Managing Production and Service

Operations
Ch10 - Engineering
Management

What Operation is
Any process that accepts inputs and uses
resources to change those inputs in a 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
c) Worker-paced line flow
d) Machine paced line flow
e) Batch/continuous flow hybrid
f) continuous flow

a) Service factory
b) Service Shop
c) Mass Service
d) Professional Service

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
12

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