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Nickels McHugh McHugh

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Nickels McHugh McHugh

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    1. 9-1 Nickels McHugh McHugh

    2. 9-2 Leading U.S. Manufacturing States Also available on a Transparency Acetate See Learning Objective 1: Describe the evolution of production in the United States. Leading US Manufacturing States This slide identifies the seven leading manufacturing states in the U.S. Ask the students if they are surprised these states represent the largest in manufacturing. Students may be interested in the following statistics of the approximate number of manufacturers in each state: California – 48,500 companies Texas – 21,450 companies New York – 21,100 Ohio – 17,500 Illinois – 16,860 Pennsylvania – 16,700 Michigan – 15,200 (Source: U.S. census.gov)Also available on a Transparency Acetate See Learning Objective 1: Describe the evolution of production in the United States. Leading US Manufacturing States This slide identifies the seven leading manufacturing states in the U.S. Ask the students if they are surprised these states represent the largest in manufacturing. Students may be interested in the following statistics of the approximate number of manufacturers in each state: California – 48,500 companies Texas – 21,450 companies New York – 21,100 Ohio – 17,500 Illinois – 16,860 Pennsylvania – 16,700 Michigan – 15,200 (Source: U.S. census.gov)

    3. 9-3 Top Ten US Manufacturers ExxonMobil Chevron General Motors ConocoPhillips Ford Motor General Electric Altria Group IBM Corp. Hewlett-Packard Valero Energy Also available on a Transparency Acetate See Learning Objective 1: Describe the evolution of production in the United States. Top Ten Manufacturers This slide presents the top ten manufacturers according to the 2006 Industry Week’s US 500 largest publicly held manufacturing companies based on revenues. The list represents companies from 33 industries, 40 states, and boasts a combined revenue of nearly $4.9 trillion. One quick observation from this slide – it is dominated by the oil and energy companies. Ask the students: How much do you pay per gallon of gas? Does that have any impact on this listing? (Answer is obvious – higher the gas price, more money the oil companies are making in both revenues and profits.) On this list, ExxonMobil had revenue of $363 billion whereas Valero Energy had revenue of $82 billion. (Source: Industry Week, June 1, 2006.)Also available on a Transparency Acetate See Learning Objective 1: Describe the evolution of production in the United States. Top Ten Manufacturers This slide presents the top ten manufacturers according to the 2006 Industry Week’s US 500 largest publicly held manufacturing companies based on revenues. The list represents companies from 33 industries, 40 states, and boasts a combined revenue of nearly $4.9 trillion. One quick observation from this slide – it is dominated by the oil and energy companies. Ask the students: How much do you pay per gallon of gas? Does that have any impact on this listing? (Answer is obvious – higher the gas price, more money the oil companies are making in both revenues and profits.) On this list, ExxonMobil had revenue of $363 billion whereas Valero Energy had revenue of $82 billion. (Source: Industry Week, June 1, 2006.)

    4. 9-4 U.S. MANUFACTURING IN PERSPECTIVE Manufacturing affects the U.S. Economy GM pays its workers about $8.7 billion a year and supports 900,000 jobs. Rising gas prices in 2005 threatened American carmakers and encouraged consumers to buy high gas mileage Japanese cars. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    5. 9-5 . Today, American companies have 60% of the U.S. auto market, compared to 95% in the 1950s. Companies such as BMW, Mercedes, Nissan, and Hyundai have found the U.S. to be a good place to build cars. However, the domestic auto industry is still healthy. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    6. 9-6 How Manufacturers Have Become More Effective Focus on customers Maintain close relationships Continuous improvement Focus on quality Save costs Rely on the Internet New production techniques See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    7. 9-7 From Production to Operations Management Production Production Management Operations Management (OM) See Learning Objective 2: Define operations management. See text pages: 236-237See Learning Objective 2: Define operations management. See text pages: 236-237

    8. 9-8 PRODUCTION is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. Production has usually been associated with manufacturing, but this is changing. The SERVICE SECTOR has grown dramatically. The U.S. now has a SERVICE ECONOMY, one dominated by the service sector. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    9. 9-9 Production Processes Form Utility Process Manufacturing Assembly Process Continuous Process Intermittent Process See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text pages: 238-239See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text pages: 238-239

    10. 9-10 I. U.S. manufacturing in perspective A. What Manufacturers Have Done to Become More Competitive Learning goal 1 Describe the evolution of production in the United States.   See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    11. 9-11 Production Processes II. FROM PRODUCTION TO OPERATIONS MANAGEMENT Learning goal 2 Define operations management. A. Operations Management in the Service Sector   See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    12. Andrew S. Grove, chairman of Intel, defines the THREE BASIC REQUIREMENTS OF PRODUCTION: to build and deliver products in response to the demands of the customer at a scheduled delivery time. to provide an acceptable quality level to provide everything at the lowest possible cost 9-12

