Production and Operations Management

Production and Operations Management
Chapter 09 Production and Operations Management McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING GOALS Chapter Nine Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. Describe the evolution from production to operations management. Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing and mass customization. 9-2

LEARNING GOALS Chapter Nine Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control and quality control. Explain the use of PERT and Gantt charts to control manufacturing processes. 9-3

SAMUEL J. PALMISANO IBM Profile Palmisano, CEO and President of IBM, started in the company in 1973. The company’s earnings have quadrupled under Palmisano. Switching the company’s focus from production to service, Palmisano led IBM to enter the emerging global market. 9-4

NAME that COMPANY Chapter Nine This company’s robots manufacture, test, and package motor starters - all untouched by human hands. The machines can fill special orders, even for a single item, without slowing down the process. Name that company! Company: Allen-Bradley 9-5

MANUFACTURING in the U.S.
Manufacturing and Services in Perspective LG1 The U.S. is still the world’s leading manufacturer. Manufacturing has continued to grow since In fact, U.S. manufacturing is 2x bigger than in 1970. Almost 25% of all goods produced each year come from the U.S. See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. Students are often surprised to read that the United States is the world’s leading manufacturer, producing 25 percent of all goods produced worldwide. To start a discussion ask students: What items do companies in the United States produce? 9-6

WHAT is MADE in the USA? Leading U.S. Manufactured Goods
Manufacturing and Services in Perspective LG1 Products Value Number of Employees Chemicals – Pharmaceuticals, cosmetics, soaps, paints, fertilizers $250 Billion 830,000 Americans Transportation Equipment – Cars, planes, trains, ships $195 Billion Over 1.4 Million Americans Processed Foods, Beverages and Tobacco – Cookies, coffee, cigarettes, prepared meals $175 Billion 1.7 Million Americans Computers and Electronics – Computers and communication equipment $146 Billion 1.2 Million Americans See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. What’s Made in the USA? This slide presents the leading goods manufactured in the United States. Ask students: Why are the goods on the slide manufactured in the United States? (Students’ answers will vary but should focus on the abundance of certain factors of production and the United States’ comparative advantage in the production of capital intensive products, topics that were covered earlier in the text.) To determine what goods are manufactured in a particular state use the Bureau of Economic Analysis website ( Source: Parade Magazine, accessed June 2011. 9-7

Exporters Extraordinaire Top Ten States that Manufacture Goods for Export
Manufacturing and Services in Perspective LG1 Rank State Amount Exported 1 California $ billion 2 Texas $ billion 3 New York $72.58 billion 4 Michigan $67.94 billion 5 Washington $61.99 billion 6 Illinois $57.92 billion 7 Ohio $42.59 billion 8 Florida $41.58 billion 9 New Jersey $36.77 billion 10 Pennsylvania $34.57 billion See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. Leading U.S. Manufacturing States This slide identifies the ten leading manufacturing states in terms of amount of products made in the U.S for exports. Ask the students if they are surprised about any of the states listed being among the largest employers in manufacturing. 3. As mentioned in the previous slide, it might be useful to explore what items are being produced in each of the states mentioned in this slide by visiting Source: CNBC, accessed June 2011. 9-8

MASSIVE MANUFACTURERS The Top Ten U.S. Manufacturers
Manufacturing and Services in Perspective LG1 Rank Company Industry 1 Exxon Mobil Petroleum and Coal 2 Chevron 3 General Electric Electrical Equipment and Appliances 4 ConocoPhillips 5 Ford Motor Company Automobiles 6 Hewlett-Packard Computers 7 IBM 8 Procter & Gamble Chemicals 9 Archer-Daniels-Midland Food 10 Boeing Aerospace See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. Top Ten Manufacturers This slide presents the top ten manufacturers (based on revenues) according to Industry Week’s list of the 500 largest publicly held U.S. manufacturing companies. One quick observation from this slide – it is dominated by oil and energy companies. Ask the students: How much do you pay per gallon of gas? Does that have any impact on this listing? (Answer is obvious – the higher the gas price, the more money the oil companies make in both revenues and profits.) Source: Industry Week, accessed June 2011. 9-9

