cient (relatively low-cost) and high quality production process for producing specific products and services.
determining the proper amount of materials to use, the proper mix of resources to use, the proper assignments of tasks, and the proper sequence of the tasks.
The profits and value of each firm are influenced by its production management.
The main resources that firms use for the production
O Human resources(employees) O Materials O Other resources(buildings, machinery &
O Describe how various factors affect the design and layout decision.
O Describe the key tasks that are involved in production control.
O Describe the key factors that affect production efficiently.
O A process identifies the mixture of resources allocated for production, the assignment of tasks, and the sequence of tasks
O Production management(operation management) is the management of a process in which resources (such as employees and machinery) are used to produce products and services.
Firms are created to produce products or services.
Production Management
Production Management (also called operations management) is the management of the process in which resources are used to produce products or services.
equipment)
O Firms that produce products tend to use more materials and equipment in their production process. Firms that produce services(such as Internet firms) use more employees and information technology.
O Whether a firm produces products or services, it needs a production process(also called conversion process),or a series of tasks in which resources are used to produce a product or service.
The goal of this chapter is to explain how a firm can make decisions in a manner that maximizes the firm’s value.
1. Resources Used for the Production Process
Chapter 9
Improving Productivity and
Quality
Learning Goals
O Identify the key resources used for production.
O Identify the factors that affect the plant site decision.
Human resources and other resources affect Cell One’s cost of production.
The ability to control its production affect quality&
demand Efficiency reduce its expenses , improving performance
Human Resources
O At what site should it produce its cell phones?
O What can it do to control the quality of its production?
O How can it produce its cell phones more efficiently?
The specific process chosen by a firm to produce its products or services can affect its value.
Cell One Company
O What human resources and other resources are needed to produce its cell phones?