Page 102 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes The relationships in the supply chain are also changing. Unlike the traditional relationship
where the retailer was subservient to the manufacturer, sellers are now demanding a
distribution chain management where they can cut out the requirements of buffer stocks.
In addition, the sellers can exert enormous influence on manufacturers in terms of what
they should produce. Organizations, in turn, are increasingly using distributors and
suppliers in the process of developing new products.
In a number of products, there is a shift towards a range of other non-price factors to
provide increased customer value.
Other Basic Manufacturing Processes

A way to categorize manufacturing processes is based on what they do. At the most basic level,
the types of processes do the following things:
1. Analytic processes: An analytic process breaks down raw material into its constituent
parts, e.g., refining crude.
2. Synthetic processes: A synthetic process combines basic parts into larger products, e.g.,
manufacture of automobiles, radios, televisions, etc.
3. Modifying processes: These processes modify the physical characteristics of materials upon
which labour or operations are performed, e.g., forming processes, machining processes,
heat treatment processes, surface-treating processes, joining processes, etc. Sometimes,
basic processes are described as conversion or fabrication processes. Steel making is a
conversion process while making sheet metal into car body panels is a fabrication process.
4. Assembly processes join parts already processed into products or services, e.g., preparing
fast food, a radio or a car.
5. Testing processes test to ensure products meet specifications. Though not strictly speaking
fundamental processes, these are widely mentioned as a major activity and are included
here for completeness.

4.2 Flexibility in Manufacturing Systems

Flexibility in manufacturing is the ability of a manufacturing system to respond at a reasonable
cost and at an appropriate speed, to planned and unanticipated changes in external and internal
environments. In other words, flexibility relates to the ability of the system to create products
capable of meeting a customer's need.
Flexibility means to produce reasonably priced customized products of high quality that can be
quickly delivered to customers. For example, with make-to-stock market orientation; flexibility
is the ability to provide the customer sufficient finished good choices. If the right product is
available too late or at a cost that one cannot afford, it will be an order loser. Many different
concepts of flexibility exist. They are:
1. Mix Flexibility: The ability of a system to present a wide range of products or variants
with fast setups.
2. Changeover Flexibility: The ability of an Operations Management system to introduce a
large variety of major design change quickly within existing facilities.

3. Modification Flexibility: The ability of the transformation process to implement minor
product design changes, even after the product has been delivered.

96 LOVELY PROFESSIONAL UNIVERSITY