KEY WORD: SUSTAINABILITY (Thinking Green)
The market for new green products and services is almost endless. Given the rate of population growth, it’s important to plan ahead for a world with limited resources. Companies like DuPont, Michelin, Chevron and Nokia are working on sustainability projects. Procter & Gamble and Kaiser Permanente issue their own mandatory sustainability scorecards to their supply chains. See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. 9-10

TOP-PAYING SERVICE JOBS
Manufacturing and Services in Perspective LG1 The U.S. economy is no longer manufacturing based. 85% of jobs are in the service sector. The top-paying service jobs in the U.S. are in: Legal services Medical services Entertainment Accounting Finance Management consulting See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. 9-11

REMAINING COMPETITIVE in GLOBAL MARKETS
Manufacturers and Service Organizations Become More Competitive REMAINING COMPETITIVE in GLOBAL MARKETS LG1 U.S. is still the leader in nanotechnology and biotechnology. How can U.S. businesses maintain a competitive edge? Focusing on customers Maintaining close relationships with suppliers Practicing continuous improvement Focusing on quality Saving on costs through site selection Relying on the Internet to unite companies Adopting new production techniques See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. The famous economist Joseph Schumpeter believed in continuous improvement and discussed capitalism as a force for creative destruction. If the United States is to remain competitive, the nation as a whole must continually innovate eschewing old inefficient industries in favor of capital-intensive knowledge-driven industries. 9-12

LEARNING from GERMANY (Reaching Beyond Our Borders)
Ten years ago, Germany’s economy was much like ours today. Stihl invested in highly trained workers. Stihl remained competitive in the manufacturing world. German companies poured money into research and stayed away from high tech products. See Learning Goal 1: Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive. 9-13

PRODUCTION and PRODUCTION MANAGEMENT
From Production to Operations Management LG2 Production -- The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production). Production Management -- All the activities managers do to help firms create goods. See Learning Goal 2: Describe the evolution from production to operations management. 9-14

OPERATIONS MANAGEMENT
From Production to Operations Management LG2 Operations Management -- A specialized area in management that converts or transforms resources into goods and services. Operations management includes: Inventory management Quality control Production scheduling Follow-up services See Learning Goal 2: Describe the evolution from production to operations management. 9-15

OPERATIONS MANAGEMENT in the SERVICE SECTOR
LG2 All about creating a good experience for those who use the service. In hotels, like Ritz- Carlton, operation management includes fine dining, fresh flowers, and training for every employee. See Learning Goal 2: Describe the evolution from production to operations management. 9-16

THERE is an APP for THAT Top Productivity Apps for iPad
Operations Management in the Service Sector THERE is an APP for THAT Top Productivity Apps for iPad LG2 App What it Does Price Dropbox Syncs and backs up files Free ServiceMax Helps field employees with data management Keynote Use to create and show slide presentations $9.99 Penultimate Note taking made easier $3.99 ZigZag Board An easy-to-carry whiteboard $4.99 See Learning Goal 2: Describe the evolution from production to operations management. There’s an App for That This slide shows the top iPad apps that help service businesses increase productivity. Source: Entrepreneur, February 2011. 9-17

PROGRESS ASSESSMENT Progress Assessment What have U.S. manufacturers done to regain a competitive edge? What must U.S. companies do to continue to strengthen the country’s manufacturing base? What led companies to focus on operations management rather than production? Manufacturers have regained a competitive advantage by focusing on the following: The needs of customers, maintaining a close relationship with suppliers to make sure they are meeting customer needs, practicing continuous improvement, focusing on quality, saving on costs through better site selection, using new technologies, adopting new production techniques. To strengthen the nation’s manufacturing base will require an adjustment and recognition of the new realities in manufacturing. This will require focusing on new technologies, such as the green ventures discussed in your textbook. The nature of business has changed dramatically in the past twenty years forcing companies to focus on operations management. One change is the shift from a manufacturing economy to one dominated by the service industry. Operations management is a more specialized area of management that converts resources into useful outputs. 9-18

The PRODUCTION PROCESS
Production Processes LG3 See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-19

FORM UTILITY Production Processes LG3 Form Utility -- The value producers add to materials in the creation of finished goods and services. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-20

