Download - PDF - Week 08 Producing Goods and Services
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Jakarta, November 2007
Week 8
Producing
Goods and Service
s
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What Does Production Mean Today?
• The concept of production means services as well as
goods.
• The key difference between production and services
operations is the customer's involvement in the latter.
• Customers are involved in all kinds of production because
electronic communications are key components in winning and keeping customers.
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Services…
• are performed
• are intangible
• are unstorable
• 50.3% of GDP (US)
Goods…
• are made
• are tangible
• are storable
• 29.7% of GDP (US)
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
The Growth of Global Operations
• Global competition has made production a faster-paced,
more complex activity.
• New technologies make machines that run cleaner, faster
and safer and that operate on a global scale.
• With the Internet, producers of both services and goods
can integrate their production with those of far-off suppliers
and customers.
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What is Operations (or Production) Management
Systematic direction and control of the processes
that transform resources into finished products
that create value for and provide benefits to customers
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Resource Transformation Process
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Services…
• are performed
• are intangible
• are unstorable
• 50.3% of GDP (US)
Goods…
• are made
• are tangible
• are storable
• 29.7% of GDP (US)
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Operations Processes
• Operations process is a set of methods and technologies
used in the production of a good or a service
– Goods classification is based on whether an operations
process combines resources or breaks them into component parts
– Services classification is based on the extent of customer contact required
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Goods-Manufacturing Processes : Analytic vs. Synthetic Processes
• Analytic process breaks down resources into components
• Synthetic process combines raw materials to produce a finished product
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Service Processes: Extent of Customer Contact
• High-contact system is an operation in which the customer is part of the system during service delivery
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
• Low-contact system is an operation in which the
customer need not be a part of the system to receive the
service
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Differences betweenService and Manufacturing Operations
• Focus on Performance
• Focus on Process and Outcome
• Focus on Service Characteristics
– Intangibility
– Customization
– Unstorability
• Focus on the Customer-Service Link
– E-Commerce: The “Virtual Presence” of the Customer
• Focus on Service Quality Considerations
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Operations Planning
• Managers from many departments contribute to decisions
about operations.
• The business plan and forecasts developed by top
managers guide operations planning.
– Forecast is a facet of a long-range
production plan that predicts
future demand
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Operations Planning and Control
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What is Capacity ?
Amount of a product that a company can produce
under normal working conditions
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Capacity Planning
• Capacity Planning for Producing Goods
– Capacity planning for goods means ensuring that a firm’s capacity slightly exceeds normal demand for its product.
• Capacity Planning for Producing Services
– In low-contact processes, maintaining inventory lets managers set capacity at the level of average demand.
– In high-contact processes, managers must plan capacity to meet peak demand.
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Location Planning
• Location Planning for Producing Goods
– Location decisions are influenced by proximity to raw materials and markets, availability of labor, energy and transportation costs and other factors.
• Location Planning for Producing Services
– Low-contact services can be located near resource supplies, labor or transportation outlets.
– High-contact services must locate near the customers who participate in the system.
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Layout Planning for Producing Goods
Layout must be planned for three types of space:
1. Productive facilities
2. Nonproductive facilities
3. Support facilities
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Layout Planning for Producing Goods
• Process layout groups equipment and people according to function
• Cellular layout works well when a family of products follows a fixed flow path
• Product layout is set up to make one type of product in a fixed sequence and is arranged according to its production requirements
– Assembly line is a product layout in which a product moves step-by-step through a plant on conveyer belts or other equipment until it is completed
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Layouts for Producing Goods
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Other Developments in Layout Flexibility
• U-shaped product line is a product layout in which machines and workers are placed in a narrow U shape
rather than a straight line
• Flexible Manufacturing System (FMS) is a production
system in which a single factory uses automation to produce a wide variety of products
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Layout Planning for Producing Services
• In a low-contact system, the facility should be arranged to
enhance the performing of the service.
• In a high-contact system, the facility should be arranged
to meet customer needs.
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Layout of a Typical Piccadilly Cafeteria
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What is Quality ?
The American Society for Quality defines quality
as the combination of “characteristics of a product
or service that bear on its ability to satisfy stated
or implied needs.”
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Methods Planning
• Methods Improvement in Goods
– Process flowchart is a diagram included in a detailed
description of methods
• Methods Improvement in Services
– Service flow analysis shows the flow of processes
that make up a given service
– Designing to Control Employee Discretion in Services
– Design for Customer Contact in Services
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Service Flow Analysis
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Operations Scheduling
• Scheduling Goods Operations
– Master production scheduleshows which products will be produced, when production will take place and what resources
will be used
• Scheduling Service Operations
– In low-contact services, work scheduling may be based
either on desired completion dates or on the time of order arrivals.
– In high-contact services, the customer must be accommodated as part of the system and its processes.
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Tools for Scheduling Service Operations
• Gantt chart diagrams steps to be performed and specifies
the time required to complete each step
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Tools for Scheduling Service Operations
• PERT chart breaks down large projects into steps and
specifies the time required to perform each one
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What is Operation Control ?
Process of monitoring production performance by comparing results with plans
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What is Follow-Up ?
Production control activity for ensuring
that production decisions are being implemented
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Materials Management
• Materials management allows managers not only to
control but also to plan and organize materials flow
– Standardization is the use of standard and uniform
components in the production process
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Major Areas in Material Management
1. Transportation includes the means of transporting
resources to the manufacturer and finished goods to
buyers
2. Warehousing is the storage of both incoming materials for
production and finished goods for distribution to
customers
3. Inventory control includes the receiving, storing, handling
and counting of all raw materials, partly finished goods
and finished goods
4. Purchasing is the acquisition of the raw materials and
services that a firm needs to produce its products
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Purchasing Processes
• Holding costs are costs of keeping extra supplies or inventory on hand
• Opportunity costs are additional earnings that the company must pass up because funds are tied up in inventory
• Lead time is the gap between the customer’s order placement and the seller’s shipment
• Supplier selection is the process of deciding which suppliers to buy from
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
Tools for Operations Process Control
• Worker Training
• Lean Production Systems:
Just-in-Operations
– Just-in-Time (JIT) Production
• Material Requirements Planning
– Bill of Materials
– Manufacturing Resource Planning (MRP II)
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
What is Quality Control
Management of the production process designed to manufacture goods or supply services that meet specific
quality standards
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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: [email protected]
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