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.