Chapter 10 Flashcards
Goods production
Making tangible products
Service operations
Providing intangible services
Types of utility (want satisfied)
Time utility: providing customers WHEN they want it
Place utility: providing customers WHERE they want it
Ownership utility: providing customers that they take pleasure in owning
Form utility: increasing sanctification by turning raw materials into finished goods
Why are service operations more complicated than goods production?
- Customer interactions
- Intangible/unstorable nature of services
- Customer’s presence in the production process
- Service quality varies from customer by customer.
General classification of goods producing process
Make-to-order (custom) or Make-to-stock (standard orders in large quantity)
Specific classification of goods producing process (transformation tech)
Chemical: raw materials are chemically altered
Fabrication: mechanically alter the basic shape/form of a product
Assembly: put together various components to make a product
Transport: goods acquire place utility by being moved from one placed to another
Clerical: transforming information
Classification of service producing process
High-contact system: customer is a big part of the production (public transport)
Low-contact system: customers are not physically present (auto repair shops)
Operations/Production capability
Activity or process that production must do especially well, with high proficiency
Capacity
Amount of a product a company can produce under normal working conditions
Capacity planning
Goods producing: slightly exceed normal demand
Low-contact service: set at average demand
High-contact service: meet peak demand
Location planning
Goods producing: depends on proximity to raw materials/markets, availability of labor, energy/transportation costs, local regulations/taxes, and community living conditions
Low-contact service: important to locate near supplies, labor, or transportation outlets
High-contact service: must be located near customers
Layout planning
Process layout: equipment/people grouped according to function
Product layout: provide one type of service/product in a fixed sequence
Fixed position layout: taking labor, equipment, materials, and other resources to the place where work needs to be done
Flexible manufacturing system (FMS)
enables a single factory to produce a wide variety of products
Soft manufacturing
reducing huge FMS to smaller groups of machines. Automation relegated to roles they do best, while human employees are in charge of decision making
Movable factory
Developing countries can’t afford FMS, purchases used equipment from industrialized countries and produces their own goods
Methods planning
Identify all steps in production, to reduce waste, inefficiency, and poor performance.
Master operations schedule
The game plan of operations. Determines which products will be made, when it will be made, and what resources are to be used
Detailed schedule
Daily assignments with start and stop times for assigned jobs at each workstation
Staff schedules
Specify assigned working times in upcoming days, considering staff’s needs, company’s efficiency and costs.
Project scheduling
Gantt chart: Illustrates steps to be performed and specifies the time required to complete each step.
Program evaluation and review technique (PERT) chart: similar to gantt charts, but also shows the critical path for meeting the project goals
Operations control (Materials management) 5 components of materials management?
Standardization: use of the same components whenever possible, rather that new ones.
Transportation: both resources to company and finished goods to customers
Warehousing: storing materials and finished goods
Inventory control: Receiving, handling, and counting all raw, partially finished, and finished goods
Supplier selection: Finding and choosing suppliers to buy materials from
Purchasing: Acquiring all the raw materials and services needed
Lean production systems
Designed to avoid inefficiencies, eliminate unnecessary inventories, and continually improve production.
Just-in-time (JIT) production systems
Type of lean production, bringing in all needed materials at the exact moment they are required for production, not before.
Operations control (Production process control)
Training workers
Materials requirements planning (MRP): basic “recipe” for a finished product
Manufacturing resource planning (MRP II): ties the production processes to the different parts of the organization
Quality control: making sure goods or services meet specific quality standards.
