Understanding business 11th by mchugh nickels chap009

• Bought the company after two years and refined the production process • Now the company brings in over $3 billion in sales each year... Operations management in this hotel company incl

and  Operations  Management CHAPTER 9

customization. 

Flex­N­Gate

9-4

• Moved from Pakistan to the U.S. at the age of 16

• After college, he got a job overseeing Flex­N­Gate

• Bought the company after two years and refined the 

production process

• Now the company brings in over $3 billion in sales each year

Operations management in this hotel company 

includes restaurants that offer the finest in 

service, elevators that run smoothly, and a front desk that processes people quickly. It may 

include fresh­cut flowers in the lobbies and 

dishes of fruit in every room

Name that company!

Leading U.S. Manufactured Goods

LO 9­1

Source: Industry Week, www.industryweek.com , accessed November 2014.

MASSIVE MANUFACTURERS

The Top Ten U.S. Manufacturers

9-8

LO 9­1

• Freight Farms was developed after the founders were unsatisfied with rooftop greenhouses

9-12

• Germany’s economy is the most powerful and 

respected economy in Europe

• Mittlestand companies design their own machines and production processes

• China has purchased many German firms and are 

studying their production techniques

• Production ­­ The creation of goods using land, 

labor, capital, entrepreneurship and knowledge (the  factors of production).

PRODUCTION and  PRODUCTION MANAGEMENT

Source: PC Magazine, www.pcmag.com , accessed November 2014.

THERE’S an APP for THAT

Top Productivity Apps for iPad

9-16

LO 9­2

• What have U.S. manufacturers done to regain a competitive edge?

• What must U.S. companies do to continue to 

strengthen the country’s manufacturing base?

• What led companies to focus on operations 

management rather than production?

9-18

LO 9­3

Production of Some of America’s Favorite Products

LO 9­3

• Potential of low­cost labor is very attractive to 

companies hoping to remain competitive

• However, shuttering operations and moving can often cause severe economic problems in 

dependent areas

• What would you do if you were the CEO of 

ChildrenWear Industries faced with this problem?

9-40

LO 9­4

MODULAR LAYOUT LO 9­4

9-42

LO 9­4

FIXED­POSITION LAYOUT LO 9­4

Source: Bloomberg Businessweek, www.businessweek.com , accessed November 2014

The SIX SIGMA PROCESS

9-48

LO 9­4

Define Measure Analyze Improve Control

6σ

• Measuring quality along the production process 

reduces the need for quality control at the end

2014 Baldrige Award Recipients 

LO 9­4

9-56

LO 9­5

GANTT CHARTS LO 9­5

are being worked on and how much has been 

completed.

DOLL FACTORY

9-58

LO 9­5

• Draw a PERT chart for making breakfast of three­minute eggs, buttered toast and coffee. Define the critical path

• How could you use a Gantt chart to keep track of production?