MANAGING

PRODUCTION
AND SERVICE
OPERATIONS

Worker-Paced Assembly Line
An assembly line refers to a production layout arranged in sequence to
accommodate processing of large volumes of standardized products or
services. Shown in the figure is a diagram of the work flow in an assembly
line

The quality and quantity of output in a worker-paced assembly line

depends to a great extent to the skill of the labor utilized. Examples of
worker-paced assembly lines are food marts like McDonalds and
Shakeys.

MANUFACTURING PROCESSES
The worker-paced assembly line is characterized by the
following:
1. The products manufactured are mostly standardized
2. There is a clear process pattern
3. Specialized equipment is used
4. The size of operation is variable.
5. The process is worker paced.
6. The type of Layout used is the line flow
7. Labor is still a big cost item.
 Station 1 Station 1 Station 1 Station 1
Raw Materials Materials Materials Materials
Materials and/or and/or and/or and/or
labor labor labor labor

Finished items (or completed

services)

Assembly Line for Production or Service

Machine-Paced Assembly Line
This type of production process produces mostly standard products with
machines playing a significant role. Among its other features are as
follows:
1. The process is of clear, rigid pattern.
2. Specialized type of equipment is used.
3. The line flow layout is used.
4. Capital equipment is a bigger cost item than labor.
5. Operation is large
6. The process is machine paced.

MANUFACTURING PROCESSES
 Examples of machine-paced assembly line are automobile
manufacturers like General Motors and Ford Motors. Shown
in the Figure is an example of Machine-paced assembly line
process.
 The Body Line
Body Assembly Paint Shop
*floor pan, body side, *primer (ELPO BATH)
roof panel positioning *finish coat
and welding
*door hanging
*engine enclosure
positioning and
welding
Miscellaneous Chassis
*front-end assembly
Operations
(e.g., fenders hood)
*gas tank and fuel lines
*metal finishing
*break lines assembled
Various Trim Line Sub-assemblies *front-end alignment
*rear axle mounted
Hard Trim line *wheel mounting
*bumpers and other
chrome
*glass The Motor Cradle Line
*vinyl tops *dressing of basic motor
*air conditioning with various parts, hoses
*instrument panel and harnesses

A Machine-Paced Soft Trim Line

*seats
*transmission fan
*front ales and brakes

Assembly Line Process *Floor and ceiling

covers
*mating of motor with its
cradle
*exhaust system, rear
The Final Chassis Line wheel break lines
*fluid filling
THE BODY SHOP
*under-hood wiring
*Wheels, tires, wheel
*testing of cars computer
balance
diagnostic system
*start up testing
 Continuous Flow
The continuous flow processing is characterized by the rapid rate at
which items move through the system. This processing method is very
appropriate for producing highly standardized products like calculators,
typewriters, automobiles, televisions, cellular phones, etc.

MANUFACTURING PROCESSES
Its other characteristics are as follows:
1. There is economy of scale in production resulting to low
percent unit cost of production
2. The process is clear and very rigid
3. Specialized equipment are used.
4. The line flow layout is used.
5. Operations are highly capital intensive
6. The size of operations is very large.
7. Processing is fast.
 Diagram of the Continuous Flow Process of a Paper-Making
Company

Digesters Centrifugal cleaners Bleachers

Woodrom debarking Temporary silo
Log and chip
Inventories of logs and chipping inventories of various
receiving and
weighing and chips chip species Recovery
process for
chemicals To temporary
Storage

Temporary
storage Cleaning Wet end: headbox, wire Inventory of Rewinding, sitting
additives and Rollers, drying drums parent logs Shipping
added blending Dry end: winders slitting

Broke added

The figure shows a continuous flow process diagram of

a paper making factory.
Batch/Continuous Flow Hybrid
This method of processing is a combination of the batch and the
continuous flow. Two distinct layouts are used, one for batch and
one for the continuous flow. The typical size of operations is also
very large giving opportunities for economies of scale.

MANUFACTURING PROCESSES
 Examples of companies using the batch/continuous hybrid are
breweries, gelatin procedures and tobacco manufacturers. A simplified
process using the batch/continuous flow hybrid is shown in the figure.
 A Simplified Production Process of a Gelatin Manufacturing Company Using the
Batch/Continuous Flow Hybrid

Hide Hide Grinding and Mixed batch

processing aging mixing aging

mixing Drying Gel Blending Micro cutting

(powder)

Sugar and Water and

flavoring acid added

Packaging
 Service Process
Service processes are those that refer to the provision of
services to persons by hand or with machinery.

MANUFACTURING PROCESSES
 1. Service Factory
A service factory offers a limited mix of services which
results to some economies of scale in operations. This also
affords the company to compete in terms of price and
speed of producing the service.
The process layout preferred by the service factory is the
rigid pattern of line flow processing. McDonalds and
Shakeys are also examples of service factories.

Service Process
 2. Service Shop
A service shop provides a diverse mix of services. The layout used
are those for job shops or fixed position and are adaptable to
various requirements.
Service shops abound throughout the Philippines. Examples are
Servitek and Megashell. Among the services provided by these
shops are car engine tune-ups, wheel balancing, wheel alignment,
change oil, etc.

Service Process
 Process Flow of a Car Repair Service Shop

Withdrawal of
Parts parts from parts
inventory department

Logging Road test

Diagnosis Work on
Writing up in job at by
of car by
job ticket dispatch Car wait technician
problem technician
tower
If car fails
test

Road test
If car fails
by mgmt.
test
Shown in the figure is a diagram
of the process flow of a car Car returned
and customer Papers gathered
repair service shop. payment on car and sent to
processed cashier
 3. Mass Service
A mass service company provides service to a large number of
people simultaneously. A unique processing method is therefore
necessary to satisfy this requirement. To be able to serve many
people, mass service companies offer limited mix of services.
The process layout used is typically fixed position where customers
move through the layout.

