Production and operations management

PRODUCTION AND OPERATIONS MANAGEMENT

The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management.

If same concept is extended to service management, then the corresponding set of management activities is called as operation management.

DUTIES OF PRODUCTION MANAGER

Production planning Production control Quality control Method Analysis Inventory Control Plant layout and material handling Work measurement Other functions

TYPES OF PRODUCTION SYSTEM

Job shop production Batch production Mass production Continuous production

Objectives of Production management

Right Quality Right Quantity Right time Right manufacturing cost

SCOPE OF PRODUCTION AND OPERATIONS

MANAGEMENT

Location facilities Plant layouts and material handling Product design Process design Production planning and control Quality control Materials management Maintenance management

FACTORS INFLUENCING PLANT LOCATION

General location factors Controllable factors

1. Proximity to markets

2. Supply of raw materials

3. Transportation facilities

4. Infrastructure availability

5. Labour and wages Uncontrollable factors

1. Government policy

2. Climatic condition

3. Supporting industries and services

4. Community and labour attitudes

SPECIFIC LOCATION FACTORS

Manufacturing organization

1. Dominant factors

2. Secondary factors

Service organization

1. Dominant factors

2. Secondary factors

PLANT LAYOUT

Plant layout is the plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment & all other supporting services along with the design of best structure to contain all these facilities.

Types of layouts

Process layout Product layout Combination layout Fixed position layout Group layout

PRINCIPLES OF PLANT LAYOUT

1. Min. handling

2. Min. distance

3. Max. flexibility

4. Cubic space utilization

5. Flow of materials

6. Integration

7. 3S

OBJECTIVES OF PLANT LAYOUT

1. Economy

2. Delays

3. Space

4. Supervision & control

5. Flexibility

TYPES OF PLANT LAYOUT

1. Process2. Product3. Combination4. Fixed position5. Group

LINE BALANCING

Balancing the production line objective to distribute the task evenly over the work stations so that idle of men and machines is minimized.

1. Behavioral factors

2. No. of cycles produced

3. Cycle time

Material handling

Function dealing with preparation, placing & positioning of materials to facilitate their movement or storage.

PRINCIPLES OF MATERIAL HANDLING

1. Planning principle

2. Performance principle

3. Systems principle

4. Simplification principle

5. Space utilization principle

6. Safety principle

7. Standardization principle

8. Motion principle

9. Maintenance principle

10. Capacity principle

11. Control principle

SELECTION OF MATERIAL HANDLING EQUIPMENT

1. Properties of material

2. Cost consideration

3. Engineering factors

4. Equipment reliability

5. Nature of operation

6. Layout and characteristics of building

7. Production flow

MATERIAL HANDLING EQUIPMENTS

1. Fixed path equipment

2. Variable path equipment

Conveyors Industrial trucks Cranes Containers Robots

Guidelines for effective material handling

MATERIAL MANAGEMENT

Function responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost.

PURCHASING PROCEDURE

1. Recognition of need

2. The selection of supplier

3. Placing the order

4. Follow-up of the order

5. Receiving and inspection of the materials

6. Payment of the invoice

7. Maintenance of the records

8. Maintenance of the vendor relations

VENDOR RATING

1. The categorical plan2. The weighted point method3. The cost-ratio plan

INVENTORY CONTROL AND MANAGEMENT

Reasons for inventories

1. To stabilize the production

2. To take advantage of price discount

3. To prevent loss of orders

4. To keep pace with changing market condition.

Inventory control

TECHNIQUES OF INVENTORY CONTROL

1. ABC analysis

2. HML analysis

3. VED analysis

4. FSN analysis

5. GOLF analysis

6. SOS analysis

Economic Order Quantity

JIT

7 wastes

1. Over production

2. Waiting

3. processing

4. Stocks

5. Motion study

6. Defective product

Benefits of JIT

7. Product cost

8. Quality

9. Design

10. Productivity improvement

11. Higher production system flexibility

PRODUCTION PLANNING AND CONTROL

Direction and coordination of firm’s resources towards attaining the prefixed goals.

Functions of PPC1. Routing

2. Loading

3. Scheduling

4. Expediting

5. Evaluation

PRODUCTION CONTROL

Activation

1. Initiating the production

2. Progressing

3. Corrective actions on feedback

Objectives of PPC

Phases of PPC

4. Planning phase

5. Action phase

6. Control phase

STEPS INVOLVED IN PRODUCTION PLANNING

1. Determination of targets

2. Collection & Interpretation of Information

3. Developing plans

4. Planning plans into operations

5. Follow Action

STORE AND STORE KEEPING

function of receiving, storing & issuing of raw materials, tools, etc.

