PM 102 - Industry PDF

PM 102 INDUSTRY - sector – comprises all economic activities of companies, people, and organizations engaged in producing goods and services within a specific field TYPES OF INDUSTRY 1. Agriculture 2. Automotive 3. Aviation 4. Construction 5....

PM 102 INDUSTRY - sector – comprises all economic activities of companies, people, and organizations engaged in producing goods and services within a specific field TYPES OF INDUSTRY 1. Agriculture 2. Automotive 3. Aviation 4. Construction 5. Energy 6. Food and Beverage 7. Manufacturing 8. Mining 9. Telecommunications 10. Aerospace 11. Textile and Apparel 12. Education ECONOMIC CLASSIFICATION 1. Primary Industry - Involves extraction and production of raw materials 2. Secondary Industry - Focuses on manufacturing and construction 3. Tertiary Industry - Provides services rather than goods 4. Quaternary Industry - involve information technology, research, and development CLASSIFICATION 1. Raw-Material Based Classification - Focus: The type of raw materials used by industries. - Agro-Based Industries - Mineral-Based Industries - Marine-Based Industries - Forest-Based Industries 2. Size Classification - Focus: The scale of operations and investment in industries. - Small-Scale Industries: Limited capital and technology, often labor-intensive. - Large-Scale Industries: Significant capital investment and advanced technology. 3. Ownership Classification - Focus: The ownership structure of industries - Private Sector: Owned and operated by individuals or groups - Public Sector: Owned and managed by the government - Joint Sector: Operated by both the state and private entities. - Cooperative Sector: Managed by suppliers, producers, or workers of raw materials. 4. Heavy Vs. Light Industries - Focus: The capital intensity and scale of operations - Heavy Industries: Require substantial capital investment and involve large-scale production - Light Industries: Lower capital requirements and are often labor-intensive 5. Domestic vs. Foreign Industries - Focus: The location and scope of operations relative to national borders. - Domestic Industries: Operate within a country’s borders. - Foreign Industries: Companies originating outside the Philippines but operating within the country. 6. Durable vs. Non-Durable Goods - Focus: The longevity and consumption patterns of the goods produced. - Durable Goods: Products that last a long time - Non-Durable Goods: Products with a short lifespan or immediate consumption 7. Manufacturing vs. Construction - Focus: The type of production processes and end products - Manufacturing: Produces final consumption goods - Construction: Produces intermediate goods and services for other sectors (in this context, not about building structures but components for other industries)  INDUSTRY 1.0 – MECHANIZATION - Invention of steam engines. Mechanization of manufacturing processes. Textile industry as a pioneer. Transition from hand production to machines Impact on Operations Management - Introduction of factories and centralized production. Shift from agricultural to industrial economies. INDUSTRY 2.0 – MASS PRODUCTION - Introduction of electricity in manufacturing. Assembly lines and mass production techniques. Henry Ford’s production line. Impact on Operations Management - Standardization of products. Economies of scale. Scientific management by Frederick Taylor. INDUSTRY 3.O – Automation - Rise of electronics and IT systems. Automation of production processes. Use of robotics in manufacturing. Impact on Operations Management - Increased efficiency, productivity, and precision. Lean Manufacturing and Just-In-Time (JIT) systems. Global supply chains emerge. INDUSTRY 4.0 – DIGITAL TRANFORMATION - Integration of cyber–physical systems. Use of big data, IoT (Internet of Things), and AI. Smart factories and advanced robotics. Impact on Operations Management - Real-time data-driven decision-making. Customization at scale ( mass customization) Digital supply chain integration. Key Technologies: 3D printing, autonomous robots, AI, cloud computing Operating System - Everett E. Adam & Ronald J. Ebert Definition: “An operating system of an organization is the part of the organization that produces its physical goods and services.” - Ray Wild Definition: “An operating system is a configuration of resources combined for the provision of goods or services.” What is a System? - A system is an organized collection of parts that are integrated to accomplish an overall goal. Key Elements of a System 1. Components (Parts): These are the individual parts or elements that make up the system. 2. Processes: The way in which the parts interact or work together to achieve the system's goal 3. Inputs: These are the resources, materials, or information that go into the system, enabling it to start its processes. 4. Outputs: These are the results or products of the system after processing the inputs. 5. Goal: The overall objective the system is designed to achieve Concept of Operation - The mission, technology, and human/managerial processes involved in operations. 1. Manufacturing Operations: Tangible outputs 2. Service Operations: Intangible Outputs  Components of an Operating System 1. Inputs: Expertise, best practices, funding, equipment, customer feedback, and strategic priorities. 2. Processes: Planning, designing, production, quality control, etc. 3. Outputs: High-quality products/services 4. Outcomes: Customer satisfaction, which feeds back into the system Types of Operation Systems Classification Based on: 1. Product Flow Pattern Product flow pattern refers to the sequence in which the production resources (such as labor, machinery, and materials) are arranged in relation to the production process. - In a Flow Shop production system, the resources are arranged according to the sequence of operations required by the product. - In a Job Shop system, the products follow different paths through the production facility, depending on the requirements of the job. - In a Project Production system, resources are brought to the location where the product is created, and the product itself does not move. 2. Output of Product - The output of an operating system can be either tangible (physical products) or intangible (services). 3. Specification of Output - The specification of the output refers to whether the products or services are standardized or customized according to customer needs. - Standardized Products, the output is uniform, consistent, and produced in large quantities. - Custom Products, on the other hand, are produced based on specific customer requirements.