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Nov 12, 2014






2. What is Production? 3. Production It is the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user 4. Why should we study? 5. Objectives of any business? 6. Profit Making & Sustainable growth 7. Profit = Price - cost 8. Cond Which involves Planning Organizing Controlling How? 9. Model of production system Supplier Input Conversion/ Creation process Output Customer Men, Machine, Money & Method Goods & Services Who control/monitor this? 10. Goods Services Tangible Intangible Can be stored Cannot be stored Low customer contact High customer contact Longer response time Shorter response time Production may be separate from consumption Produced & consumed at same place Ownership can be transfer ? Some aspects of quality is measurable Quality of service is difficult to measure 11. Objectives of pm Right quality Right quantity Optimal time Optimal cost 12. Classifications of production system Output / Product Variety Production Volume Continuous Production Mass Production Batch Production Job Shop Production 13. Continuous production Production facilities are arranged as per the sequence of production operations The items are made to flow through the sequence of operations through material handling devices such as conveyors, transfer devices chemical and petrochemical industries 14. Characteristics Material handling is fully automated. Process follows a predetermined sequence of operations. Planning and scheduling is a routine action Dedicated plant and equipment with zero flexibility 15. Advantages.. Standardization of product and process sequence. Higher rate of production with reduced cycle time. Manpower is not required for material handling as it is completely automatic. Person with limited skills can be used on the production line. Unit cost is lower due to high volume of production. 16. Disadvantages Very high investment for setting flow lines. Product differentiation is limited 17. Mass production Manufacture of discrete parts or assemblies using a continuous process The technique was first implemented by US automobile pioneer HenryFordin 1908, for the manufacture of the Model T Ford automobile. 18. Characteristics Dedicated special purpose machines having higher production capacities and output rates. Large volume of products. Shorter cycle time of production. Flow of materials, components and parts is continuous Production planning and control is easy. Material handling can be completely automatic. 19. Advantages Higher rate of production with reduced cycle time. Less skilled operators are required. Low process inventory. Manufacturing cost per unit is low. 20. Limitations Breakdown of one machine will stop an entire production line. Line layout needs major change with the changes in the product design. High investment in production facilities 21. Batch production It is the manufacturing technique of creating a group of components at aworkstationbefore moving the group to the next step in production It is characterized by the manufacture of limited number of products produced at regular intervals Eg:-beverages, pharmaceutical products, paint, fertilizer, and cement 22. Advantages Better utilization of plant and machinery. Promotes functional specialization. Cost per unit is lower as compared to job order production. Lower investment in plant and machinery. Flexibility to accommodate and process number of products. Job satisfaction exists for operators 23. Limitations Material handling is complex because of irregular and longer flows. Production planning and control is complex Higher set up costs due to frequent changes in set up. 24. Job shop production Manufacturing of one or few quantity of products designed and produced as per the specification of customers within prefixed time and cost The distinguishing feature of this is low volume and high variety of products 25. Characteristics High variety of products and low volume. Highly skilled operators who can take up each job as a challenge because of uniqueness. Large inventory of materials, tools, parts. Detailed planning is essential for sequencing the requirements of each product, capacities for each work centre and order priorities 26. Limitations Higher cost due to frequent set up changes. Production planning is complicated. Larger space requirements 27. Operations functions Location of facilities Plant layouts and material handling Product design Process design Production and planning control Quality control Materials management Maintenance management. 28. 1. Location facilities Its a geographical factor 3M have their corporate activity including R & D in Texas BMW assembles the Z3 sports car in South Carolina What made them to choose it? 29. Texas Place for high intellectual capital Approximately $4.0 billion of federal R&D funds are spent each year in Texas One of the top 50 states in terms of the amount of federal R&D dollars received annually US geological survey The Southern Plains Agricultural Research Center The Brazos Field Research Station is a unit of the Columbia Environmental Research Centeretc 30. Cond Proximity of customer Business climate Total cost Infrastructure Quality of labour Competitive advantage Political issues/involvement "We deliberately chose a country within the EU with a politically and economically stable climate ...the good relationship we have with the NFIA (Netherlands Foreign Investment Agency)and the Dutch government is very much appreciated and respected by Eastman!" Godefroy A. Motte, Vice President and Managing Director, Eastman Chemical (EMEA) 31. 2. Plant Layout & Material Handling Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipments and all other supporting services along with the design of best structure to contain all these facilities. 32. 3. Product Design Conversion of idea into reality Its a survival and growth strategy Need identification Marketing Product development Manufacturing 33. 4, Process design Process design is a macroscopic decision-making of an overall process route for converting the raw material into finished goods selection of a process, choice of technology, process flow analysis 34. 5. Production Planning & Controlling Planning - what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are, to where we want to go Scheduling - determines the programme for the operations. Scheduling may be defined as the fixation of time and date for each operation as well as it determines the sequence of operations 35. Cond Aggregate planning Master Production Schedule Materials Requirement Planning Capacity Planning Scheduling & Control 36. 6. Quality Control a system that is used to maintain a desired level of quality in a product or service. It is a systematic control of various factors that affect the quality of the product Quality control aims at prevention of defects at the source, relies on effective feed back system and corrective action procedure 37. 7. Maintenance Management To achieve minimum breakdown and to keep the plant in good working condition at the lowest possible cost. To keep the machines and other facilities in such a condition that permits them to be used at their optimal capacity without interruption. To ensure the availability of the machines, buildings and services required by other sections of the factory for the performance of their functions at optimal return on investment 38. Concept of Productivity Different things to different person Universal concept: Output to Input 39. Significance of productivity Importance towards economic growth & development Three sources of growth 1. Traditional source of growth 2. Institutional innovation 3. Technological progress 40. Impact of productivity Large supply of consumer goods and capital goods High earnings Strengthening the economic foundation of human well being Improvement in working and living conditions 41. Model of low productivity trap 42. Measurement of productivity productivity measurement is the quantification of both the output and input resources of a productive system Problem here is : input aggregate one Traditional method: index-number approach - A measure or index of aggregate output divided by the observed quantity of a single input thus became the earliest approach to productivity measurement 43. Cond Latest Methodology: Total Factor Productivity (TFP) Aggregate of all inputs & outputs 44. Improve productivity Increase output for the same input Decreased input for the same output Proportionate increase in the output is more than the proportionate increase in the input Proportionate decrease in the input is more than the proportionate increase in the output Simultaneous increase in the output with decrease in the input 45. Evolutions of OM From craft or job shops to conventional mass production and then to flexible design and production systems In two directions 1. Variety in Product design 2. Use of automation 46. Cond Craft production - non standard input/output/process - high skilled labour - produced unique product Later 1800s economies of scale - standard input/output/process - less skilled labour - less production cost - similar kind of product 47. Cond Difficult to change the experience of Ford and its Model T production facilities in the 1920s to demonstrate how a company can face bankruptcy by pushing process rationalization and scale economies too far -- for example NIRMA washing