Chapter 10Production Management

1. Customers’ wants and desires (external factor) 2. Company’s technical ability (internal factor)
Products may choose standardizing design or modular design.
A Basic Business Reader
Chapter 10 Production Management
Objectives
After studying this chapter you will be able to:



Identify major considerations in choosing a plant location. Understand the advantages and disadvantages of standardizing products. Understand the advantages and disadvantages of modular design. Explain different ways of inspection to ensure product quality.
Facility location
6. Community characteristics - cultural characteristics - entertainment characteristics - quality of life
Product design
Product design is usually determined by two factors:
What is inspection?
Inspection is to check whether a product meets established quality standards. Inspection is made of
- purchased items - work-in-process items - finished items
Facility location
Factors commonly considered in facility location:
1. Proximity to the market - lower transportation costs - higher speed to respond to customer needs
Facility location
2. Availability of raw materials To avoid high transportation costs, plants are located near weighty and bulky raw materials.
3. Labor supply
Important steps in production: 1. deciding what to produce 2. establishing product specifications and quality standards 3. designing production facilities 4. conducting inspection (See page 104)
Sampling techniques are used for 1 and 2. For 3, items will be inspected one by one.
Workshop
Presentation work
1. Supposing you are going to start your own business (whatever it is) after graduation, tell people where it will be located and why. 2. Give examples to illustrate features of standardizing design and modular design.
Product design
1. Standardizing design
- agreed-to specifications - reducing production cost - speeding up production and quality control
源自文库
2. Modular design
- items in self-contained units - easy installing, removing, or exchanging - quick repair
What is quality control?
Quality control – measuring product quality against established standards.
- availability of labor - labor rates (cost of labor) - labor skills
Facility location
4. Power - current and future availability - cost
5. Transportation - availability of various transportation modes - reliability - cost
How to conduct inspection?
Factors to be considered:
1. cost of the inspection process 2. destructiveness of the inspection process 3. importance of the item to the safety of customers