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MGTA04- Chapter 1- Class 1 and 2.docx

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Management (MGT)
Bill Mc Conkey

MGTA04 Class 12 Jan 1219 2012 CHAPTER 1 MANAGING OPERATIONS AND INFORMATIONService Operations Production activities that yield tangible and intangible service products Goods Production Production activities that yield tangible productsTangible Products newspapers buses textbooks engaged in goods production Intangible Products entertainment transportation education food preparationWHAT DOES PRODUCTION MEAN TODAYKey difference between production and service operations is the customers involvement in the latterCustomers are increasingly involved in all kinds of production because electronic communications are key components in winning and keeping customers in a huge range of competitive industriesTHE PRODUCTPROCESS MATRIX FOR AN ORGANIZATION Process life cycle Product structure Low volume Low volume Higher volume Very high volume stage Product life cycle stage Unique one of a Multiple Products Standardized product Commodity product kind ProjectJumbled flow job Job shop shop Disconnected line flow Batch batch Connected line flow Assembly line assembly line Continuous flow Continuous continuous Product Process matrix is a tool for analyzing the relationship between the product life cycle and the technological life cycleThe Matrix consists of 2 dimensions product structureproduct life cycle and process structureprocess life cycleProduction process used to manufacture a product moves through a series of stages which begins with a highly flexible highcost process and progresses toward increasing standardization mechanization and automation culminating in an inflexible but costeffective process The process structureprocess life cycle dimension describes the process choice ie Job shop batch assembly line and continuous flow and process structure jumbled flow disconnected line flow connected line flow and continuous flowProduct structureproduct life cycle describes the 4 stages of the product life cycle low volume to high volume and product structure low to high standardizationProcess ChoicesProject incl largescale onetime unique products such as civilengineering contracts aerospace programs construction etc They are also customerspecific and often too large to be moved which practically dictates that project is the process of choiceJob shop a producer of unique products usually this product is of an individual nature and requires that the job shop interpret the customers design and specifications which requires a relatively high level of skill and experience Once design is specified one or a group of skilled employees are assigned to the taskresources for processing have limited availability with temporary inprocess storage capability needed while jobs wait for subsequent processingif product is not a 1time requirement it is characterized by irregular demand with long periods of time between orders Efficiency is difficult since every output must be treated differentlyProcess LayoutService examples law offices medical practices automobile repair tailor shopsBatch firms using batch processes provide similar items on a repeat basis usually in larger volumes than that associated with job shops Products sometimes accumulated until a lot can be processed togetherhigher volume and repetition of requirements can make more efficient use of capacity and lower costs resultWhile the flow is smoother the workinprocess still moves around to the various machine groupings throughout the shop in a somewhat jumbled fashion This is described as a disconnected line flow or intermittent flow
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