04/10/2023 Scope Of POM 1

SCOPE OF PRODUCTION AND OPERATION

MANAGEMENT

Presentation made by:Baxi Vishvak 02

04/10/2023 Scope Of POM 2

production management 

Administrative discipline for the effective use of resources in on-schedule production of the targeted number or quantity of end products that meet the specified cost, performance, quality, and waste requirements.

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production management

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operations management

Design, execution, and control of a firm's operations that convert its resources into desired goods and services, and implement its business strategy

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operations management

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Scope of production & operation Management

Production Planning & Control Quality Control Material Management Maintenance Management Plant/Facility Location Plant/Facility Layout Inventory Control Product Design Process Design

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Production Planning and Control

Introduction Coordination of materials with suppliers Efficient utilization of people and

machines Efficient flow of materials Communication with customers

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Production Planning and Control

Introduction

A Typical Manufacturing Systems

SUPPLIERS CUSTOMERS Raw Materials Finished Products

Materials Machines

People

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Hierarchical Planning

1. Overall Manufacturing Planning2. Detailed Materials and Capacity Planning3. Execution of Plans

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1.Overall Manufacturing PlanningHierarchical Planning Cont’d

Demand Management Forecasting Order Promising Order Processing Order Entry Spare Parts

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Planning vs. Control

Plans are made Results are compared with plans (control) Results are OK Wait until next control

period Results are not OK Go to Step 1 (Revise

plans)

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Quality Control

Quality control (QC) includes the activities from the suppliers, through production, and to the customers.

Incoming materials are examined to make sure they meet the appropriate specifications.

The quality of partially completed products are analyzed to determine if production processes are functioning properly.

Finished goods and services are studied to determine if they meet customer expectations.

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QC Throughout Production Systems

Raw Materials,Parts, andSupplies

ProductionProcesses

Products andServices

Inputs Conversion Outputs

Control Chartsand

Acceptance Tests

Control Chartsand

Acceptance TestsControl Charts

Quality ofInputs

Quality ofOutputs

Quality ofPartially Completed

Products

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Material Management

It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.

Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.

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AIM OF MATERIAL MANAGEMENT

To get

1. The Right quality

2. Right quantity of supplies

3. At the Right time

4. At the Right place

5. For the Right cost

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Objective of material management

Primary

• Right price• High turnover• Low procurement • & storage cost• Continuity of supply• Consistency in quality• Good supplier relations• Development of

personnel• Good information

system

Secondary

• Forecasting• Inter-departmental

harmony• Product improvement• Standardization• Make or buy decision• New materials &

products• Favorable reciprocal

relationships

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Maintenance Management

A maintenance manager typically is a plant engineer who reports to a plant or manufacturing manager

Maintenance departments are usually split into two groups: Buildings and Grounds Equipment

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Maintenance Activities

Repairs Repair activities are reactive. Breakdowns and malfunctions typically occur

when equipment is in use. Standby machines and parts can speed

repairs.

Preventive Maintenance (PM) Regularly scheduled inspections are

performed. PM activities are performed before equipment

fails. PM is usually performed during idle periods.

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Tradeoff Between Repairs and PM

Annual Cost ($)

Degree of Preventive Maintenance

Minimum TotalMaintenance Cost

PreventiveMaintenance

Cost

Breakdownand Repair

Cost

Total Maintenance

CostsMinimumLevel of

PreventiveMaintenance

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Functional’ Plant Layout

• Common for a large variety of products in batch volumes.

• Similar processes are grouped together.

• Inefficient: Long material transport routes from dept. to dept. Work in progress is high. Tracking of orders can be difficult.

• Advantages: Specialist labour and supervision. Flexibility as material can be rerouted in any sequence

L L

L L

M M

M M

D D

D D

G G

G G

ASSEMBLY1

ASSEMBLY2

Product 2

Material 2

Material 1

Product 1

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Product’ Plant Layout• Mass production where variety

is small and production volumes are very high.

• AKA ‘flow’ or ‘line’ layout.• More efficient, but less flexible

than ‘functional’ layout.• Work in progress is minimised,

and jobs are easily tracked.• Investment in specialised

capital equipment is high, so a reliable and steady demand is required.

• Very sensitive to machine breakdown or disruption to material supply.

ASSEMBLY

L M D G

L M D G

L M D G

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Cellular’ Plant Layout• AKA ‘Group Technology’ • Each cell manufactures products

belonging to a single family.• Cells are autonomous

manufacturing units which can produce finished parts.

• Commonly applied to machined parts.

• Often single operators supervising CNC machines in a cell, with robots for materials handling.

• Productivity and quality maximised. Throughput times and work in progress kept to a minimum.

• Flexible.• Suited to products in batches and

where design changes often occur.

L M

D G

M M

D G

L L

L G

ASSEMBLY

CELL 3

ASSEMBLY

CELL 2

ASSEMBLY

CELL 1

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Other Plant Layouts ‘Fixed Position’ Layout

(right)• Single large, high cost

components or products.• Product is static. Labour, tools

and equipment come to the work rather than vice versa.

‘Random’ Layout • Very inefficient• Small factories, start-up

companies.

‘Process’ Layout• Process industries, e.g.

steelmaking.• The process determines layout.

