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

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

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

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

5. Business Copyright 2005 Prentice- Hall, Inc. 14-5 Transformation Process

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

7. 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

8. Business Copyright 2005 Prentice- Hall, Inc. 14-8 Operations Planning/Control

9. Business 1. Capacity Planning GoodsGoods ServicesServices

10. Business 2. Location Planning GoodsGoods ServicesServices

11. 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

12. Business Copyright 2005 Prentice- Hall, Inc. 14-12 Process Layout

13. Business Copyright 2005 Prentice- Hall, Inc. 14-13 Cellular Layout

14. Business Copyright 2005 Prentice- Hall, Inc. 14-14 Goods Producing Layout

15. Business Copyright 2005 Prentice- Hall, Inc. 14-15 Cafeteria Layout

16. Business Copyright 2005 Prentice- Hall, Inc. 14-16 Other Layout Developments U-Shaped Production LinesU-Shaped Production Lines Flexible Manufacturing SystemFlexible Manufacturing System

17. Business 4. Quality Planning DefinitionDefinition –Quality –Quality standard

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

19. Business Copyright 2005 Prentice- Hall, Inc. 14-19 Service Flow Analysis

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

21. Business Copyright 2005 Prentice- Hall, Inc. 14-21 Gantt Chart

22. Business Copyright 2005 Prentice- Hall, Inc. 14-22 PERT Chart

23. Business Copyright 2005 Prentice- Hall, Inc. 14-23 Operations Control Material ManagementMaterial Management Operations Process ControlOperations Process Control FollowupFollowup

24. Business Copyright 2005 Prentice- Hall, Inc. 14-24 1. Materials Management Plan/Organize Material FlowPlan/Organize Material Flow Emphasizes StandardizationEmphasizes Standardization Areas Of Material ManagementAreas Of Material Management –Transportation –Warehousing –Inventory Control –Purchasing

25. Business Copyright 2005 Prentice- Hall, Inc. 14-25 a. Purchasing Processes Forward BuyingForward Buying Holding CostsHolding Costs Opportunity CostsOpportunity Costs Hand-To-Mouth PatternHand-To-Mouth Pattern Lead TimesLead Times

26. Business Copyright 2005 Prentice- Hall, Inc. 14-26 b. Supplier Selection InvestigateInvestigate Evaluate/IsolateEvaluate/Isolate NegotiateNegotiate MaintainMaintain

27. Business Copyright 2005 Prentice- Hall, Inc. 14-27 2. 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