Another bit of operations management that is critical to its success is the process selection and system design. In this paper, focus will be given to layout selection that will be discussed in detail in subsequent sections. Smooth production of goods and services can only be ensured when the above have been optimally met. They include capacity planning, layout facilities, equipment and work systems design. When making the above decisions, managers are confronted with major implications that they have to deal with. Process selection involves making decisions how production of goods and services will be organized. One of the important points in operations management is process selection. After value addition, outputs are produced that include products and services e.g., automobiles, furniture and aircraft. Operations managers facilitate in value addition of the inputs through the transformation process enabling the production of goods and services. The Work Center Rates table stores work center rate information, such as simulated and frozen costs for labor, machines, and overhead.Inputs in the transformation process that is made possible through operations management include capital, human resources, natural resources, materials, information and customers of goods and services. The Business Unit Master table identifies branch, plant, warehouse, work center and business unit information, such as company, description (name), and category codes assigned to that unit. The Address Book table is the central repository for all address information relating to customers, vendors, employees, and prospects. You may establish your own codes that define relationships. The Item Cross Reference table stores information about relating item numbers together for a specific purpose. The Branch/Plant Master table defines and maintains plant level information, such as costs, quantities, physical location, and branch level category codes. The Item Master table stores basic information about each defined item, such as item numbers, descriptions, category codes, and units of measure. The Work Center Master table contains the rates for each work center, such as overhead, crew size, number of machines, number of employees, efficiency, and utilization. The Routing Master table contains information describing how an item is manufactured, such as operation numbers, work centers, labor, setup labor, and machine hours, and outside operations. The Bill of Material Changes table stores all changes made to any bill of material, including dates, ECO reasons, and effectivity dates. The Manufacturing Constants table contains constants for maintaining bills of material, such as whether to write changes to the bills to the history file or to perform online validation. The Bill of Material Master table defines warehouse (plant level) information about bills of material, such as quantities of components, features, options, and levels of detail for each bill. Process routings are critical for the Capacity Planning and Product Costing systems, and for measuring production efficiency. These routings define work centers and labor standards. You define the steps that are required to produce a manufactured item with process routings. These relationships also determine co-products, by-products, intermediates, and substitutions. You can define a process item with ingredient relationships on the Enter/Change Process form. This relationship defines information including effectivity dates, fixed/variable quantities, and queue and move times. Processes include an ingredient relationship and routing. Processes are basis for creating a parts list for a work order in the Shop Floor Control system. You can define different processes for items based on batch size, because many processes vary by quantity. Batch mode is based on a formula or recipe that produces a specific number of end items. Instead, products flow continuously rather than being divided.īatch mode produces scheduled quantities. Processes use a formula or recipe to add value to ingredients by mixing, separating, forming, or performing chemical reactions, in either batch or continuous mode.Ĭontinuous mode does not use lots. Process manufacturing companies must produce, cost, plan, and schedule their products.
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