Top Banner
PRODUCTION AND PRODUCTION AND OPERATIONS MANAGEMENT OPERATIONS MANAGEMENT INPUT OUTPUT PROCESS INPUT OUTPUT PROCESS
149
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Production and Operations Management

PRODUCTION AND PRODUCTION AND OPERATIONS OPERATIONS

MANAGEMENTMANAGEMENT

INPUT OUTPUT PROCESSINPUT OUTPUT PROCESS

Page 2: Production and Operations Management

PRODUCTION MANAGEMENTPRODUCTION MANAGEMENT

• Planning, implementation, and control of industrial production processes to ensure smooth and efficient operation.

• Production management techniques are used in both manufacturing and service industries

Page 3: Production and Operations Management

TASKS THAT ARE TASKS THAT ARE INTERDEPENDENTINTERDEPENDENT

• PRODUCT – QUALITY, RELIABILITY, COST, QUANTITY,OTHER FEATURES

• PLANT – FC, MC,SAFETY,LAYOUT• PROCESSES – CAPACITY,SKILLS• PROGRAMME – PURCHASING PATTERN,

STORAGE ETC• PEOPLE – SALARIES, LEADERSHIP• PLANNING AND CONTROL

Page 4: Production and Operations Management

INTEGRATED PM – FEW INTEGRATED PM – FEW IMP.FUNCTIONSIMP.FUNCTIONS

• 1. IDENTIFICATION N PROCUREMENT N MOVEMENT OF MATERIALS

• 2. QUANTITY N INVENTORY CONTROL

• 3. MAINTENANCE OF MACHINES

• 4. COST N QUALITY CONTROL

• 5. TRG N DEPLOYMENT OF WORKFORCE

• 6. PACKAGING N TIMELY DELIVERY

Page 5: Production and Operations Management

PRODUCTION PLANNINGPRODUCTION PLANNING

• BROAD CLASSIFICATIONS ARE:-

• ESTIMATING – CAPACITY, MATERIALS, WORK FORCE ETC

• ROUTING – SEQUENCE OF OPS

• SCHEDULING – COMPLETION OF JOBS AT PRE-SET TIMES

Page 6: Production and Operations Management

PRODUCTION CONTROLPRODUCTION CONTROL

• DISPATCHING – MOVING MATERIALS FROM PLACE TO PLACE, MEETING THE REQUIREMENTS OF ROUTING AND SCHEDULING

• EXPEDITING – CLEARING CONSTRAINTS AND ENSURING SMOOTH FLOW OF WORK AS PER TIME SCHDULES

Page 7: Production and Operations Management

INVENTORIESINVENTORIES

• INVENTORY CONTROL IS VERY IMPORTANT AS IT AFFECTS CASH FLOWS AND STORAGE COSTS

• JIT AND LEAN MFG ARE SOME METHODS ADOPTED IN INVENTORY CONTROL – TO MINIMISE WASTAGE ACROSS THE ORGN

Page 8: Production and Operations Management

MATERIAL CONTROLMATERIAL CONTROL

• PROCUREMENT, STORAGE AND ISSUANCE OF MATERIAL FOR THE PURPOSE OF MFG THE PRODUCTS.

• INVOLVES ACTIVITIES LIKE:-• 1. POLICIES – SELECTION OF

SUPPLIERS• 2. QUANTITIES • 3. PRICE FIXING• 4. TERMS OF DELIVERY

Page 9: Production and Operations Management

FISHBONE DIAGRAMFISHBONE DIAGRAM

The Fishbone diagram is one of the many management tools created by Dr. Kaoru Ishikawa The fishbone diagram and collaborative, team-approach were integral components of Dr. Ishikawa's "Company-Wide Quality Control" (CWQC) quality strategy

• In recognition of his life-long efforts of making "quality" a household word, the American Society for Quality (ASQ) instituted the Ishikawa medal in 1993, an annual award that recognizes leadership in the human side of quality.

Page 10: Production and Operations Management

CAUSE EFFECT ANALYSISCAUSE EFFECT ANALYSIS

Page 11: Production and Operations Management

QUALITY CIRCLESQUALITY CIRCLES• 1. FOCUS IS ON ENHANCING

PRODUCTIVITY AND QUALITY

• 2. INVOLVES ALL PERSONS

• 3. CREATIVITY AND TEAMWORK

• 4. INCREMENTAL CHANGES

• 5. IDENTIFICATION OF FAILURES/DEFECTS AND METHODS TO AVOID THE SAME

Page 12: Production and Operations Management

ADDITIONAL STRATEGIESADDITIONAL STRATEGIES

• OUTSTOURCING

• METHODS IMPROVEMENTS

• BALANCING OF WORKSTATIONS

Page 13: Production and Operations Management

LABOUR PRODUCTIVITYLABOUR PRODUCTIVITY

• BALANCING OPS IN ASSEMBLY LINE

• REALLOCATION OF WORKERS

• SETTING UP OF PRODUCTIVITY NORMS AND EVALUATION OF PRODUCTION OPS EX. TIME AND MOTION STUDY, WORK MEASUREMENT METHODS ETC

Page 14: Production and Operations Management

TRAINING TRAINING

• TNA

• TIME

• BUDGET

• CAREER DEVELOPMENT

• IMPLEMENTATION OF TQM, CHANGE MGT ETC DEPEND ON TRG FOR THEIR SUCESS

Page 15: Production and Operations Management

SUCCESSFUL TRG SESSIONSUCCESSFUL TRG SESSION

Page 16: Production and Operations Management

ADVANCED METHODOLOGIES ADVANCED METHODOLOGIES OF PRODUCTIONOF PRODUCTION

• CAD – COMPUTER AIDED DESIGN• DESIGN NEW PARTS OR ALTER EXISTING

ONES,CREATE DRAWINGS AND VIEW FROM DIFF ANGLES – VISUALISATION PROCESS HELPS BETTER OPTIONS

• ANALYSTS USE IT TO STORE, RETIREVE AND CLASSIFY DATA ABOUT VARIOUS PARTS

Page 17: Production and Operations Management

CIMCIM

• CIM – COMPUTER INTEGRATED MANUFACTURING – COMPUTER AIDS ARE TO THESE FUNCTIONS :-

• 1. PRODN ( FLOW OF MATERIALS)

• 2. DESIGN ( FLOW OF TECH INFO)

• 3. MGT ( FLOW OF MANAGERIAL INFO)

Page 18: Production and Operations Management

OPS STRATEGYOPS STRATEGY

• OPS FUNCTION SHOULD BE GUIDED BY THE ORGN STRTEGY

• FOCUS IS ON OPTIMISATION OF RESOURCES TO MAKE OPS EFFECTIVE AND PROVIDE A COMPETITIVE EDGE

Page 19: Production and Operations Management

FORMULATION OF STRATEGY FORMULATION OF STRATEGY

• DEPENDS ON THE FOLLOWING MAIN FACTORS:-

• 1. STRENGTHS

• 2. WEAKNESSES

• 3. OPPORTUNITIES AND THREATS

• 4. RESILENCE OF THE INTERNAL ENVIRONMENT

Page 20: Production and Operations Management

UMBRELLA OF OPS STRATEGYUMBRELLA OF OPS STRATEGY

• QUALITY

• TIME TAKEN TO DELIVER THE PRODUCT

• FLEXIBILITY TO CATER TO THE CHANGING NEEDS OF THE CUSTOMERS ( SERVICE DIMENSION

Page 21: Production and Operations Management

STRATEGIC DMSTRATEGIC DM

• 1 . DATA GATHERING, ANALYSIS AND PREDICTING OUTCOMES

• 2. ENVIRONMENTAL SCANNING (PESTEL ANALYSIS)

