m5l2 - Spring 2011 Module 5 Production Quality Lecture 2...

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David Robinson © D. Robinson, 2009 Spring 2011 Module 5 Production & Quality Lecture 2: Production I
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2 Production and Quality Management Quality Manufacturing Production Service Operations Module Overview 1 2 3
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3 Manufacturing Production Decisions Manufacturing Process Selection Project Management Site Selection Supply Chain
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Lecture Outline Outsourcing: Make versus buy ° The “Virtual Corporation” Production Processes ° The “efficient diagonal” Introduction to Flow Charting 4
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OUTSOURCING Why should we make anything ? (“Offshoring” is just outsourcing to an overseas supplier)
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6 The Tasks of the Production System* 1. Provide what the customer wants, when they want it 2. Meet or exceed customer’s expectations for “quality” 3. Achieve the lowest possible cost * Andy Grove, former longtime CEO of Intel®
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7 An Important Production Decision: Should we make or buy? The Outsourcing decision
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8 Making everything ourselves Does it make sense for the bike factory to make its own paint?
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