Chapter 9 - Chapter 9: Operations Management I. U.S....

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Chapter 9: Operations Management I. U.S. Manufacturing in Perspective a. What manufacturers have done to become more competitive a.i. Focus on customers a.ii. Maintain close relationship with suppliers & other companies to satisfy customer needs a.iii. Practice continuous improvement a.iv. Focus on quality a.v. Save on costs through site selection a.vi. Rely on internet to unite companies a.vii. Adopt new production techniques such as enterprise resource planning, computer integrated manufacturing, flexible manufacturing, and lean manufacturing II. From production to operations management a. Production : a.i. the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge b. Production management b.i. The term used to describe all the activities managers do to help their firms create goods c. Operations management c.i. A specialized area in management that converts or transforms resources (including human resources) into goods and services c.ii. Examples: c.ii.1. investory management c.ii.2. quality control c.ii.3. production scheduling c.ii.4. follow-up services d. Operations Management in the service sector d.i. About creating a good experience for whose who use the service III. A compressed history a. Vertical integration a.i. Integrated production processes a.ii. Specialized supply chains a.iii. Economies of scale b. Interchangeable parts b.i. “interchangeable” labor b.ii. Emphasis on “generalist” management b.iii. Economies of cale c. Specialized machines c.i. High speed of production c.ii. High investment c.iii. Economies of scale IV. Economies of scale
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a. Reduction in cost per unit resulting from increased production, realized through operational efficiencies b. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit alls c. Short term economies of scale are the result of spreading fixed costs across all throughput d. Intermediate term economies of scale are the result of having longer production runs e. Long term economies of scale are the result of physics, which dictate that unit cost as a funcoitn of capacity I equal to a function aC^(b-1), where b lies between 0.6 and 1 V. Production Processes a. Production adds value (utility) to materials (processes) b. Form utility : b.i. the value added by the creation of finished goods and services, such as the value added by taking silicon and making computer chips or putting services together to create a vacation package c. Three basic requirements of production c.i. To build and deliver products in response to the demands of the customer t a scheduled delivery time c.ii. To provide an acceptable quality level c.iii. To provide everything at the lowest possible cost d. Production process d.i. Inputs d.i.1. land d.i.2. labor d.i.3. capita d.i.4. entrepeneruship d.i.5. knowledge d.ii. production control d.ii.1. planning d.ii.2. routing d.ii.3. scheduling d.ii.4. dispatching
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This note was uploaded on 02/23/2012 for the course MGT 101 taught by Professor Staff during the Fall '10 term at Texas State.

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Chapter 9 - Chapter 9: Operations Management I. U.S....

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