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Engineering Management Chapter 4

Operations management involves planning, organizing, and controlling operations to efficiently produce products and services. There are two main types of transformation processes: manufacturing processes that produce goods, and service processes that provide services. Important parts of productive systems include product design, production planning and scheduling, purchasing and materials management, inventory control, work-flow layout, and quality control.

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88 views

Engineering Management Chapter 4

Operations management involves planning, organizing, and controlling operations to efficiently produce products and services. There are two main types of transformation processes: manufacturing processes that produce goods, and service processes that provide services. Important parts of productive systems include product design, production planning and scheduling, purchasing and materials management, inventory control, work-flow layout, and quality control.

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julito paquit
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
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MANAGING

PR O D U C T IO N A N D
SERVICE
OPERAION
CH APT E R 4

ENGINEERING
MANAGEMEN
T
Objectives:
Define Operations and
Operations Management
Determine and understand the types of
the transform ation process
Learn the im portant parts of
productive system
Managing
production and
service operation
Organizations are designed
m ainly to produce product
and services. If these
organizations m ust survive
and grow, the operations
function m ust be
undertaken in the m ost
econom ical m anner
possible
What is
operation?
Operation refers to “any process
that accepts inputs and uses
resources to change inputs in
useful way”.
Examples of final goods
and services are as
follows
m ethylene chloride, boxar
pow eder, phosphoric acid
ports, high rise building, roads
and bridges
transform ers, circuit breakers,
sw itch gears, pow er
capacitors
oscilloscope, m icrow ave, test
system s, transistors, cable
testers forklifts, trucks, loaders
Engineering consultancy
services
W HAT IS
O PERA TIO N
MANAGEMENT?
Operation is an activity that
needs to be m anaged by
com petent persons

the process of planning,


organizing and controlling
operations to reach
objectives efficiently and
effectively
O PERA TIO N S A N D
THE EN G IN EER
The engineer m anager is expected to produce
MsomAeNoutput
A G atER
w hatever m anagem ent level
he is

The engineer in charge of operations in a


construction firm is responsible for the
actual construction
engineer in charge of operations m anager,
m ust find w ays to contribute
TYPES O F
TRA N S FO RM A TIO
N PROCESS

·M anufacturing
Process
·Service Process
M A N UFA CTURIN G
PRO CES S
Manufacturing process are those that refer to
the m ·aking of products
Job shop by hand or w ith
m achinery.
· Batch flow
· Worker-paced line flow
· Machine-paced line flow
· Batch/continuous flow
hybrid
· Continuous flow
Job
shop
A job shop is one w hose
production is based ‘on
sales order for a variety of
sm all lots.
Ba tch
Flow
The batch flow process is where lots of generally
own designed products are m anufactured.
There is flexibility to produce either low or
high volumes
Not all the procedures are perform ed
on all products.
The type of equipm ent used are m ostly
for general purpose.
The process layout is used.
The operation is labor intensive, although there
is less m achine idleness.
The size of operation is generally medium-
sized.
W orker- pa ced a ssembly
line
An assembly line refers to a production
layout arranged in a sequence to
accom m odate processing or services
The products m anufactured are
m ostly standardized.
There is a clear process
pattern. Specialized
equipm ent is used. The size
of operation is variable The
process is worker-paced
The type of layout used is the line
M a chine- pa ced a ssembly
Line
This type of production process produces
mostly standard products w ith m achines
playing a significant role

The process is of clear, rigid pattern.


Specialized type of equipm ent is used.
Capital equipment is a bigger cost item
than labor.
Operation is large.
The process is m achined-paced
Continuous
Flow
The continuous flow processing is characterized
by “rapid rate at w hich item s m ove through
the system”
There is econom y if scale in production,
resulting to low per unit cost of
production The process is clear and
very rigid Specialized equipm ent is
used.
The line of flow layout is used.
Operations are highly capital
intensive. The size of operations is
Ba tch / Continuous Flow
Hybrid
This m ethod of processing is a com bination of
the batch and the continuous flow. Two distinct
layouts are used.
S ERV ICE
PRO CES S ES
Service processes are
those that refer to the
provision of services to
persons by hand or w ith
m achinery
S ervice
Fa ctory
A service factory offers a
lim ited m ix of services
w hich results to som e
econom ies of scale in
operations.
S ervice
S hop
A service shop provides a
diverse m ix of services.
The layout used are those
for job shops or fixed
position and are
adaptable to various
requirements
M a ss
S ervice
A m ass service com pany
provides services to a large
num ber of people
sim ultaneously. A unique
processing m ethod is,
therefore, necessary to
satisfy this requirem ent.
M ass
S ervice
These are companies that provide specialized services to
other firms or individuals. Examples of such firms are as
follows.

1.Engineering or management consulting services which


help in improving the plant layout or the efficiency of a
company.
2.Design services which supply designs for a physical
plant, products, and prom otion m aterials.
3.Advertising agencies which help promote a firm's
products
IM PORTANT PARTS OF
PRODUCTIVE
Product design SYSTEMS
Production planning and scheduling
Purchasing and m aterials
m anagem ent Inventory control
Work flow
layout Quality
control
Product
Design
The process of creating a set of
product specifications appropriate
to the demands of the situation.
Production Planning
and Scheduling
Production Planning
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
Scheduling
The phase of production control involved in
developing timetables that specify how long each
operation in the production process takes.
Purchasing and
M aterials
MaterialsManagement
management
The approach that seeks efficiency of
operation through integration of all
material acquisition, m ovem ent, and
storage activities in the firm .
Inventory Control
The process of establishing and
m aintaining appropriate levels of reserve
stocks of goods.
Ways of achieving proper inventory control
Determining reorder point and reorder
quantity Determining economic order
quantity.
The use of just-in-time (JIT) method of inventory control.
The use of the material requirement planning (MRP)
method of planning and controlling inventories.
Work-Flow
Layout
Is the process of determining the
physical arrangement of the
production system.
A good work-flow layout will have the following
benefits: M inim ize investm ent in equipm ent.
M inim ize overall production tim e.
Use existing space m ost
effectively.
Provide for em ployee convenience, safety, and com fort.
Maintain flexibility of arrangement and operation.
M inim ize m aterial handling cost.
M inim ize variation in types of m aterial-handling
equipment.
Facilitate the manufacturing (or service) process.
Facilitate the organizational structure.
Quality
Control
Refers to the measurement of
products or services against
standards set by the company.
Tha nk
you!

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