patents, intellectual property Commissioning Continuous development Buy in

Quality Latest thinking ISO involvement TQM Control Assurance Service Internal measures

Distribution Getting product or service to the customer Location Outsourcing Retail Agents Warehousing Stock control

Efficiency and effectiveness Production uses finance Investment upfront Continuous monitoring and assessment of process Continuous development within strategy Overall view of production to give steady, seamless flow through

Summary Inputs to production Outputs from production Distribution Quality issues Continuous improvement

Further reading Bennett chapter 13 Butel et al Unit 1 section 4 (overview) Units 5 and 6 Lean Production - follow the link! Operations Management - follow the link!