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1、Production an,erations,Production and Operations,Lecture OutlineWhat Is Production and Operations?Plant Location wtt 81A_ ProdUCtion ProCeSses &-Iz zMaterials Management, Purchasing and InventoryControl Jt1%z.s?tztControlling Production: Scheduling tiJA:-: f iTittJModern Production Techniquesxf-L-JA
2、!tProductivityds-Quality Management% alz,Production and Operations,Lead-in ActivitiesHow do your parents or you make dumplings? Can you deSCFlbe the whole processhow to prepare, what ingredients are needed, how to make the fillings, and what the steps are that lead to thefinal products?How do the cl
3、othing factory, restaurant, and bakery respectively produce their prodUCtS? Does the university also produce its products? Why?,Production and Operations,Lead-in ActivitiesHow to Make Dumplings?First, make the filling. You Can Choose your favorite meat, say pork, beef, or mutton, chop it up and mix
4、it with chopped vegetables.Meanwhile you had better put in seasonings such as salt, soy sauce, pepper, chopped green onion and ginger to get your favorite flavor. Stir the ingredients in a container well to make them evenly mixed.,Production and Operations,Lead-in ActivitiesHow to Make Dumplings?Sec
5、ond, make the dough. You should measure your wheat flour to go with the filling, put it in a container, pour water hit by bit, stir it to make it sticky, then let it rest for about 20 minutes. After that you can cut part of the dough and put it on board, knead it and cut itinto small pieces. You pre
6、ss each pieC With thepalm of your hand slightly and then roll it witha rolling pin into a round piece.,Production and Operations,Lead-in ActivitiesHow to Make Dumplings?Finally comes the stage of folding the dough to make dumplings. You should hold a dough piece horizontally in your left hand, put a
7、 suitable amount of filling onto the central part, fold the side around the filling, press theupper-central part of it firmly and make firmand nice lace from left to right around the fold edge to make your finished product better- looking and free from leakage.,Production and Operations,Introduction
8、 of POMProduction and operations management (POM) is the management of an organizations production system.A production system takes inputs and convertsthem into outputs.The conversion process is the predominant activity of a production system.The primary concern of an operations manageris the activi
9、ties of the conversion process.,Production and Operations,What Is Production and Operations?ProductionProduction is the process of transforming inputs such as raw materials into outputs such as goods and services.Production is not limited to the manufactureof goods; it applies to both the service an
10、d the manufacturing sectors of the economy.,Production and Operations,What Is Production and Operations?ManufacturingManufaCturing means making goods by hand or with machinery as opposed to extracting things from the earth (mining, fishing); services are not manufactured.OperationsOperations are the
11、 functions needed to keep the company producing, literally any function or series of functions introduced to carry out a strategic plan.,Production and Operations,What Is Production and Operations?Production ProcessProduction process involves three phases: (1)input, (2) transformation, and (3) outpu
12、t.,InputThe ingredients,Processflaking the food,Feedbavh loopHighlights improvments thatare needed,The final product and packaging,Production and Operations,What Is Production and Operations?InputsThe inputs are those resources that will be needed to produce the desired goods or services.,Production
13、 and Operations,What Is Production and Operations?TransformationTransformation consists of those production activities that take the inputs and combine them in some special way to produce the output.,Production and Operations,What Is Production and Operations?outputThe output is the final result of
14、the productionprocess.The Production Process,LandLaborCapital,|nputs,Entrepreneurship,Cars,I-Jouses Food Computers,Production and Operations,What Is Production and Operations?Questions for DiscussionIn what way might the production process formanufacturing automobile be similar to that for making te
15、levision sets?Do all prodUCtion proCeSses have the same three phases of input, transformation, and output? Explain using examples.,Production and Operations,Plant LocationMost companies will choose a site based on suchimportant factors as:Customer locationSource of raw materialsLabor supplyPower and
16、 waterCommunity environment,Production and Operations,Plant LocationCustomer LocationFirms that must locate close to their customers are: those producing perishable items like bread and cake;those in industries whF COlTlpetitive advantagedepends on rapid delivery;those that sell heavy or bulky produ
17、cts, such asbricks or automobiles.,Production and Operations,Plant LocationSource of Raw MaterialsSteel mills place their plants near their source of raw materials.Firms in the food-canning business locate neartheir raw materials beCause of the perish abilityfactor.,Production and Operations,Plant L
