Creado por Ari Minors
hace más de 6 años
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Pregunta | Respuesta |
Define Production | The activities involved in creating a product -we use the term to denote both service and manufacturing activities |
Materials Management | The activity that controls transmission of physical materials through the value chain |
Logistics | refers to the procurement and physical transmission of material through the supply chain from suppliers to customers |
2 reasons for production and material management functions | 1. Lower costs: by managing the global supply chain efficiently so as to better match supply and demand 2. Increase product quality: by eliminating defective products from supply chain and manufacturing process |
Improved Quality Control reduces cost in three ways: | 1. increasing productivity because time is not wasted manufacturing poor-quality products that cannot be sold, leading to direct reduction in unit cost 2. Lowering rework and scrap costs 3. lowering warranty cost |
Total Quality Management | -Management philosophy that takes as its central focus the need to improve the quality of a company's products and services -Edwards Deming, Joseph Juran, A.V. Feigenbaum -USE TQM to the boost their product quality |
Six Sigma | Modern successor TQM, a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cuts cost throughout a company *3.4 defects per million units* |
ISO 9000 | Certification process that requires certain quality standards that must be met |
3 Factors to consider for international production | 1. Country Factors 2. Technological Factors 3. Product Factors |
Country Factors | economical, political, and cultural factors differe |
Minimum Efficient Scale | the level of output at which most plant level scale economies are exhausted |
The Larger the minimum efficient scale of a plant | the greater the argument for centralizing production in a single location or a limited number of locations |
Flexible Manufacturing Technology (Lean Production) | Manufacturing technologies designed to improve job scheduling, reduce setup time, and improve quality control |
Technology Factors | -the type of technology a firm uses in its manufacturing can be pivotal in location decisions -may be feasible to serve world market from one location or multiple locations |
Mass Customization | describes the ability of companies to use flexible manufacturing technology to reconcile two incompatible goals 1. low cost 2. product customization |
Product Factors | Two Product features affect location decisions: 1. value-to-weight ratio 2. Universal needs |
Concentrated Manufacturing makes sense when... | 1. differences exists between countries in factor costs, political, economy, and culture 2. trade barriers exist 3. the products value-to-weigh ration is high ratio 4. the product serves universal needs |
Decentralization of manufacturing is approriate when | 1. differences between countries does not have substantial impact 2. trade barriers are high 3. the product does not serve universal needs |
Make or buy decisions | are important factors in many firms' manufacturing strategies |
The Advantage of Make | 1. lower cost 2. facilitate specialized investment 3. protect proprietary product technology 4. improve scheduling |
The Advantage of Buy | 1. strategic flexibility 2. lower costs 3.offsets |
Outsourcing | Someone else does the work for us |
Off-shoring | The work is done overseas |
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