C 20 OPERATIONS MANAGEMENT

1. Describe
a) Positioning of the Production System in Manufacturing and in Services
Positioning the production system in manufacturing , means , selecting the type of product design,
type of production processing system and the type of finished goods inventory policy for each major
product line the business plan.

Layout of Production Facilities

An efficient production facility is the result of careful consideration of all phases of production and the
necessary inputs at each step of the process. There are a number of alternatives are available in
selecting the most appropriate layout. The first three designs are common in manufacturing facilities,
and the last layout is often used in service facilities.
A process layout is designed to accommodate a variety of nonstandard products in relatively small
batches. In this layout, workers and equipment performing the same activity, or process, are grouped in
one department or location. Custom machine shops are typically organized in this fashion.
When a firm produces large quantities of the same or similar products, an efficient design is a product
layout. This layout accommodates only a few product variations. Product layouts are frequently used in
assembly-line operations, such as those in the automobile industry.
In a fixed-position layout, the product stays in one place and workers, materials, and machines are
transported to and from that position. This approach is common in such operations as missile assembly,
ship construction, large aircraft assembly, and bridge construction, where the product is very bulky,
large, heavy, or fragile.
A customer-oriented layout is common in service facilities where the facility must be arranged to
enhance the interactions of customers and the organization's services.
b) Process and Technology Plans
Process planning is also called: manufacturing planning, process planning, material processing, process
engineering, and machine routing.
Which machining processes and parameters are to be used (as well as those machines capable of
performing these processes) to convert (machine) a piece part from its initial form to a final form
predetermined (usually by a design engineer) from an engineering drawing.
Steps in Process Planning

Study the overall shape of the part. Use this information to classify the part and determine
the type of workstation needed.

Thoroughly study the drawing. Try to identify every manufacturing features and notes.

If raw stock is not given, determine the best raw material shape to use.

Identify datum surfaces. Use information on datum surfaces to determine the setups.

Select machines for each setup.

For each setup determine the rough sequence of operations necessary to create all the
features.

Sequence the operations determined in the previous step.

Select tools for each operation. Try to use the same tool for several operations if it is possible.
Keep in mind the trade off on tool change time and estimated machining time.

Select or design fixtures for each setup.

Evaluate the plan generate thus far and make necessary modifications.

Select cutting parameters for each operation.

Prepare the final process plan document.

c) Strategic Allocation of Resources

Definition
Resource allocation is a process and strategy involving a company deciding where scarce resources
should be used in the production of goods or services. A resource can be considered any factor of
production, which is something used to product goods or services. Resources include such things as
labor, real estate, machinery, tools and equipment, technology, and natural resources as well as financial
resources such as money.
Method of Strategic Allocation of Resources
In an economist's perfect world (which doesn't exist, of course), resources are optimally allocated when
they are used to produce goods and services that match consumers needs and wants at the lowest
possible cost of product. Efficiency of production means fewer resources are expended in producing
goods and services, which allows resources to be used for other economic activities such as further
production, savings, and investment. This basically boils down to creating what customers want as
cheaply and efficiently as possible.
Process of Strategic Allocation of Resources
Strategic planning. Resource allocation begins at strategic planning when a company formulates its
vision and goals for the future. The vision and strategic goals are accomplished through achievement of

objectives. For example, a consumer electronics company's goal may be to become the market leader in
computer tablets. An objective towards this goal is the design and promotion of an innovative tablet.
Budgeting. Once you have set your objective, you will then need to allocate sufficient resources to
accomplish it. In practical terms, this is often a matter of project budgeting. In our example, the company
will allocate money for market research to determine unmet consumer needs and wants for a computer
tablet, money for product design and development, funds for production, and money for promotional
activities such as advertising. Each department may take its budgeted funds and allocate those resources
for more specific purposes, such as hiring employees, commissioning marketing studies, and buying raw
materials and components.