Introduction
The dynamic administration of operations involves the production area of the organizations, its study is important because it helps the correct control and administration of resources, for the production of goods or services; But not only that, it also focuses on the reduction of waste and unnecessary resources, with its various techniques it helps decision-making for the benefit of the company. Production systems refer to the management of the process that converts inputs (materials, labor and energy) into products (goods and / or services). In addition to that the control generated by the operations administration allows the organizations to remain in constant struggle before a competitive market.
Concepts
To understand this topic, it is necessary to define the main concepts that make up dynamic operations management.
Administration
The administration is one of the oldest activities that the human being has carried out throughout its history and due to its sociable nature it has had the need to organize to survive, dividing the different activities such as hunting, clothing, services, among others.
The administration arises from the “need” and as the needs grow the administration evolves, at the beginning of the administration born leaders emerge, these leaders are born with those leadership characteristics and their entire tribe or social group followed them but everything changes so much needs as society and the need arises to have leaders with more knowledge about organization, processes, techniques, among other merely administrative activities.
Idalberto Chiavenato author Introduction to the General Theory of Administration says: “The word administration comes from the Latin ad (towards, direction, tendency,) and minister (subordination or obedience, and means one who performs a function under the command of another, is that is, one who provides a service to another. "
Wilburg Jiménez Castro says: "A science made up of technical principles and practices, the application of which to human groups allows rational systems of cooperative efforts to be established, through which they can achieve purposes in social organisms."
Fremont E. Kast says: “Administration is the coordination of men and material resources for the achievement of organizational objectives, which is achieved through four elements: direction towards objectives, through people, through techniques, within an organization. "
So we can define the administration as the science that involves techniques, processes, principles, practices, through the coordination of all the elements and resources of an organization to achieve the objectives.
Dynamic
Its origin comes from the Greek "dynamos" generally applied to people who carry out their activities with greater vigor, therefore dynamics means greater power, strength or energy to carry out activities.
Operation
This word has various meanings from the mathematical approach. It is identified as the method, process, act, groups of rules applied to a set of data that facilitate obtaining different numbers called "results".
Dynamic management concept
As we know, the administrative process is divided into two phases: mechanical and dynamic; The mechanical phase refers to the structure of the company where it is made up of: planning, organization.
While dynamics refers to the part of the process where execution is carried out efficiently and effectively, which in turn is divided into: Integration, direction and control.
Operations management concept
This part of management involves the production of the organization where a series of processes are applied to problems that arise during the operations of a production system that can be represented by mathematical models and the solution of those problems through solving equations that represent the system, in order to make decisions.
Dynamic operations management
According to the previous concepts, we can define as due to the fact that the dynamic phase within the administration is where the activities are carried out to achieve the previously established in the mechanical phase (structuring) where the operations are in charge of carrying out a set of activities for the decision making, therefore dynamic operations management is the “management of operations processes during the dynamic phase of administration (execution) for the production of goods or services, helping decision-making and always aligning with the strategy business to achieve goals and objectives of the organization ”.
Operative administration
Operations management is a set of activities that results in the creation of goods or services through a process of inputs, transformation resulting in goods or services as shown in Figure 1.
Operations management is used for decision-making that is directly related to the operations function and the transformation systems they employ.
The process shown in Figure 1 is known as production systems, which are a set of interrelated activities and processes that, through the use of appropriate means and methods, result in goods or services.
The inputs are all those that are not included in the final product but that intervene to obtain the final product, such as, facilities, energy, labor, knowledge, among others.
The transformation processes are where the necessary operations that add value intervene to result in the product as the final stage of this process.
Ways of production
Artisan production
It is one of the oldest forms of production where the products that are made are made manually without the help of machinery, only using local raw materials and production processes that are transferred from generation to generation but with variations as it is manual work. Its main characteristics:
Making the products manually, generally as independent businesses, as part of the family's income
The user, the craftsman, merchant and transport are integrated in the same site.
The artisan is the one who selects the raw material, and makes the products with his hands without using machinery or tools, imprinting his own style.
If you have human resources, this is highly specialized in operations designs
Production volume is small.
Mass production
It is also known as series production, chain production, large quantities of products can be produced by reducing prices so that most consumers can purchase them. This type of production relies on marketing to position its market.
Lean production
In this type of production it was born in Japan and great gurus of the Toyota production system intervened such as: Deming, Taiichi Ohno, Shigeo Shingo, among others, a series of quality tools are used such as:
- Cause and Effect Diagrams Control Charts Flow Charts Histograms Pareto Charts
The purpose of using these tools is that they eliminate all those operations that do not add value to the product.