    13. 9-13 PRODUCTION PROCESSES Learning goal 3 Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    14. 9-14 TYPES OF PRODUCTION OPERATIONS PROCESS MANUFACTURING is that part of the production process that physically or chemically changes materials. The ASSEMBLY PROCESS is that part of the production process that puts together components. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    15. 9-15 What Is Increasing Productivity? Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. What is Increasing Productivity? This slide presents the factors fueling the productivity gain. The leading factor influencing the gains in productivity is innovation followed by capital improvement. Ask the students: How can innovation influence productivity gains? (Innovation in technology and/or processes can help save time, energy, and investment into the production of goods/services. To elaborate use a simple example of handouts for a class of 30 students: handwritten handouts versus typed on a typewriter handouts versus typed on a word processor on a computer and duplicated on a Xerox machine. Each succeeding one is more efficient then the preceding one as the innovation in technology kicks in.) (The numbers in this chart do not add up to 100% due to non-responses.)Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. What is Increasing Productivity? This slide presents the factors fueling the productivity gain. The leading factor influencing the gains in productivity is innovation followed by capital improvement. Ask the students: How can innovation influence productivity gains? (Innovation in technology and/or processes can help save time, energy, and investment into the production of goods/services. To elaborate use a simple example of handouts for a class of 30 students: handwritten handouts versus typed on a typewriter handouts versus typed on a word processor on a computer and duplicated on a Xerox machine. Each succeeding one is more efficient then the preceding one as the innovation in technology kicks in.) (The numbers in this chart do not add up to 100% due to non-responses.)

    16. 9-16 PRODUCTION PROCESSES Learning goal 3 A. The Need to Improve Production Techniques and Cut Costs B. Computer-Aided Design and Manufacturing C. Computer-Aided Design and Manufacturing D. Flexible Manufacturing E. Lean Manufacturing F. Mass Customization   See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    17. 9-17 Production Techniques Flexible Manufacturing Lean Manufacturing Mass Customization See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text page: 240-241 See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text page: 240-241

    18. 9-18 Operations Management Planning Facility Location Facility Layout Materials Requirement Planning Purchasing J-I-T Inventory Control Quality Control See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. See text pages: 242-250See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. See text pages: 242-250

    19. 9-19   OPERATIONS MANAGEMENT PLANNING Learning goal 4 Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. A. Facility Location B. Facility Layout C. Materials Requirement Planning D. Purchasing E. Just-in-Time Inventory Control F. Quality Control   See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    20. 2. PRODUCTION MANAGEMENT is the term used to describe all the activities managers do to help their firms create goods 9-20

    21. b. OPERATIONS MANAGEMENT is a specialized area in management that converts or transforms resources (including human resources) into goods and services. 9-21

    22. 9-22   CONTROL PROCEDURES: PERT AND GANTT CHARTS Learning goal 5 Explain the use of PERT and Gantt charts to control manufacturing processes.     See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    23. 9-23 Control Procedures Program Evaluation & Review Techniques (PERT) Gantt Chart See Learning Objective 5: Explain the use of PERT and Gantt charts to control manufacturing processes. See text pages: 250-252See Learning Objective 5: Explain the use of PERT and Gantt charts to control manufacturing processes. See text pages: 250-252

    24. 9-24 Gantt Chart Named for its developer, Henry Gantt A bar graph that clearly shows what projects are being worked on and how much has been completed at any given time See Learning Objective 5: Explain the use of PERT and Gantt charts to control manufacturing processes. See text pages: 251-252 See Learning Objective 5: Explain the use of PERT and Gantt charts to control manufacturing processes. See text pages: 251-252

    25. 9-25 PERT Steps Analyzing and sequencing tasks that need to be done Estimating the time needed to complete each task Drawing a PERT network illustrating the information from steps 1 and 2 Identifying the critical path See Learning Objective 5: Explain the use of PERT and Gantt charts to control manufacturing processes. See text page: 251 See Learning Objective 5: Explain the use of PERT and Gantt charts to control manufacturing processes. See text page: 251

    26. 9-26 Production Efficiency Krispy Kreme Doughnuts – 5,208 a minute Twinkies – 972 a minute LifeSavers 5 Flavor Roll – 100 rolls a minute Jell-O Gelatin Boxes – 764 a minute Chips Ahoy! – 4,000 a minute Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Production Efficiency This slide presents the production efficiency of various products. Before introducing this slide, it would be interesting to ask the students to take a guess: How many Krispy Kreme Doughnuts or Twinkies are made every minute? Again it is important to reinforce the point that production efficiency directly translates into cost savings and therefore profits.Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Production Efficiency This slide presents the production efficiency of various products. Before introducing this slide, it would be interesting to ask the students to take a guess: How many Krispy Kreme Doughnuts or Twinkies are made every minute? Again it is important to reinforce the point that production efficiency directly translates into cost savings and therefore profits.