18、ocationLabor SupplyAll production operations require somemanpower.Firms should locate their facilities at least withincommuting distance of the people who will supply it.This is especially important in the case of thosecompanies that need highly skilled people.,Production and Operations,Plant Locati
19、onPower and Water,Some firms,such as aluminum, chemical, and,fertilizer companiesmust IoCate in areas having sufficient power to meet their needs. Other firms require a loCation near water, such as companies that make paper.,Production and Operations,Plant LocationCommunity EnvironmentIn plant locat
20、ion the company also needs to look at the services available in the community. *Some cities and towns will offer low taxes. *Others offer fine educational systems andcomfortable living conditions, such as cleanair, clean water, and a low cost of living.*And some will provide special services to a bu
21、siness that will locate there, such as extending the city water and sewerage lines out to the plant for free.,Production and Operations,Plant LocationQuestions for DiscussionWhen would you expect a firm to set up itsplant close to its customers?Do all companies locate near their source ofraw materia
22、ls? Why or why not?Of the five factors listed in this section, which is most important in choosing the plant location?,Production anOperations,Production ProcessesThere are several different processes thatmanufacturers use to produce goods.The manufacturing process means phySiCally orchemically chan
23、ges to materials.,The,process puts together components to,make a product.These two processes are called synthetic systems.,Production and Operations,Production ProcessesSynthetic ProcessThe synthetic process either converts raw materials into other products (manufacturing process) or combine raw mat
24、erials or parts into a finished prodUCt (assembly process).Analytic ProcessAn analytic process breaks down raw materialsinto components to extract other products.,Production and Operations,Production ProcessesProduction processes are either continuous orintermittent.Continuous ProcessA continuous pr
25、ocess (:f_T ?f0T) is one in which massive production is carried out over time.It is a flow prodUCtion method used to manufacture, produce, or process materials without interruption. Production workers in continuous production commonly workin rotating shifts.,Production and Operations,Production Proc
26、essesIntermittent ProcessAn intermittent production process uses the customers orders to produce goods. The process is not continuous.Manufacturers of custom-designed (J/* j$) furniture would use an intermittent process. Computers, robots, and flexible manufacturing processes allow firms to turn out
27、 custom-made goods.,Production and Operations,Production ProcessesQuestions for DiscussionCan you explain the differences among the following concepts: manufacturing process, assembly process, analytic process,continuous process, and intermittent process? Give examples to illustrate the production p
28、rocesses.,Production and Operations,Material, Purchasing and Inventory ControlMaterials ManagementMaterials are inputs to production ormanufacturing.Materials requirements planning (MRP) is a computer-based system that uses sales forecasts to make sure that needed parts and materials are available a
29、t the right place and the right time.,Production and Operations,Material, Purchasing and Inventory ControlMaterials ManagementMRP II, an advanced version of MRP that allows plants to include all the resources involved in the efficient making of a prodUCt, including projected sales, personnel, plant
30、capacity, and distribution limitations.MRP II is called, in contrast, manufacturingresource planning (j$=_+, ) because the planning involves more than just material requirements.,Purchasing,d MaterialsIVlanagement,Production and Operations,Material, Purchasing and Inventory ControlMaterials Manageme
31、ntEnterprise resource planning (ERP) (k?kt+ ), the latest version of MRP, is a computer- based production and operations system that links multiple firms into one integrated production unit.ERP is much more sophisticated than MRP IIbecause it monitors processes in multiple firms at the same time.,Pr
32、oduction and Operations,Material, Purchasing and Inventory ControlMaterials ManagementSuch programs will link suppliers, manufacturers, and retailers in a completely integrated manufacturing and distribution system that will be constantly monitored for the smooth flow of goods from the time that the
33、y are ordered to the time they reach the ultimate consumer.,Production and Operations,Material, Purchasing and Inventory ControlPurchasingPurchasing is the function in the company that searches for quality material resources, locates the best suppliers, and negotiates the best price for quality good