Duties of storekeeper

Types according layout1. Centralized store

2. Decentralized store

DIFFERENT DOCUMENTS RELATED TO STORE

Goods inward sheet Material issue requisition Bin card Store record card Material transfer note Material return note

SAFETY MANAGEMENT1. Problems of Industrial accidents Effect on industry or owner Effect on workers Cost of society

2. Accidental causes Technical causes

i. Unsafe condition

ii. Mechanical factors

iii. Environmental factors Human causes

i. Unsafe act

ii. Unsafe personal factors

3. Accident control and prevention Discovering the accident cause Controlling the environment causes Controlling behavioristic causes Proper placement of workers Proper training about safety rules

AGGREGATE PLANNING

Aggregate Planning Strategies

Guidelines

MATERIAL REQUIREMENT PLANNING

Basic calculations used to determine components required from end item requirement. Plan & control manufacturing component.

Objectives of MRP1. Inventory reduction

2. Reduction in manufacturing and delivery

3. Realistic delivery commitments

4. Increased efficiency

MRP System

SCHEDULINGPrescribing when & where each operation

necessary to manufacture the product is to be performed.

Principles of scheduling1. The principle of optimum task size

2. Principle of optimum production plan

3. Principle of optimum sequence

Inputs to scheduling

Scheduling strategies4. Detailed scheduling

5. Cumulative scheduling

6. Cumulative detailed

7. Priority decision rules

TYPES OF SCHEDULING

1. Forward scheduling

2. Backward scheduling

Scheduling methodology

3. Gantt charts & Boards

4. Priority decision rules

5. Mathematical Programming methods Linear programming model PERT/CPM network model

QUALITY

Dimensions

1. Performance

2. Features

3. Reliability

4. Appearance

5. Safety

6. Customer service

Methods of Inspection7. 100% inspection

8. Sampling inspection

QUALITY CONTROL

Regulatory process through which we measure actual quality performance, compare it with standards, & act on the difference.

Types of QC

1. Offline quality control.

2. Statistical process control.

3. Acceptance sampling plans.

CONTROL CHARTS

1. Variable control charts

2. Attribute control chart

Characteristics of control charts

Benefits using control charts

Objectives of control charts

Control charts for Attributes3. P-charts

4. C-charts

TOTAL QUALITY MANAGEMENT

Effective system of integrating the quality development, quality maintenance & quality improvement efforts of various groups in an organization so as to enable marketing, engineering, production & service at most economical levels which allow for full customer satisfaction.

Benefits of TQM1. Customer satisfaction oriented benefits Improvement in product quality Improvement in product design Service Production flow Employee morale & quality consciousness Market place acceptance.

2. Economic improvements oriented benefits

Reduction in operating cost Reduction in operating losses Reduction in field service costs Reduction in liability exposure

ISO 9000

ISO 9000- Quality management and quality assurance standards ISO 9001- Quality in design ISO 9002- Production & installation ISO 9003- Final inspection and test ISO 9004- Quality management and systems

Benefits of ISO 9000 series

Steps in ISO 9000 Registration

PRODUCTIVITY

Output/Input

Productivity Improvement Techniques1. Technology Based

2. Employee Based

3. Material Based

4. Process Based

5. Product Based

6. Task Based

WORK STUDY

Select

Record

Examine

Develop

Execute

Define

Install

Maintain

METHOD STUDY

Eliminate unnecessary operation & to achieve the best method of performing the operation.

Essentials of method study

Advantages

Objectives

RECORDING TECHNIQUES OF METHOD STUDY

1. Charts Macro Motion charts Micro Motion charts

2. Diagrams

WORK MEASUREMENT (TIME STUDY)

Application or technique designed to establish the time for qualified worker to carry out specified job at defined level or performance.

ALLOWANCES

Types1. Relaxation allowances• Fixed allowances

i. Personal needs allowances

ii. Allowances for basic fatigue• Variable allowances

2. Interference allowances

3. Contingency allowances

4. Policy allowances

MAINTENANCE MANAGEMENT

The work of keeping something in proper condition, upkeep.

Types1. Breakdown (Reactive) Maintenance

2. Preventive Maintenance

3. Predictive Maintenance

TOTAL PRODUCTIVE MAINTENANCE (TPM)

Involves newly defined concept for maintaining plants & equipment.

Objectives of TPM

STATISTICAL QUALITY CONTROL

Application of statistical techniques to determine how far the product conforms to standard of quality & precision.

Techniques of SQC1. Control charts

2. Acceptance sampling

Benefits