GROVE’S BASIC PRODUCTION REQUIREMENTS
Production Processes LG3 To build and deliver products in response to the demands of the customer at the scheduled delivery time. To provide an acceptable quality level. To provide everything at the lowest possible cost. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Andrew Grove is the former chairman of computer chip manufacturer Intel. 9-21

PROCESS and ASSEMBLY in PRODUCTION
Production Processes LG3 Process Manufacturing -- The part of production that physically or chemically changes materials. Assembly Process -- The part of the production process that puts together components. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-22

KEY PRODUCTION PROCESSES
LG3 Production processes are either continuous or intermittent. Continuous Process -- Long production runs turn out finished goods over time. Intermittent Process -- Production runs are short and the producer adjusts machines frequently to make different products. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-23

MINUTE MADE Production of Some of America’s Favorite Products
Production Processes LG3 Product Number of Items Made in a Minute Krispy Kreme Doughnuts 5,208 Chips Ahoy! Cookies 4,000 Twinkies 972 Jello Boxes 764 LifeSavers 100 rolls See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Minute Made This slide presents the production efficiency of various products. Before introducing this slide, it would be interesting to ask the students to take a guess: How many Krispy Kreme Doughnuts or Chips Ahoy! Cookies are made every minute? Again it is important to reinforce the point that production efficiency directly translates into cost savings and therefore profits. 9-24

DEVELOPMENTS MAKING U.S. COMPANIES MORE COMPETITIVE
The Need to Improve Production Techniques and Cut Costs DEVELOPMENTS MAKING U.S. COMPANIES MORE COMPETITIVE LG3 Computer-aided design and manufacturing Flexible manufacturing Lean manufacturing Mass customization See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-25

COMPUTER-AIDED DESIGN and MANUFACTURING
LG3 Computer-Aided Design (CAD) -- The use of computers in the design of products. Computer-Aided Manufacturing (CAM) -- The use of computers in the manufacturing of products. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-26

COMPUTER-INTEGRATED MANUFACTURING
Computer-Aided Design and Manufacturing LG3 Computer-Integrated Manufacturing (CIM) -- The uniting of computer- aided design with computer- aided manufacturing. CIM is expensive but it cuts as much as 80% of the time needed to program machines to make parts. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-27

FLEXIBLE MANUFACTURING
LG3 Flexible Manufacturing -- Designing machines to do multiple tasks so they can produce a variety of products. Allen-Bradley uses flexible manufacturing to build motor starters. 26 machines and robots build, test and package parts. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-28

LEAN MANUFACTURING Lean Manufacturing LG3 Lean Manufacturing -- Using less of everything than in mass production. Compared to others, lean companies: Take half the human effort. Have half the defects in finished products. Require one-third the engineering effort. Use half the floor space. Carry 90% less inventory. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-29

MASS CUSTOMIZATION Mass Customization LG3 Mass Customization -- Tailoring products to meet the needs of a large number of individual customers. More manufacturers are learning to customize. Mass customization exists in the service sector too. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-30

MASS CUSTOMIZATION of CANDY (Spotlight on Small Business)
Chocomize lets customers customize their chocolate bars. Co-founder, Eric Heinbockel, sought funding help from his family. Chocomize now has three full-time chocolate makers and is expected to be a success. See Learning Goal 3: Identify various production processes and describe techniques that improve productivity, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. 9-31

PROGRESS ASSESSMENT What is form utility?
Define and differentiate the following: process manufacturing, assembly process, continuous process and intermittent process. What is the integration of CAD and CAM called? What is mass customization? Form utility is the value producers add to materials in the creation of finished goods and services. For example, when a company transforms raw steel into the body of an automobile they are creating form utility. Process manufacturing physically or chemically changes materials, such as turning sand into glass or computer chips. The assembly process puts together components to create a product. For example, cars are made through an assembly process that puts together the frame, engine and other parts. Continuous process involves long production runs turning out finished goods over time. For example, a plant that makes plastic cups is run on a continuous process. Rather than using long runs, an intermittent process involves short runs that respond directly to specific customer orders. An example of this process would include manufacturers of men’s custom business suits. The integration of CAD and CAM is referred to as computer-integrated manufacturing or CIM. Mass customization is the process of tailoring products to meet the demands of a large number of individual customers. One example of this process is NIKEiD which allows customers to design athletic shoes by choosing from a variety of colors and designs. For more information on this process go to 9-32

