business copyright 2005 prentice- hall, inc. 14-1
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Copyright 2005 Prentice- Hall, Inc. 14-1
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14-2
ChapteChapte
rr 1414
Producing Goods Producing Goods And ServicesAnd Services
Copyright 2005 Prentice- Hall, Inc. 14-3
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ess Chapter OutlineChapter Outline
What Does “Production” What Does “Production” Mean TodayMean Today
Creating Value Through Creating Value Through OperationsOperations
Operations PlanningOperations PlanningOperations SchedulingOperations SchedulingOperations ControlOperations Control
Copyright 2005 Prentice- Hall, Inc. 14-4
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Operations &Operations &Production GrowthProduction Growth
• DefinitionsDefinitions–Service OperationService Operation
–Goods ProductionGoods Production
• Global OperationsGlobal Operations
• Technology/InternetTechnology/Internet
• Quality PlanningQuality Planning
Copyright 2005 Prentice- Hall, Inc. 14-5
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Goods/ServicesGoods/ServicesEmploymentEmployment
Copyright 2005 Prentice- Hall, Inc. 14-6
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ess Goods/Services GDPGoods/Services GDP
Copyright 2005 Prentice- Hall, Inc. 14-7
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Top 5 U.S. Top 5 U.S. Manufacturing StatesManufacturing States
0 100 200 Miles
WASHINGTON
OREGON
IDAHO
MONTANA
WYOMING
NEVADA
CALIFORNIA
UTAH
ARIZONA
COLORADO
NEW MEXICO
KANSAS
OKLAHOMA
MISSOURI
ARKANSAS
TEXAS
LOUISIANA
MISSISSIPPI
ILLINOIS
NORTH DAKOTA
SOUTH DAKOTA
MINNESOTA
WISCONSIN
IOWA
NEBRASKA
MICHIGAN
MICHIGAN
INDIANA
OHIO
WESTVIRGINIA
PENNSYLVANIA
NEW YORK
VIRGINIA
DC
KENTUCKY
VTNH
MAINE
RI
MASS
CONN
NEWJERSEY
DELAWARE
MARYLAND
NORTH CAROLINA
TENNESSEE
ALABAMA GEORGIA
SOUTHCAROLINA
FLORIDA
HAWAII
ALASKA
0 600 Miles0 200 Miles
CaliforniCaliforniaa
New YorkNew York
IllinoisIllinois
OhiOhioo
PennsylvaniPennsylvaniaa
TexaTexass
Copyright 2005 Prentice- Hall, Inc. 14-8
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ess UtilityUtility
• Product’s Ability To Satisfy Product’s Ability To Satisfy WantWant
• TypesTypes– TimeTime
–PlacePlace
–PossessionPossession
– FormForm
Copyright 2005 Prentice- Hall, Inc. 14-9
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ess Operations (Production)Operations (Production)
• Management- Systematic Management- Systematic Direction/Control Of Processes Direction/Control Of Processes That Transform That Transform Resources Into Finished Resources Into Finished Goods Creating ValueGoods Creating Value
• Managers- Ensure Processes Managers- Ensure Processes Create Value/BenefitsCreate Value/Benefits
Copyright 2005 Prentice- Hall, Inc. 14-10
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ess Transformation ProcessTransformation Process
Copyright 2005 Prentice- Hall, Inc. 14-11
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ess Goods ManufacturingGoods Manufacturing
•AnalyticAnalytic
•SyntheticSynthetic
Copyright 2005 Prentice- Hall, Inc. 14-12
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ess Service ProcessesService Processes
• Service: Extent Of Customer Service: Extent Of Customer ContactContact
• High-ContactHigh-Contact
• Low-ContactLow-Contact
Copyright 2005 Prentice- Hall, Inc. 14-13
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Focus of ServiceFocus of Servicevs. Manufacturingvs. Manufacturing
• PerformancePerformance• Process & OutcomeProcess & Outcome• Service CharacteristicsService Characteristics• Customer-Service LinkCustomer-Service Link• E-Commerce- “Virtual” E-Commerce- “Virtual”
Presence Of CustomerPresence Of Customer• Service Quality ConsiderationsService Quality Considerations
Copyright 2005 Prentice- Hall, Inc. 14-14
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ess Operations PlanningOperations Planning
• CapacityCapacity• For ProducingFor Producing–GoodsGoods–ServicesServices
• LocationLocation–GoodsGoods–ServicesServices
Copyright 2005 Prentice- Hall, Inc. 14-15
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Operations Operations Planning/ControlPlanning/Control
Copyright 2005 Prentice- Hall, Inc. 14-16
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ess Service CharacteristicsService Characteristics
• IntangibilityIntangibility
• CustomizationCustomization