• 3. CORE COMPETENCIES – UNIQUE STRENGTHS

Page 22: Production and Operations Management

MAIN CORE PROCESSESMAIN CORE PROCESSES

• CORE COMPETENCY PROCESSES:-

• 1. CRM• 2. NEW PRODUCTS/SERVICE DEV• 3. SUPPLIER RELATIONSHIP• 4. ORDER FULFILMENT• NOTE : CORE COMPETENCIES GIVE IT

A COMPETITIVE EDGE

Page 23: Production and Operations Management

DIFFERENTIATION STRATEGIESDIFFERENTIATION STRATEGIES

• PROCESS INVOLVES ADDING VALUE TO THE CUSTOMER

• PERCIEVED BY THE CUSTOMER AS IMPORTANT, DISTINCTIVE, SUPERIOR AND AFFORDABLE

• DIFFERENT COS HAVE DIFFERENT POTENTIALS ( 4 PS) – WHICH ARE AFFECTED BY THE COS POSITION IN THE MARKET AND THE INDUSTRY STRUCTURE

Page 24: Production and Operations Management

PRODUCT DIFFERENTIATIONPRODUCT DIFFERENTIATION

• 1. FORM – SHAPE, DIMENSION, AESTHETICS

• 2. FEATURES - COMPONENTS, PARTS

• 3. QUALITY OF PERFORMANCE - – SERVICEABILITY,REPAIRABLE, DURABILITY, SAFETY

• 4. AESTHETICS - BEAUTY , CREATIVITY

Page 25: Production and Operations Management

TOOLS FOR IMPLEMENTATIONTOOLS FOR IMPLEMENTATION

• GANTT CHARTS

• SIMULATION MODELS

• ERP, SAP SOFTWARE

• MICROSOFT OPS MANAGER 2005

Page 26: Production and Operations Management

INDUSTRY BEST PRACTICESINDUSTRY BEST PRACTICES

• OPEN UP BENCHMARKING BY COMPANIES TO ENHANCE PRODUCTIVITY AT ALL LEVELS

• PRAGMATIC BENCH MARKING MEASURES A COMPANY’S PROCESSES, METHODS, AND PROCEDURES – IN A WAY THAT ALL FUNCTIONS IN GREAT DETAIL

Page 27: Production and Operations Management

BENCHMARKINGBENCHMARKING

• Benchmarking is the process of gathering information about other companies in your industry to compare your performance against and to use to set goals.

• For example one can compare turnover rate against the ten largest companies in the industry when we are benchmarking our HR organization.

Page 28: Production and Operations Management

DIMENSIONSDIMENSIONS

• COST

• TIME

• QUALITY

• IN SIMPLE WORDS - LEARNING TO DO THINGS BETTER,FASTER, CHEAPER

Page 29: Production and Operations Management

EXAMPLES OF METRICS USED EXAMPLES OF METRICS USED IN BENCHMARKING IN BENCHMARKING

• COST PER UNIT

• NUMBER OF UNITS PRODUCE/HR

• NUMBER OF BREAKDOWNS/WEEK

• ROI

• INVENTORY TURNOVER

• CUSTOMER ALIENATION/WEEK

• SALES RETURNS FIGURES/WEEK

• ETC….

Page 30: Production and Operations Management

STEPS IN BENCHMARKINGSTEPS IN BENCHMARKING

• PLANNING

• ANALYSIS

• INTEGRATION

• ACTION

Page 31: Production and Operations Management

Pareto AnalysisPareto Analysis

• Use of Pareto principle in prioritizing or ranking a range of items which have different levels of significance. Its objective is to separate the 'vital few' from the 'useful many.‘

• Pareto analysis is a statistical technique in decision making used for selection of a limited of number of tasks that produce significant overall effect. It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job.

Page 32: Production and Operations Management

5W2H METHOD5W2H METHOD• SYSTEMATIC APPROACH TO WASTE

REDUCTION – ALAN ROBINSONS• 1. WHAT• 2. WHY• 3. WHERE• 4. WHEN• 5. WHO• 6. HOW ( IS T HERE A BETTER WAY?)• 7. HOW MUCH ( COST NOW? CAN IT BE

REDUCED FURTHER??)

Page 33: Production and Operations Management

PRODUCTION TECHNIQUESPRODUCTION TECHNIQUES

• ENCOMPASSES:-

1. WORK SYSTEMS ( PROCESS OF MFR)

2. DESIGN OF WORK SYSTEMS

3. PROCESS OF PLANNING AND PRODUCTION CONTROL TECHNIQUES

Page 34: Production and Operations Management

CHOICES LIKECHOICES LIKE

• 1. HOW TO DEPLOY RESOURCES• 2. IDENTIFYING NEW VENDORS• 3. UPDATING TECHNOLOGY• 4. QUALITY CHALLENGES• 5. BOTTLENECKS IN FLOW OF

MATERIALS AND INFORMATION• 6. INVENTORY MGT• 7. NEW PRODUCTS

Page 35: Production and Operations Management

AUTOMATIONAUTOMATION

• AUTOMATION IS THE USE OF SCIENTIFIC AND TECHNOLOGICAL PRINCIPLES IN THE MANUFACTURE OF MACHINES THAT TAKE OVER WORK NORMALLY DONE BY HUMANS

Page 36: Production and Operations Management

ADVANTAGES OFAUTOMATIONADVANTAGES OFAUTOMATION

• 1. IDEAL WHEN PRODUCT MANUFACTURED IS HIGHLY STANDARDIZED

• 2. INCREASE IN QUALITY AND PRODUCTIVITY

• 3. LOW VARIABILITY

• 4. MORE CONSISTENCY

• 5. ECONOMICAL

Page 37: Production and Operations Management

3 KINDS OF AUTOMATION3 KINDS OF AUTOMATION

• 1. FIXED

• 2. PROGRAMMABLE ( CNC MACHINES)

• 3. FLEXIBLE ( ROBOTS)

Page 38: Production and Operations Management

ASRSASRS

• AUTOMATED STORAGE AND RETRIEVAL SYSTEMS – RECEIVE ORDERS FOR MATERIALS FROM ANYWHERE IN THE PRODN AREA, COLLECT MATERIALS AND DELIVER MATERIALS TO THE WORKSTATIONS

Page 39: Production and Operations Management

AGVSAGVS

• AUTOMATED GUIDED VEHICLE SYSTEMS LIKE PALLET TRUCKS AND UNIT LOAD CARRIERS FOLLOW EMBEDDED GUIDE WIRES OR PAINT STRIPS TO REACH DESTINATIONS AS PROGRAMMED

