Memory Reed Harris County High School July 2008 Global Production Management Managing Manufacturing & Inventory

Memory Reed Harris County High School July 2008 Global Production Management ► Production process – turning raw materials into finished marketable goods ► Resources  Natural  Human  Capital  Entrepreneurship

Memory Reed Harris County High School July 2008 Economic Utility ► Form Utility – turning raw materials into product (manufacturing) ► Time Utility – putting the product out at a time convenient for customers ► Place Utility – having the product available to customers where they can conveniently purchase it ► Information Utility – giving information about the product to customers so they can know about it and make a decision

Memory Reed Harris County High School July 2008 Operations Management ► Operations management – designing & managing a production system  Goal – to produce a good or service at the lowest possible cost while maintaining the highest possible quality ► Forecasting – determining how much to produce (usually by looking at past sales, current demand and economic conditions) ► Scheduling – determining the time frame for producing the product  Taking into consideration raw material availability, human resources and facility availability

Memory Reed Harris County High School July 2008 Inventory Control ► Inventory Control – keeping up with the amount of raw materials and finished goods that are on hand (in inventory) ► Just-In-Time (JIT) Inventory Control – company works closely with suppliers so they only receive materials when they are needed in the production process. This keeps inventory costs low.

Memory Reed Harris County High School July 2008 Production Methods Around the World ► Manual – human labor is the main method  Making quilts, craftsmen, mining gold ► Automated – machines perform the work  Refining oil, making plastic, spinning cotton ► Computerized – computers control machines & perform work  Computer-assisted manufacturing (CAM) – computer run equipment  Computer-aided design (CAD) – designers can create very detailed designs for CAM to use

Memory Reed Harris County High School July 2008 Computerized Production Systems Continued ► Robotics – technology connected with design, construction & operation of robots  Used in dangerous situations or for difficult or repetitive work ► Automated Warehouses – Using computers and robots to run a warehouse is more efficient and faster ► Computer-Integrated Manufacturing (CIM) – computers guide the entire manufacturing process from design through packaging for shipment

Memory Reed Harris County High School July 2008 Measuring Production Output ► Production output is measured in terms of productivity and quality control. ► Productivity – the amount of work completed in a span of time (ex: 8 hours) ► Quality Control – measuring goods and services against the product standard.

Memory Reed Harris County High School July 2008 Productivity ► Changing work patterns ► Capital investments ► Just-in-time inventory control ► Synchronized manufacturing – work is distributed according to current output demands – so different departments may be working at different capacities based on the demands on them at the time.

Memory Reed Harris County High School July 2008 Safety & Health Standards ► In the U.S. worker safety and health are monitored by OSHA (Occupational Safety & Health Administration) ► Internationally the safety and health of workers varies depending on the country and the legal requirements and culture. ► International standards (OHSAS – Occupational Health & Safety Management System) have been set by several world national standards bodies, certification bodies & specialist consultancies.* ► OSHA International has been formed by China, U.S., EU, Mexico and Canada ► ILO (International Labor Organization) & WHO (World Health Organization) work together to set standards for countries

Memory Reed Harris County High School July 2008 Quality Control ► Total Quality Control (TQC) – everyone in the company takes responsibility for the quality of the product. (Also called total quality management – TQM) ► Quality Circle – using team management – teams are formed from different areas and they meet regularly to determine what needs to be done to improve quality  Cross-functional teams – teams with people from different parts of the organization to bring different skills and experiences.

Memory Reed Harris County High School July 2008 Team-working Skills ► Ability to work with others from different backgrounds and cultures ► Enthusiasm to focus on the needs of the team rather than the individual ► Cooperation and ready to share leadership roles ► Competency to participate in group decision making and divide work among members of the team ► Compromise for the benefit of the goals of the team

Memory Reed Harris County High School July 2008 Service Industries ► Major portion of U.S. exports are services (+70% of GDP) ► Tailored Logistics – combine services with a product to better serve consumers  Buying a product without ever interacting with a person

Memory Reed Harris County High School July 2008 The End!!!

Works Cited ► Dlabay, Les, and James Calvert Scott. International Business 3E. Mason, Ohio: Thomson/Southwestern, ► 7/8/ ► 7/8/ ► 7/8/08 Memory Reed Harris County High School July 2008