Report on Managing Productions and Service Operations

Proponents:
DUREZA, Harold Feyman R.
CALUBIRAN, April Rose G.
SATURNINO, Ralph Laurence S.
BANQUILLO, Leogene E.
March 15, 2015

Background

Organizations are designed mainly to produce products or Services.

In order to survive and grow, these organizations should function in the most economical
manner as possible.

With a proper economic mindset, companies will profit from the inside activities of the
operations and management contributed to accomplish such objectives for income.

Overview
In summary,
Production Management- is the set of interrelated management activities, which are
involved in manufacturing certain products
Operations Management- is the same concept of Production management with the extent
to services where the uses of inputs and resources are carried through a defined process/s.
The purpose of Productions/Operations Management Is to smoothly carry out the
transformation process of inputs into final goods/services with the highest profits and
minimal loss of income.

The Production Process

The production process in its fundamental form.

The Production Process

1. Inputs Are the base needed products/raw materials in order to create new products in its
final intended form.
2. Transformation process Series of operations done in creating inputs into outputs.
3. Outputs- the final product from outputs intended to be made with various or specific uses.

8 Scopes of Production and Operations Management

Production/Operations Management concerns itself with the following summarized definition of
activities as its primary functions:
1.

Location of Facilities- is a long-term capacity decision which involves a long term

commitment about the geographically static factors that affect a business organization.

2. Plant Layout and Material Handling- Layout refers to the physical arrangement of
facilities. It is the configuration of departments, work centers and equipment in the
conversion process. Material Handling refers to the moving of materials from the store
room to the machine and from one machine to the next during the process of manufacture
3. Product design- deals with conversion of ideas into reality. Every business organization
has to design, develop and introduce new products as a survival and growth strategy.
4. Process Design- is a macroscopic decision-making of an overall process route for
converting the raw material into finished goods.
5. Production Planning and Control- is the process of planning the production in advance,
setting the exact route of each item, fixing the starting and finishing dates for each item,
to give production orders to shops and to follow up the progress of products according to
orders.
6. Quality Control (QC)- may be defined as a system that is used to maintain a desired
level of quality in a product or service. It is a systematic control of various factors that
affect the quality of the product.
7. Materials Management- is that aspect of management function which is primarily
concerned with the acquisition, control and use of materials needed and flow of goods
and services connected with the production process.
8. Maintenance Management-means sustaining/updating of equipment and machinery to
keep the steady efficiency of the plant from decreasing.

In-depth Look on Operations Management

As stated in the last slide, Operation Managements objective is to smoothly carry out the
manufacture of products and services.
It implements the process of planning, organizing, and controlling (discussed in previous
reports) the operations to meet production objectives with efficiency and effectiveness.

Main Objectives of Operations Management

The customer service -To provide agreed/adequate levels of customer service (and hence
customer satisfaction) by providing goods or services with the right specification, at the
right cost and at the right time.

The resource utilization objective - To achieve adequate levels of resource utilization

(or productivity) e.g., to achieve agreed levels of utilization of materials, machines and
labor ensuring that every resource is used with the most minimal waste possible.

Transformation Process
As stated before, it is the process of making/converting/transforming raw materials and resources
into more valued goods and/or services.

Types of Transformation Process

1. Manufacturing Processes- Are processes referred to the making of products by hand or
machine.
Under Manufacturing Process are:
a) Job Shop- one whose productions are characterized by manufacturing of one or few quantity
of products in high value which are designed and produced as per the specification of customers
within prefixed time and cost, commonly referred as customization or personalized.
b) Batch Flow quantities of generally designed products are manufactured with factor of
being in high or low volume and not procedures are performed on each products
c) Worker-Paced Assembly Line refers to a production layout where stations are placed
where each station carries out one type of process where the product goes until coming out the
final line. Its design is specifically made for producing high quantities but the quality is based on
the skill of the worker of each station.
d) Machine-Paced Assembly line- identical process with worker-paced but replaced with
specialized machines that maintain the quality and specification of each product as well as
yielding more volumes but higher capital cost.

2. Services Processes - Are processes referred to provision of aid/service by hand or machinery.

Under Service Processes are:
a) Service Factory- In general, service factory offers a limited mix of Services which
results to economies of scale in operations which prefer a line flow process layout,
examples: Laboratories, Consultancies, Showrooms, etc.
b) Service Shop Provides a diverse mix of services preferring a layout of fixed job
positions adapting to various requirements, examples: vehicle customs, gadgets and
appliance repairs, etc.
c) Mass Service- Provides services to a large number of people simultaneously, whereas a
unique processing method is necessary to satisfy the needs of the customer as well as
setting standards that may show recognition to the company. Familiar examples would be
security services, medical services, among other services, sometimes involving also
service factory and service shop in one place simultaneously.