Production and operation management

Power point slides by M.VENKATESWARA RAO

2nd semester MBAM.S.N.P.G.Center

Andhra University CampusKAKINADA.

Definition of Production and Operation Management Organizational Functions Why study OM Cases of production and operation management Nature and Scope of operation and management A brief history of operations management Types of Manufacturing systems Services Characteristics and classification of services Goods versus Services Measuring productivity Role of production manager

Production is the creation of goods and services Operation Management is the set of activities that

create value in the form of goods and services by transforming inputs in to outputs.

Organizing to produce goods and services:Essential functions: Marketing-Generates demand Production/operations-Creates the products Finance/accounting-Tracks how well the organization is

doing, pay bills,collect the money Human resources-Provides labour, wage and salary

administration and job evaluation

OM is one of the four major functions of any organization, we want to study how people organize themselves for productive enterprise

We want to know how goods and services are produced

We want to understand what operations managers do

OM is such a costly part of an organization

Production and operation management is defined as the design, operation, and improvement of transformation process, which converts the various inputs into the desired outputs of products and services.

Definition : According to E.S.Buffa “Production management deals with decision making related to production process so that result the goods or services are produced according to specifications in the amounts and by the scheduled demanded and at minimum cost.’’

Inputs

Labor

Materials

Capital

Energy

Resources

Outputs

Products

Services

Information

Products/services

Organisation Input Resources Transformation Output

Auto mobile plant

Steel sheets, engine parts

Tools Workers

Fabrication and Assembling

High quality auto mobile

Taxi services Customers Driver, taxi, petrol

Driving Destination

Hospital PharmacyIn patient

Out patient

DoctorsNurses

Health care Healthyindividual

Production as a system: Convert a set off inputs into a set of desired outputs.

Production as a operation function: Achieving the objectives of the organisations.

Decision making system: Operation managers are required to make a series of decisions in production function.

EX: Plan,organise,staff,directing and control all the activities in the process of converting all the inputs into finished products.

Production planning and control Scheduling, dispatching and rooting Job shop or flow shop scheduling Planning for mass production Designing plant layout Plant location and the factors influencing location Program Evolution Review Techniques Total Quality Management Time study Inventory control Safety management

Year contribution contributor

1799 Standardized parts, Cost accounting

Eli Whitney and others

1832 Job and Measures study Charles Babbage

1900 Scientific management, Motion study

F.W.TaylorFrank B.Gilberth

1901 Gantt chart and incentive pay system

Henry L.Gantt

1915 Inventory control F.W.Harris

1927 Human relations and Hortheren studies

Elton Mayo

Year contribution contributor

1931 Quality control charts W.A.Shewart

1935 Statistical sampling applied to quality control

H.F.Dodge & H.G.Roming

1940 Operation research application in world war II

P.M.Blacker and others

1946 Digital computer John Mauchlly and J.P.Eckert

1947 Linear Programming G.B.Dantzig, Williams

1950 Mathematical programming on-linear and stochastic process

A.Charnes,W.W.Cooper and others

1951 Commercial digital computer. Sperry Univac

1960 Organizational behavior: Continued study of people at work

L.Cummings, L.Porter

Year contribution contributor

1970 Integrating operations into overall strategy and policy, Computer applications to manufacturing, Scheduling and control, Material requirement planning (MRP)

W.Skinner J.Orlicky and G.Wright

1980 Quality and productivity applications from Japan:Robotics, CAD-CAM

W.E.Deming and J.Juran

These are 2 types.1.Flow or Continuous production.2.Intermittent production.

Flow or Continuous production : This is also classified into 2types.

A)Mass production B)Process production Intermittent production : This is classified into 2 types. A)Job production B)Batch production.

Improved work/material flow

Reduced skills

Added value/completed work faster

Standardisation is the fundamental of the mass production.

Large quantity of production .

Ex: Steel plant and text tile mills

In this process are inter linked and production is carried on continuously thorough a uniform and standardized sequence of operations.

This type of production is used in bulk processing of crude oil into petroleum,kerosene,diesel oil etc.

Job, ‘one-off ” or ‘make complete’’ are descriptions given into the organisation where by the complete task is handled by a single worker or group of workers.

Usually associated with low technology ,through to the large scale ,often relying on higher technology.

Volume of output is small

Machines and equipment are arranged at one place.

It is not usually to see the conversation process organised so that batch methods can be used.

Such methods required that the work for any task is divided into parts or operations and that each operation is completed throughout the hole batch before the next operation is under taken.

Aims of batch productions: Concentrate skills High equipment utilization.Characteristics: Organizationally difficult Use of specialised skills Possibility of high equipment utilization

These are three types:

Forging process

Machining process

Assembly process

Casting: This process is transforming of metals into required shape

Forging: In this process the metal is heated to plastic state and then forced to the desired shape by pressure or impact

Stamping: In this process, force is applied on the metal to get required shape of the product

Embossing and coining: In embossing the metal is stitched or formed as per the configuration were as coining is performed in an enclosed die and the metal flow is restricted

Spinning : It is process of shaping a metal by pressing it against a from while it is rotating on a high speed lathe

Turning: in this process , work piece is yield in the lathe and rotated whiled cutting tool

Drilling: the using metal bits (drill bit and boring bit) necessary changes will be made in the work piece

Grinding: the process refers to the whirring aware by friction of metals. A rotating grinding wheel will be useful for finishing product

Milling: operation removes metals by feeding the work piece against roofing multipoint cutting tool (milling cutter)

Electro chemical machining: in this process the metal to be removed is dissolved off the piece and carried away by the electro type.

Vending process.

Bracing process.

Shouldering.

Riveting.

Meaning: a service is any or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

Definition: According to American Marketing Association “ activities ,benefits and satisfaction that are offered for sale or provided in connection with the sale of goods”.

Characteristics:

1. Service is intangible.2. Service output is variable.3. High customer contacts.

Services are Classified into three types:

1. Personal services.2. Domestic services. 3. Maintenance services.

Manufacturing Services

It is concern with the production or Manufacturing of goods.

It is concerned with providing services.

In this the output is Tangible. In this output is InTangible.

There is less consumer contact. There is more consumer contact.

There is easiness is quality control .

In this quality control is difficult.

Capacity planning is easily possible .

Capacity planning is difficult.

Capital intensive. Labour intensive.

Long lead time. Short lead time.

Products quality stored. Not measured it is difficult.

Duties of Production Manager :1) Production manager should concern itself with

production planning.2) Production control.3) Production manager should concern itself with quality

control.4) Plant layout Plant layout is three types: Product layout. Process layout. Fixed layout.

5) Materiel handling.6) Proper inventory control.

These are five types: a) Re-Order level.b) Minimum level.c) Maximum level.d) Danger level.

e) Average stock level.7) Systematic control ( it refers to control of cost of

products )

M.VENKATESWARA RAO