2. • 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

3. 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.

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

5. 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.

6. 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

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

8. 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.

9. 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

10. 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