CHAPTER 10 Flashcards
designed mainly to produce products or services
ORGANIZATIONS
refers to “any process that accepts inputs and uses resources to change those inputs in useful ways”
OPERATION
INPUTS
land
labor
capital
entrepreneurship
converts the inputs into final goods or services
TRANSFORMATION PROCESS
EXAMPLES OF FINAL GOODS AND SERVICES
- industrial chemicals
- services
- electrical products
- electronic products
- mechanical devices
INDUSTRIAL CHEMICALS
methylene chloride
borax powder
phosphoric acid
which are produced by chemical manufacturing firms
INDUSTRIAL CHEMICALS
those for the construction of ports, high-rise buildings, roads, bridges, etc.
SERVICES
ELECTRICAL PRODUCTS
transformers, circuit breakers, switch gears, power capacitor, etc.
which are produced by electrical manufacturing firms
ELECTRICAL PRODUCTS
ELECTRONIC PRODUCTS
oscilloscope, microwave test system, transistors, cable testers, etc
which are produced by electronics manufacturing firms
ELECTRONIC PRODUCTS
MECHANICAL DEVICES
forklifts, trucks, loaders, etc.
which are produced by manufacturing firms
MECHANICAL DEVICES
PRODUCTION PROCESS
inputs
transformation process
outputs
INPUTS
land
labor
capital
entrepreneurship
transformation process
equipment
procedures
technology
OUTPUTS
products
services
those for construction management and supervision, project management services, etc. which are produced by engineering consultancy firms
ENGINEEERING CONSULTANCY SERVICES
is an activity that needs to be managed by competent persons
OPERATIONS
” the process of planning, organizing, and controlling operations to reach objectives efficiently and effectively “
OPERATION MANAGEMENT
is related to “ the cost of doing something or the resource utilization evolved”
EFFICIENCY
refers to goal accomplishment
EFFECTIVENESS
when one is able to reach his objectives
EFFECTIVENESS
must be performed in coordination with the other functions like those for marketing and finance
OPERATIONS MANAGEMENT
BASIC FUNCTION
to produce products or services
expected to produce some output at whatever management level he is
ENGINEER MANAGER
his function is “ to determine and define the equipment, tools, and process required too convert the design of the designed product into reality in an efficient manner
MANUFACTURING ENGINEER
is responsible for the actual construction of whatever bridge or road his company has agreed to put up
ENGINEER IN CHARGE
he is required to do it using the least-expensive and the easiest method
ENGINEER IN CHARGE
must find ways to contribute to the production of quality goods or services and the reduction of costs in his department
OPERATIONS MANAGER
is one with several years of experience in the operation divisions and possesses an academic background in engineering
TYPICAL OPERATION MANAGER
PRODUCTION OPERATION
-Facilities
-Production and Inventory Control
-Quality Assurance and Control
-Procurement
-Manufacturing
-Engineering/ Design
-Industrial engineering
-Process Engineering
FACILITIES
Construction
Maintenance
PRODUCTION AND INVENTORY CONTROL
Scheduling
Material Control
MANUFACTURING
Tooling
Fabrication
Assembly
ENGINEERING/ DESIGN
Product development and design
Detail product specifications
INDUSTRIAL ENGINEERING
Efficient use of machines, space, and personnel
PROCESS ENGINEERING
Development and installation of production tools, equipment, and processes
FINANCE/ ACCOUNTING
Disbursement/Credit
Funds Management
Capital Requirements
Disbursement/Credit
Accounts Receivable
Accounts Payable
General Ledger
FUND MANAGEMENT
Money Market
International Exchange
CAPITAL REQUIREMENTS
Stock Issue
Bond Issue and Recall
TYPES OF TRANSFORMATION PROCESSES
- MANUFACTURING PROCESSES
a) job shop
b) batch flow
c) worker-paced line flow
d) machine-paced line flow
e)batch/ continuous flow hybrid
- SERVICE PROCESSES
a) service factory
b) service shop
c) mass service
d) professional service
are those that refer to the making of products by hand or with machinery
MANUFACTURING PROCESSES
is one whose production is based on sales orders for variety of small lots
JOB SHOP
are very useful components of the entire production effort, since they manufacture products in small lots that are needed by, but cannot be produced economically by many companies
JOB SHOP
produce custom products, in general
JOB SHOP
may be manufactured within a short notice
PRODUCTS
the type of layout used by job shops where similar machines are grouped together
PROCESS LAYOUT
are layer intensive and machines are frequently idle
