Producing Goods

Classify a business's production processes in three ways and explain the role of production managers.

     Production processes can be classified by the type of technology used (chemical, fabrication, assembly, transport, and clerical), by whether the process is analytic or synthetic, and by the pattern of product flow (continuous or intermittent). Production managers use these classifications to plan, organize, and control the production process.

Identify three major areas of production planning and two levels of production scheduling.

     Many production planning activities fall into one of three major categories: capacity planning, facility planning, or quality planning. These plans are translated into two levels of production scheduling: a master production schedule and short&-range, detailed production schedules that designate when, where, and how much of a specific good will be produced.

Describe the activities of materials management in manufacturing and list five tools for production control.

     Materials management focuses on the control of transportation, warehousing, purchasing, and inventory. to control purchasing, production managers must decide whether to use a forward&-buying or a hand&-to&-mouth approach. They must also establish positive relationships with suppliers. To control inventory, they must balance holding costs with setup costs. Techniques such as just&-in&-time (JIT) production systems, material requirements planning (MRP), and manufacturing resource planning (MRP II) can assist managers in inventory, control. The use of quality circles can assist in quality control. Gantt and PERT charts can aid in overall production planning, scheduling, and control.

Characterize the kinds of automation currently in use in production operations.

     Automation is the process of performing mechanical operations with either minimal or no human involvement. Automation is changing the face of production operations in many areas. Computer drive robots that can perform many boring or dangerous tasks formerly requiring human labor in a process called computer&-integrated manufacturing (CIM). CIM also integrates computer&-aided design (CAD) (also called computer&-aided engineering [CAE]) and computer&-aided manufacturing (CAM), which allow firms to send information back and forth between design engineers and production managers. Decision support systems (DSS) assist production managers in making decisions by allowing them to ask&-and answer&-"What if?" questions.

Explain the advantages and risks of small versus large production companies.  

     Small businesses have an advantage over larger manufacturers because they can often offer their customers higher quality and greater product flexibility. They can also offer their employees  more challenge and a chance to make a difference in the company. However, they face greater problems with inventories and equipment because of their more limited funds.