b10chap9 - 1/3/2012 Chapter 9: PRODUCTION and Operations...

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1/3/2012 1 Chapter 9: PRODUCTION and Operations Management “America isn’t making anything anymore.” - Ross Perot, Presidential Candidate, 1992 True or False? The United States produces almost 25 percent of all goods produced in the world each year.
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1/3/2012 2 • From 2001 to 2009, manufacturing output in the U.S. rose 4% each year. • The U.S. is still the world’s leading manufacturer. • Almost 25% of all goods produced each year come from the U.S. 9-4 Source: Parade Magazine, www.parade.com/intel , April 19, 2009. 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 9-6
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1/3/2012 3 Source: Industry Week, www.industryweek.com . Rank Company 1 Exxon-Mobil 2 Chevron 3 ConocoPhillips 4 General Electric 5 General Motors 6 Ford Motor 7 Valero Energy 8 Hewlett-Packard 9I B M 10 Procter & Gamble 9-7 True or False? About 70 percent of U.S. GDP and 85% of U.S. jobs now come from the service sector . True or False? Overall, the green economy is worth more than $209 billion annually.
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1/3/2012 4 At least two well-known solar PV module manufacturers went bankrupt in 2011: ` Solyndra ` Evergreen Solar Source Cost per kWh Residential rooftop solar (Calif.) 30 cents Utility scale PV 14 cents Retail Electricity Price 11 cents PG&E’s marginal cost 5 cents
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1/3/2012 5 How can U.S. businesses maintain a competitive edge? ` Focusing on customers ` Practicing continuous improvement ` Focusing on quality ` Relying on the Internet to unite companies ` Adopting new production techniques. Production Management: All the activities managers do to help firms create goods .
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b10chap9 - 1/3/2012 Chapter 9: PRODUCTION and Operations...

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