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CHAPTER 10:
MANAGING PRODUCTION AND SERVICE

OPERATIONS
What operation is
Operations refers to “any process
that accepts inputs and uses resources
to change those inputs in useful ways”.
What operations management is
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”.
Operations and the Engineer Manager
The engineer manager is expected
to produce some output at whatever
management level he is.
If he is assigned as the
manufacturing engineer, his function is
“to determine and define the
equipment, tools and processes required
to convert the design of the desired
product into reality in an efficient
manner.
The engineer in charge of
operations in a construction firm is
responsible for the actual construction
of whatever bridge or road his company
has agreed to put up.
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 PROCESS
The engineer manager must have
some knowledge of the various types
of transformation process. They are
as follows:
Manufacturing Processes
* job shop
* batch flow
* worker-paced line flow
* machine-paced line flow
* batch/continuous flow hybrid
* continuous flow
Service Processes
* service factory
* service shop
* mass service
* professional service
MANUFACTURING PROCESSES
Manufacturing processes are those
that refer to the making of products by
hand or machinery.
Job shop – a job shop is one whose
production is “based on sales orders for a
variety of small lots”.
Batch flow – the batch flow process is
where lots of generally own designed
products are manufactured.
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
Machine-paced Assembly Line – this
type of production process produces
mostly standard products with
machines playing a significant role.
Continuous flow – the continuous flow
processing is characterized by the “the
rapid rate at which items move
through the system”.
SERVICE PROCESSES
Service process are those that refer
to the provision of service 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.
Service shop – a service shop provides
a diverse mix of services.
Mass service – a mass service
company provides services to a large
number of people simultaneously.
Professional services – these are
companies that provide specialized to
the other firms or individuals.
IMPORTANT PARTS OF PRODUCTIVE
SYSTEMS
Productive systems consists of six
important activities as follows:
Product design
Customers expect that the products
they buy would perform according to
assigned functions. A good product
design assures that this will be so.
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.
Purchasing and Materials
Management
Firms need to purchase supplies and
materials required in the various
production activities.
Inventory Control
Inventory control is the process of
establishing and maintaining
appropriate levels of reserve stocks of
goods.
Work-Flow Layout
Work-flow layout is the process of
determining the physical arrangement
of the production system.
Quality Control
Quality control refers to the
measurement of products or services
against standards set by the company.

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CHAPTER 10:

MANAGING PRODUCTION AND SERVICE

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