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Chapter 9 Notes

Chapter 9 discusses operations management, which involves transforming resources into products and services, utilizing tools like CAD and CAM. It covers concepts such as lean manufacturing, flexible manufacturing, just-in-time inventory systems, and quality standards like ISO 9000 and Six Sigma. Additionally, it introduces project management tools like Gantt charts and PERT charts to track production processes.

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37 views1 page

Chapter 9 Notes

Chapter 9 discusses operations management, which involves transforming resources into products and services, utilizing tools like CAD and CAM. It covers concepts such as lean manufacturing, flexible manufacturing, just-in-time inventory systems, and quality standards like ISO 9000 and Six Sigma. Additionally, it introduces project management tools like Gantt charts and PERT charts to track production processes.

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sps23lab
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© © All Rights Reserved
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Chapter 9 notes

 Operations management is a broad term that encompasses the tasks involved in


creating both intangible products (services) and tangible goods.
 Operations management transforms resources of all kinds into finished products and
services.
 CAD (computer-aided design) is used to create three-dimensional designs of products
before they are built.
 CAM (computer-aided manufacturing) is used to build the product.
 The production process requires inputs (land, labor, capital entrepreneurship, and
knowledge), and production controls in order to develop outputs.
 Lean manufacturing is the production of goods using less of everything compared to
mass production: less human effort, but also less investment in tools, less
manufacturing space, and even less engineering time.
 Flexible manufacturing means the company is using machines that can multitask.
 Both ERP and MRP are involved with computer advances that have occurred in
information technology that are used in production planning methods.
 A just-in-time inventory system requires more effort from suppliers to coordinate with
producers and deliver goods on a frequent basis.
 ISO 9000 deals with the quality of individual products.
 Six Sigma standards require that a firm have no more than 3.4 defects per 1 million
opportunities. Six Sigma is a set of practices designed to eliminate defects in the
production of products.
 A Gantt chart is a bar graph showing production managers what projects are being
worked on and the stage of development at any given time.
 A PERT Chart shows the sequence of activities or events that must occur in order for a
project to be successfully completed.

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