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Achieving Production Excellence Through Efficiency and Quality

Explore how leading U.S. manufacturing states and top companies enhance production efficiency by focusing on customers, quality, and cost-saving strategies. Learn about key production techniques and operations management practices to drive continuous improvement in the global market. Discover insights on China and India's manufacturing landscape and the importance of technology in increasing productivity. Dive into the world of control procedures and learn from failures to innovate and progress in the competitive manufacturing sector.

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Achieving Production Excellence Through Efficiency and Quality

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  1. Producing World-Class Goods and Services 1-1

  2. Leading U.S. Manufacturing States Michigan New York Illinois Ohio California Pennsylvania Texas

  3. ExxonMobil Chevron General Motors ConocoPhillips Ford Motor General Electric Altria Group IBM Corp. Hewlett-Packard Valero Energy Top Ten US Manufacturers

  4. How Manufacturers Have Become More Effective • Focus on customers • Maintain close relationships • Continuous improvement • Focus on quality • Save costs • Rely on the Internet • New production techniques

  5. Labor Hours / Vehicle • Ford – 35.79 hours • Daimler/Chrysler – 33.71 hours • GM – 33.19 hours • Honda – 32.51 hours • Toyota – 29.4 hours • Nissan – 28.46 hours

  6. From Production to Operations Management • Production • Production Management • Operations Management (OM)

  7. CHINA Driving Force: Manufacturing Largest Communist Country Population: 1.3 Billion Economic Growth Rate: 9% Financial/Commercial Capital: Shanghai INDIA Driving Force: Services Largest Democracy Population: 1.1 Billion Economic Growth Rate: 7% Financial/Commercial Capital: Mumbai Comparing Asian Giants

  8. Production Processes • Form Utility • Process Manufacturing • Assembly Process • Continuous Process • Intermittent Process

  9. Three Requirements For Production • Build and deliver products in response to the demands of the customer at a scheduled delivery time • Provide an acceptable quality level • Provide everything at the lowest possible cost

  10. Production Efficiency • Krispy Kreme Doughnuts – 5,208 a minute • Twinkies – 972 a minute • LifeSavers 5 Flavor Roll – 100 rolls a minute • Jell-O Gelatin Boxes – 764 a minute • Chips Ahoy! – 4,000 a minute Source: World Features Syndicate

  11. What Is Increasing Productivity? Source: 2005 National Innovation Survey, Council on Competitiveness

  12. Product Improvements With Computer Technology • Computer-Aided Design - CAD • Computer-Aided Manufacturing - CAM • Computer-Integrated Manufacturing - CIM

  13. Top Ten Tech Spenders STATE$ in Billions • California 38.9 • New York 29.8 • Texas 24.6 • Illinois 15.1 • Florida 13.9 • Pennsylvania 12.8 • Ohio 11.8 • New Jersey 11.3 • North Carolina 9.4 • Georgia 9.3 Source: Business Week Online, December 5, 2005

  14. Production Techniques • Flexible Manufacturing • Lean Manufacturing • Mass Customization

  15. Operations Management Planning • Facility Location • Facility Layout • Materials Requirement Planning • Purchasing • J-I-T Inventory Control • Quality Control

  16. Quality Control • Six Sigma Quality • Statistical Quality Control (SQC) • Statistical Process Control (SPC) • The Baldrige Award • ISO 9000 • ISO 14000

  17. Baldrige Award Recipients • Sunny Fresh Foods, Inc.,Monticello, MN(Manufacturing) • DynMcDermott Petroleum Operations,New Orleans, LA (Service) • Park Place Lexus,Plano, TX (Small Business) • Richland College,Dallas, TX (Education) • Jenks Public Schools,Jenks, OK (Education) • Bronson Methodist Hospital,Kalamazoo, MI, (Health care) Source: NIST News Release, November 22, 2005

  18. ISO • ISO was founded in 1947 • At the end of 2004, the worldwide total of certificates: • ISO 9000 – 670,000 in 154 countries • ISO 14000 – 90,000 in 127 countries Source: Business Week Online, March 17, 2006

  19. Control Procedures • Program Evaluation & Review Techniques (PERT) • Gantt Chart

  20. PERT Steps • Analyzing and sequencing tasks that need to be done • Estimating the time needed to complete each task • Drawing a PERT network illustrating the information from steps 1 and 2 • Identifying the critical path

  21. Gantt Chart • Named for its developer, Henry Gantt • A bar graph that clearly shows what projects are being worked on and how much has been completed at any given time

  22. Learning from Failure • Formalize forums for analyzing failure • Move the goalposts • Share personal stories • Bring in outsiders • Prove yourself wrong, not right • Celebrate smart failures

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