Typology of

Operation
Modul ke:

02
Fakultas

Teknik

Program Studi

Magister
Teknik
Industri

Supplement

14 Maret 2015

A Typology of Operations
Low

Volume

High
High

High

Variety

Low

High

Variation in
demand

Low

High

Visibility

Low

A Typology of Operations
Implications
Low repetition
Each staff member
performs more of job
Less systemization
High unit costs

Implications

Low

Volume

High
High

High repeatability
Specialization
Capital intensive
Low unit costs

A Typology of Operations
Implications

Flexible
Complex
Match customer needs
High unit costs

Implications

High

Variety

Low

Well defined
Routine
Standardized
Regular
Low unit costs

A Typology of Operations
Implications

Changing capacity
Anticipation
Flexibility
In touch with demand
High unit costs

Implications

High

Variation in
demand

Low

Stable
Routine
Predictable
High utilization
Low unit costs

A Typology of Operations
Implications

Short waiting tolerance

Satisfaction governed by
customer perception
Customer contact skills
needed
Received variety is high
High unit costs

Implications

High

Visibility

Low

Time lag between

production and
consumption
Standardization
Low contact skills
High staff utilization
Centralization
Low unit costs

Implications
Low repetition
Each staff member
performs more of job
Less systemization
High unit costs
Flexible
Complex
Match customer needs
High unit costs
Changing capacity
Anticipation
Flexibility
In touch with demand
High unit costs
Short waiting tolerance
Satisfaction governed by
customer perception
Customer contact skills
needed
Received variety is high
High unit costs

A Typology of Operations
Low

High

High

High

Volume

Variety

Variation in
demand

Visibility

Implications

High
High

High repeatability
Specialization
Capital intensive
Low unit costs

Low

Well defined
Routine
Standardized
Regular
Low unit costs

Low

Stable
Routine
Predictable
High utilization
Low unit costs

Low

Time lag between

production and
consumption
Standardization
Low contact skills
High staff utilization
Centralization
Low unit costs

BespokeTailors
Turns cloth into suits
Low volume of each item
High variety
High customer contact
Process involves skilled staff, basic technology
(Scissors, chalk, tape measure), and simple flow
of materials

Tiptree Christmas Puddings

Tiptree Christmas Puddings

Turns fruit, flour etc
into puddings

Medium volume
Low variety
Very seasonal demand variation
Low/No customer contact

Quite specialised technology, semi-skilled

labour, flow from stage to stage

Millau Viaduct Foster and Partners (Architects)

Turns information into a
buildable design
Low volume one-off
High Variety each
job different
Variable demand but
no seasonal pattern
Medium customer contact
Highly skilled staff, basic technology, time-critical project
process

Power Station
Turns coal and gas into
electricity
No variety
High volume
Some variation in
demand
Very capital intensive, specialised technology; few staff,
doing maintenance jobs.

COMSATS Undergraduate Degree

Turns new students into
knowledgeable and skilled
graduates
Volume medium
Variety medium
Visibility medium
(But depends on which activity)
Mostly skilled staff and simple technologies; complex
flow and scheduling

Operations Management Definition

the activities, decisions and responsibilities of
managing the production and delivery of
products and services
(Slack et al, 2004)

The Transformation Process

Transformed
resources

INPUT

Transforming
resources

Business environment

Transformation OUTPUT
Process

Business environment

Goods
and
services

Transformation Characteristics
transformed vs transforming resources
materials, information, customers
physical form, location, possession and
state
product-service continuum

Pure Services
Psychotherapy
Clinic

Management
Consultancy

Computer
Systems Services

Restaurant

Specialist Machine
Tool Maker

Aluminium
Smelting

Crude oil
production

Product-service continuum
Pure Goods

Transformation types
Operation
Car
Manufacturing
Student
counselling
Retail banking
Train journey
Roadside car
recovery (AA)

Transformed
resource

Type of
change

Product
Service

Macro and micro operations

Macro operation

Micro operations

Vital Dimensions of
Operations..
volume
variety
variation
visibility
(a.k.a.customer contact)

Applying the four Vs

Haute
couture
clothing

Volume
Variety
Variation
Visibility

Making PC
keyboards

Student
counselling

Suburban
rail service

Process Choice
Variety

Professional services

Job

Service shops

Batc
h
Lin
e
Mass services

Continuous

Volume

Front Office/Back Office

More variety, lower
volume, more variation

FRONT OFFICE
High customer contact

Customers

Customers

BACK OFFICE
Low customer contact
Higher volume, lower
variety

SEE - http://www.ft.com/pp/sharedservices

Model of Operations Management

The operations
strategic
objectives

Business environment

The strategy
of the
operation
Transformed
resources

Operations
Strategy

The operations
competitive
role & position

Operations
Management
INPUT

Transforming
resources

DESIGN

IMPROVEMENT
PLANNING
& CONTROL

Business environment

Goods
and
OUTPUT services