MGT100H1 Chapter Notes - Chapter 10: Production Control, Quality Control, Production Function
Chapter 10: Productions and Operations Management
●Production: the use of resources, such as workers and machinery, to convert materials into
finished goods and services
●Production and operations management: the process of overseeing the production process by
managing the people and machinery that convert materials and resources into finished goods and
services
●The strategic importance of production
○Mass production: system for manufacturing products in large quantities by using
effective combinations of employees with specialized skills, mechanization, and
standardization
■Outputs are available in larger quantities at lower prices than individually made
items
■Specialization: dividing work into its simplest forms so that each worker can focus
on one class
■Mechanization: machines do much of the work previously done by people
■Standardization: producing identical, interchangeable goods and parts
●Makes it easier to replace substandard or worn-out parts
■Development of Henry Ford’s Assembly Line
○Flexible production
■More cost-effective for producing smaller runs
■Uses information technology to share the details of customer orders,
programmable equipment to fill the orders, and skilled people to carry out the
tasks needed to complete an order
■Widely used in auto industry
●Changing from mass production to flexible production has enabled
certain car companies to produce different kinds of cars at the same
plant
○Customer-driven production
■Assesses customer demands to make a connection between the products that
are manufactured and the products people want to buy
●Production processes
○Analytical production system: reduces raw material to its component, or individual, parts
to extract one or more marketable products
■Ex: petroleum refining breaks down crude oil into several marketing products,
including gasoline, heating oil, and aviation fuel
○Synthetic production system: reverse of analytical system. Combines two or more raw
materials or parts, or transforms raw materials, to produce finished products
■Ex: canon’s assembly line produces a camera by assembling various parts such
as a shutter or a lens cap
○Continuous production process: creates finished products over a long period of time
■Ex: Steel industry blasts furnaces never completely shut down except for repairs
■Ex: Petroleum refineries, chemical plants, and nuclear power facilities
●Technology and the production process
○Green manufacturing process
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Document Summary
Production: the use of resources, such as workers and machinery, to convert materials into. Chapter 10: productions and operations management finished goods and services. Production and operations management: the process of overseeing the production process by managing the people and machinery that convert materials and resources into finished goods and services. Mass production: system for manufacturing products in large quantities by using effective combinations of employees with specialized skills, mechanization, and standardization. Outputs are available in larger quantities at lower prices than individually made items. Specialization: dividing work into its simplest forms so that each worker can focus on one class. Mechanization: machines do much of the work previously done by people. Standardization: producing identical, interchangeable goods and parts. Makes it easier to replace substandard or worn-out parts. Uses information technology to share the details of customer orders, programmable equipment to fill the orders, and skilled people to carry out the tasks needed to complete an order.
