06-03-2013, 10:38 AM
PRODUCTION AND OPERATIONS MANAGEMENT
PRODUCTION AND OPERATIONS.ppt (Size: 933.5 KB / Downloads: 101)
OBJECTIVES
Introduction to Production Function and Operations Management
Mass Production Approach
Toyota Production System (TPS) Approach
Supply Chain Management
PRODUCTIONversus MANUFACTURING
Production is a Broader Term that Spans both Manufacturing and Services Functions
Production is the Application of Resources, People and Machinery, to Convert Inputs into Finished Goods and Services
MASS PRODUCTION
Mass Production: Makes Outputs available in Large Quantities at Lower Unit Costs than Individually- Crafted Items
Characteristics of Mass Production
Labor Specialization
Mechanization
Standardization
ASSEMBLY LINES
Assembly Line first Introduced by Eli Whitney (Cotton Gin Inventor) to build Muskets for the US Government In 1799
Used Ideas of Specialized Labor and Engineering Standards (Tolerances) to produce Assemblies from Parts in Repeatable Manner
ASSEMBLY LINE BENEFITS
Initially, took 14 hours to Assemble Model T - Mass Production reduced Time to 1 Hour and 33 Minutes
Model T’s Price dropped from $1,000 in 1908 to $360 in 1916
Result was Ford becoming Dominant Automobile Manufacturer and Assembly Line Method as Dominant Production Approach
MASS PRODUCTION
Low Product Variety; Small Orders Not Feasible
Specialized Machinery and Centralized Manufacturing
“Economies of Scale” – High-Speed Sequential Production
Development Costs Spread Over Large Volume: Low Cost per Unit Produced
Low-Skill/Low-Wage Work Force
Large Advertising and Marketing Budgets
TOYOTA PRODUCTION SYSTEM
In 1961, Toyota adopts “Systems Perspective”
KAIZEN – Continuous Improvement Attitude that Minimizes Waste and Emphasizes High Quality
Processes are analyzed to eliminate flaws rather than fixing defective products
WASTE – Comprehensive View that includes Time, Resources and Materials
Over-Production
Time Spent Waiting
Unnecessary Movements of Items