COMMERCE 1E03 Chapter Notes - Chapter 10: Enterprise Resource Planning, Lean Manufacturing, Liquid Oxygen
3 May 2018
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Department
Course
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1E03- Chapter 10: Producing World-Class G&S
LO1: Canadian Manufacturing & competitive companies
Research & Development
➢ Work directed toward the innovation, introduction and improvement of products and
processes
3 most important objectives of innovation are to improve product quality, increase production
capacity and extend product range
Canada’s Evolving Manufacturing and Services Base
To regain competitive edge Canadian Manufacturers have:
➢ Focused on customers
➢ Maintain close-relationships with suppliers & other companies to satisfy customer needs
➢ Practise continuous improvement
➢ Focus on quality
➢ Save on costs through site selection
➢ Rely on the internet to unite companies
➢ Adopt production techniques such as enterprise resource planning, computer-integrated
manufacturing, flexible manufacturing and lean manufacturing
find more resources at oneclass.com
find more resources at oneclass.com
LO2: Evolution ProductionOperations Management
Production
➢ The creation of finished g&s using the factors of production: land, labour, capital,
entrepreneurship and knowledge
Production Management
➢ The term used to describe all of the activities that managers do to help their firms create
goods
Operations Management
➢ A specialized area in management that converts or transforms resources (including HR)
into g&s
➢ Includes inventory management, quality control, production scheduling, follow-up
services and more
➢ In an automobile plant, operations management transforms raw materials, HR, parts,
supplies, paints, tools & other resources into automobiles Z
Operations Management in the Service Sector
• All about creating a good experience for those who use the service
• The implementation phase of management
Measuring Quality in the Service Sector
• Traditional way to take productivity is by tracking inputs compared to outputs
• There is no measure for quality improvement, when quality improvement can be
measured, productivity will change significantly
• Productivity gains: computers, ATM’s, bar codes etc.
LO3: Operations Management: Planning Issues
• Operations management planning: helps solve many of the problems in the service &
manufacturing sectors
• Include:
o Facility location
o Facility layout
o Quality control
Facility Location
• The process of selecting a geographic location for a company’s operations
• One strategy: find a site that makes it easy for consumers to use the company’s services
and to communicate about their needs
• Reasons why businesses move: inexpensive labour, reducing time to market, get closer to
international customers
Facility Location for Manufacturers
Things considered when moving from one location to another: labour costs, availability of
resources, access to transportation, proximity to suppliers & customers, crime rates, quality of
life for employees, cost of living and train/retrain local workforce
find more resources at oneclass.com
find more resources at oneclass.com
Outsourcing
• Using outside companies with expertise to service specific functional areas
• Most prominent reason for outsourcing: increase business flexibility
• A lot of outsourcing in the R&D and Manufacturing sectors
Taking Operations Management to the Internet
• Rapidly growing companies make operations management an inter-firm process by
creating new relationships with suppliers over the internet, which allows companies to
work closely together to design, produce and ship products
• Software development, call-centre jobs, and back-office jobs have been moving out of
NA for some time
• Newer jobs include accounting, financial analysis, medicine, architecture, aircraft
maintenance, law, film production, and banking activities
Facility Location in the Future
• Telecommuting: working from home via the computer
• New developments in IT will give firms more choices
• Greater focus on tax situation and degree of government involvement
o Corporate taxes is the #1 factor with other soft factors including quality of life,
talent pool, and even the CEO’s own desires
Facility Layout
• The physical arrangement of
resources (including people) in the
production process to most
efficiently produce g&s to
customers
• The layout depends greatly on the
processes that are to be performed
• Ex. for services the layout is
usually designed to help the
consumer find and buy services,
including on the Internet, some
stores add kiosks that enable
customers to search for goods
online and place orders or make
returns and credit payments in the
store
• Many companies are moving from
an assembly line layout: workers do
only a few tasks at a time to a
modular layout: teams of workers combine to produce more complex units of the final
product
• When working on a major project (building airplane, bridge etc) companies use fixed-
position layout: that allows workers to congregate around the product to be completed
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Work directed toward the innovation, introduction and improvement of products and processes. 3 most important objectives of innovation are to improve product quality, increase production capacity and extend product range. Maintain close-relationships with suppliers & other companies to satisfy customer needs. Rely on the internet to unite companies. Adopt production techniques such as enterprise resource planning, computer-integrated manufacturing, flexible manufacturing and lean manufacturing. The creation of finished g&s using the factors of production: land, labour, capital, entrepreneurship and knowledge. The term used to describe all of the activities that managers do to help their firms create goods. A specialized area in management that converts or transforms resources (including hr) into g&s. Includes inventory management, quality control, production scheduling, follow-up services and more. In an automobile plant, operations management transforms raw materials, hr, parts, supplies, paints, tools & other resources into automobiles z.
