CH18

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CH18

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  1. Chapter 18Managing Service and Manufacturing Operations

    Slide 1 - Chapter 18Managing Service and Manufacturing Operations

    • © 2015 Cengage Learning
    • MGMT7
  2. © 2015 Cengage Learning

    Slide 2 - © 2015 Cengage Learning

    • 18-1 discuss the kinds of productivity and their importance in managing operations
    • 18-2 explain the role that quality plays in managing operations
    • 18-3 explain the essentials of managing a service business
    • 18-4 describe the different kinds of manufacturing operations
    • 18-5 explain why and how companies should manage inventories
  3. Productivity

    Slide 3 - Productivity

    • © 2015 Cengage Learning
    • 18-1
  4. Why Productivity Matters

    Slide 4 - Why Productivity Matters

    • For companies
    • Higher productivity results in lower costs, lower prices, faster service, higher market share, higher profits
    • For countries
    • Higher standard of living, increased wages, more charitable giving
    • © 2015 Cengage Learning
    • 18-1
  5. Kinds of Productivity

    Slide 5 - Kinds of Productivity

    • 18-1
    • © 2015 Cengage Learning
  6. Multifactor Productivity Growth across Industries

    Slide 6 - Multifactor Productivity Growth across Industries

    • 18-1
    • © 2015 Cengage Learning
  7. Quality

    Slide 7 - Quality

    • A product or service free of deficiencies.
    • The characteristics of a product or service that satisfies customer needs.
    • © 2015 Cengage Learning
    • 18-2
  8. Quality-Related Characteristics for Products

    Slide 8 - Quality-Related Characteristics for Products

    • Reliability
    • Serviceability
    • product failure
    • Durability
    • © 2015 Cengage Learning
    • 18-2
  9. Quality-Related Characteristics for Services

    Slide 9 - Quality-Related Characteristics for Services

    • Reliability
    • Tangibles
    • Responsiveness
    • Assurance
    • Empathy
    • © 2015 Cengage Learning
    • 18-2
  10. ISO 9000

    Slide 10 - ISO 9000

    • A series of five international standards for achieving consistency in quality management and quality assurance.
    • © 2015 Cengage Learning
    • 18-2
  11. ISO 14000

    Slide 11 - ISO 14000

    • A series of international standards for managing, monitoring, and minimizing an organization’s harmful effects on the environment.
    • © 2015 Cengage Learning
    • 18-2
  12. Baldrige National Quality Award

    Slide 12 - Baldrige National Quality Award

    • Given “to recognize U.S. companies for their achievements in quality and business performance and to raise awareness about the importance of quality and performance excellence as a competitive edge.”
    • © 2015 Cengage Learning
    • 18-2
  13. 2013 J. D. Power Initial Quality Survey

    Slide 13 - 2013 J. D. Power Initial Quality Survey

    • 18-2
    • © 2015 Cengage Learning
  14. Total Quality Management

    Slide 14 - Total Quality Management

    • Customer focus
    • Customer satisfaction
    • Continuous improvement
    • variation
    • Teamwork
    • © 2015 Cengage Learning
    • 18-2
  15. Services vs. Goods

    Slide 15 - Services vs. Goods

    • Goods are made, but services are performed
    • Someone has to perform the service for you
    • Services are intangible
    • Services are perishable and un-storable
    • © 2015 Cengage Learning
    • 18-3
  16. Criteria for the Baldridge National Quality Award

    Slide 16 - Criteria for the Baldridge National Quality Award

    • 18-3
    • © 2015 Cengage Learning
  17. Service Recovery and Empowerment

    Slide 17 - Service Recovery and Empowerment

    • Service recovery
    • Empowerment
    • © 2015 Cengage Learning
    • 18-3
  18. Amount of Processing

    Slide 18 - Amount of Processing

    • Make-to-order
    • Assemble-to-order
    • Make-to-stock
    • © 2015 Cengage Learning
    • 18-4
  19. Manufacturing Flexibility

    Slide 19 - Manufacturing Flexibility

    • The degree to which the manufacturing operations can easily and quickly change the number, kind, and characteristics of products they produce.
    • Continuous-flow production
    • Line-flow production
    • Batch production
    • Job shops
    • © 2015 Cengage Learning
    • 18-4
  20. Inventory

    Slide 20 - Inventory

    • The amount and number of raw materials, parts, and finished products that a company has in its possession.
    • © 2015 Cengage Learning
    • 18-5
  21. Service-Profit Chain

    Slide 21 - Service-Profit Chain

    • 18-5
    • © 2015 Cengage Learning
  22. Measuring Inventory

    Slide 22 - Measuring Inventory

    • Average aggregate inventory
    • Stockout
    • Inventory turnover
    • © 2015 Cengage Learning
    • 18-5
  23. Inventory Costs

    Slide 23 - Inventory Costs

    • Ordering
    • Setup
    • Holding
    • Stockout
    • © 2015 Cengage Learning
    • 18-5
  24. Managing Inventory

    Slide 24 - Managing Inventory

    • 18-5
    • © 2015 Cengage Learning
  25. Managing Inventory

    Slide 25 - Managing Inventory

    • Just-in-time (JIT) inventory system
    • Kanban
    • Materials requirement planning (MRP)
    • master production schedule
    • bill of materials
    • inventory records
    • © 2015 Cengage Learning
    • 18-5
  26. Which System?

    Slide 26 - Which System?

    • Independent demand systems = EOQ
    • Dependent demand systems = JIT or MRP
    • © 2015 Cengage Learning
    • 18-5
  27. Numi Organic Tea

    Slide 27 - Numi Organic Tea

    • What kinds of challenges does Numi face in managing information?
    • Why was it no longer sufficient for Numi to use programs like Excel and QuickBooks to manage its information?
    • © 2015 Cengage Learning.
  28. Numi Organic Tea

    Slide 28 - Numi Organic Tea

    • © 2015 Cengage Learning.