Page 40: Production and Operations Management

PROTOTYPINGPROTOTYPING

• PROTOTYPING IS A PROCESS BY WHICH A NEW PRODUCT IS DEVELOPED IN SMALL NUMBERS

Page 41: Production and Operations Management

PROTOTYPE HELPS TOPROTOTYPE HELPS TO

• 1. DETERMINE THE SUITABILITY OF MATERIALS

• 2. STUDY THE VARIOUS METHODS OF MANUFACTURE

• 3. DETERMINE TYPE OF MACHINERY• 4. DEVELOP TECHNIQUES TO TROUBLE

SHOOT • 5. TO STUDY THE COST N TIME DIMENSION• 6. IN CASE OF SERIOUS ISSUES –

DRAMATIC CHANGE IS NECESSARY

Page 42: Production and Operations Management

RAPID PROTOTYPINGRAPID PROTOTYPING

• RAPID PROTOTYPING USES VIRTUAL DESIGNS FROM CAD OR ANIMATION MODELLING WHICH TRANSFORMS DATA TO 3 D VIEWS

• PHYSICAL SPACE OF THE PRODUCT IS AMENABLE TO HAVE CROSS SECTIONS

• HELPS BUILD SOLID MODELS EXACTLY AS PER THE DRAWINGS

Page 43: Production and Operations Management

ADVANCED RAPID PROTOTYPE ADVANCED RAPID PROTOTYPE MODELLING PROCESSESMODELLING PROCESSES

• 1. SLS – SELECTIVE LASER SINTERING

• 2. FDM – FUSED DEPOSITION MODELLING

• 3. LOM –LAMINATED OBJECT MANUFACTURE

• 4. EBM – ELECTRONIC BEAM MELTING

Page 44: Production and Operations Management

BUILDING MFG FLEXIBILITYBUILDING MFG FLEXIBILITY

• THREE DIMENSIONS:-• 1. VARIETY

• 2. VOLUME

• 3. TIME • NOTE – FLEXIBILITY CATERS FOR CHANGE,

ENHANCING CUSTOMER SATISFACTION, DEVELOP NEW PRODUCTS OR MAKE IMPROVEMENTS IN THE PRODUCTS

Page 45: Production and Operations Management

FACILITIES MANAGEMENTFACILITIES MANAGEMENT

• IT IS A STRATEGIC LEVEL DECISION OF THE TOP MGT

• IT INVOLVES PLANNING AND MANAGEMENT OF THE PLANT LOCATION AND THE LAYOUT

Page 46: Production and Operations Management

CONSIDERATIONS IN LOCATION CONSIDERATIONS IN LOCATION AND LAYOUT OF PLANTAND LAYOUT OF PLANT

• 1. COMPANY’S EXPANSION PLAN

• 2. DIVERSIFICATION PLAN – PRODUCTS

• 3. CHANGING MKT CONDITIONS

• 4. CHANGING SOURCE OF RAW MATERIALS

• 5. OUTSOURCING

• 6. AUTOMATION, GP TECHNOLOGY

Page 47: Production and Operations Management

FACTORS INFLUENCING PLANT FACTORS INFLUENCING PLANT LOCATIONLOCATION

• 1. GENERAL FACTORS – AVAILABILITY OF LAND, LABOR, RAW MATERIALS ETC

• 2.SPECIAL FACTORS – CULTURAL , REGIONAL , ECONOMIC , JOINT VENTURES ETC

Page 48: Production and Operations Management

GENERAL FACTORSGENERAL FACTORS• 1. LAND AVAILABILITY

• 2. INPUTS AVAILABILITY

• 3. MARKET PROXIMITY

• 4. INFRASTRUCTURE

• 5. TRANSPORT

• 6. GOVERNMENT SUPPORT

• 7. COMMUNICATION

• 8. TAX, HOUSING, EDUCATION, RECREATION ETC….

Page 49: Production and Operations Management

RATING METHODSRATING METHODS

• EVERY FACTOR HAS A WEIGHTAGE – THEREFORE CAN BE RANKED TO DETERMINE THE OPTIMAL LOCATION

• 1. RATING PLAN METHOD

• 2. FACTOR RATING METHOD

• 3. POINT RATING METHOD

• 4. BREAK –EVEN ANALYSIS

• 5. CENTER OF GRAVITY METHOD

Page 50: Production and Operations Management

OPTIMISATION OF RESOURCESOPTIMISATION OF RESOURCES

• 1. LAND, MACHINERY, EQUIPMENT, TOOLS, RAW MATERIALS, POWER

• 2. PROCESSES, TECH, TECHNIQUES, DELIVERY OF SERVICES

• 3. PEOPLE – INTERNAL(EMPLOYEES) AND EXTERNAL (CUSTOMERS, SUPPLIERS, MEMBERS OF SOCIETY

Page 51: Production and Operations Management

JIT FOCUS IS ON BALANCING JIT FOCUS IS ON BALANCING THE SYSTEM AND REDUCING THE SYSTEM AND REDUCING

OR ELIMINATING WASTESOR ELIMINATING WASTES

• 1. TRANSPORTATION

• 2.PRODUCT DEFECTS

• 3.OVER PRODUCTION

• 4. WAITING TIME

• 5.INEFFICIENT WORK METHODS

• 6. INVENTORY

• 7. UNNECESSARY MOVEMENT

Page 52: Production and Operations Management

INVENTORY IS NECESSARYINVENTORY IS NECESSARY

• TO AVOID STOCK OUT SITUATIONS – WHICH LEAD TO MACHINE DOWNTIME – WHICH CAN IMPACT PRODUCTIVITY

• LEAD TIMES AND UNCERTAINITY OF AVAILABILITY OF MATERIALS DEMAND BUFFER STOCKING

• HOW MUCH ? WILL DEPEND ON HISTORICAL DATA AND OTHER TECHNIQUES

Page 53: Production and Operations Management

CAUSES FOR BUILDING CAUSES FOR BUILDING INVENTORYINVENTORY

• 1. MEET CUSTOMERS NEED IN TIME- ELSE THE CUSTOMER IS LOST

• 2.FREQUENT REORDERING INCREASES COSTS – HIGHER QUANTITIES ATTRACT DISCOUNTS

• 3.TRANSPORTATION COSTS R LESS

• 4. LABOUR AND EQUIPMENT UTILISATION WILL BE HIGHER

Page 54: Production and Operations Management

OPTIMISATIONOPTIMISATION

• IS A PROCESS WHERE THE RESULTANT EFFECT OF ALL FACTORS ARE ANALYSED AND DECISIONS TAKEN

• STUDY AND REPEATED IMPLEMENTAITON BRINGS IN ORGN LEARNING AND IMPROVES DM

• ADDS TO THE PROFITABILITY OF THE COMPANY

Page 55: Production and Operations Management

WORK CENTRE LOCATIONWORK CENTRE LOCATION

• WORK CENTRE IS A PRODUCTION FACILTIY COMPRISING OF ONE OR MORE MACHINES OR ONE OR MORE WORKMEN CONSIDERED AS A SINGLE UNIT FOR PURPOSES OF ESTIMATION OF CAPACITY

• WORK CENTRES R ALSO CONSIDERED AS COST CENTRES

Page 56: Production and Operations Management

LOCATION IS IMP LOCATION IS IMP

• 1. TO MINIMISE THE MOVEMENT OF MATERIALS

• 2.MEET TECHNOLOGICAL SEQUENCES

• 3. REDUCE CONGESTION

• 4. MAXIMISE PRODUCTIVITY

• 5.AVOID REPETITIVE MOVEMENTS

• 6. IMPROVE PART TRACKING ABILITY

Page 57: Production and Operations Management

MATERIAL INFORMATIONMATERIAL INFORMATION

• 1. EACH WORK CENTER RECIVES INFO ALONG WITH MATERIAL THAT ENTERS AS WELL WHEN MATERIAL LEAVES WORK CENTER

• 2. ROUTE SHEET CONTAINS INFORMATION – MATERIAL, PROCESS,QUANTITIES, INSPECTION..

