Business Studies 08.pptVIP

Prentice Hall, 2005 Business In Action 3e Producing Quality Goods and Services What Is Production? The Conversion Process Input-Transformation-Output Relationships for Typical Systems Challenges of the Service Industry Manufacturing Goods Outsourcing the Manufacturing Function Production Process Design The Supply Chain Forecasting Demand Capacity Planning Facility Location Facility Layout Process Layout Product Layout Cellular Layout Fixed-Position Layout Production Schedule The Gantt Chart Program Evaluation and Review Technique (PERT) PERT Time Estimates PERT Diagram for Manufacturing Shoes Production Robotics Computerized Production Manufacturing Systems Supply Chain Data Interchange The Production Process Managing Inventory Inventory Control Manufacturing Resource Planning Supply Chain Management Maintaining Quality Global Quality Standards Statistical Quality Control Statistical Process Control Continuous Improvement Quality Control Quality Assurance ISO Certification Deming Prize Malcolm Baldrige Award Forward-thinking companies know how wasteful it is to tie up large sums of money in inventory—the goods and materials kept in stock for production or sale. On the other hand, not having an adequate supply of inventory can delay production and result in unhappy customers. Purchasing is the acquisition of the raw materials, parts, components, supplies, and finished products required to produce goods and services. The goal of purchasing is to make sure that the company has all of the materials it needs, when it needs them, at the lowest possible cost. To accomplish this goal, a company must always have enough supplies on hand to cover a product’s lead time—the period that elapses between placing the supply order and receiving materials. Many companies establish a system of inventory control—some way of (1) determining the right quantities of supplies and products to have on hand and (2) tracking where those items are. Three methods that companies use to cont