6670049 Concepts and Production System 0811

8/14/2019 6670049 Concepts and Production System 0811

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Programme 1 -Programme 1 -

Concepts of ProductionConcepts of Production

ManagementManagement

Prof. B.V.N SachendraProf. B.V.N Sachendra

Xavier Vignana Jyothi Institute of ManagementXavier Vignana Jyothi Institute of Management


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Significance of ProductionSignificance of Production

ManagementManagement

Recent times proved to be moreRecent times proved to be more

challengingchallenging


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Outdated Technology

Underdeveloped Infrastructure

Inappropriate Payment Systems

Ineffective Scheduling and control


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In India, because of L,P and GIn India, because of L,P and G

Foreign competitors are threatening ourForeign competitors are threatening our

industriesindustries

In addition, society is becoming moreIn addition, society is becoming moreeducated and affluenteducated and affluent

Production managers have to modify theirProduction managers have to modify their

methodologies regularlymethodologies regularly


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PM DefinedPM Defined

PM is management of direct resourcesPM is management of direct resources

that are required to produce the goods andthat are required to produce the goods and

services provided by an organization.services provided by an organization.

Production Management is the planning,Production Management is the planning,

direction and control of thedirection and control of the transformationtransformation

processprocess of aof a systemsystem so that the systemso that the system

adds value to theadds value to theproductproductin a manner thatin a manner thatis bothis both effective and efficienteffective and efficient..


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BusinessTheories

Management

Science

ProductionManagement

IndustrialEngineering

OperationsResearch

OperationsManagement

P/OMor

POM

Manufacturing

Service

Origins of Production ManagementOrigins of Production Management


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Overview ofProductionManagement Model

TransformationTransformation

ProcessProcess

OutputOutput

ProductsProducts

ControlControl

Input: resourcesInput: resources

raw materialsraw materials

machinesmachines

personnelpersonnelcapitalcapital

land/buildingsland/buildings

utilitiesutilities

informationinformation

etc.etc.


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The Production Management SystemThe Production Management System


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Inputs Workers Managers Equipment Facilities

Materials Services Land Energy


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Inputs Workers Managers Equipment Facilities

Materials Services Land Energy

Operations and

processes

5

1

2

3

4


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Outputs Products

Inputs Workers Managers Equipment Facilities Materials Services Land Energy

Operations and

processes

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1

2

3

4


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Outputs Products

External environment

Customer or client

participation

Operations and

processes

5

1

2

3

4



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Outputs Goods

External environment

Customer or client

participation

Operations and

processes

Information on

performance

5

1

2

3

4



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Production Management as a FunctionProduction Management as a Function

Viewed as an internal function fromViewed as an internal function from

the external environment by otherthe external environment by other

organizational functions.organizational functions.


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Production Management As a FunctionProduction Management As a Function


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Production Management As a FunctionProduction Management As a Function

Skill Areas Quantitative

methods

OrganizationalBehaviour General Management Information systems Economics

Internationalbusiness

Business ethics

and law


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Evolution of Production ManagementEvolution of Production Management

Is it from 1770s?Is it from 1770s?


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1. Scientific Management1. Scientific ManagementAccording to this concept,According to this concept,

Scientific rules govern thScientific rules govern theproductivity rate of a worker.productivity rate of a worker.

It is the function of the managemenIt is the function of the managemento study these laws in theirto study these laws in their

o erationsoperations


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2.2. Each worker was placed in a suitableEach worker was placed in a suitable

job by his skill, strength and learning job by his skill, strength and learning

ability.ability.

2. Standard output per worker was set.2. Standard output per worker was set.

3. Work methods and work flows were3. Work methods and work flows were

standardized.standardized.

ApproachApproach


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4. Supervision was improved through4. Supervision was improved through

better recruitment and training.better recruitment and training.

5. Incentive pay systems were introduced5. Incentive pay systems were introduced

to motivate workers.to motivate workers.


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2. Moving Assembly Line2. Moving Assembly Line

Introduced by Henry Ford in 1917.Introduced by Henry Ford in 1917.

Hallmarks:Hallmarks:

Standardized product designsStandardized product designs

Mechanized assembly linesMechanized assembly lines

Specialized laborSpecialized laborInterchangeable partsInterchangeable parts


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Each worker performs the sameEach worker performs the same

unit of work as the chassis movesunit of work as the chassis movesmechanically.mechanically.

Assembling time was brought Assembling time was brought

down from 12.5 hours to 93down from 12.5 hours to 93

minutesminutes


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Hawthorne StudiesHawthorne Studies

Mathematical tools were dominating tilMathematical tools were dominating til1920s1920s

Research team from Harvard headed bResearch team from Harvard headed by

Elton Mayo conducted studies inElton Mayo conducted studies inWestern Electric lant at Hawthorne.Western Electric plant at Hawthorne.

Study was on the relationship betweenStudy was on the relationship between

light intensity and worker productivitylight intensity and worker productivity

Results were confusingResults were confusing

O i R hO ti R h


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Operations ResearchOperations Research

Outbreak of World War IIOutbreak of World War II

Many European countries and UMany European countries and USintroduced OR teams into their militarintroduced OR teams into their militar

branchesbranches

These teams formulated compleThese teams formulated complemathematical tools to solve mormathematical tools to solve more

com lex roblems in a sim le wa .complex problems in a simple way.

After WW, OR was applied in industry.After WW, OR was applied in industry.