Service Process
 Process Flow for Material Receipt and Sales Transactions in a Mass Service
Retailing Institution

I. Material Receipt

Truck Checking of Delivery to Checking of Filing

delivery paperwork the floor paperwork Sorting items Paperwork

Any
problem
reports filed
II. Sales Transactions

Presenting
Register merchandise to Sale entry Sale Register
opened customer and on register made closed and
closing sale balanced

Credit not
approved
4. Professional Services
These are companies that provide specialized services to other firms or
individuals. Examples of such firms are as follows:
a. Engineering management consulting services which help in improving
the plant layout of the efficiency of a company.
b. Design services which supply designs for a physical plant, products,
and promotion materials.

Service Process
c. Advertising agencies which help promote a firms products.
d. Accounting services
e. Legal services
f. Data processing services
g. Health services

Service Process
Professional service firms offer a diverse mix of services. There is
a lower utilization of capital equipment compared to the service
factory and the service shop. The process pattern used is very
loose. The process layout used is identical to the job shop.

Service Process
Professional service firms are oftentimes, face with
delivery problems brought about by non-uniform
demand. Strategies that may be used depending on the
situations are as follows:
a.The use of staggered work-shift schedules
b. The hiring of part-time staff
c. Providing the customer with the opportunity to select
the level of service.
Service Process
 1. Product Design
2. Production planning and scheduling
3. Purchasing and materials management
4. Inventory control
5. Work flow layout
6. Quality control

Important Parts of Productive Systems

 Customers expect that the products they buy would perform
according to assigned functions. A good product design assures
that this will be so. Customers avoid buying products with poor
product design. An example is that certain brand of ballpen
which fails to write after one or two days of actual use. This
happens because of poor product design.

1. Product Design
 Refers
to the process of creating a set of product specifications
appropriate to the demands of the situation.
Companies wanting to maintain or improve its market share
keeps a product design team composed of engineers,
manufacturing and marketing specialists.

Product Design
 May be defined as forecasting the future sales of a give
product, translating this forecast into the demand it generates
for various production facilities, and arranging the
procurement of these facilities.
Production planning is a very important activity because it
helps management to make decisions regarding capacity. When
the right decisions are made, there will be less opportunities
for wastages.

2. Production Planning and Scheduling

 Scheduling is the phase of production control involved in
developing timetables that specify how long each operation the
production process takes. Efficient scheduling assures the
optimization of the use of human and non-human resources.

2. Production Planning and Scheduling

Firms need to purchase supplies and materials required in
various production activities. The management of purchasing
and materials must be undertaken with a high degree of
efficiency and effectiveness especially in firms engaged in high
volume production. The wider the variety of supplies and
materials needed add to the necessity of proper managing and
purchasing of materials.

3. Purchasing and Materials Management

 Materials management refers to the approach that seeks
efficiency of operation through integration of all material
acquisition, movement, and storage activities in the firm.

3. Purchasing and Materials Management

 Inventory control is the process of establishing and maintaining
appropriate levels of reserve stocks of goods. As supplies and materials
are required by firms in the production process, these must be kept
available when they are needed. Too much reserves of stocks will
penalize the firm in terms of high storage costs and other related risks of
obsolescence and theft. Too little reserves on the other hand, may mean
lost income opportunities if production activities are hampered. A
balance between the two extremes must be determined.

4. Inventory Control
There are ways of achieving proper inventory control, they are as
follows:
a. Determining reorder point and reorder quantity.
b. Determining the economic order quantity.
c. The use of just-in-time method (JIT) of inventory control
d. The use of material requirement planning method (MRP) of planning
and controlling inventories.

4. Inventory Control
 Work-flow layout is the process of determining the
Physical arrangement of the production system. In the
transformation process, the flow of work may be done
wither haphazardly or orderly.

5. Work-Flow layout
The job of the operations manager is to assure that a cost-
effective work-flow layout is installed. A good work-flow layout
will have the following benefits.
a. Minimize investment in equipment.
b. Minimize overall production times
c. Use existing space most effectively.
d. Provide for employee convenience, safety and comfort.

5. Work-Flow layout
e. Maintain flexibility of arrangement and operation.
f. Minimize material handling cost.
g. Minimize variation in types of material-handling equipment.
h. Facilitate the manufacturing (or service) process.
i. Facilitate the organizational structure.

5. Work-Flow layout
 Quality control refers to the measurement of products or
services against standards set by the company. Certain
standard requirements are maintained by the management to
facilitate production and to keep customers satisfied.
Poor quality control breeds customer complaints, returned
merchandise, expensive lawsuits, and huge promotional
expenditures.

6. Quality Control
 The management of operations is very crucial to the survival of
firms. Operations refer to the changing of inputs into useful
outputs. In the effort to manufacture products (or services),
operations management must contribute its share in the
accomplishment of the companys objectives.
The function of the operations manager is to plan, organize.
And control operations in order to achieve objectives
efficiently and effectively. The engineer manager is, oftentimes
assigned to perform the task of the operations manager.

Summary
 The transformation process may be classified generally as
manufacturing of service processes. These two are sub-
classified into various types, each with built in advantages
depending on certain conditions.
Production systems consists of various parts that complement
one another in the production task. The engineer manager
needs to be familiar with these various parts.

Summary