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Craft production
Every piece unique, hand fitted, and made entirely by one person
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Division of labor
Adam Smit, production process broken down into a series of small tasks, each performed by different worker
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Interchangeable parts
Eli Whitney, allowed manufacture of firearms, clocks, watches, sewing machines, and other goods to shift from customized one at a time production to volume production of standardized parts
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Scientific management
Frederick taylor, scientific analysis of work methods
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Mass production
Henry Ford, short assembly time allowing for high volumes
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Quality revolution
Emphasis on quality and strategic role of operations
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Lean production
An adaptation of mass production that prizes quality (rather than quantity) and flexibility (rather than efficiency)
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Industrial revolution
- Steam engine - Watt
- Division of labor - Smith
- Interchangeable parts - Whitney
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Scientific management
- Principles of scientific management - taylor
- Time and motion studies - gilbreth
- Activity scheduling chart - gantt
- moving assembly line - ford
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Human relations
- Hawthorne studies - mayo
- Motivation theories - Maslow, Herzberg, McGregor
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Operations research Era
- Linear programing - Dantzig
- Digital computer - Rand
- Simulation, waiting line theory, decision theory, PERT/CPM - operations research groups
- MRP, EDI, EFT, CIM - Orlicky, IMB and others
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Quality Revolution Era
- JIT - Ohno (Toyota)
- TQM (Total Quality Management) - Deming + Juran
- Strategy and operations - Skinner, Hayes
- Reengineering - Hammer, Champy
- Six Sigma - GE, Motorola
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Internet Revolution Era
Internet, Ecommerce
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Why go Global?
- Favorable cost
- Access to international markets
- response to changes in demand
- reliable sources of supply
- Latest trends and technologies
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Competitiveness
the degree to which a nation can produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens
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Productivity
represents how quickly an economy can expand its capacity to supply goods and services
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Multifactor productivity
relates output to a combination of inputsInput we usually use is labor hours
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Strategy Formulation
- 1. Defining a primary task
- 2. Assessing core competencies / what does the firm do better
- 3. Determining order winners and order qualifiers
- 4. Positioning the firm / how will the firm compete
- 5. Deploying the strategy
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How will firms compete
- Cost - elimination of waste
- Speed
- Quality - view production as an opportunity to please the customer
- Flexibility - ability of manufacturing to respond to variation
- Innovation
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Balanced scorecard
- how firm measures it performance on
- Finances
- Customers
- Processes
- Learning and growing
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Key performance indicators (KPIs)
set of measures to help managers evaluate performance in critical areas
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