1. TYPES OF SERVICE OPERATIONS
SERVICE SCHEDULING
Scheduling- customers, equipments, workforce(service providers)
Competitive priorities for services-
Low service product costs
Fast & on time delivery
High quality services
Customer service & flexibility
TYPES OF SERVICE OPERATIONS
Quasi-manufacturing- physical goods are dominant over intangible services, emphasis on production cost, tech., materials & products. E.g. – car servicing service
Customer-as-participant- e.g. Retailing
Customer-as-product- e.g. beauty clinics

2. SCHEDULING FOR SERVICES
Demand Management- scheduling customers
Capacity Management- scheduling workforce
Reservation Strategy
Customer participation
Adjustable Capacity
Cross Training
Sharing Capacity
SCHEDULING QUASI-MANUFACTURING OPERATIONS
Types of quasi-manu. Operations-
Pdtt.-focussed- primary scheduling concern is having the right amount of materials & personnel to produce enough products to meet highly variable hour-to- hour customer demand.

3. Process focused- planned, controlled, analyzed, scheduled & managed just like job shop in manuf. Includes- input- output controls, use of Gantt charts, sequencing rules, change-over costs & flow times.
SCHEDULING ‘CUSTOMER-AS-PARTICIPANT’ SERVICE OPERATIONS
Facility design must accommodate customer needs to make these services convenient for customers.
Close cooperation & blending of the operations & marketing functions
Objectives of these service operations are dominated by customer satisfaction& product quality
Services occur at face-to-face encouters between employees & customers & hence, employee performance is crucial.
Waiting line- recognize the trade-off that must take place between the cost of providing good services & the cost of customer waiting line.

4. SCHEDULING ‘CUSTOMER AS PRODUCT’
Highly trained, motivated, & effective workforce.
Waiting line analysis
r/s with customers

5. INVENTORY MANAGEMENT
INVENTORY- stores of goods & stocks, including raw materials, work-in-process, finished products, or supplies. STOCKKEEPING ITEM- An item of inventory. INVENTORY CONTROL- activities that maintain stockkeeping items at desired level. BUFFER STOCK- Inventories to protect against the effects of unusual product demand & uncertain lead time. Lead Time- Time passing between ordering & receiving goods.

6. Concept of Inventories
Objectives of Inventories
Inventory Costs
Ordering Cost
Carrying Cost
Out-of-stock Costs
Capacity Costs
Inventory Management & Control
Economic Order Quality
Inventory Control Techniques

7. INVENTORY SYSTEM CONCEPTS
Multistage Inventories- Parts are stocked at more than one point in the sequential production process
Multiechelon Inventories- Products stocked at various levels- factory, warehouse, retailer, customer – in a distribution system.
Factory
Warehouse
CUST.
ECHELON 1
ECHELON2
ECHELON3

8. INVENTORY COSTS
Cost of Item- its purchase price or amount paid to the supplier for the item
Procurement Cost or Ordering Cost – costs of placing an order, or setup costs if ordered items are manufactured by the firm. Includes- costs of postage, telephone calls to vendors, labour costs in purchasing & accounting, receiving costs, computer time for record keeping & purchasing order supplies.
Carrying (holding) Costs- costs of maintaining the inventory warehouse & protecting the inventoried items- insurance, security, warehouse rent, heat, light, breakage, inventory service costs etc.
Stockout costs- lost sales or backorder costs.
Capacity Costs – overtime payment, idle time

9. FACTORS INFLUENCING INVENTORY MANAGEMENT & CONTROL-
Type of Product
Type of Manufacture
Volume of Production
PROCESS OF INVENTORY MANAGEMENT & CONTROL
Step 1- Determination of Optimum Inventory Levels
Step 2- Determination of Degree of Control
Step 3- Planning & design of the inventory control system
Step 4- Planning of the inventory control organisation

