INTRODUCTİON TO BUSİNESS - Deneme Sınavı - 9

During the transformation process, the production function in the company involves four specific sub-functions which are design, scheduling, operation, and transformation control.

Reselling services is unusual

Some aspects of quality are measurable in goods.

Production management involves the application of planning, organizing, directing, and controlling the production process.

Continuous flow process: This type of flow process is usually used in process industries such as paper, chemicals, bulk foods, petroleum and water.

The job-shop process is used when a company manufactures several different products that require different types of processing and processing for different products is performed in different sequences.

The ultimate goal of production management is to provide high-quality goods and services instantaneously in response to customer demand by the lowest possible cost.

Customization aims to make a unique product or provide a specific service to specific individuals. Although it once may have seemed impossible, mass customization, which means tailoring products to meet the needs of a large number of individual customers, is now practiced widely.

During the transformation process, the production function in the company involves four specific sub-functions which are design, scheduling, operation, and transformation control.

Some of goods can be resold, some aspects of their quality are measurable, selling is distinct from production of goods, location of a facility is important for cost, it is often easy to automate production of goods.

Production is the transformation or conversion of a set of inputs, such as raw
materials, labor, knowledge, into one or more outputs such as tables, cars, and
banking services.

Transformation process in the production system can be:
• Physical: in manufacturing operations,
• Locational: in transportation or warehouse operations,
• Exchange: in retail operations,
• Physiological: in health care,
• Psychological: in entertainment,
• Informational: in communication

Following definitions explain main characteristics of production management:
• It is the process of effective planning and regulating operations of the production section of an enterprise which is responsible for the act transforming materials into finished products.
• Production management provides decisions to the production process for ensuring that the resulting goods and services are produced in accordance with the quantitative specifications and demand schedule with minimum cost.
• Production management is a set of general principles for production economics. Facility design, job design, schedule design, quality control, inventory control, work study, and cost and budgetary control are some application examples for the production management. This definition
explains the main areas of an enterprise where the principles of production management can be applied.

Disadvantages of the flow processes: Initial costs are high; work can become tedious and boring; and the production system is extremely vulnerable.

Advantages of the flow processes: Since specialized equipment is used, operations are efficient; workers can benefit from repetition of a narrow range of tasks; material handling can be simplified; work-in process inventories are small; space utilization is efficient; quality conformance is easier to achieve; and production scheduling and coordination are relatively easy.

Cellular manufacturing is a process that produces families of parts within a single line or cell of machines operated by operators who work only within the line or the cell. A cell is a small scale, clearly-defined production unit within a larger factory. This unit has complete responsibility for producing a family of like parts or a product

The field of supply chain management was born to manage the flow of information, products, and services across a network of customers, enterprises and supply chain partners. Supply chain management concentrates on input and output dimensions of transformation processes. Increasingly, however, as the transformation process is performed by suppliers who can be located around the world, the supply chain manager is also concerned with the timeliness, quality, and legalities of the suppliers’ operations

Just-In-Time (JIT) is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing companies. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays. Just-In-Time production is a Japanese management philosophy applied in manufacturing which involves having the right items of the right quality and quantity in the right place and the right time. It has been widely reported that the proper use of JIT production has resulted in increases in quality, productivity, and efficiency, improved communication and decreases in costs and wastes. The potential of gaining these benefits has made many organizations question and consider this approach to manufacturing. For these reasons, JIT has become a very popular subject currently being investigated by many worldwide organizations.

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer, wholesaler, retailer, and consumer. Supply chain management coordinates and integrates these flows both within and among companies. One argument is that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). SCM represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible.

The effectiveness of management information depends on four characteristics:
1. Quality: The information must be accurate and reliable. If not, the solution of the problems will generate new problems.
2. Completeness: The information must be enough to allow the decision maker to make the right decision but not so much as to confuse the issue. Today, having excessive information rather than too little is a significant problem for business managers.
3. Timeliness: Managers can reach the information rapidly and on time. E-mail, instant messaging, and other social media tools make it possible for companies to hear about a problem immediately.
4. Relevance: Every decision maker needs a different variety of information. However, the problem is to have too much data by information systems.  ecision makers must be careful about the questions they ask to get the answers they need.

Business people generally use software for writing, manipulating numbers, filling and retrieving data, presenting information visually, communicating, and accounting. Today, many large and midsized companies have made capital investments in the enterprise systems. Enterprise resource planning (ERP) software, which is a form of integrated software, combines all of a company’s computerized functions into a single, integrated software program that runs off a single database, allowing various departments to easily share information and communicate with each other.