Prepared by Department of Management UMN | | manajemen.umn@unimedia.ac.id PRODUCING WORLD-CLASS...

Prepared by Department of Management UMN | www.unimedia.ac.id | manajemen.umn@unimedia.ac.id

PRODUCING WORLD-CLASS GOODS & SERVICES

PRODUCING WORLD-CLASS GOODS & SERVICES

Week 10

How Manufacturers Have Become More Effective

Focus on customers

Maintain close relationships

Continuous improvement

Focus on quality

Save costs

Rely on the InternetNew production techniques

From Production to Operations Management

Production

Production Management

Operations Management (OM)

Resource Transformation Process

Comparing Asian Giants

CHINA

Driving Force: Manufacturing Largest Communist Country Population: 1.3 Billion Economic Growth Rate: 9% Financial/Commercial Capital: Shanghai

INDIA

Driving Force: Services Largest Democracy Population: 1.1 Billion Economic Growth Rate: 7% Financial/Commercial Capital: Mumbai

Source: Kiplinger.com December 19, 2005, BBC News, In Depth, accessed July 15, 2006

Production Processes

Form Utility

Process Manufacturing

Assembly Process

Continuous Process

Intermittent Process

Three Requirements For Production

1. Build and deliver products in response to the demands of the customer at a scheduled delivery time

2. Provide an acceptable quality level

3. Provide everything at the lowest possible cost

Production Efficiency

Krispy Kreme Doughnuts – 5,208 a minute

Twinkies – 972 a minute

LifeSavers 5 Flavor Roll – 100 rolls a minute

Jell-O Gelatin Boxes – 764 a minute

Chips Ahoy! – 4,000 a minute

Source: World Features Syndicate

What Is Increasing Productivity?

42%

14%

12%

11%

8%Innovation

CapitalImprovementStaffDownsizingOutsourcing

Other

Source: 2005 National Innovation Survey, Council on Competitiveness

Product Improvements With Computer Technology

Computer-Aided Design - CAD

Computer-Aided Manufacturing - CAM

Computer-Integrated Manufacturing - CIM

Production Techniques

Flexible Manufacturing

Lean Manufacturing

Mass Customization

www.slideshare.com/natriumz

Flexible Manufacturing...

Designing machines to do multiple tasks so that they can produce a variety of products.

www.slideshare.com/natriumz

Lean Manufacturing...

The Production of Goods using less of everything compared to mass production.

www.slideshare.com/natriumz

Mass Customization...

Tailoring products to meet the needs of

individual customers.

Operations Management Planning

1. Facility Location

2. Facility Layout

3. Materials Requirement Planning

4. Purchasing

5. J-I-T Inventory Control

6. Quality Control

Layout

Product, process, cellular

Quality Control

Six Sigma Quality

Statistical Quality Control (SQC)

Statistical Process Control (SPC)

The Baldrige Award

ISO 9000

ISO 14000

ISO

ISO was founded in 1947At the end of 2004, the worldwide total of

certificates: ISO 9000 – 670,000 in 154 countries ISO 14000 – 90,000 in 127 countries

Source: Business Week Online, March 17, 2006

Control Procedures

Program Evaluation & Review Techniques (PERT)

Gantt Chart

PERT

PERT Steps

1. Analyzing and sequencing tasks that need to be done.

2. Estimating the time needed to complete each task.

3. Drawing a PERT network illustrating the information from steps 1 and 2.

4. Identifying the critical path.

GANT CHART

Gantt Chart

Named for its developer, Henry Gantt

A bar graph that clearly shows what projects are being worked on and how much has been completed at any given time

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