    27. 9-27 COMPUTER-AIDED DESIGN (CAD) is the use of computers in the design of products. COMPUTER-AIDED MANUFACTURING (CAM) is the use of computers in the manufacturing of products. CAD/CAM, the use of both computer-aided design and computer-aided manufacturing, made it pos­sible to custom-design products for small markets. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    28. 9-28 CAD has doubled productivity in many firms. In the past, computer-aided design machines couldn’t talk to computer-aided manufacturing machines. COMPUTER-INTEGRATED MANUFAC­TURING (CIM) is uniting of computer-aided design with computer-aided manufacturing See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    29. 9-29 FACILITY LOCATION FACILITY LOCATION is the process of selecting a geographic location for a company’s operations. One strategy is to find a site that makes it easy for consumers to USE the company’s service, such as putting flower shops and banks in supermarkets. The ultimate convenience is shopping through the Internet. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    30. 9-30 FACILITY LOCATION The most successful service-sector businesses are conveniently located. Facility Location for manufacturers Manufacturers often choose sites that are close to inexpensive labor or to the right kind of labor. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    31. 9-31 FACILITY LOCATION Manufacturers often choose sites that are close to inexpensive labor or to the right kind of labor. low-cost labor remains the key reason manufacturers move their plants, even though labor cost is becoming a smaller portion of total production costs. Firms should maintain the SAME QUALITY STANDARDS AND FAIR LABOR PRACTICES wherever they produce. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    32. 9-32 LEAN MANUFACTURING is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, less engineering time to develop a new product in half the time. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    33. 9-33 Three Requirements For Production Build and deliver products in response to the demands of the customer at a scheduled delivery time Provide an acceptable quality level Provide everything at the lowest possible cost See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text page: 239See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text page: 239

    34. 9-34 Product Improvements With Computer Technology Computer-Aided Design - CAD Computer-Aided Manufacturing - CAM Computer-Integrated Manufacturing - CIM See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text page: 240See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. See text page: 240

    35. 9-35 Labor Hours / Vehicle Ford – 35.79 hours Daimler/Chrysler – 33.71 hours GM – 33.19 hours Honda – 32.51 hours Toyota – 29.4 hours Nissan – 28.46 hours Also available on a Transparency Acetate See Learning Objective 1: Describe the evolution of production in the United States. Labor Hours / Vehicle This slide presents the production efficiency of the top six automakers – how many labor hours does each take to manufacture a vehicle. The three Japanese automakers lead the industry in efficiency with Nissan leading at 28.46 hours per vehicle. The two American automakers lag behind the Japanese automakers. However, GM is closing the gap fast with less than one labor hour per vehicle behind Honda. Ask the students: Why is this productivity efficiency important? (Simple answer is profits. Nissan’s productivity lead translates into $300-400 cost advantage per vehicle.) Since 1998, GM has made a 75% gain on Toyota in production efficiency. (Source: Detroit Free Press, June 2, 2006)Also available on a Transparency Acetate See Learning Objective 1: Describe the evolution of production in the United States. Labor Hours / Vehicle This slide presents the production efficiency of the top six automakers – how many labor hours does each take to manufacture a vehicle. The three Japanese automakers lead the industry in efficiency with Nissan leading at 28.46 hours per vehicle. The two American automakers lag behind the Japanese automakers. However, GM is closing the gap fast with less than one labor hour per vehicle behind Honda. Ask the students: Why is this productivity efficiency important? (Simple answer is profits. Nissan’s productivity lead translates into $300-400 cost advantage per vehicle.) Since 1998, GM has made a 75% gain on Toyota in production efficiency. (Source: Detroit Free Press, June 2, 2006)