• 3. EVERY OP CONSISTS OF MAT TRANSFORMATION ON THE BASIS OF INFORMATION

Page 58: Production and Operations Management

PROXIMITY – AEIOUX - OF PROXIMITY – AEIOUX - OF WORK CENTERSWORK CENTERS

• A- ABSOLUTELY NECESSARY TO BE CLOSE• E- ESSENTIAL TO BE CLOSE• I-IMPORTANT THAT THEY ARE CLOSE• O-ORDINARY CLOSENESS• U-UNIMPORTANT THAT THEY ARE CLOSE

OR NOT• X-NOT DESIRABLE THAT THE CENTRES ARE

CLOSE

Page 59: Production and Operations Management

TOP MGT DECISIONSTOP MGT DECISIONS

• PLANNING THE FACILITIES FOR MFG ARE STRATEGIC DECISIONS

• MACHINE LAYOUT IS TO ENSURE MAXIMUM PRODUCTIVITY AND MINIMUM MOVEMENT OF MATERIALS INSIDE THE PLANT – DIFFERENT TYPES OF LAYOUT R NECESSARY DEPENDING ON THE VARIETY OF PRODUCTS AND THEIR VOLUMES

Page 60: Production and Operations Management

TQMTQM

• QUALITY IS VERY IMP. DIMENSION IN OPS MGT

• QUALITY IS A MARKETING STRATEGY FOR NOT ONLY SURVIVAL BUT FOR EXPANDING THE MARKETS

• QUALITY HELPS GAIN A COMPETITIVE EDGE• QUALITY IS THE FOUNDATION FOR

ACHIEVING CUSTOMERS SATISFACTION• BRANDS GET CREATED DUE TO QUALITY

Page 61: Production and Operations Management

DEFINITION OF QUALITYDEFINITION OF QUALITY

the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs

Manufacturing: Strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies specific customer or user requirements.

Page 62: Production and Operations Management

IMPROVING QUALITYIMPROVING QUALITY

• 1. PERFORMANCE AND SERVICE

• 2. IDENTIFY DEFECTS

• 3. EFFICIENCY

• 4. INNOVATION

• 5. CERTIFICATION BY COMPETENT AND NEUTRAL BODIES

• 6. CUSTOMERS PERCEPTION IS THE KEY TO QUALITY

Page 63: Production and Operations Management

DIMENSIONS OF QUALITYDIMENSIONS OF QUALITY

• 1. QUALITY OF DESIGN – SPECIFICATIONS OF DIFFERENT FEATURES LIKE MATERIAL, DIMENSIONS N CHARACTERISTICS

• 2. CONFORMANCE TO DESIGN

• 3.UTILISATION CONDITIONS

• 4. AFTER SALES SERVICE

Page 64: Production and Operations Management

SYSTEMS VIEW OF QUALITYSYSTEMS VIEW OF QUALITY

• SYSTEM CONSISTS OF A NUMBER OF ELEMENTS WHICH HAVE SPECIFIC FUNCTIONS OF THEIR OWN – GIVING AND RECEIVING SUPPORT FROM ONE ANOTHER TO DELIVER OUTPUTS

• STRUCTURE, ORGN, HIERARCHIES AND INTEGRATION FACILITATE THE SYSTEM TO BE EFFECTIVE

Page 65: Production and Operations Management

QUALITY CONTROLQUALITY CONTROL

• EXERCISED MAINLY BY 2 METHODS – DESIGN AND PROCESS

• DESIGN ENSURES THAT INFO FLOW, FEEDBACK AND MONITORING TAKES PLACE

• DESIGNING EQUIPMENTS, PROCESSES,MFG METHODS AND TECH TO ENSURE THAT QUALITY PARAMETERS ARE MET

Page 66: Production and Operations Management

PROCESSPROCESS

• VARIABILITY IS INHERENT AND MUST BE MONITORED TO ACCEPTABLE LEVELS

• ALL PROCESSES HAVE TOOLS, METHODOLOGIES, MOVEMENTS, FACILATING GOODS N PEOPLE

• PEOPLE HAVE DIFFERENT KNOWLEDGE, SKILLS LEVELS N EXPERIENCE

Page 67: Production and Operations Management

QUALITY CONTROL TOOLSQUALITY CONTROL TOOLS• 1. FLOW CHART

• 2. CHECK SHEET

• 3. HISTOGRAM

• 4. PARETO ANALYSIS

• 5. SCATTER DIAGRAMS

• 6. CONTROL CHARTS

• 7. CAUSE AND EFFECT DIAGRAMS

( FISH BONE DIAGRAM)

Page 68: Production and Operations Management

DIFFERENT APPROACHES TO DIFFERENT APPROACHES TO TQMTQM

• DEMING WHEEL

• JURANS – UNIVERSAL BREAHTHROUGH SEQUENCE

• CROSBY’S ABSOLUTES OF QUALITY

Page 69: Production and Operations Management

DEMINGDEMING• W. Edwards Deming in the 1950's

proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements

Page 70: Production and Operations Management

PDCA WHEELPDCA WHEEL

Page 71: Production and Operations Management

JURAN – QUALITY GURUJURAN – QUALITY GURU

Joseph Moses Juran (December 24, 1904 – February 28, 2008)

was a 20th century management consultant who is principally remembered as an evangelist for quality and quality management, writing several influential books on those subjects

Page 72: Production and Operations Management

QUALITY TRILOGY – 50 YRS OF QUALITY TRILOGY – 50 YRS OF RESEARCH RESEARCH

• Quality Planning

• Identify who are the customers.

• Determine the needs of those customers.

• Translate those needs into our language.

• Develop a product that can respond to those needs.

• Optimize the product features so as to meet our needs and customer needs.

Page 73: Production and Operations Management

QUALITY IMPROVEMENT AND QUALITY IMPROVEMENT AND CONTROL CONTROL

• Quality Improvement

• Develop a process which is able to produce the product.

• Optimize the process.

• Quality Control

• Prove that the process can produce the product under operating conditions with minimal inspection.

