Om introduction

POST GRADUATE PROGRAMME IN POST GRADUATE PROGRAMME IN

MANAGEMENTMANAGEMENT

SESSION PLAN SESSION PLAN

FOR FOR

SL OP 502: OPERATIONS SL OP 502: OPERATIONS

MANAGEMENTMANAGEMENT

Course InstructorDr. N. Sambandam

OPERATIONS MANAGEMENTPROGRAMME SCHEDULE

Session No.Session No. TopicTopic

1 & 2 Introduction, Operations Strategy & Competitiveness

3 & 4 Process Analysis, Product Design and Manufacturing Process Selection & Design

5 & 6 Service Process Selection & Design and Facility Location

7 & 8 Facility Layout and Waiting Line Management

9 & 10 Strategic Capacity Management and Aggregate Sales and Operations Planning

11 & 12 Inventory Control & Mid Term Test

13 & 14 Materials Requirement Planning – MRP

15 & 16 Supply Chain Strategy

17 & 18 Total Quality Management

19 & 20 Just-In-Time and Lean Systems

21 & 22 Project Management

23 & 24 Case Discussions

25 & 26 Course Review with Problem Solving

27 & 28 Course Review with Problem Solving

REFERENCES1. Richard B. Chase, “Operations and Supply Management”, 12th Edition, Tata

McGraw Hill, 2010.

2. Krajewski, Lee J, et al. “Operations Management Strategy and Analysis”, 7th Edition

Pearson Education India.

3. Norman Gaither, “Production and Operations Management”, 8th Edition, The Dryden

Press, 1999.

4. Russell, R.S & Taylor III, B.W, “Production and Operations Management” 4th

Edition, Pearson Education, 2000.

EVALUATION SCHEME : Assignment (2 Nos.) : 20%

Mid Term Test : 15%

Attendance/Case Study Presentation : 15%

Semester Ending Exam : 50%

Business FunctionsBusiness Functions

FinanceFinance

OperationsOperations

MarketingMarketing

Organization Chart for Organization Chart for Commercial BankCommercial Bank

Commercial Bank

OperationsTeller SchedulingCheck ClearingCollectionTransaction processingFacilities design/layoutVault operationsMaintenanceSecurity

FinanceInvestmentsSecuritiesReal estate

Accounting

Auditing

MarketingLoans Commercial Industrial Financial Personal Mortgage

Trust department

Organization Chart for AirlineOrganization Chart for Airline

Airline

OperationsGround support equipt.MaintenanceGround operations Facility maintenance CateringFlight operations Crew scheduling Flying Communications DispatchingManagement science

Finance/AccountingAccounting A/C payable A/C receivable General ledgerFinance Cash control International Exchange

MarketingTraffic administration Reservation Schedules Tariffs (pricing)SalesAdvertising

Organization Chart for Organization Chart for ManufacturingManufacturing

Manufacturing

OperationsFacilities Construction; maintenanceProduction and Inventory control Scheduling; materials controlQuality assurance and controlSupply Chain ManagementManufacturing Tooling; fabrication; assemblyDesign Product development and design Detailed product specificationsIndustrial engineering Efficient use of machines, space, and personnelProcess analysis Development and installation of production tools and equipment

Finance/accountingDisbursements/credits A/C receivable A/C payable General ledgerFunds management Money market International exchangeCapital requirements Stock issue Bond issue and recall

MarketingSales promotionAdvertisingSalesMarket research

OPERATIONS MANAGEMENTOPERATIONS MANAGEMENT

DEFINITIONThe management of the Production function within any Organization, whether it produces GOODS or SERVICES.TYPES OF ORGANIZATION1.Manufacturing – The output is tangible product Example: Automobile Industry, Chemical Industry, Electrical Appliance Company, etc.2.Non Manufacturing – The output is intangible product. Example: Bank, Hospital, Restaurant, Parking lot, Barber Shop, etc.

FUNCTIONS OF MANUFACTURING FUNCTIONS OF MANUFACTURING

RAWRAW

MATERIALS MATERIALS

FACTORY OPERATIONS FACTORY OPERATIONS

1. PROCESSING1. PROCESSING

2. ASSEMBLY2. ASSEMBLY

3. MATERIAL HANDING3. MATERIAL HANDING

4. INSPECTION & TESTING4. INSPECTION & TESTING

FINISHEDFINISHED

PRODUCTSPRODUCTS

SHIPPINGSHIPPINGRECEIVING RECEIVING

5. CONTROL5. CONTROL

TYPES OF OPERATIONSTYPES OF OPERATIONS

1. PROJECT2. UNIT/BATCH3. MASS4. CONTINUOUS

Types of ProcessesTypes of Processes

Type of product

Unique

PROJECTPROJECT BATCHBATCH

Made-to- order

(customized)

Type of customer

One-at-a-time

Few individual

customers

MASSMASS

Made-to- stock

(standardized )

Mass

market

CONT.CONT.

