© 2006 Pearson Education Canada Inc.Chapter 14 - 1 Chapter 14 Understandin g Banking and Securities.
© 2006 Pearson Education Canada Inc.Chapter 8 - 1 Chapter 8 Producing Quality Goods and Services.
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Transcript of © 2006 Pearson Education Canada Inc.Chapter 8 - 1 Chapter 8 Producing Quality Goods and Services.
![Page 1: © 2006 Pearson Education Canada Inc.Chapter 8 - 1 Chapter 8 Producing Quality Goods and Services.](https://reader036.fdocuments.in/reader036/viewer/2022081603/56649e1a5503460f94b083d6/html5/thumbnails/1.jpg)
© 2006 Pearson Education Canada Inc. Chapter 8 - 1
Chapter 8Chapter 8
Producing Quality Producing Quality Goods and Goods and ServicesServices
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© 2006 Pearson Education Canada Inc. Chapter 8 - 2
What Is Production?What Is Production?
LeadingLeading
Plan
ning
Plan
ning
Organizing
Organizing
Production OperationsProduction OperationsManagement Management
(POM)(POM)
Production OperationsProduction OperationsManagement Management
(POM)(POM)
ControllingControlling
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© 2006 Pearson Education Canada Inc. Chapter 8 - 3
What Is the What Is the Conversion Process?Conversion Process?
TransformationTransformation OutputsOutputsInputsInputs
Analytic Systems
Synthetic Systems
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© 2006 Pearson Education Canada Inc. Chapter 8 - 4
Input-Transformation-Output Input-Transformation-Output Relationships for Typical SystemsRelationships for Typical Systems
Department Store
Shoppers, stock of goods
Displays, sales clerks
Attract customers, promote products,
fill orders
Sales to satisfied customers
College or University
High School graduates, books
Teachers, classrooms
Impart knowledge & skills
Educated individuals
Automobile Factory
Sheet steel, engine parts
Tools, equipment, workers
Fabrication & assembly of cars High-quality cars
Restaurant Hungry customers, food
Chef, waitress, environment
Well-prepared & well-served food
Satisfied customers
Hospital Patients, medical supplies
MDs, nurses, equipment Health care Healthy
individuals
Typical Desired Output
Transformation Function
Transformation Components
InputsSystem
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© 2006 Pearson Education Canada Inc. Chapter 8 - 5
Manufacturing Manufacturing GoodsGoods
MassMassProductionProduction
MassMassCustomizationCustomization
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© 2006 Pearson Education Canada Inc. Chapter 8 - 6
Production Process Production Process DesignDesign
Plan for Capacity
Choose Facility Site
Design Facility Layout
Forecast Demand
Schedule Work
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© 2006 Pearson Education Canada Inc. Chapter 8 - 7
Forecasting DemandForecasting Demand
CustomerCustomerFeedbackFeedback
MarketMarketResearchResearch
SalesSalesFiguresFigures
IndustryIndustryAnalysesAnalyses
EducatedEducatedGuessesGuesses
BusinessBusinessResourcesResources
PlanningPlanning BudgetingBudgetingSchedulingScheduling
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© 2006 Pearson Education Canada Inc. Chapter 8 - 8
Capacity PlanningCapacity Planning
Level ofLevel ofResourcesResourcesLevel ofLevel of
ResourcesResourcesCustomerCustomerDemandDemand
CustomerCustomerDemandDemand
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© 2006 Pearson Education Canada Inc. Chapter 8 - 9
LabourLabourLabourLabourLandLandLandLand
TransportationTransportationTransportationTransportation EnergyEnergyEnergyEnergy
Local TaxesLocal TaxesLocal TaxesLocal TaxesRawRawMaterialsMaterials
RawRawMaterialsMaterials
ConstructionConstructionConstructionConstruction
LivingLivingStandardsStandards
LivingLivingStandardsStandards
FacilityFacilityLocationLocationFacilityFacility
LocationLocation
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© 2006 Pearson Education Canada Inc. Chapter 8 - 10
Types of Facility Types of Facility LayoutLayout
• Process (functional)– concentrates everything needed to complete one phase of the
production process in one place
• Product (assembly line)– the production process occurs along a line– products move from one workstation to the next
• Cellular – groups dissimilar machines into work centers (or cells) to process
parts that have similar shapes and processing requirements
• Fixed-Position– labour, materials, and equipment are brought to the location where the good
is being produced or the customer is being served– i.e.: buildings, roads, bridges, airplanes
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© 2006 Pearson Education Canada Inc. Chapter 8 - 11
Process LayoutProcess Layout
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© 2006 Pearson Education Canada Inc. Chapter 8 - 12
