商学导论理论Chapter(11).ppt

A Basic Business Reader Chapter 10 Production Management Objectives After studying this chapter you will be able to: Identify major considerations in choosing a plant location. Understand the advantages and disadvantages of standardizing products. Understand the advantages and disadvantages of modular design. Explain different ways of inspection to ensure product quality. Facility location Factors commonly considered in facility location: 1. Proximity to the market - lower transportation costs - higher speed to respond to customer needs Facility location 2. Availability of raw materials To avoid high transportation costs, plants are located near weighty and bulky raw materials. 3. Labor supply - availability of labor - labor rates (cost of labor) - labor skills Facility location 4. Power - current and future availability - cost 5. Transportation - availability of various transportation modes - reliability - cost Facility location 6. Community characteristics - cultural characteristics - entertainment characteristics - quality of life Product design Product design is usually determined by two factors: 1. Customers’ wants and desires (external factor) 2. Company’s technical ability (internal factor) Products may choose standardizing design or modular design. Product design 1. Standardizing design - agreed-to specifications - reducing production cost - speeding up production and quality control 2. Modular design - items in self-contained units - easy installing, removing, or exchanging - quick repair What is quality control? Quality control – measuring product quality against established standards. Important steps in production: 1. deciding what to produce 2. establishing product specifications and quality standards 3. designing production facilities 4. conducting inspection (See page 104) What is inspection? Inspection is to check whethe