Module 4 Operations Management PDF

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT

MODULE #:

4

MODULE TITLE:

MANUFACTURING PROCESS

WRITER:

VILMA BELLEN - OCROMAS

MODULE INTRODUCTION AND FOCUS QUESTION(S): Once a company has decided on what product to make, the next important step is to consider and choose the best manufacturing process to use in creating the product. This module will introduce the different processes used in manufacturing and production. Detail discussion and examples are provided in each of the processes like job production, batch production, flow production, mass customization, cosmetic customization and hybrid process.

To do well in this module, you need to remember and do the following:

MODULE LESSONS AND COVERAGE:

1. Read the topics below and you may open the indicated website. Explore. 2. Take down notes and highlight some important terminologies so that you could clarify with instructor. 3. Go beyond the procedure given in the net. Explore more. 4. Review the suggested videos as many times as you needed. 5. Do the required activities and submit it on time. 6. Always participate on the online class in google classroom/ zoom meetings. 7. If you have difficulties and requires assistance please feel free to email me or message me in messenger. VBOCROMAS|FACULTY, CBMA

UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT

Lessons

Topics

Learning Outcomes “I SHOULD BE ABLE TO”

Estimated Time

Topic 1

What is Job Production?

DEFINE job production and DESCRIBE how this process works.

1

Topic 2

What is Batch Production?

DEFINE batch production and EXPLAIN how this process works.

1

Topic 3

What is Flow Production?

DEFINE flow production and DESCRIBE how this process works.

1.5

Topic 4

What is Mass Customization?

DEFINE mass customization and EXPLAIN how this process works.

1.5

Topic 5

What is Continuous Production?

DEFINE continuous production and DESCRIBE how this process works.

1.5

Topic 6

What is Hybrid Processes?

DEFINE hybrid processes and EXPLAIN how this process works.

1.5

UNIVERSITY PRAYER Lord, in our weakness and vulnerability, bless us with your grace to soar beyond limits. Enlighten our vision and guide our mission that we may clearly see and fully realize our quest. Keep our passion for the truth burning and our compassion for humanity bright that we may live truly and lovingly. Keep us in harmony with the universe that we may be joyfully one with your creation. Yet, above and before all, Lord, grant us the grace to love you with all our mind and soul and with all our heart and strength that we may praise, bless, and preach according to your will. Make us, Legazpi Thomasians, whole as a person, and as a community in your wondrous name, this we ask and pray with a happy and grateful memory. AMEN. VBOCROMAS|FACULTY, CBMA

UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT PRE-ASSESSMENT: Let’s find out how much you already know about this module. Choose the letter that you think best answers the question. Please answer all items. After taking this test, you will see your score. Take note of the items that you were not able to correctly answer and look for the right answer as you go through this module. 1. It is a manufacturing process where the items are made to order and made according to the requirement of the client. Job production Batch production Flow production 2. When a number of the same items are made together, is called… Job production Batch production Flow production 3. Hybrid processes are defined as … Continuous production throughout the year Combination of 2 or more process to effect into one single process Product are design by customers 4. The creation of a new product to be presented to a new target market through a process of combining manufacturing processes is called… Hybrid processes for innovation Mass customization Cosmetic customization Continuous production 5.Companies who uses continuous production process must have a huge capital to run a continuous production as it requires a large floor space and advance machinery. True False VBOCROMAS|FACULTY, CBMA

UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT INTRODUCTION What comes in your minds when you think of the different types of manufacturing methods and processes? Do you imagine images of endless line in factories? Or maybe greasy and oily overalls being worn by dirtier mechanic tolling away some complex machine? Once a company has decided what goods or services to make, its directors have to choose a method of production that best suits consumer demand, the product, and the market, as well as the one that will be the most profitable. Companies work in three general areas of industry, which together form a production chain to provide consumers with finished goods or services. There are several options for companies to choose for the best manufacturing processes to create their products.

CHOOSING THE BEST METHOD Before the Industrial Revolution, products were made by craftsmen. Then factories brought people together to work on machines. Typically, this was job production, with one person making one item. Economist Adam Smith first introduced the concept of division of labor, which led to mass production, with car-maker Henry Ford bringing in the moving assembly line at the start of the 20th century. Today, manufacturers can combine the best of all methods, with large-scale production of personalized products. Here are the different methods/processes that manufacturer can choose from; Job production. - items are made to order and made individually Batch production - A number of items are all made together at the same time. Flow production - Suitable for mass-producing identical items on an assembly line. Mass customization - Mass product is customized by buyer Continuous production - 24/7 line of production, for products with consistent demand. Hybrid process - Mixing batch and flow production or combining other processes.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #1: JOB PRODUCTION In job production, items are made individually. Each item is one job, which is usually finished before another is started. This method is typically used for small-scale production or for large one-off projects. How it works Job production is best suited to a business that has to meet specific customer requirements. Typically, these are unique requests, which an individual or a team handles from start to finish. The scale may be small, and firms often start with job production because it is simple and little investment is required.

