Copyright © 2009 Pearson Education Canada8-1 Chapter 8 Producing Quality Goods and Services
Copyright © 2009 Pearson Education Canada8-2 What Is Production? Leading Planning Organizing Production Operations Management(POM) Controlling
Copyright © 2009 Pearson Education Canada8-3 What Is the Conversion Process? Transformation Outputs Inputs Analytic Systems Synthetic Systems
Copyright © 2009 Pearson Education Canada8-4 Input-Transformation-Output Relationships for Typical Systems Department Store Shoppers, stock of goods Displays, sales clerks Attract customers, promote products, fill orders Sales to satisfied customers College or University High School graduates, books Teachers, classrooms Impart knowledge & skills Educated individuals Automobile Factory Sheet steel, engine parts Tools, equipment, workers Fabrication & assembly of cars High-quality cars Restaurant Hungry customers, food Chef, waitress, environment Well-prepared & well-served food Satisfied customers Hospital Patients, medical supplies MDs, nurses, equipment Health care Healthy individuals Typical Desired Output Transformation Function Transformation Components InputsSystem
Copyright © 2009 Pearson Education Canada8-5 Manufacturing Goods MassProductionMassCustomization
Copyright © 2009 Pearson Education Canada8-6 Production Process Design Plan for capacity Choose facility location Design facility layout Identify the supply chain Forecast demand Schedule work
Copyright © 2009 Pearson Education Canada8-7 Forecasting Demand CustomerFeedbackMarketResearchSalesFiguresIndustryAnalysesEducatedGuesses BusinessResources PlanningBudgetingScheduling
Copyright © 2009 Pearson Education Canada8-8 Capacity Planning Level of resources resourcesCustomerdemandCustomerdemand
Copyright © 2009 Pearson Education Canada8-9 LabourLabourLandLand TransportationTransportationEnergyEnergy Local taxes RawmaterialsRawmaterials ConstructionConstruction LivingstandardsLivingstandards FacilityLocationFacilityLocation
Copyright © 2009 Pearson Education Canada8-10 Types of Facility Layout Process (functional) –concentrates everything needed to complete one phase of the production process in one place Product (assembly line) –the production process occurs along a line –products move from one workstation to the next Cellular –groups dissimilar machines into work centers (or cells) to process parts that have similar shapes and processing requirements Fixed-Position –labour, materials, and equipment are brought to the location where the good is being produced or the customer is being served –i.e.: buildings, roads, bridges, airplanes
Copyright © 2009 Pearson Education Canada8-11 Process Layout
Copyright © 2009 Pearson Education Canada8-12 Product Layout
Copyright © 2009 Pearson Education Canada8-13 Cellular Layout
Copyright © 2009 Pearson Education Canada8-14 Fixed-Position Layout
Copyright © 2009 Pearson Education Canada8-15 Production Schedule Scheduling Dispatching Contingencies
Copyright © 2009 Pearson Education Canada8-16
Copyright © 2009 Pearson Education Canada8-17 Program Evaluation and Review Technique (PERT) Identify activities Determine sequence Establish time frame Diagram activity network Calculate longest completion path Refine timing
Copyright © 2009 Pearson Education Canada8-18 PERT Time Estimates Optimistic Pessimistic Most likely Expected
Copyright © 2009 Pearson Education Canada8-19 PERT Diagram for Manufacturing Shoes
Copyright © 2009 Pearson Education Canada8-20 Improving Production Through Technology Robots Computer-aided design (CAD) Computer-aided engineering (CAE) Computer-aided manufacturing (CAM) Computer-integrated manufacturing (CIM) Flexible Manufacturing Systems (FMS)
Copyright © 2009 Pearson Education Canada8-21 Electronic Information Systems Responsiveness Service Communication
Copyright © 2009 Pearson Education Canada8-22 Manufacturing Systems TraditionalManufacturingFlexibleManufacturing Mass Production Resistant to Change High Set-Up Costs Specialty Operations Conducive to Change Minimal Set-Up Costs
Copyright © 2009 Pearson Education Canada8-23 The Production Process InventorymanagementQualityassurance
Copyright © 2009 Pearson Education Canada8-24 Inventory Management Inventory Inventorycontrol Lead time Purchasing
Copyright © 2009 Pearson Education Canada8-25 Inventory Control Just-In-Time (JIT) Material Requirements Planning (MRP) Manufacturing Resource Planning (MRP II)
Copyright © 2009 Pearson Education Canada8-26 Manufacturing Resource Planning
Copyright © 2009 Pearson Education Canada8-27 Maintaining Quality Statistical Quality Control Statistical Process Control Continuous Improvement Quality Control Quality Assurance
Copyright © 2009 Pearson Education Canada8-28 Global Quality Standards ISO Certification CAE Quality Awards Malcolm Baldrige Award
Copyright © 2009 Pearson Education Canada8-29 Supply Chain Management SuppliersManufacturersDistributorsRetailers The Supply Chain Production of Goods and Services FacilitiesFunctionsActivities
Copyright © 2009 Pearson Education Canada8-30 Manufacturing Trends Outsourcing Supplier Involvement Redirect resources and capital Increase production efficiencies Access state-of-the-art facilities Improve overall quality Maximize the use of time Reduce work-in-process inventory