1. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 1 Chapter 8: Producing Quality Goods and Services

2. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 2 Learning Objectives 1.Explain the nature of production. 2.Outline how the conversion process transforms raw materials, labor, and other resources into finished products or services. 3.Understand the importance of service businesses to consumers, other business firms, and the nation’s economy. 4.Describe how research and development lead to new products and services. 5.Discuss the components involved in planning the production process. 6.Explain how purchasing, inventory control, scheduling, and quality control affect production. 7.Summarize how productivity and technology are related.

3. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 3  How American Manufacturers Compete in the Global Marketplace  Careers in Operations Management What Is Production?

4. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 4  Manufacturing Using a Conversion Process 1. Focus 2. Magnitude of Change 3. Number of Production Processes The Conversion Process

5. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 5  Planning Quality Services  Evaluating the Quality of a Firm’s Services The Increasing Importance of Services

6. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 6  Research and Development  Product Extension and Refinement Where Do New Products and Services Come From?

7. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 7  Design Planning 1. Product Line 2. Required Production Capacity 3. Use of Technology  Site Selection and Facilities Planning 1. Human Resources 2. Plant Layout  Operational Planning 1. Step 1: Selecting a Planning Horizon 2. Step 2: Estimating Market Demand 3. Step 3: Comparing Market Demand with Capacity 4. Step 4: Adjusting Products or Services to Meet Demand How Do Managers Plan Production?

8. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 8  Purchasing  Inventory Control  Scheduling  Quality Control 1. Inspection 2. Improving Quality Through Employee Participation 3. World Quality Standards: ISO 9000 and ISO 14000  Production Planning: A Summary Operations Control

9. © 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 8 | Slide 9  Productivity Trends  Improving Productivity Growth Rates  The Impact of Computers and Robotics on Productivity 1. Robotics 2. Computer Manufacturing Systems 3. Flexible Manufacturing Systems 4. Technological Displacement Improving Productivity with Technology