OPERATIVE ADMINISTRATION
Definition
It is a tool that companies use to make decisions, providing quantitative and qualitative bases.
objective
Guide activities within a company.
Historical background
Industrial Revolution 1764
Scientific administration
Agricultural or Artisan Period (400 BC)
Operations research
events
Work done in the house or establishment.
It arises with Plato "The man whose work is entrusted to such a limited task, must by necessity be excellent in it".
events
It was of great boom for the administration of operations since it was in essence increasing the "physical" strength of man.
James Watt, steam engine, allowed the expansion of agriculture and factories.
Substitution of labor for machinery.
events
Frederick Taylor is based on obtaining the best method to work using scientific approach
methods
Through measurements and analysis, develop a better working method.
Training of workers in the new method.
Observation of current working methods.
novelties
Production of tangible and intangible goods and services.
Computers
Classification
Classification based on your process
Classification based on its purpose
Systems classification
Traditional production systems
Physical and Abstract
Open and Closed
Natural and Elaborated
Technical and Civil or Social
By Process
Physical: They are those systems that exist physically.
Abstracts: They are those that only exist in a conceptual way or in someone's mind.
The natural ones: They are those made by nature.
The elaborated ones: By the man.
Open: They are those where it is very difficult to predict their behavior.
Closed systems: They are those that have objectives, inputs, products and relationships clearly determined so that the control, feedback and forecast can be established in a precise and objective way.
Technical systems: They are those that integrate and apply technology to achieve a goal.
Los sistemas civiles o sociales: Tienen como finalidad la satisfacción de un objetivo social.
By process: It is one that through a common process all products are made.
By orders: It is one where each batch of different products follows a special process.
Continuous systems
Intermittent systems
Modular systems
Systems by projects
They are those in which the facilities are standardized in terms of routes and flows by virtue of the inputs being homogeneous, consequently, a homogeneous set of processes and sequence of processes can be adopted.
They are those in which institutions must be flexible enough to handle a wide variety of products and sizes.
It makes it possible to have a large variety of relatively tall products and at the same time with a low variety of components.
The projects are characterized by high cost and by the difficulty of planning and administrative control.
Secundarios
Tertiary
Primary
These systems can operate as continuous or intermittent systems, depending on the demand in the market.
These systems work as continuous and intermittent depending on the needs and market demand.
They encompass the entire production or service system.
Batch production system
Continuous production system
Custom production system
This is based on the order or order of one or more products or services.
understands
Physical arrangement: It focuses on the product.
Production predictability: Each product requires a specific production plan.
Production plan: List of raw materials, labor and production process.
It is used by companies that produce a limited quantity of one type of product or service at a time.
understands
Physical arrangement: they are characterized by machines grouped in batteries of the same type.
Production predictability: It must be constantly rethought and updated.
Production plan: It is carried out in advance in relation to sales.
It is used by companies that produce a certain product without modifications for a long period, the pace of production is fast and operations run without interruptions.
Steps
Production plan: It is generally prepared for periods of one year, with monthly subdivisions. This system is used by manufacturers of paper, cellulose, automobiles, and household appliances.
Physical arrangement: It is characterized by highly specialized machines and tools, arranged in linear and sequential formation.
Manufacturing and service company
Similarities
Differences
In both cases, decisions must be made about capacity, location.
Both processes have external and internal suppliers, as well as external and internal customers.
In both cases, quality, productivity and customer response are of interest.
manufactured goods are by-products that can be stored and services cannot.
Manufactured goods can be produced according to future demand and services cannot be produced in advance.
manufacturing companies: durable physical products and services: are perishable intangible products.
How does it work?
It is responsible for the production of goods and services of the organizations.
Other functions
Operations function: Producer Department
System: Steps that the transformation follows
Decisions: In processes, capacities, inventories, workforce and quality
Relationship
Purchases: acquisition of raw materials.
Finance: acquisition and distribution of capital.
Personnel (Human Resources): provides qualified labor.
Accounting: production results are reflected in the Financial Statements.
Marketing: responsible for creating demand
Competitive tools
Productivity
Competitiveness
It is the relationship between the quantity of products obtained by a production system and the resources used to obtain said production.
It is defined as the ability to generate the highest satisfaction from consumers by setting a price or the ability to offer a lower price by a certain quality.
Efficiency
It is the ratio between the actual production obtained and the expected standard production.
Effectiveness
It is the degree to which the objectives are achieved, that is, the way in which a set of results are obtained reflects effectiveness, while the way in which resources are used to achieve them refers to efficiency.
