OM 301 Ch 1 Types of Operations

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creho001  on October 12, 2011

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OM 301 Ch 1 Types of Operations

Production and manufacturing
Services
Extraction (mining)
Construction
Agriculture
Name the 5 Economic Sectors
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Definitions

Production and manufacturing
Services
Extraction (mining)
Construction
Agriculture
Name the 5 Economic Sectors
ProjectTypes of Manufacturing Operations

a) Project.
b) Job shop.
c) Batch production.
d) Repetitive or "mass" production.
e) Continuous production.

Custom, unique, one-of-a-kind items for an individual customer: (custom suits.)
Prototypes:
New product design and development. (E.g., R&D labs)
On-going work:
Case studies or special studies. (What-if analysis,
T&E labs)
Job shopTypes of Manufacturing Operations

a) Project.
b) Job shop.
c) Batch production.
d) Repetitive or "mass" production.
e) Continuous production.

Small production lot or limited production run for a single customer.
Intermittent (unregelmäßig) or episodic work.
Examples:
Repair and general contracting services.
Print shop printing personal business cards or business forms.
Contracting services
Batch productionTypes of Manufacturing Operations

a) Project.
b) Job shop.
c) Batch production.
d) Repetitive or "mass" production.
e) Continuous production.

Production of similar items in limited "runs".
Uses general purpose equipment that can satisfy a variety of similar processing requirements.
Characterized by fluctuating demand, short production runs of a wide variety of products, some customization, and skilled workers.
More fabrication than assembly.
Jobs sent through based on their production requirements.
Jobs may be routed through different workstations.
Examples:
Ice cream manufacturer makes "loads" of different flavors.
Cannery cans "loads" of different vegetables, etc.
Similar prescription pharmaceuticals (Aspirin, Tylenol)
Repetitive or "mass" productionTypes of Manufacturing Operations

a) Project.
b) Job shop.
c) Batch production.
d) Repetitive or "mass" production.
e) Continuous production.

One or a few highly standardized products.
More standardized products in larger quantities than ___ processing can economically make.
Products are made-to-stock for a mass market.
Demand is stable and volume is high.
Dedicated equipment and production lines to a particular product.
Capital intensive: specialized equipment and limited labor skills.
Assembly line (or "line flow') production.
E.g., automobiles, appliances, electronics.
Lot production of big lots.
E.g., bakeries, microbreweries, OTC pharmaceuticals. Printing newspapers
HAS SOME VARIATIONS:
Examples: Orange juice (pulp, no pulp, high calcium, mediam pulp), milk (fat free, 1%, 2%, whole milk), automobiles (gps, heated seats)
Continuous productionTypes of Manufacturing Operations

a) Project.
b) Job shop.
c) Batch production.
d) Repetitive or "mass" production.
e) Continuous production.

One or a few very highly standardized products are "ongoing " made.
Very high volume of output.
Non-stop, 24/7, production.
Highly automated system.
Workers supervise the production.
The output is continuous, not discrete.
Output is measured, not counted as in mass production.
Very capital intensive.
Non-adaptive to changes in product, demand, technology, quality improvement.
But: limited variety of products
E.g., refined oil products, electricity, paint, steel, paper, mining.
Make-to-order (MTO) Manufacturing Operation Classification - By amount of processing

a) Make-to-order (MTO)
b) Make-to-stock (MTS)
c) Assemble-to-order (ATO)

Product customization per order.
E.g., custom tailored suits, prototypes.
Make-to-stock (MTS) Manufacturing Operation Classification - By amount of processing

a) Make-to-order (MTO)
b) Make-to-stock (MTS)
c) Assemble-to-order (ATO)

Mass production of standard products.
Household appliances and electronics, off-the-rack clothes. Cars --> pick car off the dealer's lot
Assemble-to-order (ATO) Manufacturing Operation Classification - By amount of processing

a) Make-to-order (MTO)
b) Make-to-stock (MTS)
c) Assemble-to-order (ATO)

Assemble ordered combination of standardized options.
E.g., automobiles, PCs. (customer has certain requests: sound system, gps, heated seats etc)
Core servicesClassifying Services
Within any of the types of service operations, have the following types of services offered:
Core services.
Value-added services.

a) Core vs. value-added services.
b) Specific operations types.
c) Service sector.
d) NAICS.

Fundamentally, who is the service provider and what is (are) their primary services.
The server defines himself in terms of the services he provides.
___ services are what is done primarily and foremost.
Defined in terms of:
Mission and function.
Quality.
Flexibility.
Speed.
Price (or service cost).
Value-added servicesClassifying Services
Within any of the types of service operations, have the following types of services offered:
Core services.
Value-added services.

a) Core vs. value-added services.
b) Specific operations types.
c) Service sector.
d) NAICS.

