MGMT 1 Lecture Notes - Lecture 8: Operations Management, Outsourcing, Enterprise Resource Planning
Mgmt 1 Week 4A
● US economy is dominated by service sector
● Output from manufacturing still increases
○ Job loss in manufacturing
■ Increased productivity, don’t need as many workers
■ Outsourcing
● Germany is world’s 3rd largest exporter
● US manufacturers stay competitive by
○ Customer focus
○ High quality
○ Technology
○ Cost savings
○ Innovation
● Production management is how to use resources to produce goods
● Operations management is how to use resources to produce goods and provide
services
● Overall goal is to satisfy customers
● Form utility is the value that is added in the creation of goods
○ Wood → furniture
● Process manufacturing physically or chemically alters raw materials
● Assembly process assembles components into a finished product
○ Tires on a car
● Continuous process long term
● Intermittent process short and customized
Document Summary
Us economy is dominated by service sector. Increased productivity, don"t need as many workers. Production management is how to use resources to produce goods. Operations management is how to use resources to produce goods and provide services. Form utility is the value that is added in the creation of goods. Process manufacturing physically or chemically alters raw materials. Assembly process assembles components into a finished product. Computer aided design helps design cars and planes. Computer aided manufacturing involves computers in production. Flexible manufacturing is when machines do different tasks. Lean manufacturing uses less resources, decreases defects, lowers inventory, produces less waste. Materials requirement planning gets necessary material and resources in the quantity when needed. Enterprise resource planning integrates all business functions. Inventory is finished or semi-finished products and raw material and components. Main problem in inventory control is tradeoff between holding/storage cost and shortage cost.
