chapter 1

• Production management becomes the acceptable term from 1930s
• Production management

  • Workers were studied in great detail to eliminate wasteful efforts and achieve greater efficiency
  • psychologist socialist and other social scientists began to study people and human behavior in the working environment
• Operations Management- is the Administration of business practices to create the highest level of efficiency possible within an organization.

  • involves utilizing resources from staff, materials, equipment, and technology
• global strategies- sales and production are worldwide
• 6 reasons to globalize

  • reduce costs- foreign locations with Lowe wage rates can lower direct and indirect costs
  • improve the supply chain- locating local facilities to unique resources
  • provide better goods and services- objective and subjective characteristics of goods and services, on-time deliveries, cultural variable, improved customer service.
  • understand market
  • learn to improve operations- remain open to the free flow of idea
  • attract and retain global talent- offer better employment opportunities
• Maintenance

  Includes maintaining people and machines
• Human resource and job design

  Implement continuous improvement programs with regular reviews, provide continuous training for employees, and institute employee incentives
• Quality management


  Be clear on the customer’s demand and then meet those expectations
• Inventory


  Manage differently for different markets and challenges
• Location


  Strategically chosen to support business goals
• Goods and services

  Implement consistency, costs, quality, and resources across all business divisions
• Scheduling

  Consider both production and people
• Process and capacity design

  Design strategies which support all production goals including technology and resources
• Layout design and strategy

  Consider the placements of desks, workstations, and how materials are delivered and held
• Supply chain management

  Determine the best strategies to streamline, be more cost effective, and develop trusted partners