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MANUFACTURING AND SERVICE DELIVERY PROCESS
By: Ot Chan Dy, BE & Msc.
Management Institute of Cambodia
Manufacturing
Service
Process
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AFTER FINISH THIS CHAPTER YOU WILL BE ABLE TO
Define what are the four block of heart of manufacturing and service delivery process
Describe stages of manufacturing process
Differentiate one firm’s service to another using activities sequences
Describe the five process characteristic and their interrelationship
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CONTENT
Production and Service Delivery Process
Stages of manufacturing
Service delivery process
Process characteristic
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PRODUCTION AND SERVICE DELIVERY
Manufacturing and service delivery processes are diverse, but at their heart contain 4 basic elements:
INPUT OUTPUT
RESOURCES
ACTVITIES
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PRODUCTION AND SERVICE DELIVERY
Manufacturing and service delivery processes are diverse, but at their heart contain 4 basic elements:
Inputs: inputs are either consumed or transformed by process.
Automakers require sheet steel Airlines require fuel Hospital require medical supplies and energy Schools need students News services need content (wire stories, photo, video) etc.
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PRODUCTION AND SERVICE DELIVERY
Manufacturing and service delivery processes are diverse, but at their heart contain 4 basic elements:
Outputs: outputs are the end of product of the process (or service performed by the processes).
Completed car Transported passenger The cured patient The educated student The completed news story
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PRODUCTION AND SERVICE DELIVERY
Manufacturing and service delivery processes are diverse, but at their heart contain 4 basic elements:
Resources: resources are the means by which inputs are converted into outputs. Resources include asset such as
Auto plant The airport gates Specialized knowledge of physician The classrooms The network of local reporter
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PRODUCTION AND SERVICE DELIVERY
Manufacturing and service delivery processes are diverse, but at their heart contain 4 basic elements:
Activities: activities involve a specific use of resources to help convert inputs into outputs.
Bolting bumper onto a car Loading an airplane with passengers Performing an operation Teaching a class Dispatching a reporter to cover an election
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PRODUCTION AND SERVICE DELIVERY
When analyzing a firm’s operation: What exactly are the inputs to the processes? What are the outputs? What resources does the firm use or have
available to it? Which activities does it perform or not perform?
At its core, operation management is about managing this four components.
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CONTENT
Production and Service Delivery Process
Stages of manufacturing
Service delivery process
Process characteristic
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STAGES OF MANUFACTURING PROCESS
Procurement: Procurement is the act of acquiring the basic
inputs require to manufacture a product or provide service
Procurement activities may involve: Securing mineral rights and leases for natural
resources Developing suppliers networks Overseeing the component design of one’s
suppliers activities Certifying suppliers quality Coordinating inbound logistic
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STAGES OF MANUFACTURING PROCESS
Fabrication: Fabrication is refers to the basic processes used
to form parts, components and minerals required in later stages of production.
Fabrication processes include: Molding plastic parts from resin Stamping automobile body panels from sheet
metal Die casting aluminum valve covers Weaving and dying fabric Extruding molten steel into bars or rods
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STAGES OF MANUFACTURING PROCESS
Assembly: Assembly is a process of putting together
components to produce more complex intermediate components (called subassemblies) or to produce final product (called final assembly).
It is different from fabrication, an assembly process does not alter the form of incoming parts.
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STAGES OF MANUFACTURING PROCESS
Testing: Testing of some sort is usually part of any
manufacturing process. It can be done at final product or any stages of process.
In some industries, testing is the most time consuming: Semiconductor Military electronic parts often require “burning”
test Pharmaceutical companies must test and verify
each batch (lot) of drug produced
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STAGES OF MANUFACTURING PROCESS
Packaging & Distribution: Packaging involves placing products into boxes,
bottles, cans, pallets or other containers for delivery to customers.
Packaging process is critical to some of these products: Household cleaner Cosmetics Food products
For example: Beer industry, packaging operation is the core of
production process
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STAGES OF MANUFACTURING PROCESS
Packaging & Distribution: Distribution is the shipment of final products to
firm’s customer. It is the final stage of manufacturing process.
It is involving: processing of customer orders managing distribution centers controlling inventories picking and assembling orders for shipment selecting shipment modes routing and scheduling trucks handling of return flow of products and packaging
waste (reverse logistic)
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STAGES OF MANUFACTURING PROCESS
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STAGES OF MANUFACTURING PROCESS
Packaging & Distribution: Some firms choose to outsource many of these
distribution activities either by selling only to large wholesalers or by subcontracting distribution to third party.
For grocery store chains and other retailing businesses, it is the vital and central activity.
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CONTENT
Production and Service Delivery Process
Stages of manufacturing
Service delivery process
Process characteristic
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SERVICE DELIVERY PROCESS
Most important feature of service operations are:
Output or service offering – what it is offering?
Delivery process – how it is deliver?
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SERVICE DELIVERY PROCESS
Exercise # 1: Car repairing!
Exercise # 2: Air travel from Phnom Penh – Kuala Lumpur
Instruction: Split into two group Discuss and describe the sequence of service
delivery process of each case above (both of each group)
Present the result on flipchart
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SERVICE DELIVERY PROCESS
WHAT MAKE DIFFERENT FROM ONE AIRLINE OR CAR
REPAIR SHOP’S SERVICETO ANOTHER?
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CONTENT
Production and Service Delivery Process
Stages of manufacturing
Service delivery process
Process characteristic
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PROCESS CHARACTERISTICS
1. Efficiency Efficiency, in simplest term, is a measure of
how much input is require to generate a unit of output.
The input/output ratio
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PROCESS CHARACTERISTICS
2. Capacity Capacity is a measure the maximum output a
process is capable of sustaining.
It is usually express as rate, i.e. # parts per hour a machine can produce, # of kilowatts per hour an electric plant can provide, or number of passengers per trip a plane can transport.
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PROCESS CHARACTERISTICS
3. Quality Quality refers to a broad range of
characteristics that are often difficult to precisely define, measure, and control.
A basic definition: it is measure of conformance with a product’s design standards.
Poor quality can significantly affect production costs, due to scrap, rework and warranty costs.
It is also affect both the price customers are willing to pay and loyalty.
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PROCESS CHARACTERISTICS
4. Throughput time Throughput time refers to time it takes to
provide a product or service.
Most customers value speed service and fast delivery times and many are willing to pay a premium to firms that provide speed.
Example: Throughput time of car maker is from start to end a car
body pass through the plant On line retailer throughput time is time between order
to arrival Transportation throughput time is time moving from
point A to point B
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PROCESS CHARACTERISTICS
5. Flexibility A process is said to be Flexible if operating cost
and performance is not adversely affected by changes in the outputs it produces.
The two main dimensions are: Volume flexibility: refers to ability to change its output
rate without having significant effects on other characteristic such as efficiency, quality, and throughput time.
Product mix flexibility : refers to the ability to switch to production among a range of products or services without detrimental impact on operating cost and performance.
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PROCESS CHARACTERISTICS
The interrelationship of process characteristic
Efficiency
Capacity
Quality
Throughput
Time
Flexibility
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THANK YOU
Q & A