Operations Management type of product and servicetx

Introductory sessions on Operations Management

1. Operations Management IPM 4 th Year Semester 7 Department of Management Studies Nalsar University of Law, Hyderabad Session 2 Asish Kumar Panda

2. Ten Critical Decisions Service and product design Quality management Process, capacity design Location Layout design Human resources, job design Supply-chain management Inventory management Scheduling Maintenance.

3. Classification of Productive Systems Project Job Shop Batch Line Flow Continuous Flow Job Shop Flow Shop

4. Project Flow - no flow Flexibility - very high Products - unique Capital investment - very low Variable cost - very high Labor content and skill - very high Volume - one

5. Job Shop Flow - jumbled flow Flexibility - high Products - many Capital investment - low Variable cost - high Labor content and skill - high Volume - low

6. Batch Process Flow - disconnected, with some dominant flows Flexibility - moderate Products - several Capital investment - moderate Variable cost - moderate Labor content and skill - moderate Volume - moderate

7. Assembly Line Process Flow - connected line Flexibility - low Products - a few Capital investment - high Variable cost - low Labor content and skill - low Volume - high

8. Continuous Flow Process Flow - continuous Flexibility - very low Products - one Capital investment - very high Variable cost - very low Labor content and skill - very low, but with skilled overseers Volume - very high

9. Classification of Productive Systems Productive systems can be classified as Project ,Job Shop, Batch, Mass and Continuous Production. Batch Production Job Shop Production Continuous Production Mass Production Volume Variety Project

10. Example Project – construction of a building Job shop - print shop Batch process - bakery Assembly line - automobile production line Continuous flow - oil refinery

11. Process Flexibility Jumbled Flow. Process segments loosely linked. Disconnected Line Flow/Jumbled Flow but a dominant flow exists. JOB SHOP (Commercial Printer, Architecture firm) BATCH (Heavy Equipment, Auto Repari) LINE FLOWS (Auto Assembly, Car lubrication shop) CONTINUOUS FLOW (Oil Refinery) Product Variety Low Low Standardization One of a kind Low Volume Many Products Few Major Products High volume High Standardization Commodity Products Connected Line Flow (assembly line) Continuous, automated, rigid line flow. Process segments tightly linked. High Low High Product-Process Matrix

12. Classification of Processes by Customer Interface SUPPLIER CLIENT Make-to-Stock Assemble-to-Order Make-to-Order Engineer-to-Order Raw Material Components Semifinished Finished Forecast Order

13. Products and Services Make-to-order Made to customer specs Wedding invitations Make-to-stock Made to “standard” customers Books, TVs, apparel Assemble-to-order Standard modules are added to customer spec Computer systems

14. Organizational Model POM Marketing MIS Engineering HRM QA Accounting Sales Finance

15. TYPES OF SERVICE SYSTEM

16. Stagnant Personal Service

17. Characteristics Requires direct contact between customer and service provider Productivity gain not possible without quality reduction Low innovation potential Difficult to standardise

18. Substitutable Personal Services

19. Washing Clothes

20. Cleaning utensils

21. Security guard

22. Characteristics Great leap in productivity through technological innovation Many times substitute service is inferior

23. Progressive Services

24. Characteristics Two parts : One has no labour other highly labour intensive Cost reduction possible in non- labour side Technology dependent Growth in productivity possible Other part is almost like stagnant service Over-all cost reduction in initial years

25. Explosive Services

26. Characteristics No direct contact with consumer They experience explosive growth Technological advances Benefit to consumers due to cost reduction

27. THANK YOU