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Managing Production and Service Operations

Operations management involves planning, organizing, and controlling operations to efficiently produce goods and services. Key aspects of operations include the production process that transforms inputs like labor, materials, and capital into outputs like products and services. Effective operations management aims for both efficiency in resource utilization and effectiveness in goal accomplishment. Important parts of production systems are product design, production planning and scheduling, purchasing and materials management, inventory control, workflow layout, and quality control.

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907 views41 pages

Managing Production and Service Operations

Operations management involves planning, organizing, and controlling operations to efficiently produce goods and services. Key aspects of operations include the production process that transforms inputs like labor, materials, and capital into outputs like products and services. Effective operations management aims for both efficiency in resource utilization and effectiveness in goal accomplishment. Important parts of production systems are product design, production planning and scheduling, purchasing and materials management, inventory control, workflow layout, and quality control.

Uploaded by

Jomari Galias
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MANAGING PRODUCTION

AND
SERVICE OPERATIONS
WHAT OPERATION IS

Operation refers to “any process that accepts


inputs and uses resources to change those
inputs in useful ways.”
The Production Process

TRANSFORMATION
INPUTS OUTPUTS
PROCESS

Land
Equipment
Labor Products
Procedures
Capital Services
Technology
Entrepreneurship
WHAT OPERATION MANAGEMENT IS

“The process of planning, organizing, and


controlling operations to reach objectives
efficiently and effectively.”
- Aldag and Stearns
Efficiency

Related to “the cost of doing something


or the resource utilization involved.”
Effectiveness

Refers to goal accomplishment.


OPERATIONS AND THE ENGINEER

Manager

The engineer manager is expected to


produce some output at whatever
management level he is.
Functions of an Engineer Manager

Manufacturing Engineer
To determine and define the equipment, tools
and processes required to convert the design of
the desired product into reality in an efficient
manner
Functions of an Engineer Manager

Operation Manager
Must find ways to contribute to the production
of quality goods or services and the reduction of
costs in his department.
Organization Chart of a Manufacturing Firm

TOP MANAGEMENT

PRODUCTION/OPERATIONS
Facilities FINANCE/ACCOUNTING
Construction Disbursements/Credits MARKETING
Maintenance Accounts Receivable Sales Promo
Production and Inventory Control Accounts Payable
Scheduling Advertising
Material Control General Ledger
Quality Assurance and Control Funds Management Sales
Procurement Money Market Market Research
Manufacturing International Exchange
Tooling Capital Requirements
Fabrication
Assembly Stock Issue
Engineering/Design Bond Issue and Recall
Product Development and Design
Detailed Product Specifications
Industrial Engineering
Efficient use of machines, space and
personnel
Process Engineering
Development and Installation of
production tools, equipment and processes
Organization Chart of a Construction Firm

PRESIDENT

Vice President
Vice President Vice President
for Finance and
for Operations Administration for Marketing

Manager,
General Accounting Sales
Construction

Manager,
Cashier Advertising
Construction
Equipment

Human
Manager, Resources
Steel
Construction
TYPES OF TRANSFORMATION PROCESS

1. Manufacturing Process
a. Job shop
b. Batch flow
c. Worker-paced line flow
d. Machine-paced line flow
e. Batch/continuous flow hybrid
f. Continuous flow
TYPES OF TRANSFORMATION PROCESS

2. Service Processes
a. Service factory
b. Service shop
c. Mass service
d. Professional service
1. Manufacturing Process

Are those that refer to the making of products


by hand or with machinery
a. Job shop

Is one whose production is “based on sales


orders for a variety of small lots.”
Process Flow Diagram for a Job Shop

Preparation Lathe Inspection


and Grouping Milling Grinding
Work and Shipping
of Materials
b. Batch flow

A process where lots of generally own designed


products are manufactured
It is further characterized
by the following:

1. There is flexibility to produce either low or high volumes.


2. Not all procedures are performed on all products.
3. The type of equipment used are mostly for general purpose.
4. The process layout is used.
5. The operation is labor intensive, although there is less machine
idleness.
6. The size of operation is generally medium-sized.
c. Worker-paced Assembly line flow

An assembly line refers to a production layout


arranged in a sequence to accommodate
processing of large volumes of standardized
products or services.
Examples:
McDonalds and Shakeys
It is characterized by the following:

1. The products manufactured are mostly standardized.


2. There is a clear process pattern.
3. Specialized equipment is used.
4. The size of operation is variable.
5. The process s worker-paced.
6. The type of layout used is the line flow
7. Labor is still a big cost item.
d. Machine-paced line flow

Produces mostly standard products with


machines playing a significant role.
It is characterized by the following:

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. The process is machine-paced.
e. Continuous flow

Characterized by “the rapid rate at which


items move through systems.”
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. The line flow layout is used.
4. Operations are highly capital intensive.
5. The size of operations is very large.
6. The size of operations is very large.
7. Processing is fast.
f. Batch/continuous flow hybrid

This method of processing is a combination of


the batch and the continuous flow. Two distinct
layouts are used, one for batch and one for
continuous flow.
2. Service Process

Are those that refers to the provision of services


to persons by hand or with machinery.
a. Service factory

A service factory offers a limited mix of services


which results to some economics of scale in
operations.
b. Service shop

A service shop provides a diverse mix of services.


The layouts used are those for job shops or fixed
position and are adaptable to various requirements.
c. Mass service

A mass service company provides services to


a large number of people simultaneously.
d. Professional services

These are companies that provide specialized


services to other firms or individuals.
IMPORTANT PARTS OF
PRODUCTIVE SYSTEMS

1. Product design
2. Production planning and scheduling
3. Purchasing and materials management
4. Inventory control
5. Work flow layout
6. Quality control
1. Product design

Refers to “the process of creating a set of product


specifications appropriate to the demands of the
situation.”
2. Production planning and scheduling

Production planning may be defined as


“forecasting the future sales of a given product,
translating this forecast into the demand it
generates for various production facilities, and
arranging for the procurement of these facilities.”
Scheduling is the “phase of production control
involved in developing timetables that specify
how long each operation in the production
process takes.”
3. Purchasing and materials management

Materials Management refers to “the approach


that seeks efficiency of operation through
integration of all material acquisition, movement,
and storage activities in the firm.”
4. Inventory control

is the process of establishing and maintaining


appropriate levels of reserve stocks of goods.
Ways of achieving proper inventory control:

1. Determining reorder point and reorder quantity


2. Determining economic order quantity
3. The use of just-in-time (JIT) method of inventory control
4. The use of the material requirement planning (MRP)
method of planning and controlling inventories
5. Work flow layout

Is the process of determining the physical


arrangement of the production system. In the
transformation process, the flow of work may be
done either haphazardly or orderly.
Benefits of a good work-flow layout:

1. Minimize investment in equipment.


2. Minimize overall production time.
3. Use existing space most effectively.
4. Provide employees convenience, safety and comfort.
5. Maintain flexibility of arrangement and operation
6. Minimize material handling cost.
7. Minimize variation in types of material-handling equipment.
8. Facilitate the manufacturing (or service) process.
9. Facilitate the organizational structure.
6. Quality control

Refers to the measurement of products or


services against standards set by the company.
THANK YOU

DARREN JADE MARASIGAN JOHN LLOYD MARIANO


SCIARA B. MADRILEJOS
JHON PAUL MALAZARTE ANGELO REY MATURANA

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