Explain how manufacturing and production are important to the U.S. and global economies.

Steve Schmidt loves his job making custom bicycles. He and his business partner, Ralph Brinsdorfer, take pride in providing the best customer service by ensuring that the bikes are delivered on time, offering financing, and providing friendly and efficient repair service. Their goal, like the goal of all businesses, is to deliver a quality good or service to their customers. What is involved in the production of goods and services? How important is production to the U.S. economy and also to world economies?

Describe production management, and discuss the common production processes that are used by businesses.

Kristi Kwan and Yuan Martin run a fitness and nutritional consulting firm. For all of their clients, especially those with specific food allergies or dietary requirements, they recommend a nutrition bar with customizable ingredients that cater to the tastes and nutritional needs of each of their clients. How does this product provide for such customization without making each bar by hand?

Define operations management, explain what factors are important in determining a facility’s location and layout, and outline the types of technology used in production facilities.

Arthur Ridder’s furniture manufacturing company has had great success in northern Washington and he is considering expanding operations to a new location. What factors does Arthur need to consider before choosing a new location? How should the facility be arranged, and how does he determine the best suppliers to use?

Describe how operations are controlled and quality standards are achieved in a firm.

Jeanette Pae’s daughter hurt herself when the tray of her high chair unexpectedly separated from the rest of the chair. The chair was later recalled, but Jeanette’s confidence in the product was shaken. Similar situations happened to her friends and family members, who had experienced the recall of toys, medicine, computer batteries, and cars. What can companies do to ensure the production of a high-quality product?

Define supply chain management, and explain how it helps companies create and deliver their goods and services more effectively.

Sylvia Ackerman loves the simple lines and clean design of IKEA products and cannot wait to furnish her new apartment with IKEA merchandise. Moreover, she knows she will be able to afford what she needs and can assemble the furniture on her own with minimal help from others. How does IKEA manage the process of producing inexpensive, high-quality goods for its stores around the world?