Many universities included OR in theirMany universities included OR in their

curriculumcurriculum


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Production ManagementProduction Management

A functional area that enhances A functional area that enhancesproductivity and ensures quality.productivity and ensures quality.

Uses sophisticated tools likeUses sophisticated tools like

CADCADCAMCAM

FMSFMS

AIAIReprogrammable MachinesReprogrammable Machines


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Types of Production SystemsTypes of Production Systems

1. Product-focussed Production System1. Product-focussed Production System

2. Process-focussed Production System2. Process-focussed Production System

3. Group Technology / Cellular3. Group Technology / Cellular

ManufacturingManufacturing


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Product-focussed Production SystemProduct-focussed Production System

Organized according to the type ofOrganized according to the type of

product / service.product / service.

Also known as line flow productionAlso known as line flow production

system or continuous productionsystem or continuous productionsystem.system.

All the operations are grouped into oneAll the operations are grouped into one

department.department.


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In this type of process design, productsIn this type of process design, productsor services tend to flow along director services tend to flow along direct

linear paths without backtracking orlinear paths without backtracking or

sidetracking.sidetracking.


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The production system being followedThe production system being followedby AGI Glaspac for manufacture of theby AGI Glaspac for manufacture of the

three colours of glasses is majorlythree colours of glasses is majorly

Product focussed.Product focussed.

Services delivered by waiters inServices delivered by waiters in

catering system make use of this.catering system make use of this.


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AdvantagesAdvantages

Reduced unit costsReduced unit costsHigh volumes of productionHigh volumes of production

Low Labor skill requirementsLow Labor skill requirements

Reduced worker trainingReduced worker trainingReduced supervisionReduced supervision

Ease of planning and controlEase of planning and control

DisadvantagesDisadvantages

High investmentsHigh investments

Low flexibilityLow flexibility


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Applicable in food, brewing, chemicals,Applicable in food, brewing, chemicals,

petroleum refining, petrochemical petroleum refining, petrochemical plastics, container glass, paper and plastics, container glass, paper and

cement industries.cement industries.

Services can also use this system.Services can also use this system.

Ex: Cafeterias and car washing facilitieEx: Cafeterias and car washing facilitie


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Process-focussed Production SysteProcess-focussed Production Syste

All the operations are groupe All the operations are groupeaccording to the type of processes -----according to the type of processes -----

all production processes that haveall production processes that have

similar technological processes aresimilar technological processes aregrouped together.grouped together.

Products do not follow continuous orProducts do not follow continuous or

linear routes.linear routes.


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This system is generally used toThis system is generally used toproduce small quantities (or batches) oproduce small quantities (or batches) o

different items on relatively generaldifferent items on relatively generalpurpose machinery.purpose machinery.

Processing equipment and personnelProcessing equipment and personnel

are located according to the functionsare located according to the functionsand products flow through the facilitiesand products flow through the facilitieson regular paths.on regular paths.

This system allows both side-trackingThis system allows both side-tracking

and back-tracking in the product floand back-tracking in the product flowrate.rate.


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Highly irregular, stop and go, zigzagHighly irregular, stop and go, zigzag

routes with side tracking and backroutes with side tracking and back

trackingtracking

Same dept may have to handle severalSame dept may have to handle several

different tasks simultaneouslydifferent tasks simultaneously

If the capacity is insufficient, jobs haveIf the capacity is insufficient, jobs haveto wait.to wait.

Ad antagesAdvantages


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AdvantagesAdvantages

Enhanced flexibilityEnhanced flexibility

Less initial investmentLess initial investmentUse of general purpose equipmentUse of general purpose equipment

DisadvantagesDisadvantagesGreater employee skillGreater employee skill

More employee trainingMore employee training

More complex PPCMore complex PPC

Used in hospitals, automobile repairUsed in hospitals, automobile repair

shops and so on.shops and so on.


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Group Technology Cellular LayoutGroup Technology Cellular Layout

First studied and implemented in USSR inFirst studied and implemented in USSR in1940s.1940s.

Each product manufactured is given aEach product manufactured is given a

unique code.unique code. Code is usually multi-digital, each digitCode is usually multi-digital, each digit

representing a physical characteristic of therepresenting a physical characteristic of the

part.part. Products with similar characteristics can beProducts with similar characteristics can be

grouped into families.grouped into families.


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Product focussed and process focussedProduct focussed and process focussed

production systems represent two typesproduction systems represent two types

of traditional approaches for organisingof traditional approaches for organisingproduction activities. But, manyproduction activities. But, many

organisations use blends and hybrids oforganisations use blends and hybrids of

these two approaches.these two approaches.


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Process MappingProcess Mapping

The study of the flow of processes.The study of the flow of processes.

Identification of waste.Identification of waste.

Consideration of whether the process canConsideration of whether the process canbe rearranged in a more efficient sequence.be rearranged in a more efficient sequence.

Consideration of whether everything that isConsideration of whether everything that isbeing done at each stage is reallybeing done at each stage is really

necessary.necessary. Analysing what would happen if superfluousAnalysing what would happen if superfluous

tasks are removed.tasks are removed.


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HomeworkHomework

Do process mapping for your ownDo process mapping for your own

organisation / department / work place andorganisation / department / work place and

be prepared to make a presentation nextbe prepared to make a presentation next

week at 3pm.week at 3pm.

Documents

6670049 Concepts and Production System 0811