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Managing Production and Service Operations Ch10 - Engineering Management What Operation is • Any process that accepts inputs and uses resources to change those inputs in a useful ways • Inputs include : land, labor, capital and entrepreneurship. What Operation Management is •“the process of planning, organizing, and controlling operations to reach objectives efficiently and effectively” – Aldag and Sterns Types of Transformation Process Manufacturing Process: Service Process: a) Job shop b) Batch Flow c) Worker-paced line flow d) Machine paced line flow e) Batch/continuous flow hybrid f) continuous flow a) Service factory b) Service Shop c) Mass Service d) Professional Service MANUFACTURING PROCESS Job Shop Batch Flow Worker-paced line flow Machine-paced line flow Batch/continuous flow hybrid Continuous flow 5 Job shop Production is based on sales orders for a variety of small lots. May produce a lot consisting of 20 to 200 or more similar parts. Products may be manufactured in a short notice. The equipment used are general purpose type. Labor intensive and machines are frequently idle. Batch Flow There is flexibility to produce either low or high volumes. Not all procedures performed on all products. The type of equipment used are mostly for general purpose. The process layout is used. The operation is labor intensive, with less machine idleness. The size of operation is generally medium-sized. Worker-Paced Assembly Line The products manufactured are mostly standardized. There is a clear process pattern. Specialized equipment is used. The size of operation is variable. The process is worker-paced. The type of layout used is the line flow. Labor is still a big cost item. Machine-Paced Assembly line The process of clear, rigid pattern. Specialized type of equipment used. The line flow layout is used. Capital equipment is a bigger cost item than labor. Operation is large. The process is machine-paced. Batch/Continuous Flow Hybrid Combination of batch and the continuous flow. Uses two layouts, for batch and for continuous flow. Very large size in operation. Continuous Flow 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. The line flow layout is used. Operations are highly capital expensive. The size of operation is very large. Processing is fast. SERVICE PROCESS Service factory Service Shop Mass Service Professional Service 12 Service Factory • offers limited mix of services • Uses process layout (Ex.: McDonalds and Shakeys) Service Shop • Provides a diverse mix of services. • Layout: job shop or fixed position (ex: Megashell) Mass Service • Provides services to a large number of people simultaneously • Layout : Process layout Professional Services • companies that provide specialized services to other firms or individual