Chapter Ten

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Chapter TenProducing Quality

Goods and Services

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PRIDE HUGHES KAPOOR

INTRODUCTION TOBUSINESS

ELEVENTH EDITION


Learning Objectives

1. Explain the nature of production2. Outline how the conversion process transforms raw

materials, labor, and other resources into finished products or services

3. Describe how research and development lead to new products and services

5. Discuss the components involved in planning the production process. Explain how purchasing, inventory control, scheduling, and quality control affect production

6. Summarize how productivity and technology are related

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What Is Production?

Define• Operations Management• Operations Manager

What is Planning and when does it take place?

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How American Manufacturers Compete in the Global Marketplace

Be able to discuss the U.S. in terms of productivity and competitiveness post-WW II• What are the factors that have led to

increased productivity? What are common traits of the most successful

U.S. firms? • What has been their focus?

What has happened to manufacturing employment levels in recent decades?

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Careers in Operations Management

Be able to discuss the manufacturing process• Mass Production• Analytical Process• Synthetic Process

What are traits of successful operations managers? • What must they be able to do?

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The Conversion Process

What is the purpose of manufacturing? Be able to discuss the Conversion Process Define Utility

• Know the Four Types of Utility Define

• Form Utility• Focus• Magnitude of Change

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Services

What is a Service Economy? Why are services increasing in importance in the

United States? How does the production of services vary from the

production of goods?

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Where Do New Products and Services Come From?

Be able to discuss where new products and services come from

Define • Research and Development• Basic Research• Applied Research• Development and Implementation

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Where Do New Products and Services Come From? (cont’d)

Define and be able to discuss• Product Life Cycle

- What are the phases of the product life cycle?

• Product Refinement• Product Extension

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How Do Managers Plan for Production?

Define • Design Planning• Product Line• Product Design• Capacity

What are the three phases a manager uses to convert an idea into a product or service?

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Design Planning

Discuss how technology helps in Design Planning

What is the difference between • Labor-Intensive Technology• Capital-Intensive Technology

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Facilities Planning

Define Facilities Planning What are the factors that influence

• The decision to use an existing facility or to construct a new facility?

• The location decision for a production facility?

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Human Resources Managers

What role do Human Resources Managers play in operations management?

• What relationship do human resources and operations managers have?

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Plant Layouts

Know and be able to explain different Plant Layouts• The Process Layout• The Product Layout (Assembly Line)• The Fixed Position Layout

When are each of these layouts used?

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Operational Planning

Be able to discuss the Four Steps in Operational Planning• Step 1: Selecting a planning horizon• Step 2: Estimating market demand• Step 3: Comparing market demand with

capacity• Step 4: Adjusting products or services to

meet demand

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Operations Control

Be able to name and discuss the Four Aspects of Operations Control• Purchasing• Inventory Control• Scheduling• Quality Control

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Inventory Control

Name the different types of inventory• Raw Materials• Work-in-Process• Finished Goods

What are the costs of inventory? Know and be able to explain the inventory control methods

• Materials Requirements Planning (MRP)• Manufacturing Resource Planning (MRP II)• Enterprise Resource Planning (ERP)• Just-In-Time Inventory System

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Scheduling

Be able to discuss the significance of • Routing of materials• Timing of materials• Follow-up

Be able to recognize and explain • Gantt Chart• PERT (Program Evaluation and Review

Technique)

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Quality Control

Define• Statistical Process Control (SPC)• Statistical Quality Control (SQC)• Inspection

Know how the following improve quality• Quality Circle• Total Quality Management (TQM)• Six Sigma

What is the International Organization for Standardization (ISO)?

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Productivity Trends

Define Productivity Be able to discuss Productivity Trends in the

U.S.• What was the effect of the most recent

recession on productivity?• How does government regulation affect

productivity? • How can productivity be improved?

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Improving Productivity with Technology

Define • Automation• Robotics

How have robotics and technology increased productivity?

Be prepared to discuss the advantages and disadvantages of automation and robotics

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Computer Manufacturing Systems

Define and explain• Computer-Aided Design (CAD)• Computer-Aided Manufacturing (CAM)• Computer-Integrated Manufacturing (CIM)• Continuous Process• Flexible Manufacturing Systems (FMS)• Intermittent Process

What is Technological Displacement?

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Chapter Ten

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