What is Production Engineering

No-compete clauses (employee agrees not to pursue a similar profession or trade in competition against employer) and non-disclosure agreements (outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to by third parties) are increasingly common in employments contracts. Management science and operations research use quantitative analysis and applied mathematics to solve problems and operations management uses it to systematically examine how organizations can produce goods and services most efficiently and effectively. A typical approach: problem is encountered, systematically analyzed, appropriate mathematical models and computations are applied, and an optimum solution is identified. Characteristics of Quantitative Analysis: 1.mathematical forecasting helps make future projections for reserve sizes and depletion rates that are useful in the planning process 2. Network models, such as a gantt chart, break large tasks into smaller components allowing project managers to better analyze, plan, and control timetables for competition of many different activities 3. Inventory analysis helps control inventories by mathematically determining how much to automatically order and when 4. Queuing theory

The timing of capacity changes also needs to be taken into consideration to achieve maximum efficenty given that demands of their products varies with seasonal changes. The ability to react to market demand changes quickly will determine manufacturers flexibility in keeping up with these demands. Manufacturers needs facilities to produce, whether warehouses to store its raw materials or finished goods, or manufacturing plants to produce their products. Services facilities are needed by certain manufacturing industries such as consumer electronics to cater for returns. Distribution centres also determine the efficenty of production distribution and un-nesessary inventory holding will result in higher holding cost. Such facilities require large investments and are integral of the manufacturer’s supply chain strategy and thus proper planning is needed when making these decisions regardong the size, location which affect the overall operations. How manufacturers run their productions also determine how successful will they be in terms of productivity and quality levels. Different types of equipment and processes also affect the cost and output of the manufacturing plant. Information systems that flow both upstream and downstream affects the forecasting, planning, inventory and production levels, they must be robust to ensure the manufacturing firm is able to react accordingly to changing demands and variations. In addition to their internal environment,

Select an existing production organization. Analyze the organization’s current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting method, statistical technique, facility location, work design, project life cycle, and project management. Note: You will need this information in order to complete this and subsequent assignments.

Boer, G., & Jeter, D. (1993). What's new about modern manufacturing? empirical evidence on manufacturing cost changes. Journal of Management Accounting Research, 5, 61. Retrieved from http://search.proquest.com/docview/210171196?accountid=32521

A cost of goods is what it should spend to make products. At the start of each period budget of production will be ready, using cost of goods and predicted production quantities. At the end of each period a variance report is prepared to compare the budget costs with the actual costs.

In an article published on the Harvard Business Review website we see that “a factory needs to be flexible and respond to customer orders quickly” (Upton 1995). As the global market for products is growing factories need to be able to keep up with the demand of products in many more countries than they had in years past. Managers have to make decisions on whether or not to expand a factory or build a new factory and the decision between the two have large differences in cost. Forecasting can help managers decide if they should expand or not expand. Capacity does not need to be crowded because that can lead to decrease in quality of products and can cause underproduction. Capacity decisions are one of the toughest decisions manager have to

Excel OM/QM Learning Curve tool was used to complete this analysis. This tool was selected because of the strategic importance of the learning curve. The learning curve is applied to aid in the formulation of strategic decisions about employment levels, capacity, costs, and pricing. This tool showed that with the learning curve applied how production hours would be affected if the batches increased. This allows the company to understand what their costs associated to labor is and also if they will be able to meet

Traditional Cost method is defined as “The traditional method of cost accounting refers to the allocation of manufacturing overhead costs to the products manufactured. The traditional method (also known as the conventional method) assigns or allocates the factory 's indirect costs to the items manufactured on the basis of volume such as the number of units produced, the direct labor hours, or the production machine hours. We will use machine hours in our discussion. By using only machine hours to allocate the manufacturing overhead to products, it is implying that the machine hours are the underlying cause of the factory overhead. Traditionally, that may have been reasonable or at least sufficient for the company 's external financial statements. However, in recent decades the manufacturing overhead has been driven or caused by many other factors. For example, some customers are likely to demand additional manufacturing operations for their diverse products. Other customers simply want great quantities of uniform products. If a manufacturer wants to know the true cost to produce specific products for specific customers, the traditional method of cost accounting is inadequate.” AccountingCoach. (n.d.).

After couple of days of trying to understand the relationship between these two concepts, Alex understood low productivity is caused by dependencies of each production line to one another and is slowed by the bottlenecks. In few words, the difficult part for the manager is to identify the bottleneck.

First, the materials efficiency variance was noted as unfavorable because 1,000 more units were used than budgeted. Since materials efficiency variances result from a variety of causes, including materials quality, spoilage, training, and equipment (Benge, n.d.). The next area to investigate are the labor variances which showed the cost, while favorable, was a difference of $1.00 per hour. Further, the efficiency was unfavorable, indicating that production required an additional 3,000 hours over budget, which could be the result of staff training, faulty equipment, or low-quality materials (Direct labor efficiency variance - explanation, formula, example, reasons. 2016). Since there appears to be a lower cost of labor than anticipated, but higher materials and hourly utilization rate, it is possible that new lower cost staff were hired resulting in slower production rates and elevated materials utilization. As such, the production manager should be consulted to investigate the cause of these variances and to put proper corrective actions into place (Miller-Nobles et al.,

For this part of the analysis, consider each department in the Gdansk factory in isolation. Assume that the rest of the production system has no impact on the department you are considering. Assume that material handling times are negligible and ignore variability in processing times.

Eliyahu M Goldratt purpose of writing this book is to introduce individuals to how to manage and measure effectively. Goldratt illustrates how the accounting cost figures and productivity per machine can actually be problematic for it misleads individuals into thinking they’re achieving the goal. Rather all attention should be focused on strategy planning and managing the bottlenecks because they are the true driving metric of production. One major takeaway message from this novel is that there is always room for improvement. This philosophy of ongoing improvement originated in a Toyotas production system and is better know as the Kaizen theory. The Novel, stresses the Kaizen theory, which starts with an indication, then an in-depth analysis, followed by a diagnosis, eventually arrive ate a hypothesis and ending with

General Motors (GM) is one of the most renowned automakers in the world. GM is well-known for their streamlined assembly processes which saves money and time in the production of cars. A study was conducted at one of GM’s vehicle assembly plants as part of a research project to examine how the ABC model provides value. GM specifically focused on its potential to determine expected energy use in a plant for varying production schedules in order to evaluate Demand and Response offers.

Production is valued exceedingly within businesses, raw materials need to be created and assembled so that the company can then sell the product to the customer. Production will have its

Furthermore, the ACC strategy of offering increased variety requires shorter production runs which inherently increases the cost associated with each product and packaging, as idle time due to process changeover would increase between each product production (4.8% of time com-pared with 2% for DJC). The strategy of increased variety and production runs by the ACC would also affect labor in a number of ways. Direct labor costs would go up due to a larger amount of idle time associated with process changeover and the chance of increased problems associated with the