Chapter Eight. Production and Operations Management. Operations Management. The development and administration of the activities involved in transforming resources into goods and services. 8-1. The Transformation Process. 8-2.
Production andOperations Management
The development and administration of the activities involved in transforming resources into goods and services.
1. Planning the product
2. Designing the operations process a. standardization b. modular design c. customization
3. Planning capacity
4. Planning facilities a. facility location b. facility layout 1. fixed position layout 2. process layout 3. product layout c. technology 1. CAD 2. CAM 3. flexible manufacturing 4. CIM
Fixed-position layout All resources needed for a product are brought to a central location.
Process layout Layout is organized into departments that group related processes.
Product layout Production is broken down into relatively simple tasks assigned to workers positioned along a line.
Routing and Scheduling
transformation processTypes of Inventory
Grill beef Manufacture
2 beef patties,
Big Mac in
(185) Time to complete
event (seconds)A Hypothetical PERT Diagram for a McDonald’s Big Mac
5. Factual approach to decision making
6. Continuous learning and people involvement
7. Focus on continuous improvement
8. Fulfillment of obligations to all stakeholders and society
A philosophy and set of guiding principles that provide a foundation for the continuous improvement of an enterprise.
The integration of all departments and functions of a company into one computer system
How can an understanding of total quality management (TQM) or ISO 9000 series certification assist in developing a career?
1. What is the purpose of inventory control?
2. PERT charts can show a sequence of activities in days rather than seconds. Draw a PERT chart for the chairperson of a banquet committee showing the most efficient path for these projected events:January 5 Confirm banquet room reservation.
January 6 Publicize banquet.
January 19 Count number of banquet reservations; phone in total to hotel.
January 20 Phone chairpersons of banquet decorating committee and hospitality committee to review preparations for banquet.
Question 2 continued.
January 27 Decorating committee places decorations on tables.
(2-4 p.m.) Hospitality committee prepares registration table and banquet booklets.
January 27 Banquet(6 p.m.)
January 30 Send thank-you notes to all committee persons and hotel staff.
3. Prepare a Gant Chart for the sequence of activities described in question #2
1. An assembly line is an example of a. a product layout b. a process layout c. a fixed-position layout d. an intermittent organization
2. Which of the following identifies the optimum number of items to order to minimize the cost of ordering them? a. just-in-time (JIT) b. material-requirements planning (MRP) c. economic-order quantity model d. program evaluation and review technique (PERT)
3. Which of the following characteristics is most typical of a continuous manufacturing organization? a. The firm manufactures customized products. b. The firm has a low volume of production. c. The firm has a relatively low unit cost of production. d. The firm creates many different products with many different characteristics.
4. Inspection is concerned with a. standards of quality. b. labor and energy. c. routing and scheduling. d. modular design and customization.