• Transfer the process to Operations

Page 74: Production and Operations Management

CUSTOMER PERSPECTIVECUSTOMER PERSPECTIVE

• Juran describes quality from the customer perspective as having two aspects:

• higher quality means a greater number of features that meet customers' needs.

• The second aspect relates to "freedom from trouble": higher quality consists of fewer defects

Page 75: Production and Operations Management

JURAN INSTITUTE -1979JURAN INSTITUTE -1979

• Dr. Juran wrote that the purpose of the Institute is to improve the quality of society. He said, “Whatever you do make sure it improves society. Don’t just do it for the sake of profit.” A true leader is not just there to lead a company. They must have a purpose. I hope to continue to build upon the foundation of true leadership which Dr. Juran embodied.

• Joseph A. De FeoPresident & Executive Coach

•  http://www.juran.com

Page 76: Production and Operations Management

SEE THE HUMILITY OF THE SEE THE HUMILITY OF THE FATHER OF QUALITYFATHER OF QUALITY

• Juran has contributed more to the field and over a longer period of time than any other person, and yet, felt he had barely scratched the surface of his subject.

• "My job of contributing to the welfare of my fellow man," wrote Juran, "is the great unfinished business."   

Page 77: Production and Operations Management

CROSBYCROSBY• Philip Crosby is an American who promoted the

phrases “zero defects” and “right first time”. “Zero defects” doesn’t mean mistakes never happen, rather that there is no allowable number of errors built into a product or process and that you get it right first time.

• Philip Crosby believes management should take prime responsibility for quality, and workers only follow their managers’ example

Page 78: Production and Operations Management

4 ABSOLUTES OF QUALITY 4 ABSOLUTES OF QUALITY

• Quality is conformance to requirements

• Quality prevention is preferable to quality inspection

• Zero defects is the quality performance standard

• Quality is measured in monetary terms – the price of non-conformance

Page 79: Production and Operations Management

CROSBY GAVE 14 POINTSCROSBY GAVE 14 POINTS

• INGREDIENTS ARE:

• 1. INTEGRITY – HONESTY N COMMITMENT HELP PRODUCING EVERYTHING RIGHT FIRST TIME, EVERY TIME

• 2. COMMUNICATION

• 3. SYSTEMS N OPS

• 4. TRAINING N QUALITY IMP TEAMS

Page 80: Production and Operations Management

ISOISO• ISO (International Organization for Standardization)

is the world's largest developer and publisher of International Standards.

• ISO is a network of the national standards institutes of 163 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system.

• ISO is a NGO that forms a bridge between the public and private sectors.

• Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.

Page 81: Production and Operations Management

Why ISO?Why ISO?

• Because "International Organization for Standardization" would have different acronyms in different languages ("IOS" in English, "OIN" in French for Organization internationale de normalisation), its founders decided to give it also a short, all-purpose name

• "ISO", derived from the Greek isos, meaning "equal". Whatever the country, whatever the language, the short form of the organization's name is always ISO.

Page 82: Production and Operations Management

INTERNATIONAL STANDARDSINTERNATIONAL STANDARDS The economic stakeholders concerned agree on

specifications and criteria to be applied consistently in the classification of materials, in the manufacture and supply of products, in testing and analysis, in terminology and in the provision of services.

Provide a reference framework, or a common technological language, between suppliers and their customers. This facilitates trade and the transfer of technology.

Page 83: Production and Operations Management

OBJECTIVES OF ISOOBJECTIVES OF ISO

• 1. MAINTAIN PRODUCT QUALITY IN RELATIONSHIP TO REQUIREMENTS AND TO REINFORCE N IMPROVE

• 2. GIVE CONFIDENCE TO ALL STAKE HOLDERS THAT THE ORGN IS RUN ON QUALITY LINES

• 3. INSTIL A SENSE OF PRIDE TO MOTIVATE EMPLOYEES

Page 84: Production and Operations Management

ISO 9000 FAMILYISO 9000 FAMILY

• The ISO 9000 family of standards represents an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards

• Designed to help organizations ensure they meet the needs of customers and all stakeholders

Page 85: Production and Operations Management

KEY ELEMENTS OF ISO 9000KEY ELEMENTS OF ISO 9000

• 1. DOCUMENTATION FOR ALL ACTIVITES

• 2. SELF AUDIT AND CUSTOMER AUDIT

• 3. CONTINUAL IMPROVEMENT

• 4. TRAINING, AWARENESS N COMMUNICATION

• 5. CERFICIATION BY ACCREDITED AGENCIES

Page 86: Production and Operations Management

BUSINESS PROCESS BUSINESS PROCESS MODELLING -BPMMODELLING -BPM

A TOTAL RESPONSE THAT A BUSINESS UNDERTAKES UTLISING THE RESOURCES AND DELIVERING THE OUTPUTS THAT CREATE VALUE FOR THE CUSTOMER

Page 87: Production and Operations Management

REASONS FOR BPMREASONS FOR BPM

• 1. IMPROVE THE PERFORMANCE OF THE PROCESS

• 2. DELIVER BETTER VALUE

• 3. MAXIMISE THE EARNINGS

• 4. TO GAIN A COMPETITIVE EDGE

Page 88: Production and Operations Management

LOGICAL PROCESS MODELLINGLOGICAL PROCESS MODELLING

IT IS THE REP OF PUTTING TOGETHER ALL THE ACTIVIES OF THE PROCESS IN DETAIL AND MAKING AREP OF THEM

• 1. PROCESS DESCRIPTIONS

• 2. FLOW CHARTS

• 3. FLOW DIAGRAMS

• FUNCTIONHIERARCHIES

• FUNCTION DEPENDENCY DIAGRAMS

Page 89: Production and Operations Management

PHYSICAL PROCESS PHYSICAL PROCESS MODELLING - PPMMODELLING - PPM

• PPM IS CONCERNED WITH THE ACTUAL DESIGN OF DATA BASE MEETING THE REQUIREMENTS OF BUSINESS

• CONVERSION OF THE LOGICAL MODEL INTO A RELATIONAL MODEL

• ALL THE INFO IS PUT TOGETHER TO MAKE THE DATABASE SOFTWARE SPECIFIC- SHOWING TABLES N RELATIONSHIPS WITH A DATABASE

Page 90: Production and Operations Management

SUCCESS OF A BUSINESS SUCCESS OF A BUSINESS PROCESSPROCESS

• RESOURCES ARE OPTIMALLY UTILISED

• ACTIVITIES ARE EFFECTIVELY CONDUCTED

• OUTCOMES R CLOSE TO EXPECTATIONS

Page 91: Production and Operations Management

PROJECT MANAGEMENT - PMPROJECT MANAGEMENT - PM

• PM IS THE COMPLETE SET OF TASKS, TECHNIQUES, AND TOOLS APPLIED DURING PROJECT EXECUTION

• PM IS THE APPLN OF KNOWLEDGE, SKILLS, TOOLS AND TECHNIQUES TO PROJECT ACTIVITIES TO MEET PROJECT REQUIREMENTS

Page 92: Production and Operations Management

PROJECTPROJECT

• A PROJECT IS A TEMPORARY ENDEAVOUR WITH A FINITE COMPLETION DATE UNDERTAKEN TO CREATE A UNIQUE PRODUCT OR SERVICE.

