Managing Production and Service

Operations

Ch10 - Engineering
Management
 What Operation is

Any process that accepts inputs and uses

resources to change those inputs in 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 a) Service factory
c) Worker-paced line flow b) Service Shop
d) Machine paced line flow c) Mass Service
e) Batch/continuous flow hybrid d) Professional Service
f) continuous flow
 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

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 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
Assessment:
1. Differentiate the following
a.Job production
b.Batch flow
c.Worker-paced assembly line
d.Machine-paced assembly line
e.Batch/continuous flow hybrid
f.Continuous flow

2. Enumerate the different service processes and define each.

Reference:
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