《管理专业英语》-OP-MANAGEMENTCHAPTER-5课件.ppt

What are“production”and“operations”?Productionis the conversion of resources such as materials,finances,people,and information into goods and servicesHow does the conversion take place?Through the use of TechnologyUsing a particular Conversion SystemThe Major Production ProcessSynthetic ProcessManufacturing processconverts raw materials into other productsAssembly ProcessCombines raw materials or parts into a finished product e.g.in the synthetic fabric industry,materials are changed through chemical and heat process before the final product being formed.The Features of OperationsMeaningOperations are the functions needed to keep the company producing,literally and function or series of functions enacted to carry out a strategic plan.ExampleFord Motor Co.as an example,operations will usually include purchasing,materials management,inventory and quality control,maintenance and manufacturing engineering,and plant management,etc.Activities Include in Production and Operations ManagementFirst,the organization may engage in product development to come up with the goods and services it will produceThen,the organization has to decide where to produce the goods or serviceNext,production must be planned.As you see,planning takes place both before anything is produced and during productionFinally,managers must concern themselves with the control of operations to ensure that goals are being achieved.Research and Development Effort Research and Development(R&D)is an organized set of activities intended to identify new ideas and technical advances that have the potential to result in new products and services.Three Types of R&D Activities 1.Basic Researchconsist of activities aimed a t disclosing new knowledge.The goal of basic research is scientific advancement,without regard for its potential use in the development of goods and services2.Applied Researchconsist of activities geared to disclosing new knowledge that has some potential use.3.Development and implementationresearch activities undertaken to put new or existing knowledge to use in producing and services 2.Sources of Raw Materials:since the transportation costs associated with shipping raw material any great distance would be very high,many companies find it most profitable to place their plants near them.3.Labor Supply:no doubt,all production operations require some manpower.Therefore,the firm must identify the type of labor it needs and then try to locate its facilities at least within commuting distance of people who will supply it.This is especially important in the case of those companies that need highly skilled people.4.Power and Water:some firms,such as chemical and fertilizer companiesneed a great deal of electric power to produce their goods.And some firms,such as paper mills usually locate in areas where clean water is available in large quantities.5.Community Consideration:in facility location the firms also need to look at the services available in the community.For example,some cities and towns will offer low taxes,offer fine education systems and,have many of the good things in life,such as clean air,clean water,and a low cost of living.Operational planning:is the development of plans for utilizing production facilities and resources.In contrast to one-time-only design plans,operational plans are developed periodically for each facility.The objective of operational planning is to decide on a level of output for facility.Four steps are required:1.select a planning horizon2.estimate the market pare demand with capacity4.adjust output to match demandFour important areas of production and operations controlPurchasing-Consist of all the activities involved in obtaining required material,supplies,and parts from other firms.The objective of purchasing planning is to ensure that sufficient purchased materials are on hand without paying excessive storage costs.Objective of Purchasing-Ensure the required materials are available when they are needed,in the proper amounts,and at minimum cost.Major functions of purchasing:supplier selection and purchasing planningFirst,purchasing personnel should constantly be on the lookout for new or“back-up”suppliers,even when their needs are being met by their present suppliers.Second,when choose suppliers we should careful analysis a number of factors such as price,quality and reliability.Inventory controlInventory control is the process of managing inventories is such a way to minimize inventory costs,including both holding costs and potential stock-out costsImportant factors in inventory controlLead timethe time that elapses between placement of an order and receipt of the orderModelsvarious mathematical models based on lead time,costs,and required quantities are used to optimize the timing or orders and to minimize ordering costsEOQ model(EOQ stands for Economic Order Quantity)which provides the least-cost order quantity via a simple arithmetic calculation.Because large firms can occur huge inventory costs.JIT inventory systemdesigned to ensure that materials or supplies arrive at a facility just the point at which they are needed so that storage is minimized.Quality ControlThe process or ensuring that goods and services are produced in accordance with designed specifications for the product.It is the prime responsibility of production and operations managers.A firm that consistently produces goods or services of poor quality will,at least,lose customers droves.In more extreme cases,faulty goods and services may involve a firm in costly legal difficulties.Objective of quality controlis to see that the organization lives up to the standards that it has set for itself on qualityIncrease customers satisfaction,customer loyalty,prevent product safety problems,and decrease costs by reducing the size of the facilitys scrap heapQuality Control MethodsQuality circlesgroups or employees who meet on company time to solve problems of product qualityAutomation use of computers,robotics and some manufacturing system to ensure the quality stableEmployee development-improving their ability,skills,and self-managementProductivity and Productivity ImprovementProductivity it is a measure of output per unit of time per worker.Output can be measured in terms of volume,quantity of items produced,or dollar value of items produced.Productivity improvementThe quality of leadership in business(managers effect on productivity)The employee themselves(want to be good)They way a company uses employees(provide employees with opportunity to do their best at their job)Review Questions:1.Explain the differences among the following production process:synthetic,analytic,continuous and,intermittent.2.List all the activities or functions that are involved in production and operations management3.Briefly describe the three of research and development activities4.How many factors may a company consider for facility location?5.what are the four steps in operational planning?And what is its objective?6.what is the difference between capacity and output?7.what are the major functions of purchasing?And what are the factors should be considered when choosing the suppliers?8.what are the costs that must be balanced and minimized through inventory control9.what is quality control?How to understand its major objective?10.what is productivity?How should we improve productivity?And what challenges on improving productivities of a firm?