BU121 Chapter Notes - Chapter 7: Process Manufacturing, Job Shop, Mass Customization
Document Summary
Production involves converting inputs into outputs, and managing this conversion process if the role of operations management. Making operating/manufacturing decisions in light of customer satisfaction is important. Inputs (natural resources, raw materials, human resources capital) > conversion process > outputs (product, services) Operations managers deal with three main decisions. Production planning: when, where, and how production will occur. Production control: scheduling, controlling quality and costs, and day-to-day operations of running a service or factory. Improving production and operations: developing more efficient methods. Emphasis is keeping manufacturing goods low by producing highly uniform products by using repetitive and standardized processes. Using mass production techniques but only to a point and then custom tailored to the needs or desires of individual customers. Customization is the opposite of mass production. Company produces unique goods or services according to the specific needs and wants of the individual customer. A job shop is a manufacturing company that produces goods in response to customer orders.
