Class op sys

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Class op sys

  1. 1. Classifications of Operations Systems
  2. 2. Classifications of Operations Systems   Volume / Flexibility Service – Process Matrix
  3. 3. Product - Process Matrix Product Mix Process Pattern Very Jumbled Flow; process segments loosely linked Jumbled flow, but a dominant flow exists Line Flow Worker paced Machine paced Low High Very high Volumes, Challenges to One of a Volumes,Volumes, Several major standard kind or many Management products products product few Scheduling; materials Project Handling;shifting bottlenecks Job Shop Opportunity Costs Batch Flow Worker motivation; balance;maintaining enough flexibility Line Flow Out-of-pocket costs Line Flow Capital expenses for big chunk capacity; Continuous technological change Materials management; Flow vertical integration Continuous, Automated and rigid flow; process segments tightly linkedChallenges to Bidding; Quality (Product Management delivery; Differentiation); Product design Flexibility in flexibility output volumes Price
  4. 4. Volume / Flexibility  Projects - oil rig construction - development of a computer software package - overhaul of an airliner
  5. 5.  Job shop - Low volume, low standardisation – one of a kind, custom design, general purpose equipment, high margins, jumbled flow, estimating costs, estimating delivery times, order tracing and expediting - tool room - tailor - operation theatre
  6. 6. Volume / Flexibilty (contd.)  Continuous - High volume, specialised equipment, high capital investment, high standardisation, commodity, vertical integration, long runs, economies of scale, timing expansion and technological changes - nuts and bolts - cement, sugar, petroleum - photographic films
  7. 7. Volume / Flexibilty (contd.)  Batch - Standardised designs, back-up suppliers, finished or intermediate goods inventory, systematising diverse elements, SPC, developing standards, large complex operations - aero-engines - mining equipment - pumps, compressors - mail collection Disconnected line flow or Connected line flow
  8. 8. Volume / Flexibilty (contd.)  The Service – Process Matrix (Schmenner) - Two Axes: - Degree of Labour Intensity; ratio of labour cost to value of plant and equipment Electric utilities Communications Amusement parks Hospitals Banking Hotels Retail trade Business services : 14.21 : 5.31 : 2.49 : 1.63 : 1.20 : 1.01 : 0.62 : 0.42
  9. 9. Volume / Flexibilty (contd.)  The Service – Process Matrix (Schmenner) - Two Axes: - Degree of Interaction and Customisation Interaction : Degree to which the customer can intervene in the process (e.g. restaurant), is not duration of contact (e.g. lectures) Customisation : Degree to which the service provided is tailored to the needs of the customers
  10. 10. The Service – Process Matrix Low Degree of Interaction & Customisation Low High Service Factory Service Shop Degree Airlines Hospitals of Hotels Auto Repairs Labour Intensity Resorts Mass Service High Professional Retailing Doctors Schools Lawyers Commercial Banking Accountants
  11. 11. The Service – Process Matrix (contd)  Low Labour Intensity - Capital decisions – Capacity, Technology and Timing - Managing demand to avoid peaks and to promote off peaks - Scheduling service delivery
  12. 12. The Service – Process Matrix (contd)  High Labour Intensity - Hiring, training, welfare - Methods development and control - Scheduling workforce
  13. 13. The Service – Process Matrix (contd)  Low Interaction & Customisation - Marketing - Making service “warm” - Attention to physical surroundings - Managing fairly rigid hierarchy
  14. 14. The Service – Process Matrix (contd)  High Interaction & Customisation - Fighting expenses increases - Reacting to customer interventions in process - Gaining employee loyalty - Managing flat hierarchy - Loose subordinate / superior relationship - Managing advancement of people
  15. 15. The Service – Process Matrix (contd)   Help companies assess their competitive stance and means by which they provide their services Possibility to move across (the diagonal)? (e.g. banking and retailing becoming more automated, restaurants with more standardised menus, professional service firms to specialise; pursuit is for controls and reduced costs)
  16. 16. Assignment   Attempt to categorise the operations system of your own organisation, or others with which you are familiar How would it plan to move across (the diagonal)? What would be the implications vis-à-vis the organisation’s structure, systems and processes?

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