Chapter 09 Production and Operations Management McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc All rights reserved Chapter Nine LEARNING GOALS Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive Describe the evolution from production to operations management Identify various production processes and describe techniques that improve productivity, including computeraided design and manufacturing, flexible manufacturing, lean manufacturing and mass customization. 9-2 Chapter Nine LEARNING GOALS Describe operations management planning issues including facility location, facility layout, materials requirement planning, purchasing, justintime inventory control and quality control Explain the use of PERT and Gantt charts to control manufacturing processes 9-3 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 9-4 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 9-6 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 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 9-10 .. .Chapter Nine LEARNING GOALS Describe the current state of U.S. manufacturing and what manufacturers have done to become more competitive Describe the evolution from production to operations management... computeraided design and manufacturing, flexible manufacturing, lean manufacturing and mass customization. 9- 2 Chapter Nine LEARNING GOALS Describe operations management planning issues including facility location, facility layout, materials ... 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 9- 4 Chapter Nine NAME that COMPANY This company’s robots manufacture, test, and