Production Systems for Global Business CHAPTER 15 1/3/2019 CHAPTER 15 Production Systems for Global Business 15-1 Global Production Methods 15-2 Expanding Productive Activities INTERNATIONAL BUSINESS

LESSON 15-1 Global Production Methods GOALS Diagram the basic model for all production processes. Summarize methods of operations management. Describe the different production methods used in various countries.

The Production Process 15 The Production Process The production process is the means by which a company changes raw materials into finished goods. Three major elements of the production process are: Resources Transformation Goods and services

Flow Chart of Production Process 15 Flow Chart of Production Process Resources • Natural • Human • Capital Transformation • Machines • Process • Facility Output • Goods • Services

Operations Management 15 Operations Management Operations management is the process of designing and managing a production system. The goal is to produce a good or service at the lowest possible cost while maintaining the highest possible quality.

Supply Chain Activities 15 Supply Chain Activities 1. Purchasing 2. Engineering 3. Production 4. Distribution 5. Retailing 6. Consumer interactions

Operations Activities 15 Operations Activities Forecasting Scheduling Inventory control Just-in-time (JIT) Outsourcing

Production Methods Around the World 15 Production Methods Around the World Manual production systems Automated production systems Computerized production systems Computer-assisted manufacturing (CAM) Robotics Automated warehouses Computer-integrated manufacturing (CIM)

LESSON 15-2 Expanding Productive Activities GOALS Identify two ways production output is measured. Differentiate between producing products and creating services. Describe how technology influences office activities.

Measuring Production Output 15 Measuring Production Output Productivity Quality control Total quality control (TQC) Working in teams Quality circle Cross-functional team

Creating and Delivering Services 15 Creating and Delivering Services Services are intangible Fast-growing service areas Tailored logistics

Information and Office Production 15 Information and Office Production Improved productivity Integrated systems Wireless networks