1. PRODUCTION TECHNOLOGY

2. Learning Objectives 1.Show operations mgt. as a system. 2.Describe characteristics of goods vs. services 3.Distinguish types of Manufacturing Technologies (Woodward & other) 4.Explain the rationale for choosing each type of technology

3. Transformations    Inputs  Managers  Workers  Equipment  Facilities  Materials  Money  Energy  Information Outputs  Goods  Services  Waste  Other Feedback on Performance Customer Contact Cultural InfluencesPolitical InfluencesMarket Influences Systems View of Operations Management

4. Characteristics of Goods & Services Producers Goods Producers Tangible, durable Output can be inventoried Low customer contact Long response time Capital intensive Service Producers Intangible, nondurable Output can’t be inventoried High customer contact Short response time Labor intensive Continuum of Characteristics MIXED

5. Woodward’s Manufacturing Technology Model n Small Batch & Unit Production n Mass Production n Continuous Process Production

6. Alternative Terms for the Production Technology Model n Job Shop (Unit Production) n Batch Processing (Small Batch) n Mass Production (Assembly Line) n Continuous Process

7. Woodward’s Manufacturing Technology Model Small Batch / Unit / Job Shop one or few products designed to customer specification unique or large one-of-a kind products traditional, skilled craft work Examples: SUBMARINES CUSTOM HOMEBUILDING

8. Woodward’s Manufacturing Technology Model Large Batch / Mass Production/Assembly large volume of products, inventoried for sale as needed all customers receive the same product greater use of machines that do most physical work employees complement machinery Examples: Printing

9. Woodward’s Manufacturing Technology Model CONTINUOUS PROCESS Production entire work flow is mechanized no starting & stopping human operators manage, but are not part of production employees read dials, fix machines that break down PETROLEUM REFINERIES Examples: DISTILLERIES

10. Rationale for Choosing Technology n Manufacturers may use a mix of 4 processes. n Characteristics of their products & customers n Which will produce the best quality at the lowest possible cost with appropriate speed and flexibility?

11. Characteristics of Production Technology Reference Video !