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 operations Degree 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.
` 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.