2. Producing of Goods and Services Pertemuan 12 Matakuliah: J0712 - Pengantar Bisnis Tahun: 2009

3. Bina Nusantara University 3 Producing of Goods and Services Outline: –The difference of goods and services –Global operations –Growth in service sector –Creating value through operations –Operation process, location and layout –Scheduling of goods and services –Controlling of raw materials, purchasing and supply chain

4. Bina Nusantara University 4 Operations (Production) Management- systematic direction/control of processes that transform resources into finished goods that create value and provide benefits. Thus, managers ensure processes create value/benefits. The key difference between production and services operations is the customer's involvement in the latter.

5. Bina Nusantara University 5 Transformation Process

6. Bina Nusantara University 6 The Growth of Global Operations Global competition has made production a faster- paced, more complex activity. New technologies make machines that run cleaner, faster and safer and that operate on a global scale. With the Internet, producers of both services and goods can integrate their production with those of far-off suppliers and customers.

7. Bina Nusantara University 7 Goods/Services Employment

8. Bina Nusantara University 8 Goods-Manufacturing vs. Service Processes Analytic process breaks down resources into components. Synthetic process combines raw materials to produce a finished product. Service: Extent Of Customer Contact –High-Contact  customer is part of the system during service delivery. –Low-Contact the customer need not be a part of the system to receive the service. Operations process is a set of methods and technologies used in the production of a good or a service.

9. Bina Nusantara University 9 Differences Between Service and Manufacturing Operations Focus on Performance Focus on Process and Outcome Focus on Service Characteristics –Intangibility –Customization –Unstorability Focus on the Customer-Service Link –E-Commerce: The “Virtual Presence” of the Customer Focus on Service Quality Considerations

10. Bina Nusantara University 10 Operations Planning Managers from many departments contribute to decisions about operations. The business plan and forecasts developed by top managers guide operations planning. –Forecast is a facet of a long-range production plan that predicts future demand.

11. Bina Nusantara University 11 Capacity Planning Capacity Planning for Producing Goods –Capacity planning for goods means ensuring that a firm’s capacity slightly exceeds normal demand for its product. Capacity Planning for Producing Services –In low-contact processes, maintaining inventory lets managers set capacity at the level of average demand. –In high-contact processes, managers must plan capacity to meet peak demand.

12. Bina Nusantara University 12 Location Planning Location Planning for Producing Goods –Location decisions are influenced by proximity to raw materials and markets, availability of labor, energy and transportation costs and other factors. Location Planning for Producing Services –Low-contact services can be located near resource supplies, labor or transportation outlets. –High-contact services must locate near the customers who participate in the system.

13. Bina Nusantara University 13 Layout Planning Process layout groups equipment and people according to function. Cellular layout works well when a family of products follows a fixed flow path. Product layout is set up to make one type of product in a fixed sequence and is arranged according to its production requirements. –Assembly line is a product layout in which a product moves step-by-step through a plant on conveyer belts or other equipment until it is completed.

14. Bina Nusantara University 14 Layouts for Producing Goods

15. Bina Nusantara University 15 Layout Planning for Producing Services In a low-contact system, the facility should be arranged to enhance the performing of the service. In a high-contact system, the facility should be arranged to meet customer needs.

16. Bina Nusantara University 16 Methods Planning Methods Improvement in Goods –Process flowchart is a diagram included in a detailed description of methods Methods Improvement in Services –Service flow analysis shows the flow of processes that make up a given service –Designing to Control Employee Discretion in Services –Design for Customer Contact in Services

17. Bina Nusantara University 17 Service Flow Analysis

18. Bina Nusantara University 18 Operations Scheduling Scheduling Goods Operations –Master production schedule shows which products will be produced, when production will take place and what resources will be used Scheduling Service Operations –In low-contact services, work scheduling may be based either on desired completion dates or on the time of order arrivals. –In high-contact services, the customer must be accommodated as part of the system and its processes. SCHEDULE

19. Bina Nusantara University 19 Tools for Scheduling Service Operations PERT chart breaks down large projects into steps and specifies the time required to perform each one Gantt chart diagrams steps to be performed and specifies the time required to complete each step.

20. Bina Nusantara University 20 Materials Management Plan/Organize Material Flow Emphasizes Standardization Areas Of Material Management –Transportation –Warehousing –Inventory Control –Purchasing Tools For Process Control Worker Training Lean Production Systems: JIT Materials Requirement Planning –Bill Of Materials –Manufacturing Resource Planning Quality Control Operations Control