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McGraw-Hill/Irwin Understanding Business, 8e. © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh. *. *. Producing World-Class Goods and Services. *. CHAPTER. 9. *. *. 1- 1. Leading U.S. Manufacturing States. Michigan. New York.

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slide1

McGraw-Hill/Irwin

Understanding Business, 8e

© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Nickels McHugh McHugh

*

*

Producing

World-Class

Goods

and

Services

*

CHAPTER

9

*

*

1-1

leading u s manufacturing states
Leading U.S. Manufacturing States

Michigan

New York

Illinois

Ohio

California

Pennsylvania

Texas

Source: Britannica Student Encyclopedia, 2006

top ten us manufacturers
ExxonMobil

Chevron

General Motors

ConocoPhillips

Ford Motor

General Electric

Altria Group

IBM Corp.

Hewlett-Packard

Valero Energy

Top Ten US Manufacturers

Source: Industry Week, June 1, 2006

how manufacturers have become more effective
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
labor hours vehicle
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

Source: Detroit Free Press, June 2, 2006

from production to operations management
From Production to Operations Management
  • Production
  • Production Management
  • Operations Management (OM)
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

Comparing Asian Giants

Source: Kiplinger.com December 19, 2005, BBC News, In Depth, accessed July 15, 2006

production processes
Production Processes
  • Form Utility
  • Process Manufacturing
  • Assembly Process
  • Continuous Process
  • Intermittent Process
three requirements for production
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
production efficiency
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

Source: World Features Syndicate

what is increasing productivity
What Is Increasing Productivity?

Source: 2005 National Innovation Survey, Council on Competitiveness

product improvements with computer technology
Product Improvements With Computer Technology
  • Computer-Aided Design - CAD
  • Computer-Aided Manufacturing - CAM
  • Computer-Integrated Manufacturing - CIM
top ten tech spenders
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

Source: Business Week Online, December 5, 2005

production techniques
Production Techniques
  • Flexible Manufacturing
  • Lean Manufacturing
  • Mass Customization
operations management planning
Operations Management Planning
  • Facility Location
  • Facility Layout
  • Materials Requirement Planning
  • Purchasing
  • J-I-T Inventory Control
  • Quality Control
quality control
Quality Control
  • Six Sigma Quality
  • Statistical Quality Control (SQC)
  • Statistical Process Control (SPC)
  • The Baldrige Award
  • ISO 9000
  • ISO 14000
baldrige award recipients
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)

Source: NIST News Release, November 22, 2005

slide18
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

Source: Business Week Online, March 17, 2006

control procedures
Control Procedures
  • Program Evaluation & Review Techniques (PERT)
  • Gantt Chart
pert steps
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
gantt chart
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
learning from failure
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

Source: Business Week Online, July 10, 2006