Product LayoutProduct Layout
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© 2006 Pearson Education Canada Inc. Chapter 8 - 13
Cellular LayoutCellular Layout
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© 2006 Pearson Education Canada Inc. Chapter 8 - 14
Fixed-Position LayoutFixed-Position Layout
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© 2006 Pearson Education Canada Inc. Chapter 8 - 15
Production Production ScheduleSchedule
SchedulingScheduling
DispatchingDispatching
ContingenciesContingencies
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© 2006 Pearson Education Canada Inc. Chapter 8 - 16
The Gantt ChartThe Gantt Chart
ID Task Name Start Date End Date DurationAugust September
2006
1 Make legs 8/1/06 8/28/06 20d
2 Cut tops 8/22/06 8/28/06 5d
3 Drill 8/29/06 9/4/06 5d
4 Sand 9/5/06 9/11/06 5d
5 Assemble 9/12/06 9/25/06 10d
6 Paint 9/19/06 9/25/06 5d
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© 2006 Pearson Education Canada Inc. Chapter 8 - 17
Program Evaluation and Program Evaluation and Review Technique (PERT)Review Technique (PERT)
• Identify activities
• Determine sequence
• Establish time frame
• Diagram activity network
• Calculate longest completion path
• Refine timing
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© 2006 Pearson Education Canada Inc. Chapter 8 - 18
PERT Time PERT Time EstimatesEstimates
OptimisticOptimistic
PessimisticPessimistic
Most LikelyMost Likely
ExpectedExpected
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© 2006 Pearson Education Canada Inc. Chapter 8 - 19
PERT Diagram PERT Diagram for Manufacturing Shoesfor Manufacturing Shoes
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© 2006 Pearson Education Canada Inc. Chapter 8 - 20
Improving Production Improving Production Through TechnologyThrough Technology
• Robots
• Computer-aided design
• Computer-aided engineering
• Computer-aided manufacturing
• Computer-integrated manufacturing
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© 2006 Pearson Education Canada Inc. Chapter 8 - 21
Electronic Electronic Information Information
SystemsSystemsResponsiveness
Service
Communication
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© 2006 Pearson Education Canada Inc. Chapter 8 - 22
Manufacturing Manufacturing SystemsSystems
TraditionalTraditionalManufacturingManufacturing
FlexibleFlexibleManufacturingManufacturing
Mass Production
Resistant to Change
High Set-Up Costs
Specialty Operations
Conducive to Change
Minimal Set-Up Costs
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© 2006 Pearson Education Canada Inc. Chapter 8 - 23
The Production The Production ProcessProcess
InventoryInventoryManagementManagement
QualityQualityAssuranceAssurance
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© 2006 Pearson Education Canada Inc. Chapter 8 - 24
Inventory Inventory ManagementManagement
InventoryInventory
InventoryInventoryControlControl
InventoryInventoryControlControlLead TimeLead TimeLead TimeLead Time
PurchasingPurchasingPurchasingPurchasing
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© 2006 Pearson Education Canada Inc. Chapter 8 - 25
Inventory ControlInventory Control
Just-In-Time (JIT)
Material RequirementsPlanning (MRP)
ManufacturingResource Planning (MRP II)
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© 2006 Pearson Education Canada Inc. Chapter 8 - 26
Manufacturing Resource Manufacturing Resource Planning Planning
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© 2006 Pearson Education Canada Inc. Chapter 8 - 27
Maintaining QualityMaintaining Quality
Statistical Quality ControlStatistical Quality Control
Statistical Process ControlStatistical Process Control
Continuous ImprovementContinuous Improvement
Quality ControlQuality Control Quality AssuranceQuality Assurance
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© 2006 Pearson Education Canada Inc. Chapter 8 - 28
Global Quality Global Quality StandardsStandards
ISO CertificationISO Certification
CAE Quality AwardsCAE Quality Awards
Malcolm Malcolm Baldrige AwardBaldrige Award
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© 2006 Pearson Education Canada Inc. Chapter 8 - 29
Supply Chain Supply Chain ManagementManagement
Suppliers Manufacturers Distributors Retailers
The Supply Chain
Production of Goods and Services
Facilities Functions Activities
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© 2006 Pearson Education Canada Inc. Chapter 8 - 30
Manufacturing Manufacturing TrendsTrends
OutsourcingOutsourcing Supplier InvolvementSupplier Involvement
Redirect Resourcesand Capital
Increase ProductionEfficiencies
Access State-of-the-ArtFacilities
Improve Overall Quality
Maximize the Use of Time
Reduce Work-in-ProcessInventory