Elements of Production
Materials needed – raw materials, work in process, finished goods
Objects of Production or What.
identify who and how many employees will be working, and when
Staff Schedules
High standards for materials suppliers
Just-in-time materials flow to keep costs down and re-invest in better materials/process
Specialized or automated equipment
Specialized facilities (perhaps a specific location)
Highly trained personnel – experts in materials, methods, product
Example: Toyota, BMW, Rolex
Quality
determining the amount of a product that a company can produce under normal conditions
Capacity
activities involved in making products — goods and services — for customers
Operations
The timing of work or how long actions take
Time
“the game plan” for upcoming production
Master Schedule
Avoids any extra overhead and excess/costly inventory
Limited or standardized product sets for lower inventories and less paperwork
Automated systems to reduce labor costs
Shipping/warehousing expertise and locations close to point of sale
Repeatable system in many locations
Careful purchasing methods
EX: Walmart
Low Cost/ Price
determining where production will happen based on costs and flexibility
Location Planning
level of customer contact in which the customer need not be part of the system to receive the service
Low Contact Systems.
Where actions are performed
Space or Where
production schedule specifying the sequence of activities, time requirements, and critical path for performing the steps in a project
PERT Chart
Maintain excess production capacity for quick response to market or customer needs
Adaptable equipment that can have more than one use and can be put into use quickly
Hire people who thrive on change/innovation
Small teams to enhance creativity and free people from large corporate bureaucracy
Facilities near end users
Example- 3M
Flexibility / Innovation
physical arrangement of production activities that groups equipment and people according to function
Custom-Products Layout
activities for one-of-a-kind or custom-made production
Made to Order
The machines or technology required
Agents or Who
production schedule that breaks down large projects into steps to be performed and specifies the time required to perform each step
Gantt Chart
Automation – take the human element out of the equation as much as possible
Control objects and agents of production – make own ingredients, own fleet for transportation
Multiple warehouses/processing hubs
Standardize methods so that anyone can quickly learn and follow the process
Strict testing and quality control
Some excess capacity to avoid bottlenecks
(McDonalds)
Dependability
managers must identify each production step and the specific methods for performing it
Methods Planning
special ability that production does especially well to outperform the competition