Chapter 09
Production
and
Operations
Management
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Nine
LEARNING GOALS
1. Describe the current state of U.S. manufacturing
and what manufacturers have done to become
more competitive.
2. Describe the evolution from production to
operations management.
3. Identify various production processes and describe
techniques that improve productivity, including
computeraided design and manufacturing, flexible
manufacturing, lean manufacturing and mass
customization.
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Chapter Nine
LEARNING GOALS
4. Describe operations management planning issues
including facility location, facility layout, materials
requirement planning, purchasing, justintime
inventory control and quality control.
5. Explain the use of PERT and Gantt charts to
control manufacturing processes.
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Profile
SAMUEL J. PALMISANO
IBM
• Palmisano, CEO and President of IBM, started in
the company in 1973.
• The company’s earnings have quadrupled under
Palmisano.
• Switching the company’s
focus from production to
service, Palmisano led
IBM to enter the emerging
global market.
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Chapter Nine
NAME that COMPANY
This company’s robots manufacture, test, and
package motor starters all untouched by
human hands. The machines can fill special
orders, even for a single item, without slowing
down the process.
Name that company!
9-5
Manufacturing
and Services in
Perspective
MANUFACTURING in the U.S.
LG1
• The U.S. is still the world’s leading manufacturer.
• Manufacturing has continued to grow since 1970.
In fact, U.S. manufacturing is 2x bigger than in
1970.
• Almost 25% of all
goods produced each
year come from the
U.S.
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Manufacturing
and Services in
Perspective
LG1
WHAT’S MADE in the USA?
Leading U.S. Manufactured Goods in $Billions
9-7
Manufacturing
and Services in
Perspective
LG1
Exporters Extraordinaire
Top Ten States that Manufacture Goods for Export
9-8
Manufacturing
and Services in
Perspective
LG1
MASSIVE MANUFACTURERS
The Top Ten U.S. Manufacturers – Revenue in Billions
CNN Money - Fortune Global 500 March 1 2014
9-9
KEY WORD:
SUSTAINABILITY
(Thinking Green)
• The market for new green products and services
is almost endless.
• Given the rate of population growth, it’s important
to plan ahead for a world with limited resources.
• Companies like DuPont, Michelin, Chevron and
Nokia are working on sustainability projects.
• Procter & Gamble and Kaiser Permanente issue
their own mandatory sustainability scorecards to
their supply chains.
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Manufacturing
and Services in
Perspective
TOPPAYING SERVICE JOBS
LG1
• The U.S. economy is no longer manufacturing
based.
• 85% of jobs are in the service sector.
• The toppaying service jobs in the U.S. are in:
-
Legal services
Medical services
Entertainment
Accounting
Finance
Management consulting
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Manufacturers
and Service
Organizations
Become More
Competitive
REMAINING COMPETITIVE in
GLOBAL MARKETS
LG1
• U.S. is still the leader in nanotechnology and
biotechnology.
• How can U.S. businesses maintain a competitive
edge?
-
Focusing on customers
Maintaining close relationships with suppliers
Practicing continuous improvement
Focusing on quality
Saving on costs through site selection
Relying on the Internet to unite companies
Adopting new production techniques
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LEARNING from GERMANY
(Reaching Beyond Our Borders)
• Ten years ago, Germany’s economy was much like
ours today.
• Stihl invested in highly trained workers.
• Stihl remained competitive
in the manufacturing
world.
• German companies
poured money into
research and stayed away
from high tech products.
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