BU121 Chapter Notes - Chapter 7: Outsourcing, Enterprise Resource Planning, Six Sigma
Document Summary
Production: the creation of goods and services by turning raw inputs into outputs. Operations management: management of the production process. 3 main types of decisions in operations management: strategic planning: where, when, and how production will occur, tactical control: day-to-day operations of running a factory, operational control: developing more efficient methods of production. Production planning: the aspect of operation management in which the company considers its resources and strategic goals in an effort to determine the best production methods, four important decisions made in production planning: Type of production process, site selection, facility layout, and resource planning. Production process: the way in which a good is made, 3 types of production: mass production, mass customization, and customization. Mass production: the ability to manufacture many identical goods at once. Mass customization: a manufacturing process in which goods are mass produced up to a point and then custom tailored to the needs or desires of individual customers.
