Materi 11 : Operations and Materials Management: Managing the Production and Flow of Goods and...
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Transcript of Materi 11 : Operations and Materials Management: Managing the Production and Flow of Goods and...
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Operations and MaterialsOperations and MaterialsManagement: Managing theManagement: Managing theProduction and Flow of GoodsProduction and Flow of Goods
and Servicesand Services
2007 The McGraw-Hill Companies, Inc., All Right Reser e!.
McGraw-Hill/IrwinIntroduction to Business
Chapter 11
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Operations and Materials Management
another vital role in the organization (inaddition to Marketing)Value-creation activities that convert andchange inputs into finished goods andservicesTechnology : The combination of skills,kno ledge, abilities, techni!ues, methods,tools, machines, computers, and othere!uipment that are used to bring aboutchange to some source and add value to it
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Material managementMaterial management : "et of activities
involved in controlling the flo ofresources into and out of the operatingsystem#ncludes the activities necessary to find
and purchase high-!uality ra materialsor lo -cost components and deliverthem to operations as efficiently aspossible
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Operations and MaterialsManagement Process
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Operations and Materials ManagementProcess
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Increase productivity$etter ays to use resources%o er inventory holding costs&educe time to process customer ordersIncrease Innovation
'ind ays to improve product !uality'ind ays to reduce production costs'ind ays to sell product at a lo er cost
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#ncrease responsiveness to customersigh-!uality customer service
"atisfying shopping e perience*ood after-sales service
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Materials Management Methods#ncrease +uality
umber of orders correctly processedonsistent reliable products
.nsure supply of high !uality inputs
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Operations and Materials Management
Costs
&a materials and components costs/lant costs%abor costs#nventory costs0istribution costs
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Three types of inventory
#nput "tage 1 inputs and resourcesonversions "tage 1 ork in progress
2utput "tage 1 finished products
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Three Types of Operating Systems"mall $atch /roduction/roduction'le ible production
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Small batch production
"mall batch production is designed toprovide one of a kind or small !uantities ofcustomized products
ustomized product are products that aredesigned and made to more closely matchand satisfy the needs of particular users
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Mass ProductionMass production is based on the use ofautomated machines and "2/3s to controlthe ork process
ompanies operate mass productionsystems to manufacture large !uantities ofstandardized products to reduce operatingcosts
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Flexible production syste ms'le ible production is an advanced,computer-based operating system thatallo s mass production to achieve thebenefits of small- batch production but ata much lo er cost
osts are reduced by the use of computerintegrated manufacturing and fle ibleemployees and ork teams
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Total Quality Management
4n operations techni!ue for continuousimprovement to increase !uality andreduce costsT+M can be used to improve the efficiencyand effectiveness of any operating system
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To build competitive advantage -
omputer aided materials management*lobal supply chain management
5ust-in-time inventory systems