Example: [1] Made-to-measure suits, or [2] custom-made furniture Job production can also be used for complex projects and those involving leading-edge technology, including film production, major constructions such as; Example: [1] Ships for the navy, [2] architect-designed buildings, and [3] structural engineering projects including bridges and tunnels . JOB PRODUCTION - GOWN PRODUCTION

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #2: BATCH PRODUCTION When a number of the same items are made together, it is called batch production. One batch finishes each stage of the production process before the next batch starts, using the same equipment and steps. How it works Batch production allows a company to make a quantity of items in one production run. Factory equipment is geared up in terms of scale and special tools that can be changed for each batch. Example:

Equipment is set-up to make 200 size 10 dresses in red fabric and then adjusted to 400 size 12 dresses in blue fabric.

Quantities can vary from as few as four identical items for local supplier to thousands for department store, and batches can be made as often as required. Batch production is common in food, clothing, footwear, paints, adhesive, and pharmaceutical ingredients industries. Each batch must be traceable, with clear date stamping, in order to comply with laws and standard.

Adjustments will be made for the second batch. The equipment is recalibrated to make 50 large brown loaves.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #3: FLOW PRODUCTION The purpose of flow (mass) production is to produce a large number of identical, standardized items. This usually happens on a moving line, which can be interrupted when the product is changed. How it works Flow production typically involves large factories equipped with conveyors belts and expensive machinery, the assembly of individual components, which may be bought in from other companies, and the automation of tasks. Examples: A car manufacturing, where elements of the product are put together along a line; robot, arms may fit wheels and workers may perform specialized jobs. Significant output is possible with even a small number of workers. Newspaper printers, oil refineries, and chemical plants also use flow production

Flow production is also known as mass or continuous production. It enables a product to be created in a series of stages on an assembly line. Flow production is highly capital-intensive and has high set-up costs, requiring companies to operate high capacity utilization. Employees are normally semi-skilled and the process is suited to both mechanisation and automation

HOOK UP ACTIVITY In this activity, you need to watch the following videos to learn about the production process of some car companies. Watch with comprehension and obtain the best grasps and able to connect to the next activity. Take down notes and highlight the important things for you to be able to make a reflection about this video. Watch the video as many time as needed. Make a reflection about the video. Highlight the great lessons, your thoughts, and rationalization about content of the videos. Click the link below to access the video: Ferrari Factory in Maranello Italy! https://www.youtube.com/watch?v=La73Oy9ZGVw&t=296s ! BMW MANUFACTURING 2021:Car Factory Assembly of all BMW Cars! https://www.youtube.com/watch?v=c08qwuSpX8M

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT FLOW PRODUCTION

The production line starts from parts assembly and ends with the car ready for customer. When customer demand is high, car companies may run their production lines continuously.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #4: MASS CUSTOMIZATION Sophisticated technology and manufacturing developments enable mass products to be personalized. The low unit costs of mass production combine with the marketing opportunities of custom-made. How it works Mass customization offers new opportunities for the manufacturing and service industries. Social media, online technology, 3-D modeling tools, e-commerce software, and flexible production systems and processes are allowing customers to configure products to match their own taste and needs. Examples: Industries such as footwear (particularly tainers shoes), clothing, cars, jewelry, and computers already allow consumers to customize their purchases. Price is generally higher than for standardized goods. Customers want to have a wallet with their name carved on it. This concept of mass customization where customers are provided unique custom-made products at the mass production prices. This concept of branding is becoming quite popular with the companies these days, and more and more companies are adopting this business concept to boost their sales. It is becoming popular to consumer because of their desire to have unique things.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT FOUR TYPES OF MASS CUSTOMIZATION FOUR TYPES OF MASS CUSTOMIZATION Source: Mass Customization: The New Frontier In Business Competition, B Joseph Pine II outlines four distinct types; Collabora_ve customiza_on: Work with individual customer to develop specific product to suit their needs.

Adap_ve customiza_on: Produce standardized products that are customizable by enduser.

Example:

For instance, US company Lutron produces a lighdng system that lets customers choose own seeng from programmed seengs.

Technology Firm Dell, assemble computers to customer’s specificadon.