Its main objectives are:
- Eliminate all waste that does not add value to the product. Respect for collaborators. Continuous improvement of quality and productivity.
Classification of production systems
Production systems are differentiated by the processes they use and the purpose that the organization seeks is also due to adaptability, what is intended to be produced, volume, among other factors, which define the type of system to select, below we will mention the most outstanding:
- Production system by Project. Job-Shop workshop configuration. Lots (Batch), Line supported by Equipment, Line supported by Worker, Continuous Configuration, Just in Time (Just in Time) Flexible Manufacturing System.
For your understanding, each one is described:
Production by project
This type of production is focused on products that are unique with a high degree of complexity, either due to their size or the function they perform, they are generally personalized or according to customer requirements, the elaboration of these products requires many inputs. of supplies and must be carried out in one place, already well defined, because once finished it is difficult or impossible to transport. In this production, all the resources for its elaboration must be transferred to the place where the production will take place.
It is critical that the times in which the activities are carried out are not exceeded in order to complete the project and maintain correct cost control as previously planned.
Workshop configuration (Job-Shop)
This production system is responsible for the manufacture of different products and the volumes are small and vary between each product. Products are tailored to the customer and are usually not very repetitive, so specialization is not required as different products are resources are flexible, the material is irregular and vary according to the order. Its main characteristics are:
- Small batches of products but with a wide variety Non-specialized teams, but can carry out various operations Obtaining different products in the same facilities
Lots (Batch)
This system has little variety of products but the volumes are higher, more operations are needed and they are more specialized so they are no longer controlled by the operator, there is more sophisticated machinery, although the automation of processes is still poor
Line accompanied by Team
Both the equipment and the processes are online or in several lines in a specialized way for the production of a small volume of products but belonging to different families. It is ideal for products where its design is stable and with a high volume for the efficient use of the specialized line, the flow is automated and the functions performed by the operators are simple and standardization is managed in this system.
Line accompanied by Worker
There is usually a high diversity of products and their volume can vary considerably. The production will depend on the product that is manufactured, the number of operators per line, as well as the degree of efficiency per equipment, and although it seems that there is a great difference between the products, they are technically very similar, so the same facilities can be used, personnel and processes.
Continuous flow setting
The machines are designed to perform the same operation and are adapted to automatically receive the work of the machine that precedes it, the facilities are designed for the production of a single product or a limited family but with high volume. The processes are automated and specialized to obtain standardized products, human resources intervene little and these systems work 24 hours a day.
Just in time
Differences are needed between the well-known JIT techniques and the JIT production system. The techniques are aimed at controlling quality, reducing time, standardizing operations, among others. While JIT's production system is a linear flow system that has the ability to manufacture multiple products in low volumes, JIT eliminates waste and generates continuous improvement while lowering costs, improving quality, and delivering fast.
Flexible Manufacturing System
It consists of the set of machinery controlled by computers and automatic function, material loading and unloading systems, controlled by a supervising computer. It is so automated that it can perform its functions without staff supervision for long periods of time. This system allows the production of different products but with low volume
The first six points are the classic systems that have a mass production, linear focus, among others, that encompass both the skills and capabilities of human resources according to the processes, always seeking productivity and efficiency through optimization and adequate cost management.
The other two points arise from a new approach called LEAN that seeks production with minimal waste, eliminates activities that do not add value, as well as avoiding unnecessary consumption of resources.
Main areas of activity in the role of operations management
Product planning
Make a correct selection and design of the products or services that the company will offer to the market and these are crucial for organizational success.
On the contrary if the selection of the product turns out to be incorrect and adding a bad design can give negative results of non-competitiveness
Goods and services, therefore, must be carefully selected after a detailed evaluation of the organization's objectives. Some techniques like engineering measurement can be used to create alternate designs, which should have the goal of reducing costs in production ideas.
Selection and planning process
Selecting an optimal "conversion system" is as important as product selection and design. Decisions in the selection process include decisions regarding the selection of technologies, equipment, machinery, material transport systems, mechanization and automation. The planning process determines the details to follow to process the products, as well as some type of conversion and its subsequent follow-up.
Plant location
Deciding where a plant will be located is a strategic decision. Once installed in a certain location, it practically becomes immovable and only in a very special case, the facilities can be relocated to another location. It is important to choose a correct location, which minimizes the distribution of the products to the clients, that is to say, that saves costs for logistics.
