In order for an organization to produce products or services effectively and efficiently, the operations must be undertaken in the most economical manner possible. Operation management usually involves the systematic direction and control of the process which transform resources into finished goods or services. With this, operation function is a fundamental part in any organization. This will help engineers to further understand and place their analysis on the overall context of the operations system.
The Production Process
Operations refers to the process that accepts inputs and uses resources to change these inputs in useful ways. The transformation process converts these inputs into final goods or services.
Operations management is defined as the process of planning, organizing, and controlling operations in order to reach the objectives efficiently and effectively (Aldag & Stearns).
Operations management should be performed along with other functions like marketing and finance.
The figure on the right shows the organizational chart of two different firms.
It is necessary for every engineer manager to have some knowledge of the different types of transformation processes. The transformation process is divided into two basic types - the manufacturing process and the service process, which is also subdivided into various type
Manufacturing process are those that use either through machineries or by hand in making products.
JOB SHOP
It is based on sales orders for a variety of small lots
BATCH FLOW
It is used when lots of generally own designed products are manufactured
WORKER PACED ASSEMBLY LINE
It is used when the quality and quantity of output in a worker-paced assembly line depends to a great extent to the skill of labor utilized.
MACHINE PACED ASSEMBLY LINE
In this type, production process produces mostly standard products due to its dependency on machines.
CONTINUOUS FLOW
It is very appropriate for producing highly standardized products such as calculators, typewriters, automobiles, televisions, cellular phones, etc.
BATCH/CONTINUOUS FLOW HYBRID
In this method of processing, a combination of batch and continuous flow is used.
Service processes refer to the provision of services to persons either by hand or through machinery.
SERVICE FACTORY
It offers a limited mix of services that results to some economies of scale of operations
SERVICE SHOP
It offers a diverse mix of services wherein job shops layout are used
MASS SERVICE
It is used when immediate services to a large number of people are needed
PROFESSIONAL SERVICES
It offers a specialized service to other firms or individuals
Productive system consist of the following activities which are as follows:
Product Design - It is the process of creating a set of product specifications appropriate to the demands of the situation.
Production Planning and Scheduling - It includes forecasting the future sales of a product, translating and arranging the forecast, and developing timetables to determine the overall time length of production process.
Purchasing and Materials Management - This should be undertaken with a high degree of efficiency and effectiveness specially in firms that are engaged in high volume production.
Inventory Control - It is the process of establishing and maintaining appropriate levels of reserve stocks of goods.
Work-Flow Layout - It refers to the process of determining the physical arrangement of the production system.
Quality Control - It is the measurement of products or services against standards being set by the company or organization.
Managing Product and Service Operations are very crucial especially in manufacturing and service firms. As engineering students, it is vitally important for us to know the functions of an operation manager including the transformation processes in manufacturing and services. This is to ensure that the organization is producing high-quality products and services while keeping the operating costs in the most efficient way. As future engineers we should grasp and exercise the skills in operations management. This will result in accomplished objectives, customer satisfaction, and financial success for the company.