JOB SHOP
is where lots of generally own designed products are manufactured
BATCH FLOW PROCESS
there is flexibility to produce either low or high volumes
BATCH FLOW PROCESS
not all procedures are performed on all products
BATCH FLOW PROCESS
the type of equipment used are mostly for general purpose
BATCH FLOW PROCESS
the process layout is used
BATCH FLOW PROCESS
the operation is labor intensive, although there is less machine idleness
BATCH FLOW PROCESS
the size of operation is generally medium-sized
BATCH FLOW PROCESS
PROCESS FLOW DIAGRAM FOR A JOB SHOP
- Preparation and grouping materials
- Lathe work
- Milling
- Grinding
- Inspection and shipping
EXAMPLE OF FACTORIES USING THE LARGE BATCH FLOW
Wineries
Scrap-metal reduction plants
Road-repair contractors
refers to the production layout arranged in a sequence to accommodate processing of large volume of standardize products or services
ASSEMBLY LINE
an assembly line refers to the production layout arranged in a sequence to accommodate processing of large volume of standardize products or services
WORKER-PACED ASSEMBLY LINE
EXAMPLES OF WORKER PACED ASSEMBLY LINES
Food marts like McDonalds and Shakeys
WORKER-PACED ASSEMBLY LINE is characterized by
- Products manufactured are mostly standardized
- There is a clear process pattern
- Specialized equipment is used
- The size of operation is variable
5 The process is worker-paced - The type of layout used is the line flow
- Labor is still big cost problem
this type of production process produces mostly standard products with machines playing a significant role
MACHINE-PACED ASSEMBLY LINE
OTHER FEATURE OF MACHINE-PACED ASSEMBLY LINE
- The process is of clear, rigid pattern
- Specialized type of equipment is used
- The line flow layout is used
- Capital equipment is a bigger cost item than labor
- Operation is large
- The process is machine-paced
EXAMPLE OF MACHINE PACED ASSEMBLY LINE
auto-mobile manufacturers like General motors and Ford motors
is characterized by “ the rapid rate at which items move through the system”
CONTINUOUS FLOW PROCESSING
this processing method is very appropriate for producing highly standardized products like calculator, typewriters, automobiles, televisions, cellular phones, etc.
CONTINUOUS FLOW PROCESSING
OTHER CHARACTERISTICS OF CONTINUOUS FLOW PROCESSING
- There is economy of scale in production, resulting to low per unit cost per production
- The process is clear and very rigid
- Specialized equipment are used
- The line flow layout is used
- Operations are highly capital intensive
- The size of operation is very large
- Processing is fast
BODY ASSEMBLY
-floor pan, body side, roof panel, positioning and welding
-door hanging
-engine enclosure positioning and welding
-front-end assembly
-metal finishing
HARD TRIM LINE
-bumpers and other chrome
-glass
-vinyl tops
-air-conditioning
-instrument panel
SOFT TRIM LINE
-seats
-floor and ceiling covers
FINAL CHASIS LINE
-fluid filling
-under-hood wiring and hose connections
-testing of car’s computer diagnostic system
PAINT SHOP
-primer(ELPO BATH)
-finish coat
MISCELLANEOUS CHASSIS OPERATIONS
-gas tank and fuel line
-brake line assembled
-front-end alignment
-rear axle mounted
-wheel mounting
MOTOR CRADLE LINE
-dressing of basic motor with various parts, hoses, and harnesses
-transmission, fan
-front axle and brakes
-mating of motors with its cradle
-exhaust system, rear wheel brake lines
this method of processing is a combination of the batch and the continuous flow
BATCH/ CONTINUOUS FLOW HYBRID
DISTINCT LAYOUTS
-one for batch
-one for continuous flow
COMPANIES USING THE BATCH/ CONTINUOUS FLOW HYBRID
-breweries
-gelatin producers and
-tobacco manufacturers
are those that refer to the provision of services to persons by hand or by machinery
SERVICE PROCESSES
offers a limited mix of services which results to some economies of scale in operations
SERVICE FACTORY
this also affords the company to complete in terms of price and speed of producing the service
SERVICE FACTORY
preferred by the service factory that is rigid pattern of line flow processing
PROCESS LAYOUT
EXAMPLES OF SERVICE FACTORIES
McDonalds and Shakeys
provides a diverse mix of services
SERVICE SHOP
the layout used are those for job shops or fixed position and are adaptable to various requirements
SERVICE SHOP
abound throughout the Philippines
SERVICE SHOPs
SERVICES PROVIDED BY SERVICE SHOPS
- car engine tune-up
-wheel balancing - wheel alignment
- change oil, etc.