34、s and services.The relationship between suppliers and manufacturers is much closer, with suppliersoften locating their facilities near themanufaCturer.,Production and Operations,Material, Purchasing and Inventory ControlPurchasingThe purchasing department is responsible for locating such suppliers,
35、negotiating long-term contracts with them with the best price.,Production and Operations,Material, Purchasing and Inventory ControlInventory ControlInventory refers to a list of goods and materialsheld available in stock.Manufacturing organizations usually divide their inventory into three parts:Mat
36、erials and components scheduled for usein making a product;Materials and components that have beguntheir transformation to finished products;Finished products that are ready for sale tocustomers.,rouction and Operations,Material, Purchasing and Inventory ControlInventory ControlOne major cost of pro
37、duction is holding parts,motors, and other items in warehouses.To cut such costs, the Japanese implemented a concept called just-in-time (JIT) inventory control.The idea is to have suppliers deliver their products “just in time” to go on the assemblyline. A minimum of inventory is kept on thepremise
38、s.,Production and Operations,Material, Purchasing and Inventory ControlInventory ControlHow JIT works?A manufacturer sets a production scheduleusing ERP and determines what parts andsupplies will be needed. It then informs its suppliers of what will be needed. The suppliers must deliver the goods ju
39、st in time to go on the assembly line.* A bare minimum must be kept in storage justin case the delivery is held up for some reason.,Production and Operations,Material, Purchasing and Inventory ControlInventory ControlThe latest version JIT II: there is much more sharing of information. An employee f
40、rom the supplier may work full-time at the buyers plant handling the smooth flow of materials.ERP and JIT systems make sure the rightmaterials are at the right place, at the right time, and at the lowest COSt to meet both customer and production needs.,Production and Operations,Material, Purchasing
41、and Inventory ControlQuestions for DiscussionWhat is enterprise resource planning? What are its advantages compared to MRP and MRPDescribe some advantages and disadvantages of just-in-time inventory control. How would you, as a manager in a large firm with many plants, implement a JIT system?,Produc
42、tion and Operations,Controlling Production: SchedulingA schedule is a representation of the timenecessary to carry out a particular task.A job schedule shows the plan for a particular job. It is created through reviews which determine the method and time required.,Production and Operations,Controlli
43、ng Production: SchedulingScheduling can have a major impact on the productivity of a process. The purpose of scheduling is to minimize the production time and costs, by telling a production facility what to make, when, with which staff, and on which equipment.A master production schedule (. !.) will
44、 show when the manager plans to produce each product and in what quantities.,Production and Operations,Controlling Production: SchedulingSchedulingIn preparing a production schedule, attention needs to be paid to:*delivery dates (when finished prodUCts are due);job schedules for each relevant produc
45、tion task; *capacities of production sections or departmentsinvolved;efficienCy of these prodUCtion seCtions ordepartments; *planned holidays.*anticipated sickness/absenteeism/training;*availability of raw materials, components and packaging.,Production and Operations,Controlling Production: Schedul
46、ingPERT ChartsThe steps involved in using PERT are:*analyzing and sequencing tasks that need to be done;*estimating the time needed tO complete eaChtask;* drawing a PERT network illustrating theinformation from the first two steps;*identifying the critical path.,Production and Operations,Controlling
47、 Production: SchedulingPERT ChartsThe critical path (VIII?)is the sequenceof tasks that takes the longest time to complete. This word critical is used in this term because adelay in the time needed to complete this path would cause the project or produCtion line to be late. .,(1 week),Production and
48、 Operations,Controlling Production: SchedulingPERT Charts,(2 weeks),(2 weeks),(1 week),(4 weeks),(6 weeks),(4 weeks),(4 weeks),(1 week),Production and Operations,Controlling Production: SchedulingPERT ChartsThe minimum amount of time it will take to produce this video is 15 weeks. To calculate that
49、number, you add the week it takes to pick a star and a song, to the four weeks to design a set, the two weeks to pUrChase set materials, the six weeks to construct the set, the week before rehearsals, and the final week when the video is made. Thats the critical path.,Production and Operations,Contr
50、olling Production: SchedulingPERT ChartsAny delay in that process will delay the final video. Delays in other processes (e.g., selection and Choreographing dancers and CoStume design) wouldnt necessarily delay the video because there are more weeks in the critical path than are needed for those proc
