PLANNING AND DESIGNING OPERATING SYSTEMS A 86012 Management and Principles of 1 Accoun:ng
8-2 Planning and Designing Operations Systems Opera:ons planning involves making the following decisions What will we produce? Who are our customers? What processes will we use? Where will we make our product? 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 Source: M Business 5 th Edi:on
8-3 Designing the Operations Process Products are manufactured using one of three processes Standardization Modular Design Customization • The making of • The creation of • Making products identical an item in self- to meet a interchangeable contained units, particular components or or modules, that customer’s products can be needs or wants combined or interchanged to create different products Source: M Business 5 th Edi:on
8-4 Planning Capacity Capacity • The maximum load that an organizational unit can carry or operate o The unit of measurement could be a worker or machine, a department, a branch or an en:re plant o Capacity can be stated in terms of inputs or outputs o Planning capacity too low results in unmet demand while planning it too high results in higher costs Source: M Business 5 th Edi:on
8-5 Planning Facility Location Facility Location • A complex and costly decision 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 5 th Edi:on
8-6 Planning Facility Layout Fixed-Position Layout Project Organizations • A layout that • Companies using brings all a fixed-position resources layout because it required to create is typically the product to a involved in large, central location complex projects such as construction or exploration Source: M Business 5 th Edi:on
8-7 Planning Facility Layout Process Layout Intermittent Organizations • Organizations that • A layout that deal with products of organizes the a lesser magnitude transformation than project process into organizations; their departments that products are not group related unique but possess a significant number processes of differences Source: M Business 5 th Edi:on
8-8 Planning Facility Layout Product Layout Continuous Manufacturing Organizations • A layout requiring • Companies that production be use continuously broken down into running assembly relatively simple lines, creating tasks assigned to products with workers, who are many similar usually positioned characteristics along an assembly line Source: M Business 5 th Edi:on
8-9 Planning and Designing Operations Systems � Apple stores are designed to make the most efficient use of space � The layout of the stores allows customers to test its products before purchasing Source: M Business 5 th Edi:on
8-10 Planning Facility Technology Computer-Assisted Design (CAD) • The design of components, products and processes on computers instead of on paper Computer-Assisted Manufacturing (CAM) • Employs specialized computer systems to actually guide and control the transformation process Source: M Business 5 th Edi:on
8-11 Planning Facility Technology Flexible Manufacturing • The direction of machinery by computers to adapt to different versions of similar operations Computer-Integrated Manufacturing (CIM) • A complete system that designs products, manages machines and materials, and controls the operations function Source: M Business 5 th Edi:on
8-12 Sustainability and Manufacturing “Green” operations and Sustainability issues are manufacturing can improve becoming increasingly a company’s reputation, important to stakeholders increase customer and and consumers employee loyalty, leading to improved profits Source: M Business 5 th Edi:on
8-13 Planning and Designing Operations Systems � Patagonia is always looking for a greener way to design, produce and recycle its products � Their mission statement: Build the best product, cause no unnecessary harm, and use business to inspire and implement solu5ons to the environmental crisis Source: M Business 5 th Edi:on
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