    36. 9-36 Comparing Asian Giants CHINA Driving Force: Manufacturing Largest Communist Country Population: 1.3 Billion Economic Growth Rate: 9% Financial/Commercial Capital: Shanghai INDIA Driving Force: Services Largest Democracy Population: 1.1 Billion Economic Growth Rate: 7% Financial/Commercial Capital: Mumbai Also available on a Transparency Acetate See Learning Objective 2: Define operations management. Comparing Asian Giants This slide compares the two Asian giants: China and India. The two most populated countries (combined population represents 37% of the world population) have some similarities and stark differences. While China’s driving force is its manufacturing base, India’s driving force in the world market is its service industry. Ask the students: Where were many of your clothes, etc. manufactured? (China) Where do the calls go to when you call to complain about your credit card or need help with your computer, etc.? (More likely it will go to India.) The two shipping towns – Shanghai and Mumbai – share a common heritage: British imperialism. Yet one is in the largest communist country while the other is in the largest democracy. Ask the students: Looking at these two countries, what are some of the challenges facing American businesses as they compete in global markets? Why? (Source: Kiplinger.com December 19, 2005, BBC News, In Depth, accessed July 15, 2006) Also available on a Transparency Acetate See Learning Objective 2: Define operations management. Comparing Asian Giants This slide compares the two Asian giants: China and India. The two most populated countries (combined population represents 37% of the world population) have some similarities and stark differences. While China’s driving force is its manufacturing base, India’s driving force in the world market is its service industry. Ask the students: Where were many of your clothes, etc. manufactured? (China) Where do the calls go to when you call to complain about your credit card or need help with your computer, etc.? (More likely it will go to India.) The two shipping towns – Shanghai and Mumbai – share a common heritage: British imperialism. Yet one is in the largest communist country while the other is in the largest democracy. Ask the students: Looking at these two countries, what are some of the challenges facing American businesses as they compete in global markets? Why? (Source: Kiplinger.com December 19, 2005, BBC News, In Depth, accessed July 15, 2006)

    37. 9-37 Top Ten Tech Spenders STATE $ in Billions California 38.9 New York 29.8 Texas 24.6 Illinois 15.1 Florida 13.9 Pennsylvania 12.8 Ohio 11.8 New Jersey 11.3 North Carolina 9.4 Georgia 9.3 Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Top Ten Tech Spenders This slide presents the tech spending in 2005 by the top ten States. Two coastal states – California and New York – lead the country in tech spending. Also, an interesting note: most of the leading manufacturing states of the country are also the leading tech spenders. Ask the students: Why would states want to spend money on technology? (Some of the possible answers would be: to attract businesses, investments, qualified/skilled workforce, etc.)Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Top Ten Tech Spenders This slide presents the tech spending in 2005 by the top ten States. Two coastal states – California and New York – lead the country in tech spending. Also, an interesting note: most of the leading manufacturing states of the country are also the leading tech spenders. Ask the students: Why would states want to spend money on technology? (Some of the possible answers would be: to attract businesses, investments, qualified/skilled workforce, etc.)

    38. ISO 9000 AND ISO 14000 STANDARDS The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies that set the global measures for the quality of individual products. 9-38

    39. 9-39 One standard for quality was set with the introduction of the MALCOLM BALDRIGE NATIONAL QUALITY AWARDS in 1987. To qualify, a company has to show quality in SEVEN KEY AREAS: leadership strategic planning customer and market focus information and analysis human resources focus process management business results. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    40. 9-40 VI. PREPARING FOR THE FUTURE   See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    41. 9-41 Quality Control Six Sigma Quality Statistical Quality Control (SQC) Statistical Process Control (SPC) The Baldrige Award ISO 9000 ISO 14000 See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. See text pages: 248-250 See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. See text pages: 248-250

    42. 9-42 Baldrige Award Recipients Sunny Fresh Foods, Inc., Monticello, MN (Manufacturing) DynMcDermott Petroleum Operations, New Orleans, LA (Service) Park Place Lexus, Plano, TX (Small Business) Richland College, Dallas, TX (Education) Jenks Public Schools, Jenks, OK (Education) Bronson Methodist Hospital, Kalamazoo, MI, (Health care) Also available on a Transparency Acetate See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. Baldrige Award Recipients This slide presents 2005 Baldrige National Quality Award recipients. Awardees for 2005 included one manufacturer, one service, one small business, one health care, and two educational institutions. This was the first time that a community college, an automotive dealership, and an oil industry business have been named as Baldrige award recipients. Sunny Fresh Foods received the Baldrige award two times – 1999 (small business category) and 2005 (manufacturing). The 2005 Baldrige award recipients were selected from 64 applicants and evaluated in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; and results. (Source: NIST News Release, November 22, 2005) Also available on a Transparency Acetate See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. Baldrige Award Recipients This slide presents 2005 Baldrige National Quality Award recipients. Awardees for 2005 included one manufacturer, one service, one small business, one health care, and two educational institutions. This was the first time that a community college, an automotive dealership, and an oil industry business have been named as Baldrige award recipients. Sunny Fresh Foods received the Baldrige award two times – 1999 (small business category) and 2005 (manufacturing). The 2005 Baldrige award recipients were selected from 64 applicants and evaluated in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; and results. (Source: NIST News Release, November 22, 2005)

