PLANNING AND DESIGNING OPERATING SYSTEMS A 86012 Management and - - PowerPoint PPT Presentation

PLANNING AND DESIGNING OPERATING SYSTEMS

1 A 86012 Management and Principles of Accoun:ng

Planning and Designing Operations Systems

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Opera:ons planning involves making the following decisions

Planning the product Marke:ng research helps determine the product and features customers want, gauge demand and set price Once management has a product, they must plan how to produce the product Opera:ons managers plan for the resources needed to complete the transforma:on process

What will we produce? Who are our customers? What processes will we use? Where will we make our product?

Source: M Business 5th Edi:on

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Designing the Operations Process

Products are manufactured using one of three processes

Standardization

• The making of

identical interchangeable components or products Modular Design

• The creation of

an item in self- contained units,

• r modules, that

can be combined or interchanged to create different products Customization

• Making products

to meet a particular customer’s needs or wants

Source: M Business 5th Edi:on

Planning Capacity

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Capacity

• The maximum load that an organizational unit can

carry or operate

• The unit of measurement could be a worker or

machine, a department, a branch or an en:re plant

• Capacity can be stated in terms of inputs or outputs
• Planning capacity too low results in unmet demand

while planning it too high results in higher costs

Source: M Business 5th Edi:on

Planning Facility Location

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• A complex and costly decision

Facility Location

Important factors to consider

Proximity to market Availability of raw materials, transporta:on, power and labor Clima:c influences and community characteris:cs Taxes and inducements

Source: M Business 5th Edi:on

Planning Facility Layout

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Fixed-Position Layout

• A layout that

brings all resources required to create the product to a central location Project Organizations

• Companies using

a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration

Source: M Business 5th Edi:on

Planning Facility Layout

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Process Layout

• A layout that
• rganizes the

transformation process into departments that group related processes Intermittent Organizations

• Organizations that

deal with products of a lesser magnitude than project

• rganizations; their

products are not unique but possess a significant number

• f differences

Source: M Business 5th Edi:on

Planning Facility Layout

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Product Layout

• A layout requiring

production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line Continuous Manufacturing Organizations

• Companies that

use continuously running assembly lines, creating products with many similar characteristics

Source: M Business 5th Edi:on

Planning and Designing Operations Systems

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Apple stores are designed to make the most efficient use

• f space

The layout of the stores allows customers to test its products before purchasing

Source: M Business 5th Edi:on

Planning Facility Technology

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• The design of components, products and processes
• n computers instead of on paper

Computer-Assisted Design (CAD)

• Employs specialized computer systems to actually

guide and control the transformation process Computer-Assisted Manufacturing (CAM)

Source: M Business 5th Edi:on

Planning Facility Technology

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• The direction of machinery by computers to adapt to

different versions of similar operations Flexible Manufacturing

• A complete system that designs products, manages

machines and materials, and controls the operations function Computer-Integrated Manufacturing (CIM)

Source: M Business 5th Edi:on

Sustainability and Manufacturing

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Sustainability issues are becoming increasingly important to stakeholders and consumers “Green” operations and manufacturing can improve a company’s reputation, increase customer and employee loyalty, leading to improved profits

Source: M Business 5th Edi:on

Planning and Designing Operations Systems

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Their mission statement: Build the best product, cause no unnecessary harm, and use business to inspire and implement solu5ons to the environmental crisis Patagonia is always looking for a greener way to design, produce and recycle its products

Source: M Business 5th Edi:on