OPERATIONS MANAGEMENT
Operations Management Planning LG4 Operations management planning helps solve problems like: Facility location Facility layout Materials requirement planning Purchasing Inventory control Quality control See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-33

FACILITY LOCATION Facility Location LG4 Facility Location -- The process of selecting a geographic location for a company’s operations. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. Rising numbers of Internet businesses means brick-and-mortar retailers must find great locations. 9-34

STAY or LEAVE (Making Ethical Decisions)
Potential of low-cost labor is very attractive to companies hoping to remain competitive. However, shuttering operations and moving can often cause severe economic problems in dependent areas. What would you do if you were the CEO of ChildrenWear Industries faced with this problem? See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-35

OPERATIONS MANAGEMENT on the INTERNET
Taking Operations Management to the Internet OPERATIONS MANAGEMENT on the INTERNET LG4 Sometimes businesses outsource engineering, design and manufacturing to other companies. Often these relationships are managed through the Internet. Many companies are developing Internet-focused strategies. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-36

FUTURE FACILITY LOCATION
Facility Location in the Future LG4 Information technology gives firms increased flexibility in terms of location. Telecommuting -- Working from home via computer. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-37

SETTING UP the FACILITY
Facility Layout LG4 Facility Layout -- The physical arrangement of resources, including people, to most efficiently produce goods and provide services. Facility layout depends on the processes performed: Service: Help customers find products Manufacturing: Improve efficiency See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-38

FACILITY LAYOUT OPTIONS
LG4 Assembly Line Layout – Workers do only a few tasks at a time. Modular Layout – Teams of workers produce more complex units of the final product. Fixed-Position Layout – Allows workers to congregate around the product. Process Layout – Similar equipment and functions are grouped together. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-39

ASSEMBLY LINE LAYOUT Facility Layout LG4
See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-40

MODULAR LAYOUT Facility Layout LG4

PROCESS LAYOUT Facility Layout LG4

FIXED-POSITION LAYOUT
Facility Layout LG4 See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-43

MRP and ERP Materials Requirement Planning LG4 Materials Requirement Planning (MRP) -- A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed. Enterprise Resource Planning (ERP) -- A newer version of MRP, combines computerized functions into a single integrated software program using a single database. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-44

PURCHASING The Internet has transformed purchasing.
LG4 Purchasing -- The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services. The Internet has transformed purchasing. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-45

INVENTORY CONTROL Just-in-Time Inventory Control LG4 Just-in-Time (JIT) Inventory Control -- The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line. To work effectively, the process requires excellent coordination with suppliers. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. A JIT system makes sure the right materials are at the right place at the right time at the cheapest cost to meet both customer and production needs. To start a discussion with students ask the following question: While the benefits of the JIT system are obvious what are some of the drawbacks? 9-46

Photo Courtesy of: Argonne National Laboratory
QUALITY CONTROL Quality Control LG4 Quality -- Consistently producing what the customer wants while reducing errors before and after delivery. Six Sigma Quality -- A quality measure that allows only 3.4 defects per million opportunities. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. Photo Courtesy of: Argonne National Laboratory 9-47

STATISTICAL QUALITY CONTROL & STATISTICAL PROCESS CONTROL
LG4 Statistical Quality Control -- A process used to continually monitor all phases of the production process. Statistical Process Control -- A process of testing statistical samples of product components at each stage of production. Measuring quality along the production process reduces the need for quality control at the end. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-48

The BALDRIGE AWARDS Companies can apply for awards in these areas:
LG4 Companies can apply for awards in these areas: Manufacturing Services Small Businesses Non-Profit/Government Education Healthcare See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. 9-49

THE WINNERS ARE… 2010 Baldrige Award Recipients
The Baldrige Awards LG4 Company Category Where from? MEDRAD Manufacturing Warrendale, PA Nestlé Purina PetCare St. Louis, MO Freese and Nichols Small Business Ft. Worth, TX K & N Management Austin, TX Studer Group Gulf Breeze, FL Advocate Good Samaritan Hospital Healthcare Downers Grove, IL Montgomery County Public Schools Education Rockville, MD See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. Baldrige Award Recipients This slide presents the 2010 Baldrige National Quality Award recipients. Awardees included two manufacturers, three small businesses, one health care system, and one school system. 3. To better understand the process have students spend time reviewing the website. Source: National Institute of Standards and Technology, accessed June 2011. 9-50

