13065843
Description
Flashcards by Ari Minors, updated more than 1 year ago
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Created by Ari Minors
over 6 years ago
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| Question | Answer |
| 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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