33:799:301 Lecture Notes - Lecture 15: Kaizen, Laundry Detergent, Six Sigma
1 May 2017
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Document Summary
Chapter 8 - operations management with lean and six sigma. Operations management refers to the design, execution, and control of the operations that convert resources into desired goods and services, aligned with the company"s business strategy. Goal is to convert materials and labor into goods and services as efficiently and effectively as possible, while also controlling costs to maximize profits. Nature of how om is carried out varies by company and depends on nature of products and/or services in the portfolio. Manufacturing strategies - companies develop a manufacturing strategy aligned to the production strategy, the strategy is established to satisfy customer demand while balancing manufacturing costs and inventory levels. Minimize cost - labor, materials, plant and equipment. Manufacturing strategies include: make to stock (mts, assemble to order (ato, make to order (mto, engineer to order (eto) Accuracy of forecasts is key o inventory management and controlling costs, accurate demand forecast limits excess inventory and loss sales from stock outs.
