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Chapter 10

RSM100Y1 Chapter 10: Chapter 10


Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Szlachta
Chapter
10

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Chapter 10: Productions and Operations Management
The Strategic Importance of Production
Figure 10.2: Typical Production Systems
Mass Production
a system for manufacturing products in large quantities by using effective combinations of
employees with specialized skills, mechanization, and standardization
assembly line
highly efficient in producing large numbers of similar products, but highly inefficient when
producing small batches of different items
Flexible Production
more cost effective for producing smaller runs
generally uses three resources
information technology to share the details of customer orders
programmable equipment to fill the orders
skilled people to carry out the tasks needed to complete an order
Customer Driven Production
assess customer demands to make a connection between the products that are manufactured
and the products people want to buy
setup computer links between factories and retailers' scanners
data about sales used to create short term forecasts and design production schedules to
meet those forecasts
wait until a customer orders a product and then produce it
Production Processes
production processes use either an analytic or a synthetic system
time requirements use either a continuous or an intermittent process
analytic production system
reduces a raw material to its component, or individual, parts to extract one or more
marketable products
petroleum refining breaks down crude oil into several marketable products
synthetic production system
combines/transforms raw materials into finished products
continuous production process creates finished products over a long period of time
ex, steel industry
intermittent production process creates products in short production runs
mcdonalds moved to intermittent to prepare sandwiches quickly rather than producing

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large batches and then keeping them warm under heat lamps
Technology and the Production Process
Green Manufacturing Process
developing processes that result in less waste, lower energy use, and little or no pollution
Leadership in Energy and Environmental Design (LEED): a voluntary certification program
administered by the Canada Green Building Council, aimed at promoting the most sustainable
construction processes available
aimed at promoting the most sustainable construction processes available
involves meeting standards in energy savings, water efficiency, CO2 emissions reduction,
improved indoor environment quality, etc
Robots
robots - machines that can be programmed to perform tasks that require the repeated use of
materials and tools
pick and place robot
moves in only two or three directions, picking up one item from one spot and placing it in
another spot
field robots
assist people in non manufacturing, often dangerous, environments, such as nuclear
plants
Computer-Aided Design and Manufacturing
CAD is a process used by engineers to design parts and entire products on the computer
work faster with fewer mistakes
with advanced CAD, creating a prototype is virtual but hands on
dentistry has also benefited, which can design and create, caps and crowns that perfectly fir a
patient's mouth
Computer Aided Manufacturing (CAM) picks up where the CAD leaves off
analyze the steps that a machine must take to produce a needed product of part
Flexible Manufacturing Systems (FMS)
production facility that workers can quickly change to manufacture different products
the typical system uses computer-controlled machining centers to produce metal parts, robots to
handle the parts, and remote controlled carts to deliver the materials
have been improved by new software that allows machine tools to be reprogrammed while they
are running
Computer-Integrated Manufacturing (CIM)
uses computers to help workers design products, control machines, handle materials, and control
the production function
centralized computer system running software that integrates and controls separate processes
and functions
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increased productivity, decreased design costs, increased equipment utilization, and improved
quality
widely used in the printing industry
combines many small jobs into one larger job and by automating the printing process from
design to delivery
The Location Decision
environmental impact study - analyzes how a proposed plant will affect the quality of life in the
surrounding area
the production and operations manager must consider the following factors when deciding a
location regardless of what type of industry
closeness to suppliers, warehouses, and service operations
costs of insurance and taxes
availability of employee needs such as housing, schools, mass transportation, day care,
shopping, and recreational facilities
size, skills, and costs of the local labour force
enough space for current and future needs of the firm
distance to the market for goods
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