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									• Production Application of resources such as people and machinery to convert
    materials into finished goods and services.
• Production and operations management Managing people and machinery in
    converting materials and resources into finished goods and services.


The Production Process: Inputs           Conversion Process            Outputs
STRATEGIC IMPORTANCE OF THE
 PRODUCTION FUNCTION
• A vital function for generating money for employees, lenders, and stockholders.

Mass Production
• Manufacturing products in large amounts through specialized employees skills,
   mechanization, and standardization.
• Assembly line

Flexible Production
• Produces smaller batches of goods cost-effectively.

Customer-Driven Production
• Links what a manufacturer makes with what customers want to buy.
PRODUCTION PROCESSES
• Analytic production system
• Synthetic production system
• Continuous production process
• Intermittent production process
TECHNOLOGY AND THE PRODUCTION
 PROCESS
Robots
  • Reprogrammable machine capable of performing numerous tasks that require
    manipulation of materials and tools.

Computer-Aided Design and Manufacturing
• CAD—Interactions between a designer and a computer to create a product,
   facility, or part.
• CAM—Analyze CAD output, determine necessary steps to implement the design,
   and transmit instructions to production equipment.
Flexible Manufacturing Systems
• A production facility that workers can quickly modify.

  Computer-controlled           Robots handle              Remote-controlled
  machining centers             the parts.                 carts deliver
  produce metal parts.                                     materials.


                     All linked by electronic controls.

Computer-Integrated Manufacturing
• Computers help workers design products, control machines, handle materials, and
   control the production function in an integrated fashion
THE LOCATION DECISION
THE JOB OF PRODUCTION
 MANAGERS
• Oversee the work of people and machinery to convert inputs (materials and
   resources) into finished goods and services.

Planning the Production Process
• Choose what goods or services to offer customers.
• Convert original product ideas into final specifications.
• Design the most efficient facilities to produce those products.
Determining the Facility Layout
• Process layout, product layout, fixed-position layout, and
    customer-oriented layout.
Implementing the Production Plan
• Make, buy, or lease decision
• Selection of suppliers
• Inventory control
• Just-in-time systems
• Materials requirement planning

Controlling the Production Process
• Production control
   • Production planning
   • Routing
   • Scheduling
   • Dispatching
   • Follow-up
IMPORTANCE OF QUALITY
 • Best defined as a good or service free of deficiencies.
• In some companies, costs of poor quality amount to 20 percent of revenue.
• Benchmarking Determining other companies’ standards and best practices.

Quality Control
• Quality control Measuring goods and services against established quality
   standards.
• Many companies evaluate quality using the Six Sigma concept.

ISO Standards

								
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