McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-1 CHAPTER NINE Operations Management (Production) Manufacturing Service

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-2 What’s Had The Biggest Effect on Productivity?

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-3 Operations Management Functions  Facility Location  For Manufacturers  Close to Markets  In the Future  Facility Layout  Quality Control  Baldridge Award  ISO 9000/ISO

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-4 Leading U.S. Manufacturing States California New York Illinois Ohio Pennsylvania Texas

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-5 Dimensions of Quality  Performance  Features  Reliability  Conformance  Durability  Serviceability  Aesthetics  Perceived Quality Source: Harvard Business Review, “Competing on the Eight Dimensions of Quality”, 12/87.

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-6 The Production & Operations Process Inputs Conversion Process Output Manufacturing Service UB’s Dry Cleaners

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-7 Manufacturing Sector Operations Mgmt.  Definition of Production  Process Planning  Assembly Process  Continuous Process  Intermittent Process  Materials Requirement Planning  Enterprise Resource Planning

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-8 Modern Production Techniques  Just-In-Time (JIT) Inventory  Purchasing  Flexible Manufacturing  Lean Manufacturing  Mass Customizing  Competing in Time  Technology Assisted  Computer-Aided Design (CAD)  Computer-Aided Manufacturing (CAM)

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 9-9 Service Sector Operations Mgmt.  Measuring Quality  Interactivity

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Control Procedures  Program Evaluation & Review Techniques (PERT)  Critical Path Method (CPM)  Gantt Chart

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved How to Increase Team Productivity  Teach other members by sharing skills/strengths  Emphasize concern for teammates  Ask/invite questions  Motivate teammates through praise & recognition