AFM 131 - Chapter 10 Notes.docx

4 Pages

Accounting & Financial Management
Course Code
AFM 131
Robert Sproule

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AFM 131 – Chapter 10 Notes Canada is facing serious challenges to its ability to remain a modern, competitive industrial country Inadequate improvement in productivity and unrelenting competition from the USA, Japan, Germany, India, China, and Southeast Asian countries Inadequate education and retraining programs for workforce “branch plant economy” – subsidiaries are owned by foreign parent companies; profits returned rather than invested in Canada Not enough money spent on research and development Research and Development: Work directed toward the innovation, introduction and improvement of products and processes Survey on Innovation conducted by Statistics Canada indicate that three objectives of innovations: improve product quality, increase production capacity, extend product range Science, innovation, and Electronic information Division of Statistics Canada has piloted more surveys that focus on the importance of innovation believes that innovation and the adoption and dissemination of innovative technologies  Through the adoption of newer, more advanced technologies and practices, industries can increase their production capabilities, improve their productivity, and expand their lines of new goods and services Canada’s Evolving Manufacturing and Services Base: Canadian manufacturers emphasize on:  Focusing on customers  Maintaining close relationships with suppliers and other companies to satisfy customer needs  Practising continuous improvement  Focusing on quality  Saving on costs through site selection  Relying on the Internet to unite companies  Adopting production techniques such as enterprise resource planning, computer-integrated manufacturing, flexible manufacturing, and lean manufacturing Manufacturers sector employs over 7% of Canada’s working population; perform 75% of private-sector R&D Increasing their use of advanced production technologies at an annual rate of more than 20% Production to Operations Management: Production is the creation of goods and services using the factors of production: land, labour, capital, entrepreneurship, and knowledge Service sector, including Internet services has grown, but manufacturing sector has not as much Production management used to describe all of the activities that managers do to help their firms create goods Operations management is a specialized area in management that converts or transforms resources into goods and services; includes inventory management, quality control, production scheduling, follow-up services, and more Customer orientation and Services for Profit: Many manufacturers expanded operations management out of the factory and closer to the customer, providing services such as custom manufacturing, fast delivery, credit, installation, and repair Companies have outsourced much of their production processes and focusing more on building customer relationships and brand images Operations Management Planning: Facility location – process of selecting a geographic location for a company’s operations; one strategy is to find a site that makes it easy for consumers to access the company’s services and maintain a dialogue about their needs One of the most common reasons for a business move is the availability of inexpensive labour or the right kind of skilled labour Inexpensive resources are a reason for moving production facilities Reducing time is a decision-making factor Outsourcing: Reasons why US companies will outsource to Canada include: availability of highly skilled IT professionals, stable workforce without high attrition rates, similar culture and language, familiarity with American business processes, same time zones allowing for real time communication, and an excellent communication system between two countries Operations Management to the Internet: Companies outsource engineering, design, manufacturing, and other tasks to other companies that specialize in those functions Developments in information technology are giving firms and employees more flexibility than ever before in choosing locations while staying in the competitive mainstream One big incentive to locate or relocate in a particular city is the tax situation and degree of government support Facility Layout: Facility layout is the physical arrangement of resources in the production process Idea is to have offices, machines, storage areas, and other items in the best possible position to enable workers to produce goods and provide services for customers Kiosks to enable customers to search for goods on the Internet, handles returns and customer-contact design their stores/Internet services Assembly line layout – workers do only a few tasks at a time Modular layout – workers combine to product 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 Control: Quality is consistently prod
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