Producing of Goods and ServicesPertemuan 12

Matakuliah : J0712 - Pengantar BisnisTahun : 2009

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Producing of Goods and Services

•Outline:

–The difference of goods and services–Global operations–Growth in service sector–Creating value through operations–Operation process, location and layout–Scheduling of goods and services–Controlling of raw materials, purchasing and supply chain

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Operations (Production)

• Management- systematic direction/control of processes that transform resources into finished goods that create value and provide benefits.

• Thus, managers ensure processes create value/benefits.

• The key difference between production and services operations is the customer's involvement in the latter.

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Transformation Process

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The Growth of Global Operations

• Global competition has made production a faster-paced, more complex activity.

• New technologies make machines that run cleaner, faster and safer and that operate on a global scale.

• With the Internet, producers of both services and goods can integrate their production with those of far-off suppliers and customers.

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Goods/Services Employment

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Goods-Manufacturing vs. Service Processes

• Analytic process breaks down resources into components.

• Synthetic process combines raw materials to produce a finished product.

• Service: Extent Of Customer Contact– High-Contact

customer is part of the system during service delivery.

– Low-Contact the customer need not be a part of the system to receive the service.

Operations process is a set of methods and technologies used in the production of a good or a service.

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Differences Between Service and Manufacturing Operations

• Focus on Performance• Focus on Process and Outcome• Focus on Service Characteristics

– Intangibility– Customization– Unstorability

• Focus on the Customer-Service Link– E-Commerce: The “Virtual Presence” of the Customer

• Focus on Service Quality Considerations

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Operations Planning

• Managers from many departments contribute to decisions about operations.

• The business plan and forecasts developed by top managers guide operations planning.

– Forecast is a facet of a long-range production plan that predictsfuture demand.

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Capacity Planning

• Capacity Planning for Producing Goods– Capacity planning for goods means ensuring that a

firm’s capacity slightly exceeds normal demand for its product.

• Capacity Planning for Producing Services– In low-contact processes, maintaining inventory lets

managers set capacity at the level of average demand.

– In high-contact processes, managers must plan capacity to meet peak demand.

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Location Planning

• Location Planning for Producing Goods – Location decisions are influenced by proximity to raw

materials and markets, availability of labor, energy and transportation costs and other factors.

• Location Planning for Producing Services– Low-contact services can be located near resource

supplies, labor or transportation outlets.– High-contact services must locate near the customers

who participate in the system.

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Layout Planning

• Process layout groups equipment and people according to function.

• Cellular layout works well when a family of products follows a fixed flow path.

• Product layout is set up to make one type of product in a fixed sequence and is arranged according to its production requirements.– Assembly line is a product layout in which a

product moves step-by-step through a plant on conveyer belts or other equipment until it is completed.

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Layouts for Producing Goods

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Layout Planning for Producing Services

• In a low-contact system, the facility should be arranged to enhance the performing of the service.

• In a high-contact system, the facility should be arranged to meet customer needs.

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Methods Planning

• Methods Improvement in Goods– Process flowchart is a diagram included in a

detailed description of methods

• Methods Improvement in Services– Service flow analysis shows the flow of

processes that make up a given service– Designing to Control Employee

Discretion in Services– Design for Customer Contact in

Services

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Service Flow Analysis

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Operations Scheduling

• Scheduling Goods Operations– Master production schedule

shows which products will be produced, when production will take place and what resources will be used

• Scheduling Service Operations– In low-contact services, work scheduling may be based

either on desired completion dates or on the time of order arrivals.

– In high-contact services, the customer must be accommodated as part of the system and its processes.

SCHEDULE

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Tools for Scheduling Service Operations

• PERT chart breaks down large projects into steps and specifies the time required to perform each one

• Gantt chart diagrams steps to be performed and specifies the time required to complete each step.

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Materials Management

• Plan/Organize Material Flow

• Emphasizes Standardization

• Areas Of Material Management– Transportation– Warehousing– Inventory Control– Purchasing

Tools For Process Control

• Worker Training• Lean Production Systems:

JIT• Materials Requirement

Planning– Bill Of Materials– Manufacturing Resource

Planning• Quality Control

Operations Control