CHAPTER 10: MANAGING PRODUCTION AND SERVICE OPERATION Flashcards
refers to “any process that accepts inputs and uses resources to change those inputs in useful ways.
OPERATIONS
INPUTS INCLUDE:
land, labor, capital, and entrepreneurship.
The transformation process converts the inputs into _______________.
final goods or services.
EXAMPLES OF FINANCIAL GOODS AND SERVICES
1.Industrial chemicals like methylene chloride, borax powder, phosphoric acid, etc., which are produced by chemical manufacturing firms;
2.Services like those for the construction of ports, high-rise buildings, roads, bridges, etc., which are produced by constructions firms;
3.Electrical products like transformers, circuit breakers, switch gears, power capacitors, etc., which are produced by electrical manufacturing firms;
4.Electronic products like oscilloscope, microwave tests systems, transistors, cable testers, etc., which are produced by electronics manufacturing firms;
5.Mechanical devices like forklifts, trucks, loaders, etc., which are produced by manufacturing firms;
6.Engineering consultancy services like those for construction management and supervision project management services, etc., which are produced by engineering consultancy firms.
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 involved.
EFFICIENCY
refers to goal accomplishment.
EFFECTIVENESS
EFFICIENCY OR EFFECTIVENESS?
When a person performs a job at lesser cost than when another person performs the same job
EFFICIENCY
EFFICIENCY OR EFFECTIVENESS?
When one is able to reach his objectives, say produce 10,000 units in one month
EFFECTIVENESS
___________ must be performed in coordination with the other functions like those for marketing and finance
OPERATION MANAGEMENT
If he Is assigned as the __________, his function is “to determine and define the equipment, tools, and processes required to convert the design of the desired product into reality in an efficient manner.”
manufacturing engineer
TRUE OR FALSE?
The engineer in charge of operations in a construction firm is responsible for the actual construction of whatever bridge or road his company has agreed to put up. He is required to do it using the least-expensive and the easiest methods.
SYEMPRE TRUE
The typical operations manager is one with a years of experience in the operations division and possesses an academic background in engineering.
FALSE!! SEVERAL DAPAT HAHA
TYPES OF TRANSFORMATION PROCESS
1.Manufacturing processes
2. Service Processes
TYPES UNDER MANUFACTURING PROCESSES
1.Manufacturing processes
a)Job shop
b)Batch flow
c)Worker-paced line flow
d)Machine-paced line flow
e)Batch/continuous flow hybrid
f)Continuous flow
TYPES UNDER SERVICE PROCESSES
2.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
A ______is one whose production is “based on sales orders for a 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
may produce a lot consisting of 20 to 200 or more similar parts.
JOB SHOP
produce custom products, in general. Products may be manufactured within a short notice. The equipment used are of the general purpose type.
JOB SHOP
The type of layout used by job shops is the __________, where similar machines are grouped together.
process layout
The typical size of operation is generally__________. ________ are labor intensive and machines are frequently idle.
SMALL
Job shops
The __________ process is where lots of generally own designed products are manufactured.
batch flow
Examples of factories using the large ___________ are wineries, scrap-metal
batch flow
There is flexibility to produce either low or high volumes
BATCH FLOW
Not all procedures are performed on all products.
The type of equipment used are mostly for general purpose.
BATCH FLOW
WHAT TYPE OF LAYOUT IS USED IN BATCH FLOW?
PROCESS LAYOUT
The operation is labor intensive, although there is less machine idleness. The size of operation is generally medium-sized.
BATCH FLOW
Refers to a production layout arranged in a sequence to accommodate processing of large volumes of standardized products or services.
ASSEMBLY LINE
The quality and quantity of output in a _____________ depends to a great extent to the skill of the labor utilized. Examples of worker-paced assembly lines are food marts like McDonalds and Shakeys.
worker-paced assembly line
The products manufactured are mostly standardized. There is a clear process pattern. Specialized equipment is used.
WORKER-PACED ASSEMBLY LINE
The size of operation is variable.
