Managing Production AND: Service Operations

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MANAGING PRODUCTION AND SERVICE OPERATIONS

What Operation is?


It refers to any process that accepts that accepts inputs and users resources to change those inputs in useful ways.
The Production Process

Inputs
Land Labor Capital Entrepreneurship

Transformation Process
Equipment Procedures Technology

Outputs
Products Services

Examples of Final Goods and services:


Industrial Chemicals Services Electrical Products Electronic Products

Mechanical Devices
Engineering Consultancy Services

What Operations Management is?


Operations is an activity that needs to be managed by competent persons.
According to Aldag and Stears:
Operations Management as the process of planning, Organizing, and Controlling operations to reach objectives Efficiently and Effectively. As the terms PLANNING,ORGANIZING,CONTROLLING have already been discussed in the previous chapters, elaborations on the terms efficiency and Effectiveness will be made.

Operations and the Engineer Manager


The Engineer Manager is expected to produce some output at whatever management level he is. The engineer in charge of operations in a construction firm is responsible for the actual construction of whatever bridge or road his company has agreed to put up. The engineer,as operations manager,must find ways to contribute to the production of quality goods or services and the reduction of cost in his department.

The typical Operations Manager is one with several Chart:


1. Organization Chart of Manufacturing Firm 2. Organization Chart of a Construction Firm

Types Of Transformation Process


The Engineer manager must have some knowledge of the various types of transformation process:

1. Manufacturing Process
a) b) c) d) e) f) Job shop Batch Flow Worker-paced line Flow Machine paced line flow Batch/continuous Flow Hybrid Continuous Flow

2. Service Process
a) b) c) d) Service Factory Service Shop Mass Service Professional Service

Manufacturing Process
Job shop
Is one whose production is "based on Sales Orders for Variety of small lots.Process Flow Diagram for a Job Shop
Milling
Preparation and grouping of Materials

Lathe Work Grinding

Inspection and Shipping

Process Flow Diagram for a Job Shop

Batch Flow
Is a Process is where lots of generally own designed products are manufactured. It is Further Characterized by the following:
1. 2. 3. 4. 5. 6. There is Flexibility to Produce either low or High Volumes. Not all Procedures are performed on all products. The typed of equipment used are mostly general purpose The process layout is used. The operation is labor intensive, although there is less machine idleness. The size of operations operation is generally mediumsized.

Batch Flow Process for a Large Manufacturer of Suits

Worker-paced Line
Is an assembly line refers to a production layout arranged in a sequence to accommodate processing of large volumes of standardized products or services. Assembly Line for Production or Service
Station 1 Materials and/or Labor
Finished item(or) completed Services

Raw Materials (or Customer)

Station 2 Materials and/or Labor

Station 3 Materials and/or Labor

Station 4 Materials and/or Labor

The Work-paced Assembly line is Characterized by the following:


1. The Products Manufactured are mostly standardized. 2. There is a Clear process pattern. 3. Specialized equipments is used. 4. The Size of operation is Variable. 5. The process is worker-paced. 6. The type Of layout used is the line flow. 7. Labor is still a big cost item.

Machine-Paced Assembly line


This type of production process produces mostly standard products with machines playing a significant role.
Among its other Features are as follows: 1.The process is of clear, rigid pattern. 2.Specialized type of equipment is used. 3.The line flow layout is used. 4.Capital equipment is a bigger cost item than labor. 5.Operation is large. 6.T he Process is Machine-paced. A Machine-Paced Assembly Line Process:

Continuous Flow
Continuous processing is characterized by the rapid rate at which items move through the system,
Its Other Characteristics are as follows:
1. There is Economy of scale in production, resulting to low per unit cost of production. 2. The Process is clear and very rigid. 3. Specialized equipment are used. 4. The line flow layout is used. 5. Operations are highly capital intensive. 6. The size of operations is very large. 7. Processing is fast. Diagram of the continuous Flow Process of a PaperMaking Company

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