1. Achieving World-Class Operations Management Chapter 8 *addt’l materials included

2. I. History Of Prod/Operations Mgmt A. Early and crucial innovations 1. fuel energy 2. scientific management 3.mass production (moving assembly line) B. Postwar supremacy

3. C. Planned obsolescence - goods made to last only a short period of time D. American manuf. Joins global marketplace –alternatives to traditional mass-producing methods adopted from other countries (JIT, quality circles) -benchmarking - identify a company that is the best in the world at some process and copy them

4. II. Elements of Production Planning A. Production processes 1. Mass production 2. Mass customization Example products: Dell computers, Levi’s jeans, compact discs (cductive.com), Mattel Barbie dolls, (Source: Fortune, Sept. 28, 1998, pp. 115-124) 3. Customization 4. Converting inputs to outputs a. process manufacturing b. assembly process

5. B. Site selection Site selection considerations: 1. Availability of production inputs 2. Marketing factors 3. Local incentives 4. Manufacturing environment 5. International location considerations

6. C. Types of facility layout 1. Process layout 2. Product layout 3. Fixed-position layout

7. D. Supply chain management 1. Supply Chain Mgmt Strategies a. smooth transitions along the supply chain b. improve supplier communication - electronic data interchange (EDI)

8. III. Production Control (cont’d) A. Scheduling 1. Gantt charts 2. Critical path method & PERT

9. Typical Gantt Chart Scheduling Designing Ordering Delivering materials Machining components Assembling Inspecting Shipping SeptemberOctober 8 Symbols: scheduled startcompleted work time not avail. scheduled endreview date

10. IV. Improving Quality A. Total Quality Management B. Just-in-time C. Technology/Automation -computer-aided design (CAD) -computer-aided manufacturing (CAM) D. Managing quality control 1. define quality characteristics 2. establish quality standards 3. develop the quality review program 4. build quality commitment E. Quality circles