• PROJECTS BRING FORM AND FUNCTION TO IDEAS OR NEEDS

Page 93: Production and Operations Management

MANAGEMENTMANAGEMENT

MGT IS THE TECHNIQUE OF UNDERSTANDING THE PROBLEMS, NEEDS, AND CONTROLLING THE USE OF RESOURCES SUCH AS COST, TIME, MANPOWER AND MATERIALS

Page 94: Production and Operations Management

PROJECT FEATURESPROJECT FEATURES• 1. START AND AN END DATE

• 2. SCOPE OF WORK WELL DEFINED

• 3.MULTI-DISCIPLANARY TEAM WORK

• 4. CONSTRAINED BY COST, TIME AND QUALITY

• 5. A SPONSOR WHO HAS ADEQUATE AUTHORITY AND RESOURCES

Page 95: Production and Operations Management

STAKEHOLDERS IN PMSTAKEHOLDERS IN PM

• 1. CUSTOMER

• 2. PERFORMING ORGN

• 3. PROJECT MANAGER

• 4. SPONSOR

Page 96: Production and Operations Management

INGREDIENTS OF A GOOD INGREDIENTS OF A GOOD PROJECTPROJECT

• 1. DEFINE THE PROJECT• 2.SET MANAGEABLE TASKS• 3. OBTAIN RESOURCES• 4. BUILD A TEAM• 5. PLAN N ALLOCATE THE TASK• 6. MONITOR N CONTROL• 7. REPORT TO TOP MGT• 8. CLOSE WHEN COMPLETE• 9. REVIEW THE PROJECT

Page 97: Production and Operations Management

PM IS NECESSARYPM IS NECESSARY

• 1. HUGE CAPITAL OUTLAY• 2. LOSS CAN CAUSE HUGE NEGATIVE

IMPACT• 3. FAILURES MAY OCCUR DURING THE

PROCESS• 4. SCOPE MAY CHANGE• 5. TECHNOLOGY USED MAY CHANGE• 6. CHANGES IN ECONOMIC CONDITIONS

CAN AFFECT A PROJECT….

Page 98: Production and Operations Management

DIMENSIONS OF PMDIMENSIONS OF PM

• 1. FEATURES

• 2.COST

• 3. QUALITY

• 4.SCHEDULE – TIME DIMENSION

• 5. STAFF

Page 99: Production and Operations Management

EACH OF 5 DIMENSIONS CAN EACH OF 5 DIMENSIONS CAN TAKE ONE OF THREE ROLESTAKE ONE OF THREE ROLES

• 1. DRIVE – A DRIVER IS A KEY OBJECTIVE OF THE PROJECT – IT HAS LOW FLEXIBILITY TOWARDS THE PROJECT TEAM

• 2. CONSTRAINT – LIMITING FACTOR GIVING VIRTUALLY NO FLEXIBILITY

• 3. DOF – DEGREE OF FREEDOM – THIS PROVIDES WIDER LATITUDE FOR BALANCING THAT DIMENSION AGAINST THE OTHER FOUR

Page 100: Production and Operations Management

KIVIAT DIAGRAMKIVIAT DIAGRAM

• IT IS A USEFUL TOOL IN PM TO COMPARE THE RELATIVE FLEXIBILITY OF THE PARAMETERS CONSIDERED

Page 101: Production and Operations Management

EXAMPLE OF KIVIAT DIAGRAMEXAMPLE OF KIVIAT DIAGRAM

Page 102: Production and Operations Management

WBS WBS • Work Breakdown Structure (WBS) makes

complex projects more manageable. It is designed to help break down a project into manageable chunks that can be effectively estimated and supervised. Reasons for creating a WBS include:

• Assists with accurate project organization • Helps with assigning responsibilities • Shows the control points and project milestones • Allows for more accurate estimation of cost, risk

and time • Helps explain the project scope to stakeholders

Page 103: Production and Operations Management

PM KNOWLEDGE AREAS PM KNOWLEDGE AREAS

Page 104: Production and Operations Management

PROJECT PROCESS PROJECT PROCESS

Page 105: Production and Operations Management

PROCESS GROUPS N PROCESS GROUPS N CUSTOMISATIONCUSTOMISATION

• 1. INITIATING PROCESSES

• 2. PLANNING PROCESSES

• 3. EXECUTING PROCESSES

• 4. CONTROLLING PROCESSES

• 5. CLOSING PROCESSES

• 6. PROCESS INTERACTIONS

• 7. CUSTOMISATION

Page 106: Production and Operations Management

PROJECT MIND SETPROJECT MIND SET

• 1. TIME

• 2.RESPONSIVENESS

• 3.INFORMATION SHARING

• 4.PROCESSES

• 5. STRUCTURED PLANNING

Page 107: Production and Operations Management

SELECTION CRITERIA IN SELECTION CRITERIA IN PROJECT EVALUATIONPROJECT EVALUATION

• 1. RELEVANCE TO DEFINED SCOPE• 2. RELEVANCE TO MARKET OPPOR..• 3. STATE OF ART TECH MEHODOLOGIES• 4.PROJECT WORK PLAN• 5. PROJECT MANAGEMENT• 6. EFFORT JUSTIFICATION• 7. POTENTIAL IDENTIFIED• 8. CREATIVITY

Page 108: Production and Operations Management

PM LIFE CYCLEPM LIFE CYCLE

Page 109: Production and Operations Management

PROJECT LIFE CYCLEPROJECT LIFE CYCLE

Page 110: Production and Operations Management

PHASES OF PM LIFE CYCLEPHASES OF PM LIFE CYCLE

• 1. ANALYSIS N EVALUATION

• 2. MARKETING

• 3. DESIGN

• 4. EXECUTION

• 5. CONTROL – INSPECTING, TESTING AND DELIVERY

• 6. CLOSURE AND POST COMPLETION ANALYSIS

Page 111: Production and Operations Management

PROJECT DEVELOPMENT PROJECT DEVELOPMENT PROCESS CYCLE - QUALITY PROCESS CYCLE - QUALITY

CONTROLCONTROL• 1. PLANNING FOR REVIEW• 2.CONDUCTING THE REVIEW• 3.TAKING ACTIONS ON FINDINGS• 4. DO CONTINUOUS IMPROVEMENT• 5. IDENTIFYING CRITICAL SUCCESS

FACTORS – THESE FACTORS MAY SLACKEN THE PROJECT IF NOT FOCUSED

Page 112: Production and Operations Management

PERT ( DEV IN 50S) PERT ( DEV IN 50S) • PERT IS A PM TOOL – USED TO

SCHEDULE, ORGANISE, AND COORDINATE TASKS WITHIN A PROJECT

• USING PERT CHART, THE COLLECTION OF SERIES AND PARALLEL TASKS PERFORMED IN COMPLEX PROJECTS CAN BE REPRESENTED IN A NETWORK DIAGRAM.

