1. Production
1.1. creation of finished goods & services using the factors of production
1.1.1. Land
1.1.2. Labor
1.1.3. Capital
1.1.3.1. factories, machines, computers
1.1.4. Entrepreneurship
1.2. Process
1.2.1. Inputs
1.2.1.1. factors of production
1.2.2. Production control
1.2.2.1. planning
1.2.2.2. routing
1.2.2.3. scheduling
1.2.2.4. dispatching
1.2.2.5. follow-up
1.2.3. Outputs
1.2.3.1. final goods & services
2. Operations Management
2.1. specialized area of management that focuses on transformation of resources in to goods & services
2.2. Issues to deal with:
2.2.1. facility location
2.2.1.1. availability of workers?
2.2.1.2. access to:
2.2.1.2.1. suppliers
2.2.1.2.2. customers
2.2.1.2.3. transportation
2.2.1.3. local regulations, zoning, taxes
2.2.2. facility layout
2.2.2.1. assembly line
2.2.2.1.1. workers do a few tasks at a time
2.2.2.2. modular
2.2.2.2.1. teams of workers combine to produce more complex products
2.2.2.3. fixed-position
2.2.2.3.1. large products like airplanes where workers are working all around the airplane
2.2.2.4. process
2.2.2.4.1. similar equipment & functions are placed together
2.2.3. materials requirement planning (MRP)
2.2.3.1. uses sales forecasts to make sure resources & parts are available when needed
2.2.4. purchasing
2.2.4.1. finding materials & suppliers
2.2.5. quality control
2.2.5.1. Six Sigma quality
2.2.5.1.1. benchmark: 3.4 problems per million
2.2.6. ISO 9000 & ISO 4000 standards
2.2.6.1. federation of 140 countries that set measures for quality
2.3. Control procedures:
2.3.1. PERT charts
2.3.1.1. program evaluation & review technique
2.3.1.2. analyzes:
2.3.1.2.1. tasks
2.3.1.2.2. estimates the time for each task
2.3.1.2.3. calculates the minimum time to complete project
2.3.1.3. critical path
2.3.1.3.1. sequence of tasks that takes longest time to complete
2.3.2. Gantt chart
2.3.2.1. bar graph which shows what products are
2.3.2.1.1. being worked on
2.3.2.1.2. how much has been completed