1. Copyright 2005 Prentice- Hall, Inc.

2. Producing Goods And Services
Chapter 14
Producing Goods And Services

3. Copyright 2005 Prentice- Hall, Inc.
Chapter Outline
What Does “Production” Mean Today
Creating Value Through Operations
Operations Planning
Operations Scheduling
Operations Control
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4. Operations & Production Growth
Definitions
Service Operation
Goods Production
Global Operations
Technology/Internet
Quality Planning
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5. Goods/Services Employment
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6. Copyright 2005 Prentice- Hall, Inc.
Goods/Services GDP
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7. Top 5 U.S. Manufacturing States
New York
Illinois
Ohio
California
Pennsylvania
Texas
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8. Copyright 2005 Prentice- Hall, Inc.
Utility
Product’s Ability To Satisfy Want
Types
Time
Place
Possession
Form
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9. Operations (Production)
Management- Systematic Direction/Control Of Processes That Transform Resources Into Finished Goods Creating Value
Managers- Ensure Processes Create Value/Benefits
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10. Transformation Process
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11. Copyright 2005 Prentice- Hall, Inc.
Goods Manufacturing
Analytic
Synthetic
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12. Copyright 2005 Prentice- Hall, Inc.
Service Processes
Service: Extent Of Customer Contact
High-Contact
Low-Contact
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13. Focus of Service vs. Manufacturing
Performance
Process & Outcome
Service Characteristics
Customer-Service Link
E-Commerce- “Virtual” Presence Of Customer
Service Quality Considerations
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14. Copyright 2005 Prentice- Hall, Inc.
Operations Planning
Capacity
For Producing
Goods
Services
Location
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15. Operations Planning/Control
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16. Service Characteristics
Intangibility
Customization
Unstorability
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17. Copyright 2005 Prentice- Hall, Inc.
Layout Planning
Producing Goods
Productive Facilities
Nonproductive Facilities
Support Facilities
Product Layouts
Process
Cellular
Product
Others For Flexibility
Service Layout
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18. Copyright 2005 Prentice- Hall, Inc.
Process Layout
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19. Copyright 2005 Prentice- Hall, Inc.
Cellular Layout
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20. Goods Producing Layout
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21. Copyright 2005 Prentice- Hall, Inc.
Cafeteria Layout
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22. Other Layout Developments
U-Shaped Production Lines
Flexible Manufacturing System
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23. –American Society for Quality
“…characteristics of a product or service that bear on its ability to satisfy stated or implied needs.”
–American Society for Quality
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24. Copyright 2005 Prentice- Hall, Inc.
Methods Planning
Methods Improvement
Goods
Services
Service Flow Analysis
Designing To Control Employee Discretion
Design For Customer Contact
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25. Copyright 2005 Prentice- Hall, Inc.
Service Flow Analysis
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26. Operations Scheduling
Master Production Schedule
Tools for Scheduling
Gantt Chart
PERT Chart
SCHEDULE
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27. Copyright 2005 Prentice- Hall, Inc.
Gantt Chart
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28. Copyright 2005 Prentice- Hall, Inc.
PERT Chart
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29. Copyright 2005 Prentice- Hall, Inc.
Operations Control
Material Management
Operations Process Control
Followup
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30. Copyright 2005 Prentice- Hall, Inc.
Materials Management
Plan/Organize Material Flow
Emphasizes Standardization
Areas Of Material Management
Transportation
Warehousing
Inventory Control
Purchasing
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31. Copyright 2005 Prentice- Hall, Inc.
Purchasing Processes
Forward Buying
Holding Costs
Opportunity Costs
Hand-To-Mouth Pattern
Lead Times
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32. Copyright 2005 Prentice- Hall, Inc.
Supplier Selection
Investigate
Evaluate/Isolate
Negotiate
Maintain
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33. Tools For Process Control
Worker Training
Lean Production Systems: JIT
Materials Requirement Planning
Bill Of Materials
Manufacturing Resource Planning
Quality Control
Copyright 2005 Prentice- Hall, Inc.