10. INVENTORY CONTROL TECHNIQUES
ALWAYS BETTER CONTROL CLASSIFICATION (ABC)- divides inventory into three categories A, B & C based on their annual consumption value.
HML Classification- High , medium & low classification, control is according to the unit value of the items.
VED Classification- vital, essential & desirable
SDE Classification- scarce, difficult, easy to acquire
FSN Analysis- fast moving, slow moving, non moving
SOS Analysis- Seasonal, off-seasonal
GOLF Analysis- govt., open market,

11. ECONOMIC ORDER QUANTITY
It is the order size at which the total cost, comprising ordering cost & plus carrying cost is least.
Assumptions-
Dd. For the product is constant & uniform throughout the period.
Lead time constant
Price per unit of product is constant
Inventory holding cost is based on average inventory
Ordering costs are constant
No back orders allowed

12. Step1- develop a functional relationship between the variables of interest & measure of effectiveness. Use formula Total annual cost = annual purchase cost+ annual ordering cost+ annual holding cost TC = DC + D/Q.S + Q/2.H Where, TC- total cost D- annual demand C- purchase cost per unit Q- quantity to be ordered(EOQ) S- cost of placing an order H- holding cost per unit of average inventory per annum (C x percent carrying) I- cost of carrying inventory as percentage

13. STEP 2- calculate order quantity Q , for which , TC is minimum
STEP 2- calculate order quantity Q , for which , TC is minimum . TC is minimum at the point where,- the cost of ordering = the cost of carrying D/Q.S = Q/2.H => Q = 2DS/H

14. Materials Requirement Planning- I
A system of planning & scheduling the time- phased materials requirements for production operations.
OBJECTIVES
Inventory Reduction
Reduction in Production & Delivery Lead Times
Realistic commitments
Increased Efficiency
MRP SYSTEM COMPONENTS
Master Production Schedule
Bill of Material- document describing the details of an item’s product build –up . Primary information is product structure.
Inventory Status File

15. Manufacturing resource planning(mrp-ii)
Broad-based resource coordination system involving other areas of a firm in the planning processes, such as marketing, finance & H.R.
Three important functions of MRP are:
Order Planning & Control
Priority planning &Control
Providing a basis for planning capacity requirement.
MRP System Inputs-
Master Production Schedule-
Product Structure File or Bills of Materials File- contains information about the components needed to make an end product .

16. 3. Inventory Status file- data about the projected use & receipts of each item & determines the amount of inventory that will be available in each time bucket.
4. Gross requirements- project the use of the item in the end product.
5. Scheduled Receipts- the numbers in scheduled receipts indicates when previously released orders are scheduled to be received & available for use
6. On Hand Inventory- no. of units projected to be available at the end of each time pd.
On Hand inventory for pd. ‘n’ = On Hand For pd. ‘n-1’ +
scheduled receipts for ‘n-1’ -
Gross Requirements for pd. ’n’ .

17. 7. Net requirements for pd. ‘n’ = Gross Requirements for pd.’n’-
Scheduled Receipts for pd. ‘n’
On hand inventory at end of pd ‘n-1’
8. Planned Order Releases- when orders should be placed to meet the requirements.
9. Lot for Lot ordering – in this method one order is planned for each period in which there is a net reqiurement.
MRP Outputs
Plan of quantity of each material to be ordered in each time period known as planned order schedule
Modifications required in previous planned data

18. Issues in mrp Lot Sizing- Various methods of lot sizing are –
Lot-for-lot ordering
EOQ
Arbitrary minimum order size
Period order quantity = No. of weeks per year/ No.of orders per year
= N/(D/Q), D-annual demand,Q-EOQ, N-no. of weeks per year
Part Period Method or Part period Algorithm
Safety Stock- maintained for end item which have independent demand
Scrap Allowances
Pegging – the process of identifying the parent items that have generated a given set of materials requirements for an item.

19. Cycle Counting- the process of counting on-hand inventories at regular intervals to verify inventory of components including defective items at each stage of production & in storage areas.
Updating
Time fencing- The length of time that must elapse without changing the MPS to stabilise the MRP system. The MPS may be changed only after this time period.

20. Benefits of MRP
Inventory
Production
Sales
Engineering
Planning
Purchasing
Scheduling
Finance