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ES303 Managing Product and Service Operations

The document provides an overview of operations management, defining it as the planning, organizing, and controlling of processes to achieve efficiency and effectiveness. It discusses various types of transformation processes in manufacturing and service operations, emphasizing the roles of engineers as operations managers. Additionally, it outlines key activities in productive systems, including product design, production planning, inventory control, and quality management.

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Mary Paquibot
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17 views35 pages

ES303 Managing Product and Service Operations

The document provides an overview of operations management, defining it as the planning, organizing, and controlling of processes to achieve efficiency and effectiveness. It discusses various types of transformation processes in manufacturing and service operations, emphasizing the roles of engineers as operations managers. Additionally, it outlines key activities in productive systems, including product design, production planning, inventory control, and quality management.

Uploaded by

Mary Paquibot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Managing

Product
and
Service
Operations
ENGR. MARY KAYE
PAQUIBOT
WHAT IS OPERATIONS?
Operations refers to "any process that
accepts inputs and uses resources to
change those inputs in useful ways."
Examples of final goods and services are
asServices
1. follows:like those for the construction of ports, high-
rise buildings, roads, bridges, etc., which are produced
by constructions firms;

2. Electrical products like transformers, circuit breakers,


switch gears, power capacitors, etc., which are
produced by electrical manufacturing firms;

3. Mechanical devices like forklifts, trucks, loaders, etc.,


which are produced by manufacturing firms;

4. Engineering consultancy services like those for


construction management and supervision, project
management services, etc., which are produced by
engineering consultancy firms.
OPERATIONS
MANAGEMENT
Operations is an activity that needs to
be managed by competent persons.

Aldag and Stearns accurately defined


Operations Management as "the process
of planning, organizing, and controlling
operations to reach objectives efficiently
and effectively.”
EFFICIENCY vs
EFFECTIVENESS
EFFICIENCY
It s related to "the cost of doing
something, or the resource utilization
involved."

EFFECTIVENESS
Effectiveness refers to goal
accomplishment.
OPERATIONS AND THE
ENGINEER MANAGER
The engineer, as operations manager, must
find ways to contribute to the production of
quality goods or services and the reduction of
costs in his department. The typical
operations manager is one with several years
of experience in the operations division and
possesses an academic background in
engineering.
TYPES OF
TRANSFORMATION
Various types of transformation process:
PROCESS
Manufacturing processes
a) job shop
b) batch flow
c) worker-paced line flow
d) machine-paced line flow
e) batch/continuous flow hybrid
f) continuous flow

Service processes
a) service factory
b) service shop
c) mass service
d) professional service
MANUFACTURIN
G PROCESSES
“are those that refer to the
making of products by hand or
with machinery.”
Job Shop
A job shop is one whose production is "based on sales orders
for a variety of small lots."
• Depending upon the customer's needs, a job shop may
produce a lot consisting of 20 to 200 or more similar
• parts.
The type of layout used by job shops is the process
layout, where similar machines are grouped together.
• The typical size of operation is generally small. Job shops
are labor intensive and machines are frequently idle.
Batch Flow
The batch flow process is 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.
Batch Flow
Worker-Paced Assembly
Line
An assembly line refers to a production layout
arranged in a sequence to accommodate processing
of large volumes of standardized products or services.

The quality and quantity of output in a worker-


paced assembly line depends to a great extent
to the skill of the labor utilized.
Worker-Paced Assembly
Line
The worker-paced assembly line 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 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. The process is machine-paced.
Machine-Paced Assembly
Line
Continuous Flow
The continuous flow processing is characterized by
"the rapid rate at which items move through the
system."

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.
Continuous Flow
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 the continuous flow. The typical
size of operation is also very large giving
opportunities for economies of scale.
Batch / Continuous
Flow Hybrid
Examples of companies using the batch/continuous flow
hybrid are breweries, gelatin producers, and tobacco
manufacturers.
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 offers a limited mix of services
which results to some economies of scale in
operations.

This also affords the company to compete in


terms of price and speed of producing the
service.

The process layout preferred by the service


factory is the rigid pattern of line flow
processing.
Service Shop
A service shop provides a diverse mix of
services. The layout used are those for job shops
or fixed position and are adaptable to various
requirements.
Mass Service
A mass service company provides services to a
large number of people simultaneously. A unique
processing method is, therefore, necessary to satisfy
this requirement.
The process layout used is typically fixed position
where customers move through the layout.
PROFESSIONAL
These are companies that provide specialized services

SUMMARY:
to other firms orSERVICES
individuals.
1. Engineering
— Engineeringor management
activities consulting
need to be managed services
and
which help
engineers arein improving
sometimes the inplant
placed layout
positions or the
where
they have to
efficiency oflearn management skills.
a company.
2. — Successful
Design managers
services become
which possible
supply only iffor a
designs
those having the ability and motivation are given
physical plant, products, and promotion
the opportunity to manage.
materials.
3. Advertising agencies which help promote a firm's
products.
4. Accounting services.
5. Legal services.
6. Data processing services.
7. Health services.
PROFESSIONAL
Professional service firms offer a diverse mix of services.

SUMMARY:
SERVICES
Professional service firms are, oftentimes, faced with delivery
problems brought about by non-uniform demand. Strategies
— Engineering activities need to be managed and
that may be used depending on the situation are as follows:
engineers are sometimes placed in positions where
they have to learn management skills.
1. The use of staggered work-shift schedules.
2. — Successful
The hiring of managers
part-time become
staff. possible only if
those having the ability and motivation are given
3. Providing the customer with opportunity to select
the opportunity to manage.
the level of service.
4. Installing auxiliary capacity or hiring
subcontractors.
5. Using multi-skilled floating staff.
6. Installing customer self-service.
IMPORTANT PARTS OF
PRODUCTIVE SYSTEMS
Productive systems consist of six important
activities as follows:

1. Product Design
2. Production Planning and Scheduling
3. Purchasing and Materials Management
4. Inventory Control
5. Work Flow Layout
6. Quality Control
PRODUCT DESIGN
Product design refers to "the process of creating a set
of product specifications appropriate to the demands
of the situation."
Customers expect that the products they buy would
perform according to assigned functions. Customers
avoid buying products with poor product design.
Companies wanting to maintain or improve its market
share keeps a product design team composed of
engineers, manufacturing, and marketing specialists.
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."
PURCHASING AND MATERIALS
MANAGEMENT
The management of purchasing and materials must
be undertaken with a high degree of efficiency and
effectiveness specially in firms engaged in high
volume production.

Materials management refers to "the approach that


seeks efficiency of operation through integration of all
material acquisition, movement, and storage activities
in the firm"
INVENTORY CONTROL
Inventory control is the process of establishing and
maintaining appropriate levels of reserve stocks of
goods."
There are ways of achieving proper inventory control.
They are as follows:

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)


WORK-FLOW LAYOUT
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.
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 measurement of products
or services against standards set by the company.

Certain standard requirements are maintained by the


management to facilitate production and to keep
customers satisfied.

Poor quality control breeds customer complaints,


returned merchandise, expensive lawsuits, and huge
promotional expenditures.
Assignment
No. 1
Draw the Transformation process fit for your
company. Indicate where improvements in
the flow could be introduced.

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