TYPES OF TRANSFORMATION PROCESSES

					ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 1 of 8

THE ROLE OF OPERATIONS MANAGEMENT

Customer Feedback

INPUTS

THE TRANSFORMATION PROCESS

OUTPUTS

Performance Information

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 2 of 8

TYPES OF INPUTS, TRANSFORMATIONS, AND OUTPUTS

INPUTS People Workers Technicians Supervisors Managers Maintenance Custodial Materials Raw Materials Purchased Parts Supplies Energy Equipment Land Buildings Machines Tools Office Equipment Computers

TRANSFORMATIONS Physical Locational Storage Exchange Informational Educational Attitudinal Physiological

OUTPUTS Products Services

TRANSFORMATION EXAMPLES: Physical or Chemical – Manufacturing, chemical processing, oil refining, etc. Locational – Airline companies, trucking companies, package delivery services. Storage – Warehousing operations, banks. Exchange – Wholesale and retail operations. Informational – T.V. news departments, newspapers, computer information services Educational – Schools, colleges, universities. Attitudinal – Entertainment industry, movie companies, theme parks. Physiological – Hospitals and healthcare institutions.

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 3 of 8

BASIC PRODUCTIVITY EQUATION

Productivity =

Value of Output Value of Input

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 4 of 8

MANUFACTURING AND SERVICE DISTINCTIONS Nature of output Customer contact Storability of output Transportability of output Number of outlets Location of outlets Size of outlets Response time Use of capital and labor Measurement of quality Measurement of productivity

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 5 of 8

CHARACTERISTICS OF MANUFACTURING AND SERVICE ENTITIES
Characteristic Nature of Output Storability Transportability Customer Contact Response Time Number of Outlets Location of Outlets Size Use of Capital and Labor Measurement of Quality Measurement of Productivity Manufacturing Organization Physical, durable product Output can be inventoried Output can be transported from one location to another Low customer contact Long response time Few outlets Centrally located Large facilities Capital intensive Easily measured Easily measured Service Organization Intangible, perishable service Output cannot be inventoried Output cannot be transported High customer contact Short response time Many outlets Geographically dispersed Small facilities Labor intensive Difficult to measure Difficult to measure

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 6 of 8

STRATEGIC VS. TACTICAL DECISIONS IN OPERATIONS

Operations Decisions

Strategic Decisions
- Broad in scope - Long-term in nature - All encompasing

Tactical Decisions
- Narrow in scope - Short-term in nature - Concerning a small group of issues

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 7 of 8

DIFFERENT OPERATING SYSTEM CONFIGURATIONS

VOLUME/VARIETY CONTINUUM IN OPERATIONS

High Volume/Low Variety

Low Volume/High Variety continuum-------------------------------------------

----------------------------------------Repetitive Operations Continuous Processes Line Processes



Batch Processes

Intermittent Operations Job-Shop Processes Project Processes

ISM 3530 – Spring 2005 CP1 - Introductory Operations Management Concepts: Page 8 of 8

DIFFERENCES BETWEEN INTERMITTENT AND REPETITIVE OPERATIONS

Decision Product variety Product volume Degree of standardization Organization of resources Path of products through facility Factor driving production Critical resource

Intermittent Operations High Low Low Grouped by function In a varied pattern, depending on product needs (process layout) Customer orders (make to order) Labor intensive operation (worker skills important) General purpose Low Longer More

Repetitive Operations Low High High Line flow to accommodate processing needs Line flow (product layout) Forecast of future demand (make to stock) Capital intensive operation (equipment, automation, technology important) Specialized High Shorter Less

Type of equipment Degree of automation Throughput time Work-in-process inventory


				
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