9.1 Strategy, Production, And LogisticsProduction refersto activitiesinvolved in creatingaproductLogisticsrefersto the procurementand physicaltransmission of materialthrough the supply chain,fromsupplierstocustomers（物流：指控制材料通过供应链从供应商到消费者的传递过程）supplychain（供应链）10-
10- 9.1 Strategy, Production, And Logistics ❖Production refers to activities involved in creating a product ❖Logistics refers to the procurement and physical transmission of material through the supply chain, from suppliers to customers (物流：指控制材料通过供应链从供应商到消费者的传递过程） ❖supply chain （供应链）
Logistics procurementSuppliersSuppliersSuppliersSupplyManufacturerchainProduction2ConsumerConsumerConsumer10-
10- Logistics procurement Suppliers Suppliers Suppliers Manufacturer Production Consumer Consumer Consumer Supply chain
The functions of manufacturing and logistic:V-C(1)Tolowercosts,firmscan:disperseproductiontothoselocationswhereactivitiescanbe performed mostefficientlymanage the global supplychainefficientlyto matchsupplyand demandbetter(2)To improvequality,firmscan:eliminatedefectiveproductsfromthe supplychainand the manufacturing process.Improved qualitywill also reducecosts10-
10- The functions of manufacturing and logistic: V-C (1) To lower costs, firms can: ❖disperse production to those locations where activities can be performed most efficiently ❖manage the global supply chain efficiently to match supply and demand better (2) To improve quality, firms can: ❖eliminate defective products from the supply chain and the manufacturing process . ❖Improved quality will also reduce costs
IncreasesProductivityLowersManufacturingCostsLowersImprovesIncreasesPerformanceRework andProfitsReliabilityScrap CostsLowersService CostsLowersWarrantyCosts
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Some Approaches ofQuality control:Total qualitymanagement (TQM)Six Sigma:To increase product quality,mostfirms todayusetheSixSigma program whichaims to reduce defects,boost productivity,eliminate waste,and cut costs throughout acompanyiso9ooo:IntheEuropeanUnion,firms mustmeet the standardsset forthbyIso 9ooo beforethefirmis allowed access totheEuropeanmarketplace10-
10- Some Approaches of Quality control: ❖Total quality management (TQM) ❖Six Sigma : To increase product quality, most firms today use the Six Sigma program which aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company ❖ISO 9000 : In the European Union, firms must meet the standards set forth by ISO 9000 before the firm is allowed access to the European marketplace