Chapter 09 – Production and Operations Management
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progress
assessment
(Text page 253)
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Progress Assessment
(See complete PowerPoint slide notes on page 9.64.)
VI. PREPARING FOR THE FUTURE
VII. SUMMARY
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PowerPoint slide notes
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Chapter Title
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Learning Goals
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Learning Goals
Chapter 09 – Production and Operations Management
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Samuel J. Palmisano
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Name That Company
Company: Allen-Bradley
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Manufacturing in the U.S.
Students are often surprised to read that the United
States is the world’s leading manufacturer, producing
25% of all goods produced worldwide. To start a discus-
sion ask the students, What items do companies in the
United States produce?
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Key Word: Sustainability
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Top Paying Service Jobs
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Remaining Competitive in Global
Markets
The famous economist Joseph Schumpeter believed in
continuous improvement and discussed capitalism as a
force for creative destruction. If the United States is to
remain competitive, the nation as a whole must continu-
ally innovate, eschewing old, inefficient industries in
favor of capital-intensive knowledge-driven industries.
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Learning from Germany
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Production and Production
Management
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Operations Management
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Operations Management in the Service
Sector
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There’s an App for That
This slide shows the top iPad apps that help service
businesses increase productivity.
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Progress Assessment
1. Manufacturers have regained a competitive ad-
vantage by focusing on the following: satisfying
the needs of customers, maintaining a close rela-
tionship with suppliers to make sure they are
meeting customer needs, practicing continuous
improvement, focusing on quality, saving on costs
through better site selection, using new technolo-
gies, adopting new production techniques.
2. To strengthen the nation’s manufacturing base will
require an adjustment and recognition of the new
realities in manufacturing. This will require focus-
ing on new technologies, such as the green ven-
tures discussed in your textbook.
3. The nature of business has changed dramatically
in the past 20 years, forcing companies to focus on
operations management. One change is the shift
from a manufacturing economy to one dominated
by the service industry. Operations management is
a more specialized area of management that con-
verts resources into useful outputs.
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The Production Process
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Form Utility
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Grove’s Basic Production
Requirements
Andrew Grove is the former chair of computer chip
manufacturer Intel.
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Process and Assembly in Production
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Key Production Processes
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Minute Made
1. This slide presents the production efficiency of
various products.
2. Before introducing this slide, it would be inter-
esting to ask the students to take a guess: How
many Krispy Kreme Doughnuts or Chips Ahoy!
Cookies are made every minute?
3. Again, it is important to reinforce the point that
production efficiency directly translates into cost
savings and therefore profits.
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Developments Making U.S.
Companies More Competitive
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Computer-Aided
Design and Manufacturing
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Computer-Integrated Manufacturing
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Flexible Manufacturing
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Lean Manufacturing
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Mass Customization
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Mass Customization of Candy
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Progress Assessment
1. Form utility is the value producers add to mate-
rials in the creation of finished goods and ser-
vices. For example, when a company transforms
raw steel into the body of an automobile it is
creating form utility.
2. Process manufacturing physically or chemically
changes materials, such as turning sand into
glass or computer chips. The assembly process
puts together components to create a product.
For example, cars are made through an assem-
bly process that puts together the frame, engine,
and other parts. Continuous process involves
long production runs turning out finished goods
over time. For example, a plant that makes plas-
tic cups is run on a continuous process. Rather
than using long runs, an intermittent process in-
volves short runs that respond directly to specif-
ic customer orders. An example of this process
would include manufacturers of men’s custom
business suits.
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Operations Management
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Facility Location
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Stay or Leave
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Operations Management on the
Internet
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Future Facility Location
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Setting Up the Facility
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Facility Layout Options
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Assembly Line Layout
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Modular Layout
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Process Layout
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Fixed-Position Layout
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MRP and ERP
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Purchasing
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Inventory Control
1. A JIT system makes sure the right materials are
at the right place at the right time at the cheapest
cost to meet both customer and production
needs.
2. To start a discussion with students ask the fol-
lowing question: While the benefits of the JIT
system are obvious, what are some of the draw-
backs?
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Quality Control
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The Winners Are…
1. This slide presents the 2010 Baldrige National
Quality Award recipients.
2. Awardees included two manufacturers, three
small businesses, one health care system, and
one school system.
3. To better understand the process, have students
spend time reviewing the www.nist.gov web-
site.
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What Is ISO?
ISO is the world’s largest developer and publisher of
international standards. The purpose of ISO is to form a
bridge between the public and private sectors. ISO is
based in Switzerland.