CHAPTER 10-Managing Product and Services Operation

7/24/2019 CHAPTER 10-Managing Product and Services Operation

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MANAGING

PRODUCT AND

SERVICES

OPERATION


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WHAT IS OPERATIONS?

-OPERATIONS REFERS TO ANY PROCESS THAT ACCEPTS

INPUTS AND USES RESOURCES TO CHANGE THOSE

INPUTS IN USEFUL WAYS.-OPERATIONS REFERS TO CHANGING OF INPUTS INTO

USEFUL OUTPUTS.


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WHAT IS OPERATIONSMANAGEMENT?

-OPERATIONS MANAGEMENT IS A PROCESS OFPLANNING, ORGANIZING, AND CONTROLLING

OPERATIONS TO REACH OBJECTIVES

EFFICIENTLY AND EFFECTIVELY.


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PLANNING Plannn! " a #$%&'( ') ('n! "'#$%&n!

%&a% " *'+$( '% n a(an/$

Plannn! " %&$ #ana!$#$n% )n/%'n %&a%

n'l$" an%/0a%n! )%+$ %+$n(" an(($%$+#nn! %&$ 1$"% "%+a%$!$" an( %a/%/"

%' a/&$$ '+!an2a%'nal '13$/%$"


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ORGANIZING O+!an2n! " a #$%&'( n *&/& %' a00l4 '+

#0'"$ $))/$n% *'+n! #$%&'(" n '+($+

%' *'+ $))$/%$l4 '+ #a$ "'#$1'(4 $l"$

*'+ $))$/%$l4. O+!an2n! " a #ana!$#$n% )n/%'n *&/&

+$)$+" %' %&$ "%+/%+n! ') +$"'+/$" an(

a/%%$" %' a//'#0l"& '13$/%$" n an

$))/$n% an( $))$/%$ #ann$+.


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CONTROLLING C'n%+'lln! #$an" %' $5$+/"$ 0'*$+ '+

a%&'+%4 '$+ "'#$%&n! "/& a" a

1"n$"" '+ na%'n.

C'n%+'lln! +$)$+" %' %&$ 0+'/$"" ')a"/$+%ann! *&$%&$+ '+!an2a%'nal

'13$/%$" &a$ 1$$n a/&$$( an(

($%$+#nn! *&a% a/%%$" "&'l( %&$n 1$

%a$n %' a/&$$ '13$/%$" 1$%%$+ n %&$)%+$.


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EFFICIENCY E))/$n/4 +$)$+" %' %&$ ($!+$$ %' *&/&

"'#$%&n! " ('n$ *$ll '+ *%&'% *a"%$(

$n$+!4.

E))/$n/4 " +$la%$( %' %&$ /'"% ') ('n!"'#$%&n!, '+ %&$ +$"'+/$ %l2a%'n

n'l$(.


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EFFECTIVENESS Effectiveness is the means of causing a

result, especially the desired or intended

result.

Effectiveness refers to goal accomplishment.


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OPERATIONS AND THE

ENGINEERING MANAGER

An engineer manager is expected to produce

some output at whatever management level

he is.


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TYPES OF TRANSFORMATION

PROCESS


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The engineer manager must have some

knowledge of the various types of

transformation process and there are twotypes of transformation process and they are

the manufacturing process, and the service

process


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MANUFACTURING PROCESS Manufacturing refers to producing goods that

are necessary for modern life from raw

materials. The word manufacturecomes

from the Latin manushand! and faceretomake!.

Manufacturing process are those that refer to

making of products "y hand or with

machinery.


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TYPES OF MANUFACTURING

PROCESS #o" shop

$atch flow

%orker&paced line flow' worker&paced

assem"ly line Machine&paced line flow' machine&paced

assem"ly line

$atch'continuous flow hy"rid

(ontinuous flow


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JOB SHOP A )o" shop is one whose production is "ased

on sales orders for variety of small lots.


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CHARACTERISTICS OF A JOB

SHOP #o" shops manufacture products in small lots

that are needed "y, "ut cannot "e produced

economically "y many companies.

#o" shops produce custom products, ingeneral. *roducts may "e manufactured

within a short notice. And manufacturing in

)o" shops are usually in la"or intensive and

machines are fre+uently idle or not in use.


