Managing Production and

Service Operation
Engr. Gerry Dolorosa
OPERATIONS
● Refers to any process that accepts inputs and uses resources to
change those inputs in useful ways.

● The inputs include, land, labor, money, and entrepreneurship.

● The process of transformation converts the inputs into final

products or services.
EXAMPLES OF FINAL GOODS AND SERVICES
1. Industrial Chemicals produced by chemical manufacturing
firms.
2. Services produced by construction firms
3. Electrical products produced by electrical manufacturing firms
4. Electronic products produced by electronics manufacturing firms
5. Mechanical devices produced by manufacturing firms
THE PRODUCTION PROCESS

2.
OPERATIONS MANAGEMENT
Operations - An activity that needs to be managed by the
competent persons.

Operations Management - Process of planning, organizing, and

controlling operations to reach objectives effectively and efficiently.

Efficiency - Cost of doing something

Effectiveness - Refers to goal accomplishment

OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
Operations management must be carried out in conjunction with
other tasks, such as marketing and finance.

Applies to the coordination and completion of core business

enterprises leading to the achievement of organizational goals and
goals.

The management of operations focuses on aligning operations with

the priorities of the organization, helping the business get where it
needs to go.
GOVERNING MECHANISM
Operations management, for instance, describes, develops, and
executes inter-office correspondence, such as corporate and
financial forms, used every day.

Assigns responsibilities to divisions, managers, and subordinates.

Manages items such as staff management and training, and reviews

or audits of results. Staying updated with appropriate protocols for
reporting and consequential staff conflicts will streamline daily
activities.
INVENTORY CONTROL
One of the most daunting processes of any organization

Management of operations supervises procurement systems, which

decide how efficiently the procurement is handled.

Stock flow is determined by inventory control.

QUALITY CONTROL
Quality is more than just providing a nice and effective product that
satisfies clients. It's greater than just making sure the brand exceeds
expectations.

The overall excellence in all activities and policies of the business as

a whole can be inferred by efficiency.

Holistically, taking care of the company makes a smoother operation

and less distractions.
SUPPLY CHAIN MANAGEMENT
The entire process, from start to finish, is supply chain management,
describing how a customer gets the goods or services of your
company. Purchasing and procurement, storage, transportation, and
delivery are included.
OPERATIONS AND THE ENGINEER MANAGER
The engineer manager is expected to produce some output whatever
management level he is.

As the operations manager, the engineer must find ways to

contribute to the development of quality products or services in his
department and to minimize costs.
TYPES OF TRANSFORMATION
PROCESS
MANUFACTURING PROCESS
Are those that refer to the making of products by hand or wit
machinery.
JOB SHOP
One whose manufacturing is focused on sales orders for a number of
small lots.

Job shops are very useful components of the overall manufacturing

effort, as they manufacture goods in small lots that are required by
several industries but cannot be produced economically. A job shop
can produce a lot consisting of 20 to 200 or more similar
components, depending on the needs of the client.

Job shops manufacture custom goods. Products can be generated

within a short period of time.
BATCH FLOW
The process of batch flow is where many typically self-designed
products are made.

It is further distinguished 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

Wineries, scrap metal reduction plants, and road repair contractors

are examples of factories using large batch flows
WORKER-PACED ASSEMBLY LINE
A manufacturing structure organized in a series to allow the delivery
of large quantities of uniform goods or services refers to an
assembly line.

The quality and quantity of production in a worker-paced assembly

line depends to a large extent on the skills of the job used.

Foodmarts such as McDonalds and Shakeys are examples of

worker-paced assembly lines.
WORKER-PACED ASSEMBLY LINE
The worker-paced assembly line has the following characteristics:

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 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 form of manufacturing process produces mainly regular goods
with a major role played by machines. Among its other
characteristics are as follows:
1. The process is of clear, rigid pattern
2. Specialized type of equipment is used
3. The line of flow layout is used
4. Capital equipment is bigger cost item than labor
5. Operation is large.
Machine-paced assembly line examples include car manufacturers
such as General Motors and Ford Motors.
CONTINUOUS FLOW
The rapid pace at which objects pass through the device.

