Production Mangement Intro...

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Introduction to Production/Operations Management

Karthick.K Assistant Professor RVS IMSR


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Over view o Production ! OperationOver view o Production ! Operation

ManagementManagement

"


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#nit $

Contents in POMContents in POM #nit $ " Introduction:

Concept o Production% Objectives% &cope

o Production and Operations

Management% 'istorica( deve(opment%

Production &)stem: C(assi*cation o

production s)stem% T)pes + P(ant (ocation:

,actors in-uencing p(ant (ocation. P(ant

(a)out: Objectives% C(assi*cation o

(a)out. ercise: Prob(ems in Productivit).0


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#nit 1

Contents in POMContents in POM #nit 1 " Production

P(anning and Contro(: Objectives%

2ggregate p(anning% Master

production schedu(e 3MP&4% Materia(

re5uirement p(anning 3M6P4% M6P II%

Capacit) re5uirement p(anning 3C6P4.

ercise: Prob(ems in MP& and M6P.

7


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Contents in POMContents in POM #nit 0 " Inspection and


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#nit 7

Contents in POMContents in POM #nit 7 " Maintenance:

Objective% T)pes ?ork stud):

Objectives% Method stud): &teps%

6ecording techni5ues% &e(ection%

amine% Time stud): &teps in time

stud) ?ork &amp(ing: Concepts%

&teps% ercise:Prob(ems in &tandard

time and work samp(ing.@


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Tet ooks:Tet ooks:#illiam $! Ste%enson, 01, Operations

Management Theor) and Practice,Mcra'"(ill, 11th )dition!

*annersel%amR, 01, Production andOperations Management, *(I+ e'

-elhi, .rd )dition!

Mar/s brea/"u in the eam+ >7 A +Theor) and 17 A + Prob(ems.

B


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*rocess

10 Karthick.K Assistant Professor RVS IMSR


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*roduction23erations management is therocess 'hich combines and transforms%arious resources used in the*roduction23erations subsstem of the

organi5ation into %alue addedroducts2ser%ices in a controlled manneras er the olicies of the organi5ation!



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Introduction3erations management is the management

of an organi5ations roducti%e resources orits roduction sstem!

7 roduction sstem ta/es inuts and

con%erts them into oututs!8he con%ersion rocess is the redominant

acti%it of a roduction sstem!

8he rimar concern of an oerationsmanager is the acti%ities of the con%ersionrocess!

1. Karthick.K Assistant Professor RVS IMSR


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3rgani5ational Model

MarketingMarketing

MISMISEngineeringEngineering

HRMHRM

QAQA

AccountingAccounting

SalesSales

FinanceFinance

OMOM



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3erations as a Sstem

InputsInputsInputsInputs OutputsOutputsOutputsOutputs

ConversionConversion

SubsystemSubsystem

ConversionConversion

SubsystemSubsystem

Prouction SystemProuction System

ControlControl

SubsystemSubsystem

ControlControl

SubsystemSubsystem



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Inuts of an 3erations Sstem

)ternal:egal, )conomic, Social, 8echnological

Mar/etCometition, Customer -esires, *roduct Info!

*rimar ResourcesMaterials, *ersonnel, Caital, ;tilities



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Con%ersion Subsstem

*hsical


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3ututs of an 3erationsSstem-irect*roducts

Ser%ices

Indirect

#aste*ollution

8echnological 7d%ances

1@ Karthick.K Assistant Professor RVS IMSR


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*roduction function is that art of anorgani5ation, 'hich is concerned 'ith thetransformation of a range of inuts into thereAuired oututs


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*roduction is dened as the step-by-stepconversion of one form of material intoanother form through chemical or mechanical

process to create or enhance the utility of the

product to the user.Thus production is a value addition process.

At each stage of rocessing, there 'ill be

%alue addition!

)d'ood DuEa denes roduction as Fa processby which goods and services are created.



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Imortance of the roductionmanagement8he obGecti%e of the roduction

management is Fto roduce goods ser%ices

of right Aualit and Auantit at the righttime and right manufacturing cost!

$. 6I'T


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1. 6I'T


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". 6I'T TIM8imeliness of deli%er is one of the

imortant arameter to Gudge theeEecti%eness of roduction deartment! So,

the roduction deartment has to ma/e theotimal utili5ation of inut resources toachie%e its obGecti%e!

. Karthick.K Assistant Professor RVS IMSR


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0. 6I'T M29#,2CT#6I9 CO&TManufacturing costs are established before

the roduct is actuall manufactured!(ence, all

attemts should be made to roduce theroducts at re"established cost, so as toreduce the

%ariation bet'een actual and the standard


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(istorical Milestones in 3M

8he Industrial Re%olutionScientic Management

(uman Relations and Deha%iorism

3erations Research8he Ser%ice Re%olution



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? Karthick.K Assistant Professor RVS IMSR


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@ Karthick.K Assistant Professor RVS IMSR


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M7H) or D; -)CISI3

7n automobile coman has etra caacitthat can be used to roduce gears that thecoman has been buing for rs!.00 each! ifthe coman ma/es the gears, it 'ill incur

materials cost of rs!B0 er unit, labour cost ofRs!10 er unit and %ariable o%erhead cost ofrs!.0 er unit!

the annual ed cost associated 'ith theunused caacit is rs!,40,000! demand o%erthe net ear is estimated at 4000 units!

