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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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CHARACTERISTICS OF A
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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CHARACTERISTICS OF A
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.