Chapter 9
description
Transcript of Chapter 9
Operations and Production Management
9-2
0 100 200 Miles
WASHINGTON
OREGON
IDAHO
MONTANA
WYOMING
NEVADA
CALIFORNIA
UTAH
ARIZONA
COLORADO
NEW MEXICO
KANSAS
OKLAHOMA
MISSOURI
ARKANSAS
TEXAS
LOUISIANA
MISSISSIPPI
ILLINOIS
NORTH DAKOTA
SOUTH DAKOTA
MINNESOTA
WISCONSIN
IOWA
NEBRASKA
MICHIGAN
MICHIGAN
INDIANA
OHIO
WESTVIRGINIA
PENNSYLVANIA
NEW YORK
VIRGINIA
DC
KENTUCKY
VTNH
MAINE
RI
MASS
CONN
NEWJERSEY
DELAWARE
MARYLAND
NORTH CAROLINA
TENNESSEE
ALABAMA GEORGIA
SOUTHCAROLINA
FLORIDA
HAWAII
ALASKA
0 600 Miles0 200 Miles
CaliforniCaliforniaa
New YorkNew York
IllinoisIllinois
OhiOhioo
PennsylvaniPennsylvaniaa
TexaTexass
MichigaMichigann
Source: Britannica Student Encyclopedia, 2006Source: Britannica Student Encyclopedia, 2006
Production
The creation of value using factors of production (land, labor, capital, knowledge, and entrepreneurship)
Operations Management
Overseeing the transformation of capital into goods and services
9-3
1. ExxonMobil2. Chevron 3. General Motors
4. ConocoPhillips 5. Ford Motor
6. General Electric7. Altria Group8. IBM Corp.9. Hewlett-Packard10. Valero Energy
9-4
Source: Industry Week, June 1, 2006
The U.S. has been regainingits lead in manufacturing – why?
Focus on customers Maintain close relationships Continuous improvement Focus on quality Save costs Rely on the Internet New production techniques
9-5
Ford – 35.79 hoursFord – 35.79 hours
Daimler/Chrysler – Daimler/Chrysler – 33.71 hours33.71 hours
GM – 33.19 hoursGM – 33.19 hours
Honda – 32.51 hoursHonda – 32.51 hours
Toyota – 29.4 hoursToyota – 29.4 hours
Nissan – 28.46 hoursNissan – 28.46 hours
9-6Source: Detroit Free Press, June 2, 2006Source: Detroit Free Press, June 2, 2006
Ford – ($590)Ford – ($590)
Daimler/Chrysler – Daimler/Chrysler – $223$223
GM – ($2496)GM – ($2496)
Honda – >$1200Honda – >$1200
Toyota – >$1200Toyota – >$1200
Nissan – >$1200Nissan – >$1200
9-7Source: Detroit Free Press, June 2, 2006Source: Detroit Free Press, June 2, 2006
Ford – 79%Ford – 79%
Daimler/Chrysler – Daimler/Chrysler – 94%-106%94%-106%
GM – 90%GM – 90%
Honda – 91%Honda – 91%
Toyota – 94%-106%Toyota – 94%-106%
Nissan – 94%-106%Nissan – 94%-106%
9-8Source: Detroit Free Press, June 2, 2006Source: Detroit Free Press, June 2, 2006
Form Utility The value we pay for that
comes from changing a good
Process Manufacturing Making physical changes
in a good
Assembly Putting component parts
together
9-9
Can be done using: Continuous Process
Long production runs Turn out same thing
every time
Intermittent Process Production runs shorter Lines get changed out to
produce different things
9-10
1. Quick response to the demands of the customer
2. Acceptable quality level
3. Lowest possible cost
9-11
Krispy Kreme Doughnuts – 5,208 a minute
Twinkies – 972 a minute
LifeSavers 5 Flavor Roll – 100 rolls a minute
Jell-O Gelatin Boxes – 764 a minute
Chips Ahoy! – 4,000 a minute
9-12
Source: World Features SyndicateSource: World Features Syndicate
9-13
Source: 2005 National Innovation Survey, Council on CompetitivenessSource: 2005 National Innovation Survey, Council on Competitiveness
Computer-Aided Design - CAD
Computer-Aided Manufacturing - CAM
Computer-Integrated Manufacturing - CIM
9-14
Flexible Manufacturing
Lean Manufacturing
Mass Customization
9-15
Facility Location
Facility Layout
Materials Requirement Planning
Purchasing
J-I-T Inventory Control
Quality Control
9-16
Six Sigma Quality Statistical Quality Control
(SQC) Statistical Process Control
(SPC) The Baldrige Award ISO 9000 ISO 14000
9-17
Program Evaluation & Review Techniques (PERT)
Gantt Chart
9-18
1. Analyzing and sequencing tasks that need to be done
2. Estimating the time needed to complete each task
3. Drawing a PERT network illustrating the information from steps 1 and 2
4. Identifying the critical path
9-19
Formalize forums for analyzing failure Move the goalposts Share personal stories Bring in outsiders Prove yourself wrong, not right Celebrate smart failures
9-20
Source: Business Week Online, July 10, 2006Source: Business Week Online, July 10, 2006