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Production and distribution

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Presentation on theme: "Production and distribution"— Presentation transcript:

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

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

3 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

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

5 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

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

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

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

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

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

11 Quality Latest thinking ISO involvement TQM Control Assurance Service
Internal measures

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

13 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

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

15 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!

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