Managing Production and Service Operations PDF

ES 311 October 2024 MANAGING PRODUCTION AND SERVICE OPERATIONS Engineering Management Content 3 What Operation Is 5 What Operations Management Is 9 Operations and the Engineer Manager 13 Types of Transformation Process 33 Important Parts...

ES 311 October 2024 MANAGING PRODUCTION AND SERVICE OPERATIONS Engineering Management Content 3 What Operation Is 5 What Operations Management Is 9 Operations and the Engineer Manager 13 Types of Transformation Process 33 Important Parts of Productive Systems What Operations Is Operations Operations refers to any process that accepts inputs and uses resources to change those inputs in useful ways. Inputs Transformation Process Products/Services Operations is a crucial aspect of the construction and building industry, which encompasses all the activities involved in planning, managing, executing, and controlling the processes required to deliver a project successfully. In simple terms, operations refer to the day- to-day activities that take place on a construction site or within an organization responsible for building projects. What Operations Management Is Operations Management Aldag and Stearns accurately defined operations management as “the process of planning, organizing, and controlling operations to reach objectives efficiently and effectively”. Definition of Terms: Operations is an activity that needs to be managed by competent persons. Efficiency. It is related to “the cost of doing something, or the resource utilization involved”. Effectiveness. It refers to goal accomplishment. What Operations Management Is Operations management must be performed in coordination with other functions like those for marketing and finance. Although the specific activities of the operation divisions of firms slightly differ, the basic functions remain the same, i.e., to produce products or services. The two figures below will show the typical responsibilities of the operations division of two different firms. Organization TOP MANAGEMENT Chart of a Manufacturing Production/Operations Finance/Accounting Marketing Firm and Construction Firm  PRESIDENT Organization Chart of a Manufacturing Vice President for Related Operations Vice President for Finance and Administration Vice President for Marketing Firm and Construction Manager, General Construction Accounting Sales Firm Manager, Cashier Advertising Construction Equipment Human Resources Operations and the Engineer Manager Engineer Manager is expected to produce some output at whatever management level he is. Operations and the Engineer Manager Manufacturing Engineer Its main function is to determine and define the equipment, tool, and process required to convert the design of the desired product into reality in an efficient manner. Operations and the Engineer Manager Construction Engineer They are the engineer that is in charge of the operations in a construction firm and responsible for the actual construction of whatever bridge or road his company has agreed to put up, and required to do it using the least expensive and easiest method. Operations and the Engineer Manager 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. Typically, they are the one with several years of experience in the operations division and possesses an academic background in engineering. Types of Transformation Process Manufacturing Process Service Process Manufacturing Process Manufacturing Process refers to the making of products by hand or with machinery. JOB SHOP Products may be manufactured within a short notice. The equipment used are of the general purpose type. 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. Depending upon the customer's needs, a job shop may produce a lot consisting of 20 to 200 or more similar parts. Job shops produce custom products, in general. BATCH FLOW The batch flow process is where lots of generally own designed products are manufactured. It is further characterized by the following purpose: There is flexibility to produce either low or high volumes. Not all procedures are performed on all products.  The type of equipment used are mostly for general The process layout is used. The operation is labor intensive, although there is less machine idleness. The size of operation is generally medium-sized. Examples of factories using the large batch flow are wineries, scrap-metal reduction plants, and road-repair contractors. Worker-Paced Assembly Line It 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. Examples of worker-paced assembly lines are food marts like McDonalds and Shakeys. The worker-paced assembly line is characterized by the following: The products manufactured are mostly standardized. There is a clear process pattern. Specialized equipment is used. The size of operation is variable. The process is worker-paced. The type of layout used is the line flow. 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. Examples of machine-paced assembly line are automobile manufacturers like General Motors and Ford Motors. CONTINUOUS FLOW The continuous flow processing is characterized by "the rapid rate at which items move through the system." This processing method is very appropriate for producing highly standardized products like calculators, typewriters, automobiles, televisions, cellular phones, etc. Its other characteristics are as follows: There is economy of scale in production, resulting to low per unit cost of production. The process is clear and very rigid. Specialized equipment are used. The line flow layout is used. Operations are highly capital intensive. The size of operations is very large. Processing is fast. 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. Examples of companies using the batch/continuous flow hybrid are breweries, gelatin producers, and tobacco manufacturers. Service Process Service Process refers to the provision of services to persons by or with machinery. Service Factory Is a type of service process that emphasizes efficiency and standardization. It is often used in high-volume, low-variety services such as fast-food restaurants and hotels. Service factories have a high degree of standardization in their service delivery, which helps to ensure consistency in the customer experience. The process layout preferred by the service factory is the rigid pattern of line flow processing. Examples of service factories are McDonalds and Shakey’s Service Shop Provides a diverse mix of services; it is a type of service process that emphasizes customization and personalization. This type of service process is often used in low-volume, high-variety services such as hair salons and car repair shops. Service shops have a high degree of customization in their service delivery, which helps to create a personalized customer experience. Mass Service Provides services to a large number of people simultaneously It is a type of service process that combines the characteristics of service factories and service shops. This type of service process is often used in high- volume, high-variety services such as airlines and hospitals. Mass services have a standardized core service delivery, but also offer some degree of customization based on customer needs. Professional Services These are companies that provide specialized services to other firms or individuals. It is a type of service process that relies on highly skilled professionals to deliver services. This type of service process is often used in high-complexity services such as the following: Engineering or management consulting services which help in improving the plant layout or the efficiency of a company. Design services which supply designs for a physical plant, products, and promotion materials. Advertising agencies which help promote a firm's products. Accounting services. Legal services. Data processing services. Health services. Professional services have a high degree of customization in their service delivery, and rely on the expertise of the professionals delivering the service. Important Parts of Productive Systems PRODUCT DESIGN The process of imagining, creating, and iterating products that solve users’ problems or address the specific needs in a given market. PRODUCTION PLANNING & SCHEDULING Production Planning - involves scheduling processes, raw materials, and resources to produce goods within predetermined time frames. Production Planning creates an overview; Production Scheduling creates a more detailed view of how the company will achieve its goals. PURCHASING AND MATERIALS MANAGEMENT Must be undertaken with a high degree of efficiency and effectiveness especially in firms engaged in high volume production. INVENTORY CONTROL A process of tracking stock levels while monitoring customer demand. This allows businesses to ensure they have the products people want at the time in the correct quantities. Ways of Achieving Proper Inventory Control Determining reorder point and reorder quantity. Determining economic order quantity. The use of just-in-time (JIT) method inventory control. The use of the material requirement planning (MRP) method of planning and controlling inventories. WORKFLOW LAYOUT A process of determining the physical arrangement of the production system. Benefits of Good Workflow Layout Minimize investment in equipment Minimize overall production time Use existing space most effectively Provide for employee convenience, safety, and comfort Maintain flexibility of arrangement and operation QUALITY CONTROL Systematic process of identifying, monitoring and correcting potential defects or deviations in products or services. This process ensures that the final output meets the established quality standards and customer requirements. fin.