Labor is still a big cost item.
WORKER-PACED ASSEMBLY LINE
The process is worker-paced. The type of layout used is the line flow.
WORKER-PACED ASSEMBLY LINE
This type of production process produces mostly standard products with machines playing a significant role.
MACHINE-PACED ASSEMBLY LINE
The process is of clear, rigid pattern.
Specialized type of equipment is used.
MACHINE-PACED ASSEMBLY LINE
The line flow layout is used
Capital equipment is a bigger cost item than labor.
MACHINE-PACED ASSEMBLY LINE
Operation is large.
The process is machine-paced
MACHINE-PACED ASSEMBLY LINE
automobile manufacturers like General Motors and Ford Motors ARE EXAMPLES OF?
MACHINE-PACED ASSEMBLY LINE
is characterized by “the rapid rate at which items move through the system.” This processing method is very appropriate for producing highly standardized products like calculators, typewriters, automobiles, televisions, cellular phones, etc.
The continuous flow processing
There is economy of scale in production, resulting to low per unit cost of production.
The process is clear and very rigid
Specialized equipment are used.
Continuous Flow
The line flow layout is used.
Operations are highly capital intensive.
The size of operations is very large.
Processing is fast.
Continuous Flow
This method of processing is a combination of the batch and the continuous flow. Two distinct layouts are used, one for batch and one for the continuous flow. The typical size of operation is also very large giving opportunities for economies of scale.
Batch/Continuous Flow Hybrid.
Examples of companies using the ___________ are breweries, gelatin producers, and tobacco manufacturers.
batch/continuous flow hybrid
are those that refer to the provision of services to persons by hand or with machinery.
Service Processes
_______ offers a limited mix of services which results to some economies of scale in operations. This also affords the company to compete in terms of price and speed of producing the service.
SERVICE FACTORY
The process layout preferred by the service factory is the____________________.
rigid pattern of line flow processing
McDonalds and Shakeys are also examples of ___________.
service factories
A __________provides a diverse mix of services. The layout used are those for job shops or fixed position and are adaptable to various requirements.
service shop
Examples are Servitek and Megashell. Among the services provided by these shops are car engine tune-up, wheel balancing, wheel alignment, change oil, etc.
SERVICE SHOP
A __________ company provides services to a large number of people simultaneously. 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
These are companies that pro- vide specialized services to other firms or individuals.
PROFESSIONAL SERVICES
FIRMS PROVIDING SPECIAL SERVICES
- Engineering or management consulting services
- Design services
- Advertising agencies
- 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 service factory and the service shop. 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
Productive systems consist of six important activities as follows:
- product design
- production planning and scheduling
- purchasing and materials management
- inventory control
- work flow layout
- quality control
Customers expect that the products they buy would perform according to assigned functions. A good _____________ assures that this will be so.
product design
refers to “the process of creating a set of product specifications appropriate to the demands of the situation. “
product design
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 and Scheduling
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 in- involved in developing timetables that specify 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, As a supplies and materials are required by firms in the production process, these must be kept available when they are needed.
inventory control
There are ways of achieving proper inventory control.
They are as follows:
- determining reorder point and reorder quantity
- determining economic order quantity
- the use of just-in-time (JIT) method of inventory control
- the use of the 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
A good work- flow layout will have the following benefits:
- 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 standards set by the company. Certain standard requirements are maintained by the management to facilitate production and to keep customers satisfied.
Quality Control
__________ breeds customer complaints, returned merchandise, expensive lawsuits, and huge promotional expenditures.
Poor quality control
is very crucial to the survival of firms
management of operations
refer to the changing of inputs into useful outputs. In the effort to manufacture products (or services), operations management must contribute its share in the accomplishment of the company’s objectives.
operations
The function of the operations manager is to
plan, organize, and control operations in order to achieve objectives efficiently and effectively.
The transformation process may be classified generally as
manufacturing or service processes.
consist of various parts that complement one another in the production task.
production system
