• Through the use of temporary workers or
temporary workers, who are still considered permanent but only work when
needed, continuously and generally without the benefits granted to full-time
workers. The inventory of finished goods can be accumulated during periods of
• By hiring additional labor as needed or
by laying off workers who are not currently needed to meet demand, companies
can maintain a balance between capacity and demand. When workers are asked to
work more hours per day or one additional day per week, the container creates a
temporary capacity extension for the company without incurring additional labor
• Information systems maintain the files
that support demand forecasts and similar information. A new but complementary
demand is created for a product or service. If innkeepers have to wait, they
often deviate from a complementary service, the bar. Other examples include the
installation of video stores in cinemas and the expansion of services in
Partitioning of demand.
• Marketing, as the overall plan is
compatible with the marketing plan. Advertising, direct marketing and other
forms of advertising are changing demand. Shifting the delivery of current
orders shifts demand to the period when capacity is underutilized. This is
still just one way to mitigate demand. The service industries can reduce demand
by answering questions or arranging appointments to avoid customers without
appointments. Some refer to it as
Accounting is affected because the master
plan details the resources needed for the operations. Variation of prices to
increase demand in times when demand is below the maximum. For example, the
prices for matinees for cinemas. Low season rates for hotels, weekend rates for
telephone services and prices for seasonal items.
Why do organizations perform aggregate planning
owner of the fast food franchise therefore eats the exclusive rights to operate
in this metropolitan area. The owner will not face external competition
regarding the same fast food brand. The other key factors that the owner should
investigate before making the final decision are other competing fast food
outlets of various brands in the metropolitan area. The demographics of the
metropolitan area is the loss of the possibility to have queues for customers.
The manager of “Force and Aft Marina” wants to extend the landing
facility so that two ships can receive gas and service at the same time. Suppose
the arrival rate is still 5 foods per hour and the service rate for each
channel is 10 foods. Dealing with this variability remains a key challenge for
a profitable service. But little in the conventional training of managers or
toolkits equips them to deal with it effectively. The theory of farm
management, rooted in the context of production, generally has one thing to say
about variability: it has to be eliminated. Every trained manager learns to
recognize him as the enemy of quality. In the context of service, the challenge
remains much more subtle. First, it would be inadvisable to eliminate all
fluctuations. Customers judge the quality of their experience mainly because of
the adaptability of the variability they introduce, not because of the severity
with which they are rejected. Second, this would not be possible. While
manufacturers almost completely control the cost and quality of their inputs,
service companies face this great exception: their customers remain the key
elements of the production process. These
The owner of a fast-food franchise has exclusive rights to
operate in a medium-sized metropolitan area. The owner currently has a single
outlet open, which has proved to be very popular, and there are often waiting
lines of customers. The owner is therefore considering opening one or more
outlets in the area. What are the key factors that the owner should
investigate before making a final decision?
manufacturers and non-manufacturing organizations tend to make site decisions
in a similar way, but the factors that are important to everyone are different.
While both tend to account for costs and profits, manufacturing companies often
worry about the location of raw materials, transportation costs, the
availability of energy and water, and similar factors. By contrast,
non-manufacturing companies are often more concerned with comfort, market
access and traffic flow. A system for linking a variety of manufacturing
activities through an integrating computer system. A group of machines designed
to meet the needs of intermittent processing and produce a variety of similar
products. The manufacturer organization and the other service organization.
Both organizations are completely different. Therefore, the role of operations
management in both areas remains different. Operations management is primarily
focused on making appropriate use of the organization’s resources available.
Intermittent processing: reduced labor costs and consistently high quality.
Appealing to managers who want to achieve both the flexibility of workshop work
and the productivity of repetitive processing systems. Machines that perform
operations through subsequent mathematical processing instructions. Production
Acquisition Cycle Accounting information systems provide the tools to manage
and maintain critical data related to an organization and to interpret
information to develop high quality financial reports. The manufacturing sales
cycle reflects sales and components associated with the sale, such as:
Inventory, freight, cost of goods sold and debtors, but this information is not
available to all facilities. Because the forecast for the
How are manufacturing and nonmanufacturing location decisions
• The initial costs are relatively high.
Automating a new product or building a new plant requires a high initial
investment compared to the unit cost of the product. Even the machines for
which development costs have already been reimbursed are expensive in terms of
hardware and labor. The costs can be handled and customized for custom
• unpredictable development costs. The
cost of research and development to automate a process is difficult to predict
before. These costs can have a major impact on profitability, but it is still
possible to complete the automation of a process to find that this is not an
economic advantage. However, with the advent and continued growth of various
types of production lines, more accurate estimates can be made based on earlier
Economic limits. Certain tasks would cost
more than being done manually. Automation is usually best suited for
repeatable, constant and high-volume processes.
• Economic improvement. The automation
container serves as a catalyst to improve the profitability of companies or
society. Thus gross national income and living standards in Germany and Japan
have improved dramatically in the 20th century, mainly due to the automation of
the production of weapons, cars, textiles and other goods for export.
• Automation systems can easily
incorporate quality checks and inspections to reduce the number of
out-of-tolerance parts while providing statistical control of the process for a
more consistent and consistent product.
Production often stays faster and labor
costs per product are lower than comparable manual operations.
Briefly discuss the advantages and disadvantages of
projects remain designed for use with non-routine and unusual tasks or
activities. These activities are usually not repeated. The flexibility of the
teams, the skill level of the workforce and the inventory of ongoing work vary
from very low to very high. Examples include the construction of a dam or
bridge, the conversion of the production system from the workshop to the group
technology, the installation and implementation of a new inventory and the bar
This type of process implies a very high
volume of highly standardized goods or services. These systems have no
flexibility in output or equipment. In general, workers are not well trained
and there is no work inventory. The machines are designed to perform certain
tasks. Typical examples are petroleum products
type of process implies larger volumes of goods or standardized services. The
flexibility of the process of producing a variety of products, the skills of
the workers, and the amount of inventories in progress are all less than a
batch process. Typical examples of this type of process include appliances and
processing is used when a moderate amount of goods and services is needed.
These are designed for a moderate variety of products. The processing is
intermittent. The flexibility of the process of producing a variety of
products, the skills of the workers, and the amount of work inventories in the
process are less than the supply of labor. A typical example of batch
processing is the production of paint.
shop is used with low capacity and a wide variety of products or services
needed. The job shop includes intermittent processing, high flexibility,
skilled workers, relatively large stocks of unfinished products and general
purpose machines. An example is a tool and die making that can make a variety
describe the five process types, and indicate the kinds of situations in which
each would be used.