MANAGING PRODUCTIONS
& SERVICE OPERATIONS
What is Operation?
“Any process that accepts inputs and uses resources to
change those inputs in useful ways.”
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•
•
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Land
Labor
Capital
Entrepreneurship
• Equipment
• Procedures
• Technology
• Products
• Services
What is Operation Management?
Accurately defined by Ramon J. Aldag and Timothy Stearns,
“the process of planning, organizing, and controlling
operations to reach objectives efficiently and effectively.”
Efficiency - “the cost of doing something, or the resource utilization
involved”
Effectiveness – goal accomplishment
Operations & the
Engineering Manager
TRANSFORMATION PROCESS
Manufacturing Processes
Service Processes
a.) Job Shop
a.) Service Factory
b.) Batch Flow
b.) Service Shop
c.) Worker-Paced Line Flow
c.) Mass Service
d.) Machine-Paced Line Flow
d.) Professional Service
e.) Batch/Continuous Flow
Hybrid
f.) Continuous Flow
Job Shop
Preparation
and Grouping
of Materials
Production is “based on sales
orders for a variety of small
lots”.
Lathe Work
Milling
Inspection and
Shipping
Grinding
Batch Flow
It is where lots of generally designed products are manufactured.
Worker-Paced
Assembly Line
Raw Materials
Station 1
Materials and/or Labor
Station 1
Materials and/or Labor
Depends to the skill of the
labor utilized.
Station 1
Materials and/or Labor
Finished Item
Station 1
Materials and/or Labor
Machine-Paced
Assembly Line
Produces mostly standard
products with machines
playing a significant role.
Continuous Flow
“the rapid rate at which items
move through the system.”
Batch/Continuous Flow Hybrid
Combination of Batch and Flow Hybrid.