Business Copyright 2005 Prentice- Hall, Inc. 8-1

1-2 Session #11 Production goods and services Business Introduction - Teaching Team Business and Management Department Faculty of Economics UNPAD

Business Production DefinitionDefinition –Service Operation –Goods Operation Global OperationGlobal Operation Grown in The Service and Goods SectorsGrown in The Service and Goods Sectors

Business Creating Value Types of UtilityTypes of Utility –Time –Place –Possesion –Form Operation ManagementOperation Management Operation ManagersOperation Managers

Business Copyright 2005 Prentice- Hall, Inc Transformation Process

Business Operation Processes Goods Manufacturing ProcessesGoods Manufacturing Processes –Analytic –Synthetic Service ProcessesService Processes –High contact processes –Low contact processes

Business Difference Between Service and Manufacturing Operations Focus OnFocus On –Performance –Process and outcome –Service characteristics IntangibilityIntangibility CustomizationCustomization UnstorabilityUnstorability –The customer-service link –Service quality considerations

Business Copyright 2005 Prentice- Hall, Inc Operations Planning/Control

Business 1. Capacity Planning GoodsGoods ServicesServices

Business 2. Location Planning GoodsGoods ServicesServices

Business 3. Layout Planning Producing GoodsProducing Goods –Productive Facilities –Nonproductive Facilities –Support Facilities ProductProduct –Process layouts –Cellular layouts –Product layouts –Other developments for layout fexibility ServiceService

Business Copyright 2005 Prentice- Hall, Inc Process Layout

Business Copyright 2005 Prentice- Hall, Inc Cellular Layout

Business Copyright 2005 Prentice- Hall, Inc Goods Producing Layout

Business Copyright 2005 Prentice- Hall, Inc Cafeteria Layout

Business Copyright 2005 Prentice- Hall, Inc Other Layout Developments U-Shaped Production LinesU-Shaped Production Lines Flexible Manufacturing SystemFlexible Manufacturing System

Business 4. Quality Planning DefinitionDefinition –Quality –Quality standard

Business 5. Methods Planning GoodsGoods ServicesServices –Service flow analysis –Designed to control employee discretion –Design for customer contact

Business Copyright 2005 Prentice- Hall, Inc Service Flow Analysis

Business Operation Sceduling GoodsGoods –Master Production Schedule (MPS) ServiceService ToolsTools –Gantt Charts –PERT Charts

Business Copyright 2005 Prentice- Hall, Inc Gantt Chart

Business Copyright 2005 Prentice- Hall, Inc PERT Chart

Business Copyright 2005 Prentice- Hall, Inc Operations Control Material ManagementMaterial Management Operations Process ControlOperations Process Control FollowupFollowup

Business Copyright 2005 Prentice- Hall, Inc Materials Management Plan/Organize Material FlowPlan/Organize Material Flow Emphasizes StandardizationEmphasizes Standardization Areas Of Material ManagementAreas Of Material Management –Transportation –Warehousing –Inventory Control –Purchasing

Business Copyright 2005 Prentice- Hall, Inc a. Purchasing Processes Forward BuyingForward Buying Holding CostsHolding Costs Opportunity CostsOpportunity Costs Hand-To-Mouth PatternHand-To-Mouth Pattern Lead TimesLead Times

Business Copyright 2005 Prentice- Hall, Inc b. Supplier Selection InvestigateInvestigate Evaluate/IsolateEvaluate/Isolate NegotiateNegotiate MaintainMaintain

Business Copyright 2005 Prentice- Hall, Inc Tools For Process Control a.Worker Training b.Lean Production Systems: JIT c.Materials Requirement Planning –Bill Of Materials –Manufacturing Resource Planning d.Quality Control