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Chap. 11

Production and operations management:
• Productions: the creation of goods and services by turning inputs into outputs, which are products and services.
• Operations management: themanagement of the production process.

The production process:
• Production, an essential function in every firm, turns inputs, such as natural resources, raw materials, human resources, and capital,into outputs, which are products and services.
1) Inputs: raw materials, natural resources, human resources and capital.
2) Conversion process
3) Outputs: products & services
• Managingthis conversion process is the role of operations management
• Production and operation management involve 3 main types of decisions: (3 different stages)
a) Production planning: The first decisionscome at the planning stage, at which time managers decide where, when and how production will occur. It allows to consider competitive environment + strategic goals.
b) Production control: Thedecision-making process focuses on scheduling, controlling quality and costs, and the actual day-to-day operations of running a factory or service facility.
c) Improving production and operations: The finalstage focuses on developing more efficient methods of producing the firm’s goods.
• These three types of decisions are ongoing and often occur simultaneously.
• 3 Phases: During productionplanning, the firm considers the competitive environment and its own strategic goals in an effort to find the best production methods.
1) Long term= 3 to 5 years – decide which, how +where
2) Mid term= 2 years – layout of the factory, where and how to obtain the resources and labor issues.
3) Short term = day to day operations
• How do we make it? – Production Process needs to fit thecompany’s goal + customer demand.
• Decisions in production planning: Type of Production Process, site selection, facility layout, resource planning.
• Operations managers classify production processes...
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