Professional Documents
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Managing Production and Service Operations
Managing Production and Service Operations
Organizations are designed mainly to produce products or services. If these organizations must survive
and grow, the operation function must be undertaken in the most economical manner possible. As most
companies are expected to make profits, any activity, including those for operations must be managed
to contribute to the accomplishment of such objectives.
WHAT OPERATION IS
Operations refer to “any process that accepts inputs and uses resources to change those input sin useful
ways.” The inputs include land, labor, capital, and entrepreneurship. The transformation process
converts the inputs into final goods or services.
Manufacturing Processes
1. Job shop
2. Batch flow
3. Worker-paced line flow
4. Machine-paced line flow
5. Batch/continuous flow hybrid
6. Continuous flow
Service Processes
1. Service factory
2. Service shop
3. Mass service
4. Professional service
Manufacturing Processes
Manufacturing Processes are those that refer to the making of products by hand or with machinery.
Job Shop. A job shop is one whose production is “based on sales and orders for a variety of small
lots.”
Batch Flow. The batch flow process is where lots of generally own designed products are
manufactured.
Worker-Paced Assembly Line. An assembly line refers to a production layout arranged in a sequence
to accommodate processing of large volumes of standardized products or services.
Machine-Paced Assembly Line. This type of production process produces mostly standard products
with machines playing a significant role.
Continuous Flow. The continuous flow processing is characterized by “the rapid rate at which items
move through the system.”
Batch/Continuous Flow Hybrid. This method of processing is a combination of the batch and
continuous flow.
Service Processes
Service processes are those that refer to the provision of services to persons by hand or with
machinery.
Service Factory. A service factory offers a limited mix of services which results to some economies of
scale in operations.
Service Shop. A service shop provides a diverse mix of services.
Mass Service. A mass service company provides services to a large number of people simultaneously.
Professional Services. These are companies that provide specialized services to other firms or
individuals.
IMPORTANT PARTS OF PRODUCTIVE SYSTEMS
Productive systems consist of six important activities as follows:
1. Product design
2. Production planning and scheduling
3. Purchasing and materials management
4. Inventory control
5. Work flow layout
6. Quality control
Production Design
Product design refers to “the process of creating a set of product specifications appropriate to the
demands of the situation.”
Work-Flow Layout
Work-flow layout is the process of determining the physical arrangement of the production system.
Quality Control
Quality control refers to the measurement of products or services against standards set by the
company.