1. Production and Operations Management Better Business 1st Edition Poatsy · Martin © 2010 Pearson Education, Inc.1 chapter 11 Slide presentation prepared by Pam Janson Stark State College of Technology

2. The Production Process For goods and services Efficient production processes: oDecrease costs oAllow for lower prices oImprove product oAttract customers oIncrease profits © 2010 Pearson Education, Inc. Publishing as Prentice Hall 2

3. Mass Production Relies on machines and automated assembly lines to produce goods that are identical and adhere to certain standards of quality On an assembly line, partially complete products are moved from one worker to the next on a conveyor belt A disadvantage is inflexibility © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3

4. Facility Location Factors to consider: Raw materials Transportation costs Human factors oLabor availability Physical factors oUtilities oCommunication © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4

5. Transportation Factors Proximity to market Cost of transporting raw materials Presence of highways and other transportation systems © 2010 Pearson Education, Inc.5

6. Human Factors Living conditions oBusiness brings opportunities or, potentially, threats oBusiness seeks area with high quality of life Labor availability oNeeded skills Laws and regulations oProtecting workers oProtecting the environment © 2010 Pearson Education, Inc.6

7. Production Management Also called operations management Goal: ensure products and services provide utility Production planning oFacility location oFacility layout oWhat to produce oHow much to produce oWhat processes and machinery to use oHow to meet the needs of employees oQuality control Production planning oFacility location oFacility layout oWhat to produce oHow much to produce oWhat processes and machinery to use oHow to meet the needs of employees oQuality control © 2010 Pearson Education, Inc.7

8. Just-in-Time (JIT) Inventory Control Keeps on hand the smallest amount of inventory possible Items ordered “just-in-time” for use Reduces storage costs Requires strong supplier relationships Requires robust inventory control system oTechnology helps streamline the process © 2010 Pearson Education, Inc.8

9. Quality Control Activities to guarantee that a good or service meets a specified level of quality Historically, quality control happened at the end of the process (final inspection) More commonly today, the product or service is inspected by workers at each critical operation © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9

10. Total Quality Management © 2010 Pearson Education, Inc. Publishing as Prentice Hall 10 v v v Plan Do Check Act