Commodity

Mass

market

Product demand Infrequent Fluctuates Stable Very stable

Types of Processes (cont.)Types of Processes (cont.)

Demand volume

Very low


Low to medium

No. of different products

Infinite variety

Many, varied

MASSMASS

High

Few

CONT.CONT.

Very high

Very few

Production system

Long-term project

Discrete, job shops

Repetitive, assembly

lines

Continuous, process

industries


Equipment Varied


General-purpose

Primary type of work

Specialized contracts

Fabrication

MASSMASS

Special-purpose

Assembly

CONT.CONT.

Highly automated

Mixing, treating, refining

Worker skills

Experts, crafts-

persons

Wide range of skills

Limited range of

skills

Equipment monitors


Advantages Custom work, latest technology


Flexibility, quality

Dis-advantages

Non-repetitive, small customer base, expensive

Costly, slow,

difficult to

manage

MASSMASS

Efficiency,

speed,

low cost

Capitalinvestment;

lack of responsivenes

s

CONTCONT..

Highly efficient,

large capacity,

ease of control

Difficult to change,

far-reaching errors,

limited variety

ExamplesConstruction, shipbuilding,

spacecraft

Machine shops,

print shops, bakeries, education

Automobiles,

televisions,

computers,

fast food

Paint, chemicals, foodstuffs

MANUFACTURINGMANUFACTURING NATURE OF PRODUCTS:

DISCRETE,BULKY,CONTINUES.

NATURE OF CUSTOMER:MTS,MTOATO & ETO

VOLUME OF PRODUCTION:UNITBATCHMASS

PHYSICAL FLOW OF MATERIAL:FIXED LAYOUTPRODUCT LAYOUTPROCESS LAYOUTGROUP LAYOUTMIXED LAYOUT

REPETITIVE :REFINERIES, CEMENT, SUGAR, INSURANCE, AUTO PARTS, ETC.

PROJECT: MARKETING RESEARCH, CONSTRUCTION

JOB M/C SHOP, RESTAURANTS, DELIVERY SERVICES, ETC.

HYBRID (job lot Prod.)FURNITURE, M/C TOOLSAPPLIANCES, ETC.

LIMITED – QUANTITY LARGE SCALE PRODUCTION.

DYNAMO, GENERATOR, BOAT, CRANE, ETC.

Customer order decoupling pointCustomer order decoupling pointRaw Raw

Materials Materials Components Components SemiSemi

FinishedFinishedFinishedFinishedGoodsGoods

ENGENG PRODPROD PRODPROD PRODPROD

SUPPLIERSUPPLIER CLIENTCLIENT

Production Based on ForecastProduction Based on Forecast

Stock PointStock PointProduction Based on Production Based on

Customer OrderCustomer Order

Engineer -to-OrderEngineer -to-Order

Make-to-OrderMake-to-Order

AssembleAssemble-to-Order-to-Order

Make to StockMake to Stock

MANUFACTURING STRATEGY AND LEAD TIME MANUFACTURING STRATEGY AND LEAD TIME

Design Purchase Manufacture Assembly Ship

Delivery Lead Time

Inventory Manufacture Assembly Ship

Delivery LeadTime

Manufacture Inventory Assembly Ship

Delivery Lead Time

Manufacture Inventory Assembly Ship

Delivery Lead TimeDelivery Lead Time

Engineer Engineer

to orderto order

Make to Make to

orderorder

Assembly Assembly

to orderto order

Make to Make to

stockstock

Manufacturing SectorsManufacturing Sectors

Textile and Garments Skill Development

Leather and Leather Goods Ports & Shipping Industry

Auto Components Capital Goods Industry

Drugs & Pharmaceuticals Paper Industry

Food Processing Biotechnology

Telecom Equipment Cement

Gem and Jewellery Fertilizers

Handlooms and Handicrafts Minerals and Metals

Chemicals & Petrochemicals Steel

IT Hardware/Electronics

Service Sectors

Banks Hospital

Mutual Fund Financial Institutions (UTI, HDBC, etc.)

Railways

Insurance (LIC, Pearless, New India Insurance)

Shipping Corporation of India

Air Lines (Private & National) Road Transport (BEST, TCI, etc.)

Tourist Corporations (TCI, Thomas Cook, Govt.. Tourism etc.)