Plant departmentalization and materials handling
As its name indicates, the departmentalization has to do with the way in which the work centers are distributed within the organization, as well as the relationship they have with other departments, in order to facilitate the flow of materials and the process a product in the most efficient way with the shortest possible times. Good internal distribution reduces material transportation costs, eliminates delays and conglomerations, and improves coordination.
Production capacity planning
Production capacity planning focuses on ensuring that production lines manufacture products on time and in order to have availability with respect to customer demand. These types of decisions directly affect the performance of production systems regarding the level of productivity as well as the offer to the customer. Excess capacity results in low productivity, while inefficient capacity leads to low supply for customers. Decisions regarding production capacity can be short or long term.
Production planning and control
Production planning the system to determine the specifications of the production procedure to obtain the expected outputs under a certain time with an optimal cost in accordance with quality standards, while control is essential to ensure that manufacturing is carried out conducted in accordance with organizational objectives.
Inventory control
This has to do with determining inventory levels of raw material, components, parts, tools; finished products, spare parts and supplies to ensure availability with the minimum of capital. Among the most used tools within organizations are the MRP (Planning of Material Requirements) and the JIT (Just in Time).
Quality assurance and control
Quality is an important aspect of production systems and its purpose is to ensure that the goods and services produced by the company meet certain quality standards with minimal cost. A total assurance system includes aspects such as adjusting quality standards, inspecting materials and machinery, quality control during the manufacturing process, and thorough review of finished products, as well as testing them.
Maintenance and replacements
This section has to do with the selection of correct preventive maintenance to ensure the reliability of the equipment with a minimum of maintenance and low repair costs. Preventive maintenance, which includes inspections, planned equipment lubrications, periodic cleanings, replacement of parts, constant monitoring of equipment and machinery.
Cost reduction and cost control
The effective production management must ensure the minimum production costs, and in this sense, cost reduction and cost control becomes important. There are various tools and techniques available that can help counter these points.
Strategy classification
Trading strategies
Critical operations tasks should be determined to support the organization's overall strategy and thus develop an appropriate functional strategy.
Generally, the strategies of operations management is to reach capacity and be consistent in the delivery of products and services, requested by the client, always seeking to reduce waste, costs and at the same time increase productivity and efficiency. Operations strategies must be integrated with business strategy.
Policies and plans must be established for the use of the company's resources, The success of an operations strategy consists of identifying priority alternatives and understanding their consequences.
Structure for manufacturing operations strategy
The operations strategy has to be linked vertically with the client and horizontally with other parts of the company. Figure 2 shows the links between customer needs, performance priorities, and manufacturing requirements, as well as the company's operating and related resource capabilities to meet those needs.
Decisions in production systems
Decision making in production systems focuses on three horizons as shown in figure 3.
There are 5 main areas for decision making for operations management: Processes, Capacity, Inventories, labor, quality.
Processes. You must select the equipment, the technology, the flow of the process that will be used for the production of the good or service
Capacity. You can make decisions to:
Long-term, if later on investments are required or even at a given moment the sale of machinery or facilities, if it foresees dismissal of personnel, among others.
Short term: the use of overtime, closure of production lines, elimination of shifts, outsourcing.
Inventories. How many materials to buy, or how much to manufacture.
Hand to work. How many people to hire with which attitudes or skills are required, those in charge of operations administration decide how many people they require and in coordination with the human resources department they are responsible for applying the selection process.
Quality. They decide: Standards, designs, methods, procedures.
Future work
Creation and implementation of an operations management tool for company "x".
objective
Create an easy-to-use tool for operations management for SMEs based on some production system techniques.
Conclusions
The administration of operations is vital for any organization, both of goods and services, since it encompasses activities such as product design, departmentalization, requirements, quality, among others, and it helps to control vital areas for the organization, such as inventory, resources, facilities among others, facilitating decision making, establishing strategies aligned to the organizational strategy to achieve the planned objectives.
Currently, there is a lot of competitiveness in the markets, so the production must take place in less time at a lower cost and with the highest quality, and for that the operation management plays a vital role and with the emergence of new techniques, they allow and help us to make production systems more efficient.
References
- CHIAVENATO Idalberto, Introduction to the General Theory of Administration, Seventh Edition, McGraw-Hill / Interamericana, editors 2004. HERNÁNDEZ and Rodríguez, Sergio Administración: thought, process, strategy and vanguard. First Edition McGraw-Hill / Interamericana editores México, 2002.
