MANAGING

PRODUCT AND
SERVICES
OPERATION

WHAT IS OPERATIONS?
-OPERATIONS REFERS TO ANY PROCESS THAT ACCEPTS
INPUTS AND USES RESOURCES TO CHANGE THOSE
INPUTS IN USEFUL WAYS.
-OPERATIONS REFERS TO CHANGING OF INPUTS INTO
USEFUL OUTPUTS.

WHAT IS OPERATIONS
MANAGEMENT?
-OPERATIONS MANAGEMENT IS A PROCESS OF
PLANNING, ORGANIZING, AND CONTROLLING
OPERATIONS TO REACH OBJECTIVES
EFFICIENTLY AND EFFECTIVELY.

PLANNING

Planning is a method of doing something

that is worked out in advance
Planning is the management function that
involves anticipating future trends and
determining the best strategies and tactics
to achieve organizational objectives

ORGANIZING

Organizing is a method in which to apply or

impose efficient working methods in order
to work effectively or make somebody else
work effectively.
Organizing is a management function which
refers to the structuring of resources and
activities to accomplish objectives in an
efficient and effective manner.

CONTROLLING

Controlling means to exercise power or

authority over something such as a
business or nation.
Controlling refers to the process of
ascertaining whether organizational
objectives have been achieved and
determining what activities should then be
taken to achieve objectives better in the
future.

EFFICIENCY

Efficiency refers to the degree to which

something is done well or without wasted
energy.
Efficiency is related to the cost of doing
something, or the resource utilization
involved.

EFFECTIVENESS

Effectiveness is the means of causing a

result, especially the desired or intended
result.
Effectiveness refers to goal accomplishment.

OPERATIONS AND THE

ENGINEERING MANAGER

An engineer manager is expected to produce

some output at whatever management level
he is.

TYPES OF TRANSFORMATION
PROCESS

The engineer manager must have some

knowledge of the various types of
transformation process and there are two
types of transformation process and they are
the manufacturing process, and the service
process

MANUFACTURING PROCESS

Manufacturing refers toproducinggoodsthat

are necessary for modern life from raw
materials. The word manufacture comes
from the Latin manus (hand) and facere (to
make).
Manufacturing process are those that refer to
making of products by hand or with
machinery.

TYPES OF MANUFACTURING
PROCESS

Job shop
Batch flow
Worker-paced line flow/ worker-paced
assembly line
Machine-paced line flow/ machine-paced
assembly line
Batch/continuous flow hybrid
Continuous flow

JOB SHOP

A job shop is one whose production is based

on sales orders for variety of small lots.

CHARACTERISTICS OF A JOB
SHOP

Job shops manufacture products in small lots

that are needed by, but cannot be produced
economically by many companies.
Job shops produce custom products, in
general. Products may be manufactured
within a short notice. And manufacturing in
job shops are usually in labor intensive and
machines are frequently idle or not in use.

BATCH FLOW

In the batch flow process generally own

designed products are manufactured.

CHARACTERISTICS OF A BATCH
FLOW

There is flexibility to produce either low or high

volumes.
Not all procedures are performed in all
products.
The type of equipment used are mostly for
general purpose.
The process layout is used where similar
machines are grouped together.
The operation of labor intensive, although there
is less machine idleness.
The size of operation is generally medium-sized.

WORKER-PACED ASSEMBLY LINE

A worker-paced assembly line is an assembly

line that refers to a production layout that is
arranged in a sequence to accommodate
processing of large volumes of standardized
products or services.

CHARACTERISTICS OF A
WORKER-PACED ASSEMBLY LINE

In the 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 work-paced.
The type of layout used is the line flow.
Labor is still a big cost item.

MACHINE-PACED ASSEMBLY LINE

This type of production process production

process produces mostly standard products
with machines playing a significant role.

CHARACTERISTICS OF A
MACHINE-PACED ASSEMBLY FLOW

The process is of clear , rigid pattern.

Specialized type of equipment is used.
The line flow layout is used.
Capitalized equipment is a bigger cost item
than labor.
Operation is large.
The process is machine-paced.

CONTINUOUS FLOW

The continuous flow processing is

characterized by the rapid rate at which
items move through the system.

CHARACTERISTICS OF A
CONTINUOUS FLOW

This process method is used in producing highly

standardized products like calculators,
typewriters, automobiles, televisions, cellular
phones and etc.
There is economy of scale in production, resulting
to low per unit cost of production.
The process is clear and very rigid.
Specialized equipment is used.
The line flow layout is used.
Operations are highly capital intensive.
The size of operations is very large.
Process is fast.

SERVICE PROCESS

service process are those that refer to the

provision of services to persons by hand or
with machinery.

TYPES OF SERVICE PROCESS

Service factory
Service shop
Mass service
Professional service

SERVICE FACTORY

A service factory offers a limited mix of

service which results to some economies of
scale in operations.

CHARACTERISTICS OF SERVICE
FACTORY

The process layout preferred by the service

factory is the rigid pattern of line flow.

SERVICE SHOP

A service shop provides a diverse mix of

services.

CHARACTERISTICS OF A SERVICE
SHOP

The layout used are those for job shops or

fixed position and are adaptable to various
requirements.

MASS SERVICE

A mass service company provides services to

a large number of people simultaneuosly.

PROFFESIONAL SERVICES

These are companies that provide specialized

services to other firms or individuals.

IMPORTANT PARTS OF
PRODUCTIVE LAYOUT

Product design.
Production planning and scheduling.
Purchasing and materials management.
Inventory control.
Quality control.

PRODUCT DESIGN

Product design refers to the process of

creating a set of product specifications
appropriate to the demands of the situation.

PRODUCTION PLANNING AND

SCHEDULING

Production planning is defined as forecasting

the future sales of a given product,
translating this forecast into the demand it
generates for various production facilities,
and arranging for the procurement of these
facilities.

PURCHASING AND MATERIALS

MANAGEMENT

Refers to the approach that seeks efficiency

of operation through integration of material
acquisition, movement, and storage
activities in the firm.

INVENTORY CONTROL

Is the process of establishing and maintaining

appropriate levels of reserve stocks of goods.

WORK-FLOW LAYOUT

Is the process of determining the physical

arrangement of the production system

QUALITY CONTROL

Refers to the measurement of products or

services against standards set by the
company.

SUMMARY

The management of operations is very crucial to the survival of

firms. Operations refer to the changing of inputs into useful
outputs. In the effort to manufacture products, operations
management must contribute its share in the accomplishment
of the companys objectives.
The function of the operations manager is to plan, organize,
and control operations in order to achieve objectives
efficiently and effectively. The engineer manager is often
times assigned to perform the tasks of the operations manager.
The transformation process may be classified generally as the
manufacturing or service process. These two are sub classified
into various types, each with built-in advantages depending on
certain conditions.
Production system consist of various parts that complement
one another in the production task. The engineer manager
needs to be familiar with these various parts.