WHAT is ISO? ISO 9000 and ISO Standards LG4 The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies. ISO The common name given to quality management and assurance standards. ISO A collection of the best practices for managing an organization’s impact on the environment. See Learning Goal 4: Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. ISO is the world’s largest developer and publisher of international standards. The purpose of ISO is to form a bridge between the public and private sectors. ISO is based in Switzerland. 9-51

PROGRESS ASSESSMENT What are the major criteria for facility location?
What is the difference between MRP and ERP? What is just-in-time inventory control? What are Six Sigma quality, the Baldrige Award, ISO 9000 and ISO 14000? Managers must always consider the customer and the impact on customers’ ability to use the company’s services and to communicate about their needs. Other criteria that need to be considered include: labor costs, availability of resources, access to transportation, proximity to customers, suppliers, crime rates, quality of life for employees and the cost of living, to mention but a few. Materials requirement planning or (MRP) is a computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place. Enterprise resource planning (ERP), a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm into a single integrated software program that uses a single database. One major expense in the production process is the holding of parts. The goal of just-in-time inventory is to eliminate or reduce that cost. Just-in-time inventory systems keep a minimum of inventory on the premises and only deliver parts just as they are needed on the factory floor. Six Sigma is a quality-control standard which sets a benchmark of no more than 3.4 defects per million opportunities. The Baldrige Award was created in 1987 to promote a standard for overall quality in the following areas: manufacturing, services, small business, education, and health care. The award was named after Malcolm Baldrige, the late U.S. secretary of commerce. The International Organization for Standardization or ISO is a worldwide federation of national standards bodies from more than 140 countries. This nongovernmental organization establishes global measures for the quality of individual products. ISO 9000 is the common name given to quality management and assurance standards, while ISO is a collection of the best practices for managing an organization’s environmental impact. 9-52

PERT Control Procedures: PERT and Gantt Charts LG5 Program Evaluation and Review Technique (PERT) -- A method for analyzing the tasks involved in completing a given project and estimating the time needed. See Learning Goal 5: Explain the use of PERT and Gantt charts to control manufacturing processes. The Program Evaluation and Review Technique (PERT) was developed in the 1950s with the construction of the Navy’s Polaris submarine project. 9-53

STEPS INVOLVED in PERT Analyzing and sequencing tasks
Control Procedures: PERT and Gantt Charts LG5 Analyzing and sequencing tasks Estimating the time needed to complete each task Drawing a PERT network illustrating the first two steps Identifying the critical path Critical Path -- The sequence of tasks that takes the longest time to complete. See Learning Goal 5: Explain the use of PERT and Gantt charts to control manufacturing processes. 9-54

PERT CHART for a MUSIC VIDEO
Control Procedures: PERT and Gantt Charts LG5 See Learning Goal 5: Explain the use of PERT and Gantt charts to control manufacturing processes. 9-55

GANTT CHARTS Control Procedures: PERT and Gantt Charts LG5 Gantt Chart – A bar graph that shows what projects are being worked on and how much has been completed. See Learning Goal 5: Explain the use of PERT and Gantt charts to control manufacturing processes. Henri Gantt created the Gantt Chart which allows management to chart workflow and improve worker productivity. The Gantt Chat is the forerunner to PERT. 9-56

GANTT CHART for a DOLL FACTORY
Control Procedures: PERT and Gantt Charts GANTT CHART for a DOLL FACTORY LG5 See Learning Goal 5: Explain the use of PERT and Gantt charts to control manufacturing processes. 9-57

PROGRESS ASSESSMENT Progress Assessment Draw a PERT chart for making breakfast of three- minute eggs, buttered toast and coffee. Define the critical path. How could you use a Gantt chart to keep track of production? To answer this question please refer to figure 9.3 in the textbook. A Gantt chart is a scheduling mechanism used by manufacturers for measuring production progress. This chart will give management a clear idea as to the status of the project and how much has been completed at any given time. 9-58

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