B Karthick.K Assistant Professor RVS IMSR


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M7H) or D; -)CISI3

7 manufacturer of motor ccles bus sidebo at Rs!40 each! in case he ma/es ithimself, the ed and %ariable costs 'ould beRs!.,00,000 and Rs!B0 er side bo,

resecti%el! Should the manufacturer ma/eor bu the side bo if there is a demand o%erthe net ear is estimated at 900 sideboesJ

.0 Karthick.K Assistant Professor RVS IMSR


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8he Industrial Re%olution

8he industrial re%olution de%eloed in)ngland in the 1?00s!

8he steam engine, in%ented b $ames #attin 1?64, largel relaced human and 'ater

o'er for factories!7dam Smiths The Wealth of Nationsin 1??6

touted the economic benets of theseciali5ation of labor!

8hus the late"1?00s factories had not onlmachine o'er but also 'as of lanningand controlling the tas/s of 'or/ers!



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8he Industrial Re%olution8he industrial re%olution sread from )ngland to

other )uroean countries and to the ;nited Sates!

In 1?B0 an 7merican, )li #hitne, de%eloed theconcet of interchangeable arts!

8he rst great industr in the ;S 'as the tetileindustr!

In the 1@00s the de%eloment of the gasolineengine and electricit further ad%anced there%olution!

D the mid"1@00s, the old cottage sstem ofroduction had been relaced b the factorsstem!

! ! ! more. Karthick.K Assistant Professor RVS IMSR


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*ost"Ci%il #ar *eriod

-uring the ost"Ci%il #ar eriod greateansion of roduction caacit occurred!

D ost"Ci%il #ar the follo'ingde%eloments set the stage for the great

roduction elosion of the 0th centur+increased caital and roduction caacitthe eanded urban 'or/forcene' #estern ;S mar/ets

an eEecti%e national transortation sstem

.. Karthick.K Assistant Professor RVS IMSR


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Scientic Management

>rederic/ 8alor is /no'n as the father ofscientic management! (is sho sstememloed these stes+)ach 'or/ers s/ill, strength, and learning abilit

'ere determined!Sto'atch studies 'ere conducted to recisel

set standard outut er 'or/er on each tas/!

Material secications, 'or/ methods, and routingseAuences 'ere used to organi5e the sho!

Suer%isors 'ere carefull selected and trained!Incenti%e a sstems 'ere initiated!



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Scientic Management

In the 1B0s, >ord Motor Comansoeration embodied the /e elements ofscientic management+standardi5ed roduct designs

mass roductionlo' manufacturing costs

mechani5ed assembl lines

seciali5ation of labor

interchangeable arts



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(uman Relations andDeha%ioralism In the 1B?"1B. eriod, researchers in the

(a'thorne Studies reali5ed that humanfactors 'ere aEecting roduction!

Researchers and managers ali/e 'ere

recogni5ing that schological andsociological factors aEected roduction!

>rom the 'or/ of beha%ioralists came agradual change in the 'a managersthought about and treated 'or/ers!



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3erations Research

-uring #orld #ar II, enormous Auantities ofresources


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8he Ser%ice Re%olution

8he creation of ser%ices organi5ationsaccelerated sharl after #orld #ar II!

8oda, more than t'o"thirds of the ;S

'or/force is emloed in ser%ices!

7bout t'o"thirds of the ;S -* is fromser%ices!

8here is a huge trade surlus in ser%ices!

In%estment er oLce 'or/er no' eceeds the

in%estment er factor 'or/er!8hus there is a gro'ing need for ser%ice

oerations management!

.@ Karthick.K Assistant Professor RVS IMSR


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8he Comuter Re%olution

)losi%e gro'th of comuter andcommunication technologies

)as access to information and the a%ailabilitof more information

7d%ances in soft'are alications such as)nterrise Resource *lanning


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*roduction as an 3rgani5ation>unction;S comanies cannot comete 'ith

mar/eting, nance, accounting, andengineering alone!

#e focus on 3M as 'e thin/ of global

cometiti%eness, because that is 'here the%ast maGorit of a rms 'or/ers, caitalassets, and eenses reside!

8o succeed, a rm must ha%e a strongoerations function teaming 'ith the otherorgani5ation functions!



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-ecision Ma/ing in 3M

Strategic -ecisions3erating -ecisions

Control -ecisions



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Strategic -ecisions

8hese decisions are of strategic imortanceand ha%e long"term signicance for theorgani5ation!

)amles include deciding+the design for a ne' roducts roduction

rocess

'here to locate a ne' factor

'hether to launch a ne'"roduct

de%eloment lan



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3erating -ecisions

8hese decisions are necessar if theongoing roduction of goods and ser%ices isto satisf mar/et demands and ro%iderots!

)amles include deciding+ho' much nished"goods in%entor to carr

the amount of o%ertime to use net 'ee/

the details for urchasing ra' material net

month

4. Karthick.K Assistant Professor RVS IMSR


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Control -ecisions

8hese decisions concern the da"to"daacti%ities of 'or/ers, Aualit of roductsand ser%ices, roduction and o%erheadcosts, and machine maintenance!

)amles include deciding+labor cost standards for a ne' roduct

freAuenc of re%enti%e maintenance

ne' Aualit control accetance criteria



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8*)S 3> *R3-;C8I3SS8)M

46Karthick.K Assistant Professor RVS IMSR


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Karthick.K Assistant Professor RVS IMSR

Production Mangement Intro...

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