PRODUCTION AND

OPERATIONS
MANAGEMENT

Chapter 4
PRODUCTION PROCESSES,
MANUFACTURING AND
SERVICE OPERATIONS
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

 Production Processes
• Production processes : Conversion or transformation
processes used to produce products.
 Manufacturing Operations and Service Operations
• Manufacturing operations or processes convert inputs
into tangible outputs.
Three basic catagories of manufacturing processes are:
– Forming processes
– Machining processes
– Assembly processes.

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat

Distinction between products and services
Manufactured Products
Tangible outputs
Products can be inventoried
Little customer contact
Long lead times
Capital intensive
Product quality easily
determined
Himalaya Publishing House
Chapter 4
Production Processes,
Manufacturing and Service
Operations
Services
Intangible outputs
Outputs cannot be inventoried
Extensive customer contact
Short lead times
Labour intensive
Service quality determined
with difficulty
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

Classification of Manufacturing
Processes
1. Processing
a. Heavy processing
b. Light processing
2. Treatment
a. Heat treatment
b. Surface treatment
3. Fabrication
a. Heavy fabrication
b. Medium fabrication
c. Light fabrication

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

Surface Treatment of Metals

• Cleaning of Metals
• Finishing of Metals
The main methods of finishing metals are :
1. Metallic coatings
2. Plastic coatings
3. Organic finishes
4. Inorganic finishes

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

Characteristics of Modern
Manufacturing
1. Specialisation
2. Mechanisation
3. Use of Technology of Industrial Engineering
4. Increasing use of Computers and Data Processing
Equipments
5. Use of Scientific Method

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

Operations in the Service Sector

 Services are those economic activities which

typically produce an intangible product.

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

Difference between Goods and Services

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

Primary Characteristics of Services

Services posses four primary inherent characteristics not
found in goods. These characteristics are:
(i) Intangibility,
(ii) Perishability,
(iii) inseparability
(iv) variability.

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Production of Goods Manufacturing and Service
Operations
(Manufacturing) versus
Service Operations
Manufacturing and service organisations differ in the
following:
• Customer contract
• Uniformity of input
• Labour content of jobs
• Uniformity of output
• Location of facility
• Measurement of productivity
• Simultaneous production and delivery\ consumption
• Quality assurance.
Production and Operations Management
Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat
 Chapter 4
Production Processes,
Manufacturing and Service
Operations

The Challenges Facing Operations

Managers:
The key challenges facing service operations managers are:
(i) Managing multiple customers
(ii) Understanding the service concept
(iii) Managing the outcome and experience
(iv) Managing in real-time
(v) Knowing, implementing and influencing strategy
(vi) Continually improving operations
(vii) Encouraging innovation
(viii) Managing short-term and long-term issues
simultaneously

Production and Operations Management

Himalaya Publishing House By K. Aswathappa & K. Shridhara Bhat