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MGT 153

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nur nazera binti halim

on 18 February 2013

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Transcript of MGT 153

CHAPTER 6 : PRODUCTION OF GOODS
AND SERVICES 6.1 DEFINITION Production are anythings that
firm produce such as food ,
clothing car and so on . Services are intangible and are perfomed
by ornganization and it
can be in the form of trasportation ,
health care and public safety 6.2 Production of managment PRODUCTION PROCESS Include 3 component
Inputs
-Any resources needed to produce a desired goods and services

2. Transformation process
-The activites that can change input into output

3. Output
-The finished goods and services that result form the transformation process i Siti Muzalifah
Nur Nazera
Muna Amila
Nurun Nabila
Fatimah Production management involves

i) production site selection
- ensures smooth and efficient performance
at various stage in the process

ii) factory layout designUsed to interchangeable although the letter term is more commonly used in the manufacturing environmen

iii) Production work sheduling

iv) Production quality control

v) Purchasing CLASSIFICATION OF PRODUCTION PROCESS Based on the nature of the process
a. Analytical production process
b. Synthetic production process
1. Fabrication – process of combining materials
2. Modifacation – process of changing
the raw materials into product. RESOURCES USED FOR THE PRODUCTION PROCESS Human resources
Materials
Other resources
Combining resources for production
a. Work station

b. Assembly line PRODUCTION BASED UTILITIES Form utility : quality added to raw materials when they are converted to a form that can be used
Time utility : create by making product and services available when customer require.
Place utility : The firm must identify where the product can be easily and conveniently obtaines by customers.
Possession utulity : firm creates ownership by after the customer purchase the product PRODUCTION CONTROL Purchasing materials
a. Selecting a suplier of materials require managers to evaluate such as factors as the price , quality , speed , realibility , servicing and credit availibility offered.
b. Ability of the supplier to react to an internet based order system
c. Managers of large firms will also attemtps to negoatiate volume discount when they order large quantities of materials
d. Production managers must also determine the degree they want to make use of outsourcing Inventory control
1. Carrying cost
2. Ordering cos
iii. Routing – the sequence of task nesessary to complete the production of a product
.iv. Schedulling- Time period
for the completion of task
v. Quality control
Technology
Employees
Sampling
Complaint monitoring
Purpose of quality control An operation manager must
achieve these goals

Production high quality outputs
that have more desired attribute
fulfilling the customers desire
Minimizing the cost of
productionDelivery the desired
goods and services to customers when they want it . Production process :i. Standard productsThat are produce to the specification of the producer .Custom product- Product or services that are unique , especially made to the customer’sdesire and required an expert or a skilled worker to produce it
Full transcript