Production of Quality Goods and Services

1. Production of Quality Goods and Services Excellence in Business, Revised Edition

2. What is Production? • Production Operations Management • Planning • Leading • Organizing • Controlling Excellence in Business, Revised Edition

3. What is the Conversion Process? • Core process • Inputs • Transformation • Outputs • Conversion types • Analytic • Synthetic Excellence in Business, Revised Edition

4. System Inputs Transformation Components Transformation Function Typical Desired Output Hospital Patients, medical supplies MDs, nurses, equipment Health care Healthy individuals Restaurant Hungry customers, food Chef, waitress, environment Well-prepared & well-served food Satisfied customers Automobile Factory Sheet steel, engine parts Tools, equipment, workers Fabrication & assembly of cars High-quality cars College or University High School graduates, books Teachers, classrooms Impart knowledge & skills Educated individuals Department Store Shoppers, stock of goods Displays, sales clerks Attract customers, promote products, fill orders Sales to satisfied customers Input-Transformation-Output Relationships for Typical Systems Excellence in Business, Revised Edition

5. Production Process Design • Forecasting demand • Planning for capacity • Choosing facility location • Designing facility layout • Scheduling work Excellence in Business, Revised Edition

6. Forecasting Demand • Customer feedback • Market research • Sales figures • Industry analyses • Educated guesses Excellence in Business, Revised Edition

7. Capacity Planning • Expanding facilities • Contracting facilities • Risks • Long-term capacity decisions • Shifts in customer demand Excellence in Business, Revised Edition

8. Land Construction Labor Local taxes Energy Living standards Transportation Raw materials Facility Location Excellence in Business, Revised Edition

9. Types of Facility Layout • Process • Product • Cellular • Fixed-position Excellence in Business, Revised Edition

10. Process Layout • Made-to-order products • Process arrangement • Specialized employees • Specialized materials Excellence in Business, Revised Edition

11. Product Layout • Mass production of few items • Process arrangement • Continuous sequence Excellence in Business, Revised Edition

12. Cellular Layout • Mass customization • Process arrangement • Work centers • Teamwork Excellence in Business, Revised Edition

13. Fixed-Position Layout • Immovable product • Process arrangement • Employee go to the site • Materials are brought to the site Excellence in Business, Revised Edition

14. Production Schedule • Scheduling • Dispatching • Contingencies Excellence in Business, Revised Edition

15. The Gantt Chart • ID Number • Task name • Start date • End date • Duration Excellence in Business, Revised Edition

16. Identify activities Sequence activities Establish time frame Diagram activity network Identify critical path Refine timing Program Evaluation and Review Technique (PERT) Excellence in Business, Revised Edition

17. PERT Time Estimates • Optimistic • Pessimistic • Most likely • Expected Excellence in Business, Revised Edition

18. PERT Diagram for Manufacturing Shoes • Critical path • Receiving • Cutting the pattern • Dyeing the leather • Sewing the tops • Sewing tops to soles and heels • Finishing • Packaging • Shipping Excellence in Business, Revised Edition

19. Robots Computer-aided design Computer-aided engineering Computer-aided manufacturing Computer-integrated manufacturing Improving Production Through Technology Excellence in Business, Revised Edition

20. Mass Production Mass Customization Resistant to Change Conducive to Change High Set-Up Costs Minimal Set-Up Costs Manufacturing Systems Traditional Manufacturing Flexible Manufacturing Excellence in Business, Revised Edition

21. The Production Process • Operations management • Inputs • Transformation • Outputs Excellence in Business, Revised Edition

22. Inventory Management • Purchasing • Lead time • Inventory control Excellence in Business, Revised Edition

23. Inventory Control • Just-in-time (JIT) • Materials requirements planning (MRP) • Manufacturing resource planning (MRP) Excellence in Business, Revised Edition

24. Manufacturing Resource Planning • Input of data • Computer processing • Output of data Excellence in Business, Revised Edition

25. Maintaining Quality • Quality control • Quality assurance Excellence in Business, Revised Edition

26. What is Total Quality Management? • Employee involvement • Customer focus • Benchmarking • Continuous improvement Excellence in Business, Revised Edition

27. Quality Initiatives • Six Sigma • Cost control • Process improvement • Cycle-time reduction • ISO Certification • Customer satisfaction • User needs • Continuous improvement Excellence in Business, Revised Edition

28. Supply Chain Management • Suppliers • Manufacturers • Distributors • Retailers Excellence in Business, Revised Edition

29. Redirect Resources and Capital Improve Overall Quality Increase Production Efficiencies Maximize the Use of Time Access State-of-the-Art Facilities Reduce Work-in-Process Inventory Manufacturing Trends Outsourcing Supplier Involvement Excellence in Business, Revised Edition