• UnstorabilityUnstorability
Copyright 2005 Prentice- Hall, Inc. 14-17
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ess Layout PlanningLayout Planning
• Producing GoodsProducing Goods– Productive FacilitiesProductive Facilities– Nonproductive FacilitiesNonproductive Facilities– Support FacilitiesSupport Facilities
• Product LayoutsProduct Layouts– ProcessProcess– CellularCellular– ProductProduct– Others For FlexibilityOthers For Flexibility
• Service LayoutService Layout
Copyright 2005 Prentice- Hall, Inc. 14-18
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ess Process LayoutProcess Layout
Copyright 2005 Prentice- Hall, Inc. 14-19
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ess Cellular LayoutCellular Layout
Copyright 2005 Prentice- Hall, Inc. 14-20
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ess Goods Producing LayoutGoods Producing Layout
Copyright 2005 Prentice- Hall, Inc. 14-21
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ess Cafeteria LayoutCafeteria Layout
Copyright 2005 Prentice- Hall, Inc. 14-22
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Other Layout Other Layout DevelopmentsDevelopments
• U-Shaped Production U-Shaped Production LinesLines
• Flexible Manufacturing Flexible Manufacturing SystemSystem
Copyright 2005 Prentice- Hall, Inc. 14-23
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ess QualityQuality
“…“…characteristics of a product characteristics of a product
or service that bear on its or service that bear on its
ability to satisfy stated or ability to satisfy stated or
implied needs.” implied needs.”
––American Society for QualityAmerican Society for Quality
Copyright 2005 Prentice- Hall, Inc. 14-24
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ess Methods PlanningMethods Planning
• Methods ImprovementMethods Improvement–GoodsGoods–ServicesServices
• Service Flow AnalysisService Flow Analysis• Designing To Control Employee Designing To Control Employee
DiscretionDiscretion• Design For Customer ContactDesign For Customer Contact
Copyright 2005 Prentice- Hall, Inc. 14-25
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ess Service Flow AnalysisService Flow Analysis
Copyright 2005 Prentice- Hall, Inc. 14-26
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ess Operations SchedulingOperations Scheduling
• Master Production Schedule Master Production Schedule
• Tools for SchedulingTools for Scheduling–Gantt ChartGantt Chart
–PERT ChartPERT Chart
SCHEDULE
Copyright 2005 Prentice- Hall, Inc. 14-27
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ess Gantt ChartGantt Chart
Copyright 2005 Prentice- Hall, Inc. 14-28
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ess PERT ChartPERT Chart
Copyright 2005 Prentice- Hall, Inc. 14-29
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ess Operations ControlOperations Control
• Material ManagementMaterial Management
• Operations Process Operations Process ControlControl
• FollowupFollowup
Copyright 2005 Prentice- Hall, Inc. 14-30
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ess Materials ManagementMaterials Management
• Plan/Organize Material FlowPlan/Organize Material Flow• Emphasizes StandardizationEmphasizes Standardization• Areas Of Material ManagementAreas Of Material Management– TransportationTransportation–WarehousingWarehousing– Inventory ControlInventory Control–PurchasingPurchasing
Copyright 2005 Prentice- Hall, Inc. 14-31
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ess Purchasing ProcessesPurchasing Processes
• Forward BuyingForward Buying
• Holding CostsHolding Costs
• Opportunity CostsOpportunity Costs
• Hand-To-Mouth PatternHand-To-Mouth Pattern
• Lead TimesLead Times
Copyright 2005 Prentice- Hall, Inc. 14-32
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ess Supplier SelectionSupplier Selection
• InvestigateInvestigate
• Evaluate/IsolateEvaluate/Isolate
• NegotiateNegotiate
• MaintainMaintain
Copyright 2005 Prentice- Hall, Inc. 14-33
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Tools ForTools ForProcess ControlProcess Control
• Worker TrainingWorker Training
• Lean Production Systems: JITLean Production Systems: JIT
• Materials Requirement PlanningMaterials Requirement Planning–Bill Of MaterialsBill Of Materials
–Manufacturing Resource PlanningManufacturing Resource Planning
• Quality ControlQuality Control
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