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List the steps in the purchasing process. disadvantages of maintaining large inventories. production control process. quality control.
7 Outline the advantages and 8 Identify the steps in the 9 Explain the benefits of
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.
Mass Production
A system for manufacturing products in large amounts through effective combinations of employees with specialized skills, mechanization, and standardization. Assembly line Manufacturing technique that carries the product on a conveyor system past several workstations where workers perform specialized tasks.
Flexible Production
Produces smaller batches of goods cost-effectively with information technology. Requires a high degree of cooperation throughout the organization.
Customer-Driven Production
Evaluates customer demands to link what a manufacturer makes with what customers want to buy.
PRODUCTION PROCESSES
Analytic production system Reduces a raw material to its component parts in order to extract one or more marketable products. Synthetic production system Combines a number of raw materials or parts or transforms raw materials to produce finished products. Continuous production process Generates finished products over a lengthy period of time. Intermittent production process Generates products in short production runs, shutting down machines frequently or changing their configurations to produce different products.
Computer-aided design (CAD) System for interactions between a designer and a computer to create a product, facility, or part that meets predetermined s specifications. Computer-aided manufacturing (CAM) Electronic tools to analyze CAD output and determine necessary steps to implement the design, followed by electronic transmission of instructions to guide the activities of production equipment.
Computer-Integrated Manufacturing
A production system in which computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion Key is a centralized computer system running software that integrates and controls separate processes and functions.
Inventory Control Perpetual inventory Systems continuously monitor the amounts and locations of stocks. Vendor-managed inventory Inventory control functions handed over to suppliers. Just-in-Time Systems Management philosophy aimed at improving profits and return on investment by minimizing costs and eliminating waste through cut- ting inventory on hand. Materials Requirement Planning Computer-based production planning system by which a firm can ensure that it has needed parts and materials available at the right time and place in the correct amounts.
Scheduling Scheduling Development of timetables that specify how long each operation in the production process takes and when workers should perform it. Useful tools for scheduling include a Gantt chart and a PERT (Program Evaluation and Review Technique) chart. Dispatching Manager instructs each department on what work to do and the time allowed for its completion. Follow-Up Employees and their supervisors spot problems in the production process and determine needed changes.
IMPORTANCE OF QUALITY
I Best defined as a good or service free of deficiencies. In some companies, costs of poor quality amount to 20 percent of revenue. Benchmarking Process of 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
International Organization for Standardization (ISO) Organization whose mission is to promote the development of standardized products to facilitate trade and cooperation across national borders. ISO 9000 family series of standards sets requirements for quality processes. ISO 14000 series sets standards for operations that minimize harm to the environment.