Municipal Corporations

Hotel & Restaurants Educational (Universities & Institutions)

Post & Telegraphs CPWD

Construction (Builders) Food & Fertilizers (Storing & Distribution)

ServicesServices ManufacturingManufacturing

Output IntangibleIntangible TangibleTangible

Output Inventoried NoNo YesYes

Customer Contact ExtensiveExtensive LittleLittle

Lead Time ShortShort LongLong

Intensity LaborLabor CapitalCapital

Quality Subjective Subjective ObjectiveObjective

Characteristics of Services and Manufactured Characteristics of Services and Manufactured ProductsProducts

Operations Operations

Managers Managers

DirectingDirecting

People People

ControlControl

oror

Follow up Follow up

MotivatingMotivating

PersonnelPersonnel

Planning Planning

Courses ofCourses of

Action Action

TrainingTraining

People People

OrganizingOrganizing

and and

CoordinatingCoordinating

Activities Activities

What Operations Managers DoWhat Operations Managers Do

③ DIRECTING PEOPLE SO THAT

THEY UNDERSTAND THEIR

ASSIGNMENTS AND PERFORM THE

PROPER ACTIVITIES

⑥ CONTROL OR FOLLOW-

UP TO SEE THAT THE

OBJECTIVES ARE BEING

MET AND TAKING

CORRECTIVE ACTION

IF THE PROGRESS IS

NOT SATISFACTORY

④④MOTIVATING PERSONNEL

SO THAT THEY WILL

PROVIDE THE NECESSARY

CONTRIBUTIONS TO THE

ORGANIZATION. .

② ORGANIZING RESOURCES

SUCH AS PEOPLE, EQUIPMENT

(LAYOUT), AND TIME (SCHEDULE)

AND COORDINATING ACTIVITIES

SO THAT TEAM WORK IS ACHIEVED. ① PLANNING OBJECTIVES

AND COURSES OF ACTION

WHEREBY THE OBJECTIVES

MAY BE ACHIEVED.

⑤ TRAINING PEOPLE SO THAT THE

NECESSARY SKILLS ARE

DEVELOPED TO ENSURE THE

SUCCESS AND CONTINUITY

OF THE ORGANIZATION

SKILLS OF OPERATIONS MANAGERS AT VARIOUS LEVELS OF A MANUFACTURING FIRM

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SKILLS NEEDEDSKILLS NEEDED

Plant Plant ManagerManager

Production Production ManagerManager

Production Production SupervisorSupervisor

ManagementManagement LevelsLevels

Historical Events Historical Events in Operations in Operations ManagementManagement

Era Events/Concepts Dates Originator

Industrial

Revolution

Steam engine 1769 James Watt

Division of labor 1776 Adam Smith

Interchangeable parts 1790 Eli Whitney

Scientific Management

Principles of scientific

management1911 Frederick W. Taylor

Time and motion studies 1911Frank and Lillian Gilbreth

Activity scheduling chart 1912 Henry Gantt

Moving assembly line 1913 Henry Ford

Historical Events in Historical Events in Operations Management Operations Management (cont.)(cont.)


Human Relations

Hawthorne studies 1930 Elton Mayo

Motivation theories1940s Abraham Maslow1950s Frederick Herzberg1960s Douglas McGregor

Operations Research

Linear programming 1947 George DantzigDigital computer 1951 Remington RandSimulation, waiting

line theory, decision

theory, PERT/CPM

1950sOperations research groups

MRP, EDI, EFT, CIM1960s, 1970s

Joseph Orlicky, IBM

and others

Historical Events in Historical Events in Operations Management Operations Management (cont.)(cont.)


Quality

Revolution

JIT (just-in-time) 1970s Taiichi Ohno (Toyota)TQM (total quality

management)1980s

W. Edwards Deming,

Joseph JuranStrategy and

operations1980s

Wickham Skinner,

Robert HayesBusiness process reengineering

1990sMichael Hammer,

James Champy

Six Sigma 1990s GE, Motorola

Historical Events in Historical Events in Operations Management Operations Management (cont.)(cont.)Era Events/Concepts Dates Originator

Internet Revolution

Internet, WWW, ERP, supply chain management

1990s ARPANET, Tim

Berners-Lee SAP,

i2 Technologies,

ORACLEE-commerce 2000s Amazon, Yahoo,

eBay, Google, and others

Globalization WTO, European Union, and other trade agreements, global supply chains, outsourcing, BPO, Services Science

1990s

2000s

Numerous countries

and companies

Om introduction

Education

operations

operations

operations

customer

mcgraw

inventory

production

services