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BATCH FLOW n the "atch flow process generally own

designed products are manufactured.


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CHARACTERISTICS OF A BATCH

FLOW There is flexi"ility to produce either low or high

volumes.

-ot all procedures are performed in all

products.

The type of e+uipment used are mostly for

general purpose.

The process layout is used where similar

machines are grouped together.

The operation of la"or intensive, although there

is less machine idleness.

The sie of operation is generally medium&sied.


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WOR6ER-PACED ASSEMBLY LINE A worker&paced assem"ly line is an assem"ly

line that refers to a production layout that is

arranged in a se+uence to accommodate

processing of large volumes of standardied

products or services.


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CHARACTERISTICS OF A

WOR6ER-PACED ASSEMBLY LINE n the worker&paced assem"ly line the

products manufactured are mostly

standardied.

There is a clear process pattern. /pecialied e+uipment is used.

The sie of operation is varia"le.

The process is work&paced.

The type of layout used is the line flow.

La"or is still a "ig cost item.


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MACHINE-PACED ASSEMBLY LINE This type of production process production

process produces mostly standard products

with machines playing a significant role.


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MACHINE-PACED ASSEMBLY FLOW

The process is of clear , rigid pattern.

/pecialied type of e+uipment is used.

The line flow layout is used.

(apitalied e+uipment is a "igger cost itemthan la"or.

0peration is large.

The process is machine&paced.


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CONTINUOUS FLOW The continuous flow processing is

characteried "y the rapid rate at which

items move through the system.


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CONTINUOUS FLOW This process method is used in producing highly

standardied products like calculators,

typewriters, automo"iles, televisions, cellular

phones and etc.

There is economy of scale in production, resultingto low per unit cost of production.

The process is clear and very rigid.

/pecialied e+uipment is used.

The line flow layout is used.

0perations are highly capital intensive.

The sie of operations is very large.

*rocess is fast.


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SERVICE PROCESS service process are those that refer to the

provision of services to persons "y hand or

with machinery.


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TYPES OF SERVICE PROCESS /ervice factory

/ervice shop

Mass service

*rofessional service


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SERVICE FACTORY A service factory offers a limited mix of

service which results to some economies of

scale in operations.


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CHARACTERISTICS OF SERVICE

FACTORY The process layout preferred "y the service

factory is the rigid pattern of line flow.


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SERVICE SHOP A service shop provides a diverse mix of

services.


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CHARACTERISTICS OF A SERVICE

SHOP The layout used are those for )o" shops or

fixed position and are adapta"le to various

re+uirements.


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MASS SERVICE A mass service company provides services to

a large num"er of people simultaneuosly.


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PROFFESIONAL SERVICES These are companies that provide specialied

services to other firms or individuals.


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IMPORTANT PARTS OF

PRODUCTIVE LAYOUT *roduct design.

*roduction planning and scheduling.

*urchasing and materials management.

nventory control. 1uality control.


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PRODUCT DESIGN *roduct design refers to the process of

creating a set of product specifications

appropriate to the demands of the situation.


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PRODUCTION PLANNING AND

SCHEDULING7 *roduction planning is 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.


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PURCHASING AND MATERIALS

MANAGEMENT 2efers to the approach that seeks efficiency

of operation through integration of material

ac+uisition, movement, and storage

activities in the firm.


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INVENTORY CONTROL s the process of esta"lishing and maintaining

appropriate levels of reserve stocks of goods.


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WOR6-FLOW LAYOUT s the process of determining the physical

arrangement of the production system


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8UALITY CONTROL 2efers to the measurement of products or

services against standards set "y the

company.


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SUMMARY The management of operations is very crucial to the survival of

firms. 0perations refer to the changing of inputs into useful

outputs. n the effort to manufacture products, operations

management must contri"ute its share in the accomplishment

of the company3s o")ectives.

The function of the operations manager is to plan, organie,and control operations in order to achieve o")ectives

efficiently and effectively. The engineer manager is often

times assigned to perform the tasks of the operations manager.

The transformation process may "e classified generally as the

manufacturing or service process. These two are su" classifiedinto various types, each with "uilt&in advantages depending on

certain conditions.

*roduction system consist of various parts that complement

one another in the production task. The engineer manager

needs to "e familiar with these various parts.

CHAPTER 10-Managing Product and Services Operation

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