BUAD 110 Chapter 9 - Operations Management

BUAD 110 Chapter 9 - Operations Management - BUAD Chapter 9...

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BUAD Chapter 9 World-Class Goods and Services Note: Richard Dauch - Youngest manager of Chevrolet at age 30. -So successful that he was recruited by Chrysler to be V.P. of manufacturing in North America. -He got promoted to executive vice-president for diversified operations where he improved both productivity and quality. - Introduced flexible spending U.S. Manufacturing in Perspective -“What’s good for the country is good for General Motors, and vice versa.” - head of GM 50 years ago. -Many reasons this is right: GM supports some 900,000 jobs, pays 8.7 billion in factory employees, and it impacts America’s economy. -Toyota: “The Smartest Company of the Year” -“Hyundai: Crowding into the East Lane” -However, when gas prices skyrocketed, the car industry suffered. Just like Japan was supposed to dominate all the manufacturing firms until its economy crashed, car manufacturing was a huge steady industry until gas prices went up. -The United States still is a good place to make cars however, still one of the premier manufacturing centers of the world. -Many U.S. countries are outsourcing manufacturing to other countries though. However, other countries are outsourcing to the U.S. as well. -Overall U.S. production is expected to rise by 2009. What Manufacturers Have Done to Become More Competitive -Manufacturing involves more than just building cars. -They have emphasized the following: •Focusing on Customers •Maintaining close relationships with suppliers and other companies to satisfy customer needs •Practicing continuous improvement •Focusing on quality •Saving on costs through site selection •Relying on the Internet to unite companies •Adopting new production techniques such as enterprise resource planning, computer integrated manufacturing, flexible manufacturing, and lean manufacturing. -David Audretcch says “You’re not going to be able to compete on price. You’re going to have to live off having a new idea that other companies around the globe don’t have.” -Wall Street Journal: “Research, particularly in the physical sciences and engineering, is the foundation of our innovative economy. . “ -There is room for optimism in the United States when it comes to innovation. -The service sector of the economy will also continue to get attention as it becomes a larger and larger part of the overall economy. From Production to Operations Management Production: the creation of goods and services using the factors of production- land, labor, capital, entrepreneurship and knowledge. -has historically been associated with manufacturing, but the nature of the business has changed recently. (Internet has grown dramatically) -United States has a service economy: one dominated by the service sector. Production Management: the term used to describe all the activities managers do to help their firms
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This note was uploaded on 04/07/2008 for the course BUAD 110 taught by Professor Kydd during the Fall '07 term at University of Delaware.

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BUAD 110 Chapter 9 - Operations Management - BUAD Chapter 9...

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