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25 Cards in this Set
- Front
- Back
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a conversion process that converts inputs such as raw material, human resources, natural resources and capital into outputs like products and services
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Production
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the process of getting ready for production
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Production Planning
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The inputs of the conversion process
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raw materials, natural resources, human resources, capital
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The outputs of the conversion process
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products and services
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How many units you need to make is called
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desired production
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The most critical factor in determining the desired production
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estimated sales
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To satisfy as much customer demand as possible with as little inventory as needed
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Inventory management
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A place to manufacture products
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plant
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The size of the factory or plant determines this
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capacity
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The plant capacity is determined by the
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desired production
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3 advantages of using skilled workers with general-purpose machines
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-Provides flexibility
-Easy to change the factory to the production of a new product -Easy and inexpensive to set up |
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The disadvantage of using skilled workers with general-purpose machines
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expensive and workers may be in limited supply
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2 advantages of specialized, automated equipment to make products
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-Requires little manual labor
-Low labor costs |
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The ability to manufacture many identical products at once
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Mass production
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producing goods or services one at a time according to the needs of customers
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Customization
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The customization of features of high volume production
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Mass customization
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3 questions for production decisions
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-How many units do i need to make?
-What production capacity do i need? -What level of automation is best? |
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Desired production formula
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desired production= estimated sales+ desired ending inventory-actual beginning inventory
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examples of inventory costs
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-costs of the warehouse
-labor costs of employees who manage the inventory -labor costs of material handlers -transportation equipment inventory damage and spoilage cost -theft and shrinkage -obsolescence (which is that products spend so much time in inventory so they become outdated) -Inventory financing costs |
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are incurred because inventories tie up capital
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inventory financing costs
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The desired ending inventory should be something larger than zero, but not too large
True or False |
True
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Work flows according to the production process
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Process layout
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work stations or departments are arranged in a line with products moving along the line
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Product layout
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The product stays in one place and workers and machinery move to it as needed
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Fixed position layout
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Technique uses small self contained production units each performing all or most of the tasks necessary
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Cellular Manufacturing
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