COMMERCE 1B03 Chapter Notes - Chapter 16: Statistical Process Control, Iso 14000, Iso 9000

7 views6 pages
Published on 13 Apr 2013
Department
Professor
Chapter 16 Producing World Class Goods and Services (Operations)
Canada Today
- Canada is a large industrial country with many industries (i.e. Forest products,
aluminum, automotive, aircraft, oil and natural gas, metals and minerals thousands of
components and natural resources are produced/processed in Canada)
- Canada is facing many challenges to remain a competitive industrial country
- Inadequate improvement in productivity; competition from US, Japan, Germany, India,
China, etc. ; inadequate education and retraining programs; our “branch plant
economy” (other countries build plants in Canada, profits return to the foreign parent
companies); not enough money in R&D
Research and Development
- Defined as: work directly toward the innovation, introduction and improvement of
products and processes
- Technology: know-how, knowing how to make and use tools for the job
- Innovation: new product or process that can be purchased. An idea may lead to
innovation, but not until it is commercialized
- Technology know how can turn to innovation
- Three most important objectives:
1. improve product quality
2. increase production capacity
3. extend product range
Canada’s Evolving Manufacturing and Services Base
- Canadian manufacturers emphasized the following to regain a competitive edge:
1. Focusing on customers
2. Maintaining close relationships with suppliers and other companies to satisfy
customer needs
3. Practising continuous improvement
4. Focusing on quality
5. Saving on costs through site selection
6. Relying on the Internet to unite companies
7. Adopting production techniques such as enterprise resource planning,
computer-integrated manufacturing, flexible manufacturing, and lean
manufacturing
- Manufacturing employs 7% of Canadians, performs 75% of private sector R&D
- Increasing use of advanced production technologies at an average annual rate of more
than 20% over the last several years
- Production: the creation of finished goods and services using the factors of production
(land, labour, capital, entrepreneurship, and knowledge)
- Production management: describe all the activities that managers do to help their firms
create goods
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 6 pages and 3 million more documents.

Already have an account? Log in
- Operations management: a specialized area in management that converts or transforms
resources into goods and services
- Includes:
1. Inventory management
2. Quality control
3. Production scheduling
4. Follow-up services
- Manufacturers have turned from manufacturing to a customer orientation and service
perspective (ex. IBM, Ford)
Operations Management Planning
- Facility location: process of selecting a geographic location for a company’s operations
- Factors include easy accessibility to company services, labour costs, availability to
resources, access to transportation, proximity to suppliers, quality of life, lower cost of
living, ability to train local workforce
- Outsourcing is common trend, to get to the experts at a lower cost
- Auto industry is Canada’s biggest contributor to manufacturing GDP
- Facility layout: the physical arrangement of resources (including people) in the
production process
- Assembly line layout: workers do only a few tasks at a time
- Modular layout: teams of workers combine to produce more complex units of the final
product
- Process layout: similar equipment and functions are grouped together
- Fixed position layout: allows workers to congregate around the product to be completed
- Quality: consistently producing what the customer wants while reducing errors before
and after delivery to the customer
- Quality control once was done at the end of a production line
- Problems of this were:
1. Need to inspect people’s work, using extra resources
2. If error was found some would have to correct the mistake or scrap the product
3. If a customer spotted an error, they might be dissatisfied and might buy from
someone else after
- Quality is not an outcome, it is an never-ending process of continually improving what a
company produces
- Quality control should be part of the operations management planning process
- Six sigma quality: a quality measure that allows only 3.4 defects per million events
- Statistical quality control (SQC): process that some managers use to continually monitor
all phases of the production process to ensure that quality is being built into the product
from the beginning
- Statistical process control (SPC): the process of taking statistical samples of product
components at each stage of the production process and plotting those results on a
graph. Any variances from quality standards are recognized and can be corrected if
beyond the set standards
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 6 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Chapter 16 producing world class goods and services (operations) Canada is a large industrial country with many industries (i. e. forest products, aluminum, automotive, aircraft, oil and natural gas, metals and minerals thousands of components and natural resources are produced/processed in canada) Canada is facing many challenges to remain a competitive industrial country. Inadequate improvement in productivity; competition from us, japan, germany, india, ; inadequate education and retraining programs; our branch plant economy (other countries build plants in canada, profits return to the foreign parent companies); not enough money in r&d. Defined as: work directly toward the innovation, introduction and improvement of products and processes. Technology: know-how, knowing how to make and use tools for the job. Innovation: new product or process that can be purchased. An idea may lead to innovation, but not until it is commercialized. Three most important objectives: improve product quality increase production capacity: extend product range.

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.