Pdf - Week 08 Producing Goods And Services

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What Does Production Mean Today?

Week 8

ng Produci Services d n a s d Goo

• 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.

Jakarta, Novem ber 2007

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

The Growth of Global Operations Services…

• • • •

Goods…

are performed are intangible are unstorable 50.3% of GDP (US)

• • • •

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

are made are tangible are storable 29.7% of GDP (US)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What is Operations (or Production) Management

• 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.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Resource Transformation Process

Systematic direction and control of the processes that transform resources into finished products that create value for and provide benefits to customers

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

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Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Operations Processes Services…

• • • •

are performed are intangible are unstorable 50.3% of GDP (US)

Goods… • • • •

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

are made are tangible are storable 29.7% of GDP (US)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Goods-Manufacturing Processes : Analytic vs. Synthetic Processes

• Analytic process breaks down resources into components

• 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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Service Processes: Extent of Customer Contact

• High-contact system is an operation in which the customer is part of the system during service delivery

• Synthetic process combines raw materials to produce a finished product

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Differences between Service and Manufacturing Operations • Low-contact system is an operation in which the customer need not be a part of the system to receive the service • 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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

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Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Operations Planning

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Operations Planning and Control

• 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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Capacity Planning

What is Capacity ?

Amount of a product that a company can produce under normal working conditions

e-mail: [email protected]

• 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.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

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.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Layout Planning for Producing Goods

Layout must be planned for three types of space: 1. Productive facilities 2. Nonproductive facilities 3. Support facilities

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

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Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Layout Planning for Producing Goods

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Layouts 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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Other Developments in Layout Flexibility

Layout Planning for Producing Services

• 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

• 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.

• Flexible Manufacturing System (FMS) is a production system in which a single factory uses automation to produce a wide variety of products

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Layout of a Typical Piccadilly Cafeteria

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

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.”

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

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Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Methods Planning

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Service Flow Analysis

• 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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Operations Scheduling

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Tools for Scheduling Service Operations

• Gantt chart diagrams steps to be performed and specifies the time required to complete each step

• Scheduling Goods Operations – Master production schedule shows 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.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Tools for Scheduling Service Operations

• PERT chart breaks down large projects into steps and specifies the time required to perform each one

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What is Operation Control ?

Process of monitoring production performance by comparing results with plans

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

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Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What is Follow-Up ?

Production control activity for ensuring that production decisions are being implemented

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Tools for Operations Process Control

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

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

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

Universitas Multimedia Nusantara (UMN)

e-mail: [email protected]

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What is Quality Control

Management of the production process designed to manufacture goods or supply services that meet specific quality standards

• Worker Training • Lean Production Systems: Just-in-Operations – Just-in-Time (JIT) Production • Material Requirements Planning – Bill of Materials – Manufacturing Resource Planning (MRP II)

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

6

Universitas Multimedia Nusantara (UMN)

Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

thank you

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi

e-mail: [email protected]

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