A superior Operation & Materials Management Could Give
Company COMPETITIVE ADVANTAGE PRODUCTIVITY HIGHER VALUE LOWER
COST
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Operations & Materials Management Method INCREASE
PRODUCTIVITY: Better ways to use resources Lower inventory holding
cost Reduce time to process customer orders INCREASE RESPONSIVENESS
TO CUSTOMER High-quality customer service Satisfying shopping
experience Good after sales services INCREASE INNOVATION: Find ways
to inprove product quality Find ways to reduce production cost Find
ways to sell products at a lower cost INCREASE QUALITY: Number of
customer orders corectly processed Consistent, reliable product
Ensure supply of high- quality inputs
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OMM COST Raw Materials & Components Cost Plant Cost Labor
Cost Inventory Cost Distribution Cost
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Flexible Production Small-Batch Production Mass Production
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An operating system designed to make one-of-a- kind or small
quantities of cuztomized products Small-Batch Production
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An operating system based on the use of automated machines and
standard operating procedures to make work routine and create a
large number of standardized products Mass Production
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An advanced operating system that combines the benefits of mass
production with benefits of small- batch production Flexible
Production
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Computer-Integrated Manufacturing A manufacturing technique
that controls the changeover of machines from one operation to
another via computer software. Flexible Employees & Work Groups
A team of self-managed employees who assume responsibility for
performing the operating task necessary to make part, or all, of a
peoduct.
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A technique that relies on computers to manage the flow of raw
materials and component parts into and out of a companys operating
system
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The coordination of the flow of raw materials, semifinished
goods, and finished products around the world
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An inventory management system whereby inputs are delivered to
the firm just when they are needed rather than being purchased and
warehoused prior to their use