Utility is the want-satisfying power of a good or service.
Why is utility important? (3)
Businesses satisfy their commitment to society as a whole.
A firm's marketing operation generates time, place, and ownership
utility by offering goods and services to customers when they want to buy at convenient locations where ownership of the products can be transferred.
Production creates form utility by converting raw materials and other inputs into finished products.
The application of resources such as people and machinery to convert materials into finished goods and services.
The process of converting inputs into outputs through various
operations.
All operations which demands consumption of resources.
A process of converting raw material in to finished product by using various processes, machines, and energy.
What makes the real difference between production and manufacturing?
the raw material
how the item is produced
Describe the raw material for production.
Not procured from outside the company. Company owns it and after processing, make final product.
Describe the raw material for manufacturing.
The company procures the raw materials from outside, and then makes the final product.
_______ is a narrow term, while ______ is a broader term.
T/F Every type of manufacturing can be production, but every production is not manufacturing.
Making of a turbine by various processes
Assembling various parts to make an engine
What does manufacturing include? (5)
producing product, design, sales, management, and marketing
Manufacturing is used to make or process a raw material into a _______. How?
finished
product
means of large-scale industrial operation
Manufacturing is used to make or process a product with the use of what?
Manufacturing is to _______, _______, or _______ in a mechanical manner.
create, produce, or turn out
Manufacture an excuse is….
to concoct or invent, fabricate
industrial machines/ mechanical way
Example of act or process of producing
timber used for the production of lumber and paper
Example of the fact or process of being produced.
a moving going into production
Production is the creation of value or wealth by ….
producing goods and services
Production is the total output, as of a __________. Causes?
commodity
increased production at plant
Example of something produced.
A work can be produced for what? (4)
stage, screen, television, or radio
Production can be a work of what OR a staging or presentation of a what?
art or literature
theatrical work (Broadway production of musical)
Production can also be a situation or display that is _______ or _______.
exaggerated or complicated
made production out of party
What is a synthetic production system?
It combines a number of raw materials or parts or transforms raw materials to produce finished products.
Synthetic production system is the opposite of what?
Example of synthetic production system.
Dell's assembly line produces personal computers by assembling various components ordered by each customer.
What is an analytic production system?
It reduces a raw material to its component parts in order to extract one or more marketable products.
Example of analytic production system.
Petroleum refining breaks down crude oil into gas, heating oil, and aviation fuel
What is a continuous production process?
It generates finished products over a lengthy period of time. Furnaces never completely shut down except when a malfunction occurs
Examples of industries that use a continuous production process.
steel, petroleum, chemical, nuclear power
What is an intermittent production process?
It generates products in short production runs, shutting down machines frequently or changing their configurations to produce different products.
Examples of intermittent production process.
accountants, plumbers, and dentists
What is a flexible manufacturing system?
a production facility that workers can quickly modify to manufacture different products
What is a customized production system?
The process of producing a unique product that meets the unique needs of a customer.
What is a periodic production system?
Companies define special periods when they complete certain accounting steep to update data in financial statements.
A robot is a reprogrammable machine capable of performing numerous tasks that require manipulation of materials and tools.
Why are robots used in assembly lines?
Frees people from boring and dangerous work
Repeat the same tasks many times without varying their movements
"palletize" their products for shipping
What criteria is used to determine locations of factories?
Transportation, physical factors, and human factors
proximity to markets, proximity to raw materials, and availability of transportation alternatives
water supply, energy, and hazardous wastes
labor supply, local zoning regulations, and community living conditions
Determining location for car manufacturer
locate near major rail line
Determining location for petroleum refinery
physical factors --> hazardous wastes transportation --> proximity to raw materials
Determining location of shipbuilding company
Transportation--> proximity to raw materials
Human factors --> labor supply
What does CAD stand for? What is it?
Computer-aided design
A system for interactions between a designer and a computer to create a product, facility, or part that meets predetermined specifications.
Use electronic pen and sketch 3D designs on electronic drafting board or directly on screen
Computer provides tools to make
changes and to analyze results
What does CAM stand for? What is it?
Computer-aided manufacturing
Electronic tools to analyze CAD output and determine necessary steps to implement the design, followed by electronic transmission of instructions to guide the activities of production equipment
Computer tools allow manufacturers to analyze the steps that a machine must take to produce a product
Electronic signals are sent to processing equipment to provide instructions for performing steps
Describe a process layout of a facility.
Groups machinery and equipment according to their functions, work moves around plant to reach different workstations, variety of nonstandard items in relatively small batches
Describe a product layout facility.
Sets up production equipment along a product-flow line and work moves along line past workstations, large numbers of similar items, few product variations
Describe a fixed-position layout facility.
Places the product in one spot, and workers, materials, and equipment come to it; very large, bulky, heavy, or fragile products
Describe a customer-oriented layout facility.
enhances the interactions between customers and its services, service organizations
What are the phases of production control? Describe.
production planning: determines amount of resources needed to produce a certain output; routing: determines sequences of work throughout facility and specifies who will perform each aspect of work at what location; scheduling: develop timetables that specify how long each operation takes and when workers should perform it; dispatching: manager instructs each department on what work to do and time allowed for completion; follow-up: employees and supervisors spot problems in process and make changes
A GANTT chart is used when?
tracks projected and actual work process
show status of project
Simple
projects
How do companies choose a vendor?
Managers compare quality, prices, dependability of delivery, and services offered by competing companies. Often comes down to firm;s experience with each supplier, speed of delivery, and warranties on purchases.
The process of determining other companies' standards and best practices.
Why is benchmarking important?
Ensures a company produces high-quality products from the start
Can make improvements to match or exceed quality of competitors
Mass production is a system for manufacturing products in large amounts through effective combinations of employees with specialized skills, mechanization, and standardization; makes outputs available in large quantities at lower prices; specialization of labor- each workers focuses on one task, mechanization- managers create conditions for high productivity through machines, standardization- producing uniform, interchangeable goods and parts; can't produce small batches of different items; no customization; boring jobs
Cost-effectively produce smaller batches of different goods; use information technology to share details of orders, program equipment, and skilled people to carry out tasks; requires high degree of communication and cooperation amount customers/employees
***Customer-driven production
Evaluates customer demands to link what a manufacturer makes with what customers want to buy; one method: establishing computer links between factories and retailers' scanners using data about sales as basis; another method: don't make until customer orders
But you gotta keep your head up OOOOO
Going for the . . . . . . .