    43. 9-43 ISO ISO was founded in 1947 At the end of 2004, the worldwide total of certificates: ISO 9000 – 670,000 in 154 countries ISO 14000 – 90,000 in 127 countries Also available on a Transparency Acetate See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. ISO This slide presents the worldwide certificates issued for ISO 9000 and ISO 14000 series of standards. Even though it was founded in 1947, it became popular “boardroom name” in 1987 with the launching of its ISO 9000 series of standards. Until that time, ISO standards were considered to be very technical and primary domain of engineers. Ask the students: Why are such standards of any importance? It is technical, process-driven, and time and resource consuming. So why would any company want to acquire this standard? (It is an external seal of approval. Such seals are demanded by many companies if you want to do business with them. EU is demanding that any company that wants to do business with the EU be ISO certified.) (Source: Business Week Online, March 17, 2006)Also available on a Transparency Acetate See Learning Objective 4: Describe the operations management planning issues involved in both the manufacturing and service sectors, including facility location, facility layout, materials requirement planning, purchasing, just-in-time inventory control, and quality control. ISO This slide presents the worldwide certificates issued for ISO 9000 and ISO 14000 series of standards. Even though it was founded in 1947, it became popular “boardroom name” in 1987 with the launching of its ISO 9000 series of standards. Until that time, ISO standards were considered to be very technical and primary domain of engineers. Ask the students: Why are such standards of any importance? It is technical, process-driven, and time and resource consuming. So why would any company want to acquire this standard? (It is an external seal of approval. Such seals are demanded by many companies if you want to do business with them. EU is demanding that any company that wants to do business with the EU be ISO certified.) (Source: Business Week Online, March 17, 2006)

    44. 9-44 Learning from Failure Formalize forums for analyzing failure Move the goalposts Share personal stories Bring in outsiders Prove yourself wrong, not right Celebrate smart failures Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Lessons from Failure This slide presents suggestions on how to make teams in organizations familiar with taking risks, comfortable with failures, and continue to innovate and produce world-class goods and services. Six suggestions: Formalizing failure forums keeps mistakes from being swept under the rug. Innovation requires flexible goals, so the initial goals should not be carved in stone. If managers and leaders share their failure stories, employees will be comfortable talking about their own failures and continue to take risks. Outsiders can help neutralize the emotions of failures. Identify more ways not to do things which may impede innovation. Managers should celebrate failures that teach something new. Ask the students: How often have you learned from failure? 3M’s Post-It Notes exhibits a good example of how a failed product became such a successful innovation. (Source: Business Week Online, July 10, 2006) Also available on a Transparency Acetate See Learning Objective 3: Distinguish between the various production processes and describe several of the production techniques that have improved the productivity of U.S. companies, including computer-aided design and manufacturing, flexible manufacturing, lean manufacturing, and mass customization. Lessons from Failure This slide presents suggestions on how to make teams in organizations familiar with taking risks, comfortable with failures, and continue to innovate and produce world-class goods and services. Six suggestions: Formalizing failure forums keeps mistakes from being swept under the rug. Innovation requires flexible goals, so the initial goals should not be carved in stone. If managers and leaders share their failure stories, employees will be comfortable talking about their own failures and continue to take risks. Outsiders can help neutralize the emotions of failures. Identify more ways not to do things which may impede innovation. Managers should celebrate failures that teach something new. Ask the students: How often have you learned from failure? 3M’s Post-It Notes exhibits a good example of how a failed product became such a successful innovation. (Source: Business Week Online, July 10, 2006)

    45. 9-45 See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    46. 9-46 Companies now use modern quality control standards such as six sigma. SIX SIGMA QUALITY is a quality measure that allows only 3.4 defects per million events. Statistical quality control (SQC) is the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning. See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    47. 9-47 Statistical process control (SPC) is the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph. Checking products against standards all along the production process eliminates the need for quality control inspection at the end. This approach to quality control is often called the Deming cycle (after the late W. Edwards Deming): Plan, Do, Check, Act (PDCA). See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235See Learning Objective 1: Describe the evolution of production in the United States. See text pages: 235

    48. 9-48

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