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Operations Management
The process of managing the resources that are
needed to produce an organizations goods and
services.
Operations managers focus on managing the five
Ps of the firms operations:
People, plants, parts, processes, and planning andcontrol systems.
The Basics Of Operations Management
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Input
A resource required for the manufacture of a product orservice.
Conversion System
A production system that converts inputs (material andhuman resources) into outputs (products or services); alsothe production process or technology.
Output
A direct outcome (actual product or service) or indirectoutcome (taxes, wages, salaries) of a production system.
The Production System
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The Basic Production System
FIGURE 151
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Production System Components
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Intermittent Production System
Production is performed on a start-and-stop basis,
such as for the manufacture of made-to-order
products.
Mass Production
A special type of intermittent production process
using standardized methods and single-usemachines to produce long runs of standardized
items.
Basic Types of Production Processes
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Mass Customization
Designing, producing, and delivering customized
products to customers for at or near the cost andconvenience of mass-produced items.
Mass customization combines high production volume
with high product variety.
Elements of mass customization: Modular product design
Modular process design
Agile supply networks
Basic Types of Production Processes
(contd)
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Continuous Production Processes
A production process, such as those used by chemical
plants or refineries, that runs for very long periods
without the start-and-stop behavior associated with
intermittent production.
Enormous capital investments are required for highly
automated facilities that use special-purpose
equipment designed for high volumes of production
and little or no variation in the type of outputs.
Basic Types of Production Processes
(contd)
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Decision Factors:
Customer convenience
Transportation costs
Labor costs and availability
Sources of supplies and raw materials
Owner preferences for specific locations
Government policies, rules, regulations andincentives
Site cost and availability
The Facility Location Decision
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Facility Layout
The configuration of all the machines, employeeworkstations, storage areas, internal walls, and so
forth that constitute the facility used to create afirms product or service.
Product Layout
A production system design in which every item to
be produced follows the same sequence ofoperations from beginning to end, such as anassembly line.
Facility and Production Layout
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Product Layout for Carwash
FIGURE 152Source: Everett Adam Jr. and Ronald Ebert, Production and Operations Management
(Upper Saddle River, NJ: Prentice Hall, 1992), p. 254. G.Dessler, 2003
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Process Layout
A production system design in which similar machines or
functions are grouped together.
Fixed-Position Layout A production system arrangement in which the product
being built or produced stays at one location and the
machines, workers, and tools required to build the product
are brought to that location as needed, as for the buildingof ships or other bulky products.
Facility and Production Layout (contd)
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Process Layout
FIGURE 153Source: Everett Adam Jr. and Ronald Ebert, Production and Operations Management
(Upper Saddle River, NJ: Prentice Hall, 1992), p. 254.
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Cellular Manufacturing Layout
A combination of process and product layouts, in
which machines and personnel are grouped into
cells containing all the tools and operationsrequired to produce
a particular product
or family of products.
Facility and Production Layout
(contd)
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Improving Layouts by Moving to the
Cellular Manufacturing Concept
FIGURE 154Source: Source: Barry Render and Jay Heizer, Principles of Operations Management, 2nd ed.,
1997. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ. G.Dessler, 2003