management 112 production & operations management prof. ramon m. marticio
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Management 112
Production & Operations Management
Prof. Ramon M. Marticio
What is a System Design ?
-it involves decisions that relate to;
• System capacity
• Geographic location of facilities
• Arrangements of departments
• Placement of equipment within physical structures
What is a System Operations?
• Involves management of personnel, inventory planning & control, scheduling, project management and quality assurance.
• In many instances, the operations manager is more involved in day-to-day operating decisions than with decisions relating to system design.
Differentiating Features of Production Systems
• There are number of features that differentiate production systems, i.e.
-the degree of standardization -type of operation -manufacturing vs. service operationsDegree of Standardization- production
systems produce products by -standardized output -highly customized
•Standardized output
-means that there is a high degree of of uniformity in goods and services.
*examples of standardized goods- -radios -canned goods -TVs -newspapers
-computers -pens, etc. *example of standardized services -televised newscasts -taped lectures -commercial airline service
•Customized output
-means that the product or service is for a specific case or individual.
*example of customized goods
-eyeglasses -custom-fitted clothing
-equipment to be used especially for the company
*example of customized services
-tailoring
-taxi rides
-surgery
Types of Operations
• Project
-associated with big, costly & highly customized items such as aircraft carriers, bldg.,
nuclear submarine, bridges, etc.
-takes more time to complete
• Job Shop
-process-focused grouping of resources. Production equipment, machinery or workstations are arranged/ grouped according to the function or process that they perform.
•Line-Flow (assembly)
-product-focused grouping of resources.
Equipment, machinery & workstations are set up
in serial pattern or sequence that is dictated by the
steps required for manufacturing the product.• Batch processing – similar to a job shop.
-production, machine & workstations are grouped according to functions or process they
perform.
-has a set of mix products it produces in standard lot sizes. Products move in batches from one department to another. More standardized.
•Continuous Flow
-manufacturing products in bulk. -raw materials are processed in voluminous quantities. -involves chemical/physical reaction -associated with “process industries” -Examples: food processing chemical production oil refinery paper production
• Hybrid production
-a combination of any of the four (4) processes.
Exercise/ Quiz
I. Identify the following whether customized or standardized.
1. Assembly line of a car model
2. Jewelry shop accepting orders
3. Loan applications in a bank
4. Notebooks
5. T-shirt as giveaways for Christmas
6. Fitness center in de luxe hotel
7. Canned tuna
8.Texting services of a telecomm company
3. Supply Chain partnering
-shorter PLC, rapid changes in material & process technology require more participation by suppliers. Thus, Operations managers are building long-term partnerships in critical players in the supply chain.
4. Rapid Product Development
-Operations managers are responding with design technology alliances (partners) that are faster and effect design management.
5. Mass Customization
-Operations managers are responding with production processes that are flexible enough to cater to individual whims of consumers. The goal is to produce individual products whenever/ wherever needed.
6. Empowered Employees
-the knowledge explosion & a more technical workforce have combined to require more competence at the workplace. Operations managers are responding by moving more decision-making to the individual worker.
7. TQM (Total Quality Management)
-Operations managers are challenged to perform in adherence to the company’s TQM.
Improving the product design & its production process that will reduce waste & scrap that will save money and satisfy customers.
8. Computer-related Operations
-knowledge about computers/technology makes the operations manager to gain advantage in effectively & efficiently handle company operations.
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9. Time-based competition
10. Business Process re-engineering
11. Service Factory
- Operations managers must accept the fact that service factory is becoming important as manufacturing centers.
- the service factory competes not only on the basis of its products but also on the basis of its services such as-
*Informational support for customers
*Dependable & speedy delivery
*Product installation
*After-sale services &
*troubleshooting
The Operations Manager
• Plays an important & critical role within the organization that is responsible for the success of their manufacturing or service units;
• Must work closely with the top management in setting strategic direction of the company and defining the competitive priorities of the mftg. Or service operations;
• Must be able to work effectively with people• Must be able to make sound decisions,
communicate & coordinate with other managers & to the workers.
Attributes of an Effective Operations Manager
• Must have solid technical knowledge base;• Must have human/people skills
Operations managers must have high regard on ETHICS, that is-
- developing codes of ethics & statement of values; - have open discussions on ethical issues & how to deal with them; - effective implementation of ethical policies to ensure compliance.
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