This form of processing is very suitable for the development of

highly structured goods such as calculators, typewriters, vehicles,
televisions, mobile phones, etc.
CONTINUOUS FLOW
Characteristics:
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
BATCH/CONTINUOUS FLOW HYBRID
This processing method is a mixture of the batch and the ongoing
flow.

The typical operating size is also very large, offering economies of

scale opportunities.

Breweries, gelatin makers, and cigarette manufacturers are

examples of businesses using the batch / continuous flow hybrid.
SERVICE PROCESSES
Service processes are those that refer to the provision of services to
persons by hand or with machinery.
SERVICE FACTORY
A service factory provides a small mix of services that results in some
operating economies of scale. This also helps the company to
compete in terms of cost and pace of service production.

The rigid pattern of line flow processing is the process configuration

favored by the service factory.

Examples of service factories are McDonalds and Shakeys,

SERVICE SHOP
A repair shop offers a varied combination of facilities. The layouts
used are those for job shops or fixed positions and can be tailored to
different requirements.

Throughout the Philippines, service shops abound. Servitek and

Megashell are examples. Car engine tuning, wheel balance, wheel
alignment, oil change, etc. are among the facilities offered by these
shops
MASS SERVICE
A mass service organization offers programs at the same time to
a wide number of individuals.

Mass service firms offer a small mix of services to be able to

serve more customers.
PROFESSIONAL SERVICES
These are companies that provide specialized services to other
firms or individuals:
1. Engineering or management consulting services
2. Design services
3. Advertising agencies
4. Accounting services
5. Legal services
6. Data processing services
7. Health services
PROFESSIONAL SERVICES
Often, professional service firms face delivery issues caused by
non-uniform demand. Strategies that, depending on the case,
may be used are as follows:

1. Use of staggered work-shift schedules

2. Hiring of part-time staff
3. Providing customerS with opportunity to select the level of
service
4. Installing auxiliary capacity
5. Using multiskilled floating staff
6. Installing customer self-service
IMPORTANT PARTS OF
PRODUCTIVE SYSTEMS
PRODUCT DESIGN
Refers to the process of developing a set of product requirements
that are ideal for the situation 's demands.

Customers expect the goods they purchase to work according to

the roles assigned.

A product design team consisting of engineers, production, and

marketing professionals is retained by businesses looking to
maintain or boost their market share
PRODUCTION PLANNING AND SCHEDULING
Described as predicting a product's future sales, translating this
forecast into the demand it creates for different production
facilities, and arranging for these facilities to be procured.

Very significant practice because it allows management to make

capacity decisions. There will be less chances for waste when the
right choices are made.

Scheduling is the production management phase involved in the

preparation of timetables that determine how long and
production process operation takes.

Effective scheduling ensures that the usage of human and

non-human resources is optimized.
PURCHASING AND MATERIALS MANAGEMENT
Refers to the approach that seeks operational efficiency by
integrating all material acquisition, movement, storage
operations in the organization.

Companies need to buy the supplies and materials needed for

different production activities. Purchasing and materials
management must be performed with a high degree of efficiency
and effectiveness, especially in companies engaged in
high-volume production.
INVENTORY CONTROL
The method of creating and maintaining suitable levels of
reserve stocks of products.
WORK-FLOW LAYOUT
Work-flow layout is the method of deciding the production
system's physical structure. The flow of work can be performed
either haphazardly or orderly in the transition process
WORK-FLOW LAYOUT
A good work-flow layout will have the following benefits:
1. Minimize investment in equipment
2. Minimize overall production time
3. Use existing space most effectively
4. Provide for employee 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
QUALITY CONTROL
Quality control refers to the calculation of goods or services
toward requirements set by the organization. To promote
production and to keep customers happy, certain minimum
specifications are maintained by the management.

Poor quality control creates complaints from consumers, returned

products, costly litigation, and massive advertising expenses.