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, an activity, including those for operations must be contribute
to the accomplishment of such objectives.

 What Operation is?

Operation refers to any process that accepts inputs and uses resources to change those
inputs in useful ways.
Examples of final goods and services are as follows:
1. Industrial chemical like methylene chloride, borax powder, phosphoric acid, etc., which are
produced by chemical manufacturing firms;
2. Services like those for the construction of ports, high-rise building, roads, bridges, etc.,
which are produced by constructions firm;
3. Electrical products like transformers, circuit breakers, switch gears, power capacitors, etc.,
which are produced by electrical manufacturing firms;
4. Electronic products like oscilloscope, microwave test system, transistors, cable tester, etc.,
which are produced by electronics manufacturing firms;
5. Mechanical devices like forklifts, trucks, loaders, etc., which are produced by manufacturing
firms;
 What operation Management is
Production management also called operations management, planning and control of
industrial processes to ensure that they move smoothly at the required level.
Techniques of production management are employed in service as well as in
manufacturing industries. It is a responsibility similar in level and scope to other
specialties such as marketing or human resource and financial management. In
manufacturing operations, production management includes responsibility for product
and process design, planning and control issues involving capacity and quality, and
organization and supervision of the workforce.
 Operations and the Engineer Manager
The Engineer manager is expected to produce some output at whatever management
level he is. If she is assigned as the manufacturing engineer, his function is “to
determine and define the equipment, tolls, and processes required to convert the
design of the desired products into reality in the efficient manner”.

The engineer in charge of operation in a constructions firm in responsible for the actual
construction of whatever bridge or road his company has agreed to put up. He is
required to do it using the least-expensive and the easiest method.
 The Engineer, as operation manager, must find ways to contribute to the production of
quality goods or services and the reduction of cost in his department.

TOP MANAGEMENT

PRODUCTION/OPERATION Finance/Accounting Marketing

Facilities Disbursement/Credits Sale promotion

Advertising
Constructions Accounts receivable Market Research
Maintenance Accounts payable
General Ledger
Production and Inventory control
Scheduling Funds Management
Material control Money market
International Exchange
Quality assurance and control
Capital Requirements
Procurement
Stocks Issue
Manufacturing Bond Issue and recall

Tools
Fabrication
Assembly

Engineering/Design

Product development and design

Detailed product specifications

Industrial Engineering

Efficient use of machines, space

and personnel

Process Engineering

Development and installation of

production tools, equipment tools,
equipment and process