Example:

Transparent customiza_on:

Cosme_c customiza_on:

Provide unique products to individuals without overtly stadng items are customized.

Make a standardized product but market if differently:

Example:

Example:

The Ritz-Carlton hotel group keeps a database of preferences for pillow and newspapers to personalize a guest’s stay.

Hertz disdnguishes its standard rental car from its #1 Club Gold program

FIRM-UP Instruction: Do a research and provide answers to the following questions. 1. Find out what has been the impact of Covid-19 Pandemic on the automotive industry particularly in the Asia Pacific Region in terms of car sales and production. 2. Give examples of companies using mass customization in creating their products. 3. Identify strategies that companies can use to successfully implement mass customization.

END OF FIRM UP

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #5: CONTINUOUS PRODUCTION Continuous production is a type of production system in which materials being processed are continuously in motion. During a continuous production, a product is made 24 hours a day, seven days a week. The production line runs continuously to cope with demand and staff work round the clock in shifts. How it works With Flow or mass production, the line is stopped to change products or models. Continuous production uses the same concept, but it runs throughout the year so output is non-stop. This method is used to identical commodities with high, consistent demand, including paper, cardboard, packaging, washing powder, electronic components, and oil products. As with mass production, processes are automated, staffing levels are kept to a minimum, and quality control is essential. During continuous processing, distinct parts flow from one machine to the next to make the product. There is no interruption between stages of production. It’s a very organized system involving advanced machinery and producing high volumes. They may shut down machinery after careful weeks of planning when it’s time for general maintenance or if they plan to install new equipments. There is high competition in industries using continuous production. Margins may be low, but demand is often relatively stable, encouraging investment in capital equipment. Companies must have high capital to run a continuous production operation. Continuous production requires a large floor of space and advance machinery. Paper is used throughout the world, and factories operate 365 days a year to satisfy constant demand. Timber is the raw material for papermaking. Once the timber has been debarked, chipped, and pulped, the fibers are washed and dyed. At the end of its cycle, some paper is recycled.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT TYPICAL USES OF CONTINUOUS PRODUCTION

ENERGY: ELECTRICITY AND GAS OIL REFINERIES AND CHEMICAL PLANTS PAPER PRODUCTION

GLASS PRODUCTION

DEEPEN In this activity, you need to discuss your observations and provide examples for a given process based on the lessons discussed. 1. Discuss the advantages and disadvantages of using a continuous production in manufacturing. 2. Provide more examples of products created through continuous production.

END OF DEEPEN

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #6: HYBRID PROCESSES (COMBINING METHODS) Hybrid production process are also defined as the combination of effects that are conventionally cause by separated processes in one single process at the same time like in grind-hardening. Also, in metal forming the term “hybrid” is used in a broad definition. Manufacturing firms may adapt existing processes or combine two production methods for optional performance, particularly if they make a wide range of products. How it works There are many examples of hybrid processes. One is linked batch flow production, where only two or three pieces of equipment are required and a batch flows from one process to another. This is common in the chemicals and pharmaceuticals industries. Examples: A company may make headache medication and a hay fever remedy in tablet, capsule, and liquid form, and in varying doses, each batch flows through a series of steps, depending on composition and form, from bulk processing to packaging. A cell manufacturing, which combines job production with flow (mass) production.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT LECTURE #6: HYBRID PROCESSES FOR INNOVATION By combining manufacturing processes, companies can create products with new and original qualides. For instance, a food company that makes sliced bread and oven chips may speed up chip producdon by baking them in the bread oven first. This has the unintended but beneficial consequence of making the fries healthier. A new product is created, which may now be marketed as a new proposidon to a different set of customers. The figure below will show you an illustradon on how it works.

ADDITIONAL INFORMATION: Increments - small steps of gradual improvement over a period of time, rather than breakthrough or transformational change. Hybridization - The substitution of several separate processes with one single hybrid process.

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT TRANSFER Your goal in this section is to apply your learning to real life situations. You will be given a practical task which will demonstrate your understanding. Instruction: Identify companies in the Philippines that applies the following operational structures and also indicate the product or service they are offering. Identify as many as you can.

PERFORMANCE TASK 1. With the successful adaptation of companies using Hybrid process for innovation, think of any product innovation idea that you can recommend to your company or apply in your business using a Hybrid Process. 2. Illustrate the product innovation process.

END OF TRANSFER

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UNIVERSITY OF SANTO TOMAS-LEGAZPI The Dominican University in Bicol

OPERATIONS MANAGEMENT

KEY TAKEAWAY Selecdng a manufacturing process for a product is the first thing a company need to consider as soon as a product has been decided, not aler finalizing the design proc...