PRODUCT

MATERIAL

MATERIAL

LABOUR

LABOUR

COMPONENTS

COMPONENTS

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Inventory Control

Stock of items kept to meet future demand

Purpose of inventory management how many units to order when to order

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Types of Inventory

Raw materials Purchased parts and supplies Work-in-process (partially completed)

products (WIP) Items being transported Tools and equipment

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Inventory and Supply Chain Management

Bullwhip effect demand information is distorted as it moves

away from the end-use customer higher safety stock inventories to are stored to

compensate Seasonal or cyclical demand Inventory provides independence from

vendors Take advantage of price discounts Inventory provides independence

between stages and avoids work stop-pages

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Inventory and Quality Management

Customers usually perceive quality service as availability of goods they want when they want them

Inventory must be sufficient to provide high-quality customer service in TQM

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Inventory Costs

Carrying cost cost of holding an item in inventory

Ordering cost cost of replenishing inventory

Shortage cost temporary or permanent loss of sales

when demand cannot be met

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Inventory Control Systems

Continuous system (fixed-order-quantity) constant amount ordered when inventory declines to

predetermined level Periodic system (fixed-time-period)

order placed for variable amount after fixed passage of time

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ABC Classification

Class A 5 – 15 % of units 70 – 80 % of value

Class B 30 % of units 15 % of value

Class C 50 – 60 % of units 5 – 10 % of value

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Safety Stocks

Safety stock buffer added to on hand inventory during

lead time Stockout

an inventory shortage Service level

probability that the inventory available during lead time will meet demand

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Product Design

Uncertainties

Selected design

Design alternatives

Selection method

0

0 .2

0 .4

0 .6

0 .8

1

0 1 2 3 4 5 6

P a re to o p t im a l d e s ig n s

Sc

ale

d O

bje

cti

ve

Va

lue

s N o . o f O p e ra t io n s

Tim e / O p e ra t io n

W e ig h t

C o s t

Objective: Select the product design that accounts for both customer’s requirements and designer’s preferences

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DESIGN VARIABLES & ATTRIBUTES

Design Variables

Set of input variables (parameters) to the design simulation

software (e.g. Motor type, Gear type, Gear ratio, DC voltage,

Ambient temperature)

Performance Attributes

Set of attributes that is the output of the simulation

software,and identifies a product design (e.g. Manufacturing

cost, Weight, Time per operation per battery charge)

Simulation Software

Input Design Variables

Design Attributes

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Strategies for New-Product Introduction

Market Pull (“We Make What We Can Sell”) food industry

Technology Push (“We Sell What We Can Make”) electronics

Interfunctional View personal computers

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New Product Development Process

Concept Development

Product or Service Design

Pilot Production/Testing

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HOUSE OF QUALITY (QFD)

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Design for Manufacturing

Value Analysis (or engineering)Simplification of products and

processes

Modular DesignMultiple products using common

parts, processes and modules.

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Value Analysis

Terms in Value Analysis: Objective: primary purpose of the product Basic Function: Makes the objective possible Secondary Function: How to perform the basic

function

Value analysis seeks to improve the secondary function, e.g. how to open a can or make a tool box

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An Example

(b) Revised design

One-piece base & elimination of fasteners

(a) The original design

Assembly using common fasteners

(c) Final design

Design for push-and-snap assembly

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An Example (continued)

a. Original Design• 24 different parts to assemble

• 7 unique parts to manage in inventory

b. Revised Design• 4 different parts to assemble

• 3 unique parts to manage in inventory

c. Final Design• 2 parts to assemble and manage

Question: How easy would it be to detect an assembly error with each of the designs?

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Process Design

Proc select in manufac

(4)

ProcessAnalysis

Project(2)

Tran

sform

atio

n P

roce

ss

Process viewOps strategy

(1)

Process typesProduct-process matching

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Product and Process

Process: how to make it?FlexibilityLabor skillsCapacity change

Process: how to make it?FlexibilityLabor skillsCapacity change

Product: what to make?VarietyVolume

Product: what to make?VarietyVolume

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Type of Processes

Different processes have different characteristics, requiring different skills and managerial tasks.

It is convenient to identify basic process categories. We can then map the process of interest into one of these basic categories.

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Five Process Categories

Project Building a house, getting married

Job shop Custom furniture, hospital, university

Batch flow Garment, grand piano

Line flow DVD player, hamburger

Continuous flow Cereal, sugar, oil refinery

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Product-Process Matrix

ContinuousFlow

AssemblyLine

Batch

JobShop

LowVolume,One of a

Kind

MultipleProducts,

LowVolume

FewMajor

Products,HigherVolume

HighVolume,

HighStandard-

izationCommercial

PrinterFrench Restaurant

HeavyEquipment

Coffee Shop

AutomobileAssembly

Burger King

SugarRefinery

Flexibility (High)Unit Cost (High)

Flexibility (Low)Unit Cost (Low)

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Matching Process Choice with Strategy

ContinuousFlow

AssemblyLine

Batch

JobShop

LowVolume,One of a

Kind

MultipleProducts,

LowVolume

FewMajor

Products,HigherVolume

HighVolume,

HighStandard-

ization

CommercialPrinter

French Restaurant

HeavyEquipment

Coffee Shop

AutomobileAssembly

Burger King

SugarRefinery

Flexibility (High)Unit Cost (High)

Flexibility (Low)Unit Cost (Low)

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