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The basic concepts of Production and Operation management
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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