• IT REPRESENTS THE ACTIVITIES AND MILESTONES OF THE PROJECT

Page 113: Production and Operations Management

STEPS IN PERT CHARTSTEPS IN PERT CHART• 1. DEFINE START AND END DATES• 2. IDENTIFY THE SPECIFIC ACTIVITIES• 3. CONSTRUCT A NETWORK DIAGRAM• 4. ESTMITATE TIME FOR EACH ACTIVITY • – O – P –MOST LIKELY• Expected time = (Optimistic time + 4 X Most

likely time + Pessimistic time) / 6.• 5. DETERMINE THE CRITICAL PATH• 6. UPDATE THE PERT CHART AS THE

PROJECT PROCESSES

Page 114: Production and Operations Management

PERT CHART - EXAMPLEPERT CHART - EXAMPLE

Page 115: Production and Operations Management

CHANGE CONTROLCHANGE CONTROL

• UNCERTAINITIES ARE PART OF THE PROJECT

• NECESSARY TO BE FLEXIBLE• CONTTOLLING IS POSSIBLE THROUGH

A PROPER CHANGE MANAGEMENT PROCESS

• THESE FACTORS MAY AFFECT THE PROGRESS OF THE PROJECT, COST N SCOPE OF THE PROJECT

Page 116: Production and Operations Management

CHANGING PROJECT MGT CHANGING PROJECT MGT PROCESSPROCESS

• 1. REQUEST FOR CHANGE

• 2.IDENTIFY ALTERNATIVE SOLUTIONS

• 3. DECIDE ON THE ACTIONS FOR THE CHANGE

• 4. IMPLEMENT CHANGE

Page 117: Production and Operations Management

RISK MANAGEMENTRISK MANAGEMENT

• RISKS ARE THOSE EVENTS OR CONDITIONS THAT MAY OCCUR AND WHOSE OCCURRENCE HAS A HARMFUL OR NEGATIVE IMPACT ON THE PROJECT

• RISK MANAGEMENT AIMS TO IDENTIFY THE RISKS AND THEN TAKE ACTIONS TO MINIMISE THEIR AFFECT ON THE PROJECT

Page 118: Production and Operations Management

COMPONENTS OF RISK MGTCOMPONENTS OF RISK MGT

• 1. RISK ASSESSMENT• 2. RISK PRIORITISING – BASED ON

PROBABILITY AND EFFECTS ON THE PROJECT

• 3. RISK CONTROL• 4. RISK MITIGATION – MONITOR THE

PLANNED STEPS, PERIODICALLY REVISIT THE RISK PERCEPTION AND MAKE FRESH RISK ANALYSIS

Page 119: Production and Operations Management

MODERN TRENDS IN PMMODERN TRENDS IN PM

• PMIS – PM INFORMATION SYSTEM

• 1. PROVIDING INFO TO STAKEHOLDERS

• 2. ASSISTING TEAM MEMBERS N OTHERS TOWARDS DM

• 3.ASSISTANCE IN ‘WHAT IF ANALYSIS’ – STAFFING, RESOURCES ETC

• 4. HELPING ORGN LEARNING ABOUT PM

Page 120: Production and Operations Management

MODERN TOOLS IN PMMODERN TOOLS IN PM

• 1. CONTINUOUS BUSINESS PROCESS IMPROVEMENT

• 2. FORCE FIELD ANALYSIS

• 3. INFORMATION RISK MGT

• 4. MGT ASSURANCE MEASURE

• 5. ISO CERTIFICATION

• 6. STRATEGIC INFLECTION POINT

Page 121: Production and Operations Management

FORCE FIELD ANALYSISFORCE FIELD ANALYSIS• The force field diagram is derived from the work

of Lewin’s theories, human behavior is caused by forces – beliefs, expectations, cultural norms, and the like – within the "life space" of an individual or society. These forces can be positive, urging us toward a behavior, or negative, propelling us away from a behavior. A force field diagram portrays these driving forces and restraining forces that affect a central question or problem. A force field diagram can be used to compare any kind of opposites, actions and consequences, different points of view, and so on.

Page 122: Production and Operations Management

DMAIS CYCLEDMAIS CYCLE

Page 123: Production and Operations Management

NEW HORIZONS IN PMNEW HORIZONS IN PM

Page 124: Production and Operations Management

SCM – ONE OF THE DEFINITIONS SCM – ONE OF THE DEFINITIONS • Supply chain management encompasses the

planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.

• Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers.

• In essence, supply chain management integrates supply and demand management within and across companies.

• http://cscmp.org

Page 125: Production and Operations Management

ISCMISCM

• INTEGRATED SCM MEANS THE PROCESS TO INTEGRATE AND MANAGE THE SCM AS ONE ENTITY

• INCLUDES SUPPLIERS, PRODUCTION,DISTRIBUTION, SERVICES AND CUSTOMERS

Page 126: Production and Operations Management

A SNAP SHOT OF SCMA SNAP SHOT OF SCM

Page 127: Production and Operations Management

ELEMENTS OF SUPPLY CHAINELEMENTS OF SUPPLY CHAIN

• LOCATION

• PRODUCTION

• INVENTORY

• TRANSPORTATION

• MANAGING THE CHAIN – INCLUDING PRODUCT FLOW, INFORMATION FLOW AND FINANCIAL FLOW….

Page 128: Production and Operations Management

PRINCIPLES OF SCMPRINCIPLES OF SCM

• 1. GROUP CUSTOMER BY NEEDS

• 2.CUSTOMISE THE LGS NETWORK

• 3.LISTEN TO SIGNALS OF MKT DYNAMICS

• 4.DIFFERENTIATE THE PRODUCT CLOSER TO THE CUSTOMER DEMAND

Page 129: Production and Operations Management

PRINCIPLES (CONTD)PRINCIPLES (CONTD)

• 5. STRATEGICALLY MANAGE THE SOURCES OF SUPPLY

• 6. DEVELOP A SUPPLY CHAIN WIDE TECNOLOGY STRATEGY

• 7. ADOPT CHANNEL SPANNING PERFORMANCE MEASURES – APPLY PERFORMANCE CRITERIA THAT EMBRACE BOTH SERVICE AND FINANCIAL METRICS

Page 130: Production and Operations Management

BULLWHIP EFFECTBULLWHIP EFFECT

• The Bullwhip Effect is a deformation in information when it goes upstream in the supply chain. More precisely, the demand of the customer is put out of shape each time it goes from a company to another

Page 131: Production and Operations Management

IMPACT OF BULLWHIP EFFECTIMPACT OF BULLWHIP EFFECT

Page 132: Production and Operations Management

CAUSES OF BULLWHIP EFFECTCAUSES OF BULLWHIP EFFECT

• 1. SOURCES OF VARIABILITY – DEMAND, QUALITY PROBLEMS,STRIKE,FIRE ETC

• 2. COMMUNICATION, CO-ORD ISSUES

• 3. DEMAND FORECAST INACCURACIES

• 4. SHORTAGE GAMING

• 5. ORDER BATCHING

• 6. FREE RETURN POLICIES….