Additional services offered by the service provider to augment their ___ service(s).
But not the primary services.
In terms of:
Information.
Problem solving.
After sales support.
Field support.
Customer convenience.
Individual specialistsTypes of Service Operations

a) Individual specialists.
b) Professional services.
c) Service shop.
d) Mass service.
e) Service factory.

Individuals performing unique, highly specialized, or one-of-a-kind, activities. (work for one person at the time)
One activity is performed at a time
Requires a very high level of special skills, knowledge, and/or technical expertise.
Very high job content.
Examples:
Troubleshooters.
Consultants.
Feature "free-lance" writers and authors.
Bodyguards and private detectives.
Professional servicesTypes of Service Operations

a) Individual specialists.
b) Professional services.
c) Service shop.
d) Mass service.
e) Service factory.

Several on-going activities, functions, and/or projects being performed concurrently.
Services require a highly educated and highly trained service staff.
Diverse mix of services offered.
Very large job content.
Very highly customized and individualized service
Very high service labor intensity
May be organized and operated as service shops, depending on the service provided.
Examples:
Contract technical services providing scientific, engineering, IT/IS, and management services (like SAIC).
Professional services, like medical, dental, legal, accounting, advertising, engineering, consulting, architectural, and management firms.
Service shopTypes of Service Operations

a) Individual specialists.
b) Professional services.
c) Service shop.
d) Mass service.
e) Service factory.


Several on-going activities, functions, and/or projects being performed concurrently.
Services performed require an educated and well trained service staff. (no MBA or PhD)
Diverse mix of services offered
Large job content
Relatively high service labor intensity
Customized and individualized service
Examples:
Hospitals (radiology and ICU), Schools (classroom education), Repair, installation, and maintenance services, Skilled custom services (clothing shops with custom fitting and tailoring), Some professional services may be organized and operated as service shops (Government contractors) (Advertising, engineering, architectural, and management firms)
Mass serviceTypes of Service Operations

a) Individual specialists.
b) Professional services.
c) Service shop.
d) Mass service.
e) Service factory.


Mostly the same services as provided by a service shop but delivered to a large body of customers (mostly, serve all at once).
May have some limited contact and interaction with individual customers during the performance of the service (Q&A during classroom teaching, Q&A during retail selling)
Simply put, ___________is delivered to a large group but with limited individual contact.
Examples:
Retail merchandising. Commercial and personal banking. Classroom teaching. Hotels and resorts.
Fast food restaurants (i.e., McDonalds, Burger King).
Service factoryTypes of Service Operations

a) Individual specialists.
b) Professional services.
c) Service shop.
d) Mass service.
e) Service factory.

Exactly the same service delivered to a large body of customers all at the same time.
Generally, no interaction with the customer during the performance of execution of the service.
Examples:
Mass media: newspapers, broadcast radio, broadcast TV.
Transportation: (airlines, trains, mass transit, etc.).
NOTE: But by the definition of service factory, classroom education and entertainment could also be considered _________.
project A _____ is a set of related and coordinated tasks, with a definite start and stop, and specific deliverables at stages of the project and/or its completion.
Service IndustriesService Sectors
Another service classification scheme: by sector.
A macro or large view of the categories traditionally used in determining employment by various industries in the economy.
Includes:
a) Service industries.
b) Ancillary and support services.
c) Services in manufacturing.

Organizations that fall within this category focus on providing a specific type of service as their main line of business.
Includes:
Health care. Hospitality. Financial services. Professional services and consulting. Retail. Transportation.
Ancillary and support servicesService Sectors
Another service classification scheme: by sector.
A macro or large view of the categories traditionally used in determining employment by various industries in the economy.
Includes:
a) Service industries.
b) Ancillary and support services.
c) Services in manufacturing.


Under the umbrella of "service supply chain management."
These services are performed or provided within the organization, but are not its primary mission.
Some ____ may be "outsourced" instead of managing them in-house
Includes:
Temporary help. Janitorial and custodial services. Security. Food service.
Services in manufacturingService Sectors
Another service classification scheme: by sector.
A macro or large view of the categories traditionally used in determining employment by various industries in the economy.
Includes:
a) Service industries.
b) Ancillary and support services.
c) Services in manufacturing.


To facilitate the purchase of the produced product.
As remarked previously as value-added services for manufacturing.
Includes:
Financing. Service after sale. Warranties. Product updates and upgrades.
NAICS Operation Classification by Industry
North American Industry Classification System NAICS (what does it stand for?)

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