Business Copyright 2005 Prentice Hall Inc 1 Chapter
Business Copyright 2005 Prentice- Hall, Inc. 1
Chapter 14 Producing Goods And Services 14 -2
Business Chapter Outline üWhat Does “Production” Mean Today üCreating Value Through Operations üOperations Planning üOperations Scheduling üOperations Control Copyright 2005 Prentice- Hall, Inc. 3
Business Operations & Production Growth • Definitions – Service Operation – Goods Production • Global Operations • Technology/Internet • Quality Planning Copyright 2005 Prentice- Hall, Inc. 4
Business Goods/Services Employment Copyright 2005 Prentice- Hall, Inc. 5
Business Goods/Services GDP Copyright 2005 Prentice- Hall, Inc. 6
Business Top 5 U. S. Manufacturing States New York Illinois Ohio California Pennsylvani Texas Copyright 2005 Prentice- Hall, Inc. 7
Business Utility • Product’s Ability To Satisfy Want • Types – Time – Place – Possession – Form Copyright 2005 Prentice- Hall, Inc. 8
Business Operations (Production) • Management- Systematic Direction/Control Of Processes That Transform Resources Into Finished Goods Creating Value • Managers- Ensure Processes Create Value/Benefits Copyright 2005 Prentice- Hall, Inc. 9
Business Transformation Process Copyright 2005 Prentice- Hall, Inc. 10
Business Goods Manufacturing • Analytic • Synthetic Copyright 2005 Prentice- Hall, Inc. 11
Business Service Processes • Service: Extent Of Customer Contact • High-Contact • Low-Contact Copyright 2005 Prentice- Hall, Inc. 12
Business Focus of Service vs. Manufacturing • • • Performance Process & Outcome Service Characteristics Customer-Service Link E-Commerce- “Virtual” Presence Of Customer • Service Quality Considerations Copyright 2005 Prentice- Hall, Inc. 13
Business Operations Planning • • Capacity For Producing – Goods – Services • Location – Goods – Services Copyright 2005 Prentice- Hall, Inc. 14
Business Operations Planning/Control Copyright 2005 Prentice- Hall, Inc. 15
Business Service Characteristics • Intangibility • Customization • Unstorability Copyright 2005 Prentice- Hall, Inc. 16
Business Layout Planning • Producing Goods – – – Productive Facilities Nonproductive Facilities Support Facilities • Product Layouts – – Process Cellular Product Others For Flexibility • Service Layout Copyright 2005 Prentice- Hall, Inc. 17
Business Process Layout Copyright 2005 Prentice- Hall, Inc. 18
Business Cellular Layout Copyright 2005 Prentice- Hall, Inc. 19
Business Goods Producing Layout Copyright 2005 Prentice- Hall, Inc. 20
Business Cafeteria Layout Copyright 2005 Prentice- Hall, Inc. 21
Business Other Layout Developments • U-Shaped Production Lines • Flexible Manufacturing System Copyright 2005 Prentice- Hall, Inc. 22
Business Quality “…characteristics of a product or service that bear on its ability to satisfy stated or implied needs. ” –American Society for Quality Copyright 2005 Prentice- Hall, Inc. 23
Business Methods Planning • Methods Improvement – Goods – Services • Service Flow Analysis • Designing To Control Employee Discretion • Design For Customer Contact Copyright 2005 Prentice- Hall, Inc. 24
Business Service Flow Analysis Copyright 2005 Prentice- Hall, Inc. 25
Business Operations Scheduling • Master Production Schedule • Tools for Scheduling – Gantt Chart – PERT Chart Copyright 2005 Prentice- Hall, Inc. ULE SCHED 26
Business Gantt Chart Copyright 2005 Prentice- Hall, Inc. 27
Business PERT Chart Copyright 2005 Prentice- Hall, Inc. 28
Business Operations Control • Material Management • Operations Process Control • Followup Copyright 2005 Prentice- Hall, Inc. 29
Business Materials Management • Plan/Organize Material Flow • Emphasizes Standardization • Areas Of Material Management – Transportation – Warehousing – Inventory Control – Purchasing Copyright 2005 Prentice- Hall, Inc. 30
Business Purchasing Processes • Forward Buying • Holding Costs • Opportunity Costs • Hand-To-Mouth Pattern • Lead Times Copyright 2005 Prentice- Hall, Inc. 31
Business Supplier Selection • Investigate • Evaluate/Isolate • Negotiate • Maintain Copyright 2005 Prentice- Hall, Inc. 32
Business Tools For Process Control • Worker Training • Lean Production Systems: JIT • Materials Requirement Planning – Bill Of Materials – Manufacturing Resource Planning • Quality Control Copyright 2005 Prentice- Hall, Inc. 33
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