Page 133: Production and Operations Management

COLABORATIVE SUPPLY CHAINCOLABORATIVE SUPPLY CHAIN

• UPSTREAM SUPPLY CHAIN ( INBOUND LOGISTICS)

• INTERNAL SUPPLY CHAIN ( IN HOUSE PROCESSES)

• DOWNSTREAM SUPPLY CHAIN

• ( OUTBOUND LOGISTICS)

Page 134: Production and Operations Management

FINANCIAL SUPPLY CHAIN – FINANCIAL SUPPLY CHAIN – NEW REVOLUTION IN SCM FOLDNEW REVOLUTION IN SCM FOLD

• 1. FISCAL DISCIPLINE AND CONTROL

• 2. INTEGRATED NETWORKING OF INFORMATION

• 3. MULTI-DIMENSIONAL FINANCIAL MGT COCKPIT

• 4. CONTROL OF INVENTORY AND IDLING OF ASSETS

Page 135: Production and Operations Management

ERGONOMICSERGONOMICS

• A DISCIPLINE OF EQUIPMENT DESIGN, FOR A WORKPLACE, IN ORDER TO MAXIMISE PRODUCTIVITY AND REDUCE THE STRESS AND DISCOMFORT OF THE OPERATOR.

• SOURCE GREEK – ERGON IS WORK N NOMOS MEANS LAWS = LAWS OF WORK

Page 136: Production and Operations Management

J I T J I T

• Just-in-time (JIT) manufacturing is a process by which companies don't keep lots of excess inventory; instead, they manufacture a product as an order comes in.

•   Companies that employ it effectively can decrease their inventories and increase overall efficiencies.  Decreasing inventory allows companies to decrease waste, which saves lots of money; however, this often comes at the cost of slower completion times to fill orders.

 

Page 137: Production and Operations Management

ADVANTAGES OF J I TADVANTAGES OF J I T

• 1. ENHANCED PRODUCTIVITY

• 2. REDUCES OPERATING COSTS

• 3. IMPROVES QUALITY

• 4. IMPROVES DELIVERABLES

• 5. INCREASES FLEXIBILITY AND INNOVATIVENESS

Page 138: Production and Operations Management

CHARACTERISTICS OF J I TCHARACTERISTICS OF J I T

• WASTES TO BE ELIMINATED• 1. OVER PRODUCTION• 2. INVENTORY• 3. TIME• 4. MOVEMENT• 5. EFFORT• 6.EFECTIVE PRODUCTS• 7. OVER PROCESSING

Page 139: Production and Operations Management

KEY PROCESSES TO ELIMINATE KEY PROCESSES TO ELIMINATE WASTEWASTE

• 1. KANBAN FOR MATERIAL FLOW

• 2. HIGH QUALITY PRODUCTION

• 3. SMALL AND UNIFORM WORKLOADS

• 4. SUPPLIERS AS PARTNERS

• 5. FLEXIBLE WORKFORCE AND TRAINING

• 6. TOTAL PRODUCTIVE MAINTENANCE

Page 140: Production and Operations Management

KANBANKANBAN•  It is a specific type of inventory control

system - based upon a series of colored cards. These cards denote such factors as quantity, the type of part and the manufacturer.

• A card is placed in the bin or other container with each group of manufactured items as an identifier for those involved with the next phase of production or distribution.

Page 141: Production and Operations Management

CHALLENGES FOR J I TCHALLENGES FOR J I T

• ACCURATE ASSESSMENT OF :-• 1. FORECASTS OF THE MKT DEMAND• 2.CAPACITIES OF THE EQUIPMENTS• 3. WORKER ABSENTEEISM• 4. SUPPLIERS LEAD TIMES• 5. QUALITY OF THE PRODUCED

COMPONENTS• OTHER FACTORS INCLUDING AVOIDING

BOTTLENECKS, INFORMATION FLOW…

Page 142: Production and Operations Management

VALUE ENGGVALUE ENGG

• VALUE ENGG OR VALUE ANALYSIS IS A METHODOLOGY BY WHICH WE TRY TO FIND SUBSTITUES FOR A PRODUCT OR AN OPERATION

• ALTERNATIVES ARE FOUND FOR INCREASING THE FUNCTIONALITY OR REDUCING THE COST IN TERMS OF MATERIAL, PROCESS AND TIME

Page 143: Production and Operations Management

PROCESS OF VAPROCESS OF VA

• 1. DATA GATHERING

• 2. ANALYSIS AND VALUATION OF FUNCTIONS

• 3. IDEA GENERATION AND EVALUATION OF SUBSTITUTES

• 4. IMPLEMENTATION AND REGULATION

Page 144: Production and Operations Management

AIMS OF V ENGGAIMS OF V ENGG

• 1. PRODUCT SIMPLIFICATION

• 2. BETTER AND LESS COSTLY MATERIALS

• 3. IMPROVED PRODUCT DESIGN

• 4. HIGH EFFICIENCY IN PROCESSES

• 5. ECONOMY IN ALL ACTIVITIES

Page 145: Production and Operations Management

DIFFERENT ASPECTS OF VEDIFFERENT ASPECTS OF VE

• 1. PROBLEM/SITUATION NEEDING CHANGE• 2. ALL THAT IS GOOD – NOW• 3. IMPROVMENTS REQUIRED• 4. FUNCTIONS TO BE PERFORMED• 5. WAYS OF PERFORMING EACH FUNCTION• 6. BEST WAYS AMONG THE SELECTED• 7. STEPS TO BE FOLLOWED TO IMPLEMENT• 8. PERSON WHO EXECUTES THE FUNCTION

Page 146: Production and Operations Management

MAIN BENEFITS OF VEMAIN BENEFITS OF VE

• 1. COST REDUCTION• 2. OVERALL COST CONSCIOUSNESS• 3. CULTURE OF EFFECTING SAVINGS• 4. STREAMLINING OF SYSTEMS• 5. CREATING TRANSPARENCY• 6. DEVELOPMENT OF RELIABLE

SUPPLIERS• 7. OVERALL ENHANCING VALUE

Page 147: Production and Operations Management

WHEN TO IMPLEMENT VAWHEN TO IMPLEMENT VA• PRODUCT DESIGN N DEVELOPMENT

STAGE• WILL HELP ANALYSE ENGG

DRAWINGS OF PROJECTED PRODUCTS

• HELP ACHIEVE EFFICIENT, EFFECTIVE AND RELIABLE DESIGNS, REDUCES THE COST, AVOID UNWANTED OPS AND IMPROVES QUALITY AT INITIAL STAGE ITSELF

Page 148: Production and Operations Management

QUANTITATIVE MODELSQUANTITATIVE MODELS

• SOLVING PROBLEMS THROUGH THE QUANTITATIVE APPROACH:-

• 1. DEFINE THE PROBLEM

• 2. CONSTRUCT A MATHEMATICAL MODEL

• 3. TEST THE MODEL AND ITS SOLUTION

Page 149: Production and Operations Management

TYPES OF MODELSTYPES OF MODELS

• 1. LINEAR PROGRAMMING

• 2. TRANSPORTATION MODEL

• 3. ASSIGNMENT MODEL

• 4. INVENTORY CONTROL MODEL

• 5. WAITING LINE MODEL

• 6. SIMULATION MODEL

• 7. PERT AND CPM