Summary: Operations Management And Production
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1 Operations Management and Production
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What's the difference between production and operations management?
-Production management; all activities that managers execute to help organisations manufacture goods.
- Operations management; managing the process of converting resources into goods and services.
--> In the service sector; creating a good experience for the customer -
What are the basic production requirements?
1) Build an deliver in response to customers' demands within the scheduled time frame
2) Provide an acceptable quality level
3) Provide everything at the lowest possible cost -
What are the forms of production processes?
- continuous; long production runs turn out finished goods over time
- intermittent; production runs are short and the producer adjusts machines frequently to make different products. -
What are the 3 types of production?
Type 1) Unit and small series production
- Mainly assembly operations
- Low degree of automatisation
- Project-Based
E.g. complex installations, large equipment, single items on custom order
Type 2) Large series and mass production
- Mainly assembly operations
- Average degree of automatisation
- Often focused on customers
E.g. components in large series, large series of final products, mass production
Type 3) Process production
- Mainly transformation operations; changing the properties of materials
- High degree of automatisation
E.g. continuous process, batches intermittent process with large series/mass packaging -
Which developments improved productivity?
1. computer-aided design and manufacturing
2. Flexible manufacturing
3. lean manufacturing
4. Mass customization -
With what did computers help?
- Computer-aided design (CAD); the use of computers in the design of products
- Computer-aided manufacturing (CAM); the use of computers in the manufacturing of products
- Computer-integrated manufacturing (CIM); the uniting of CAD and CAM
--> expensive, but saves 80% of time -
What did Woodward say on organisation models?
There is no single best organisation model for a company. A manger should always adapt his strategy to the production style. -
What are the facility layout options?
1. Assembly line layout; workers do only a few tasks at a time (large series/mass)
2. Modular layout; teams or workers produce more complex units of final product (large series/mass, process)
3. Fixed-position layout; allows workers to congregate around he product (large series/mass, unit/small series)
4. Process layout; similar equipment and functions grouped together (unit) -
What are MRP and ERP?
MRP; materials requirement planning - a computer-based operations management system that uses sales forecasts tomato sue parts and materials are available when needed
ERP; enterprise resource planning - a newer version of MRP, combined computerised functions into a single intergraded software program using a single database. -
JIT inventory control
Just-in-time inventory control; the production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time (ERP) to go on the assembly line.
-> requires reliable suppliers
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