provides services to a large number of people simultaneously
MASS SERVICE COMPANY
a unique processing method is therefore, necessary to satisfy this requirement. to be able to serve many people, mass service companies offer limited mix of services
MASS SERVICE
the process layout used is typically fixed position where customers move through the layout
MASS SERVICE
these are companies that provide specialized services to other firms or individuals
PROFESSIONAL SERVICES
EXAMPLE OF PROFESSIONAL SERVICES
- engineering or management consulting services which help in improving the plant layout or the efficiency of a company
- design services which supply designs for a physical plant, products, and promotion materials
- advertising agencies which help promote a firm’s products
- Accounting services
- Legal services
- Data processing services
- health services
offer a diverse mix of services. there is a lower utilization of capital equipment compared to the services factory and the service shop
PROFESSIONAL SERVICE FIRMS
the process pattern used is very loose. the process layout used is identical to the job shop
PROFESSIONAL SERVICE FIRMS
are oftentimes , faced with delivery problems brought about by nonuniform demand
PROFESSIONAL SERVICE FIRMS
STRATEGIES THAT MAY BE USED IN PROFESSIONAL SERVICE FIRMS
- the use of staggered work-shift schedules
- the hiring of part -time staff
- providing the customers with opportunity to select the level of service
- installing auxiliary capacity or hiring subcontractors
- using multiskilled floating staff
- installing customers self-service
IMPORTANT PARTS OF PRODUCTIVE SYSTEMS
- design product
- production planning and scheduling
- purchasing and materials management
- inventory control
- work flow layout
- quality control
expect the products the buy would perform according to assigned functions.
CUSTOMERS
refers to “ the process of creating a set of product specifications appropriate to the demands of the situations “
PRODUCT DESIGN
PRODUCT DESIGN TEAM
composed of
engineers,
manufacturing,
marketing specialists
may be defined as “ forecasting the future sales of a given product, translating this forecast into the demand it generates for various production facilities, and arranging for the procurement of these facilities”
PRODUCTION PLANNING
is a very important activity because it helps management to make decisions regarding capacity. when the right decisions are made, there will be less opportunities for wastages
PRODUCTION PLANNING
is the “phase of production control involved in developing time tables that specifies how long each operation in the production process takes “
SCHEDULING
assures the optimization of the use of human and nonhuman resources
EFFICIENT SCHEDULING
refers to “ the approach that seeks efficiency of operation through integration of all material acquisition, movement, and storage activities in the firm”
MATERIALS MANAGEMENT
is the process of establishing and maintaining appropriate levels of reserve stocks of goods
INVENTORY CONTROL
WAYS OF ACHIEVING PROPER INVENTORY CONTROL
- determining reorder point and reorder quantity
- determining economic order quantity
- the use of just-in-time (JIT) method of inventory control
- the use of material requirement planning (MRP)method of planning and controlling inventories
is the process of determining the physical arrangement of the production system. in the transformation process, the flow of work may be done either haphazardly or orderly.
WORK-FLOW LAYOUT
his job is to assure that a cost-effective work-flow layout is installed
OPERATION MANAGER
BENEFITS OF A GOOD WORK FLOW LAYOUT
- minimize investment in equipment
- minimize overall production time
- use existing space most effectively
- provide for employee convenience, safety, and comfort
- maintain flexibility of arrangement and operation
- minimize material handling cost
- minimize variation in types of material-handling equipment
- facilitate the manufacturing (or service) process
- facilitate the organizational structure
refers to the measurement of products or services against standard set by the company
QUALITY CONTROL
are maintained by the the management to facilitate production and to keep customers satisfied
STANDARD REQUIREMENTS
breeds customer complaints, returned merchandise , expensive lawsuits, and huge promotional expenditures
POOR QUALITY CONTROL
